investigation last year, but the complexity of the cases plus increased evidentiary requirements actually increased the workload. In addition, the field force was required to expedite many special projects and surveys. For example, at one time 85 attorneys had to be assigned to special investigations and educational programs. Typical have been the burdens of educating creditors and others concerning requirements of the Truth in Lending Act, and of assisting state authorities in giving force to their recently enacted "little FTC Acts."

Based on the projections of FTC's enforcement bureaus, planned and expanding investigational activities, plus intensification of consumer protection efforts, our field forces need to be strengthened by 13 attorneys and eight clerk-stenographers. In 1971, funds totaling $272,000 are requested for these positions and necessary supporting costs.

In the Commission's efforts to halt restraints of trade, the additionally requested resources will be used principally to reduce corporate mergers that are eliminating competition, particularly conglomerate mergers where economic power is being used to discourage the entry of new competitors and where opportunities for reciprocal dealing are being developed. Priority will be given to illegal merger and other trade restraint in the basic consumer industries, such as grocery products, automotive parts, lumber and building supplies and apparel. Despite the alarming increase in corporate mergers, the legal staff of our Division of Mergers has not increased since 1963. Moreover, with the merger problem veering to conglomerate, investigations and analyses have become more difficult due to the diverse product lines involved. Additionally, manpower must be expended to examine and, if necessary, take action on reports submitted by certain large corporations in compliance with FTC's "pre-merger notification program." In 1971 we request two additional attorneys and $35,000 for these vital activities. Also, $16,000 is requested for a person to assist in Bureau Planning activities, and for a coding clerk to aid in processing practices, commodities and geographic areas involved in letters of complaint.

Our Bureau of Economics requests five additional economists and $59,000 in 1971 for its Divisions of Economic Evidence and Industry Analysis.

It is imperative that the Commission be provided with information and competent analyses of economic facts to evaluate business problems affecting competition and the consumer. Their availability is the key to wise planning and the most effective use of staff and money. Such research also provides Congress and other government agencies with information needed to assess government-business problems.

In addition to the ad hoc projects that will be assigned to the Bureau's Division of Industry Analysis, the planned research projects scheduled for 1971 include: (1) a follow-up of the study of trends and patterns of conglomerate merger activity; (2) a study of whether and how more antitrust enforcement could aleviate trouble spots in highly concentrated industries, such as the steel industry; and (3) development of information needed to implement a program of affirmative disclosure requirements for the advertising and promotion of products offered consumers. This also would include an evaluation of FTC's experience in enforcing the Truth in Lending Act.

Increased productivity also will be required of the Division of Economic Evidence. The information and analyses it provides are vital to the prosecution of many of FTC's cases as well as to the development of enforcement policies. In the Office of General Counsel, the Division of Legislation-Federal-State Cooperation expects a substantial increase in bills pertaining to consumer protection laws, mergers and other areas of Commission interest in 1971. There is every indication to believe that the consumer protection movement will accelerate in the immediate future. Moreover, two recent studies have called for a reexamination of the Robinson-Patman Act, one of the Commission's principal statutes. An additional attorney and $22,000 are requested to accelerate the Commission's efforts in these areas.

For the Office of Program Review, an additional $18,000 is requested to: one attorney position. This additional position would provide the mix of attor and economists recommended in a Bureau of the Budget Staff Report f Commission-level program review staff. In addition to devising ways and m for the Commission to improve strategic planning and focus its resource the most significant problem areas in the economy, this well balanced staff be able to provide policy guidance be evaluating competing proposals for proj type investigations, and recommend appropriate actions for accomplishing mi missions.

In the Office of Administration, the Division of Data Processing has es lished a data bank covering complaints and other information that will point industries and products, geographic area, and practices on which to fo the attention of the Commission on emerging consumer protection problems. 1971, it is planned to include in the data bank pertinent data on business corp tions. Storage and accessibility of this vital data will require a capacity in excess of our current ability. Two additional positions and $11,000 are quested to help provide this service.

The Office of the Secretary is inadequately staffed to carry out its import responsibilities in an effective manner. In the past several years, increasing a uncontrollable workloads have required substantial overtime costs to be incuri for these activities. Two clerks are requested for legal and public record activit at a cost of $11,000.

The Bureau of the Budget has recommended that the resources available administering the Wool Products Labeling Act, the Textile Fiber Identificati Act and the Fur Products Labeling Act be reduced by 42 positions and $500,000 1971. We will utilize every means possible to police these Acts in the interes of safeguarding the public and fostering honest competition.

Organization chart.

FINANCIAL SUMMARIES INDEX

FTC employees and salaries by bureaus as of December 31, 1969.
Statutory authority and duties.

Obligations by activities.

Object classification (new account basis).

Comparative summary-salaries and expenses by bureaus.

Workload charts.

Commissiners and Commissioners' offices.

Office of program review.

Office of executive director.

Office of administration.

Office of comptroller.

Office of secretary.

Office of general counsel.

Hearing examiners.

Bureau of Restraint of Trade.

Bureau of Deceptive Practices

Bureau of Textiles and Furs.
Bureau of Field Operations.
Bureau of Industry Guidance.
Bureau of Economics.
Other expenses.

STATUTORY AUTHORITY AND DUTIES OF THE FEDERAL TRADE COMMISSION

Statutory Authority-the Federal Trade Commission, an administrative agency, created by the Act of September 26, 1914, is charged with the enforcement of the Federal Trade Commission Act as amended by the Wheeler-Lea Act, approved March 21, 1938 (52 Stat. 111-117); Section 2 of the Clayton Act, as amended by the Robinson-Patman Act, approved June 19, 1936 (49 Stat. 1526), and Sections 3, 7 as amended and 8 of the Clayton Act of October 15, 1914 (38 Stat. 730); the Export Trade Act, approved April 10, 1918 (40 Stat. 516); the Wool Products Labeling Act, approved October 14, 1940 (54 Stat. 1128); the Lanham Trade-Mark Act of 1946, approved July 5, 1946 (60 Stat. 427); the Fur Products Labeling Act, approved August 8, 1951 (65 Stat. 175); the Flammable Fabrics Act, approved June 30, 1953 (67 Stat. 111); amendment to the Packers and Stockyards Act, 1921, approved September 2, 1958 (72 Stat. 1749); and the Textile Fiber Products Identification Act, approved September 2, 1958 (72 Stat. 1717).

Duties-The principal duties of the Commission under the above-mentioned statutes are:

(1) The Federal Trade Commission Act-Under this Act, the Commission is charged with (a) the prevention of unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce; (b) the conduct of investigations relating to (1) alleged violations of the Antitrust Acts, (2) the manner in which decrees in Antitrust suits brought by the United States have been carried out, and (3) the organization, business, conduct, practices and management of corporations engaged in commerce (with certain statutory exemptions) and their relation to other enterprises; (c) the making of reports and recommendations to the Congress with respect to legislation; and (d) the conduct of trade conferences of industries for the elimination of unlawful and unethical business practices.

(2) Clayton Act-Under Sections 3, 7 and 8 of this Act the Commission is charged with the duty of preventing and eliminating unlawful tying contracts, corporate mergers and acquisitions and interlocking directorates. Under the Clayton Act, as amended by the Robinson-Patman Act, which greatly enlarged and increased the jurisdiction and duties of the Commission in respect to unlawful price discriminations, the Commission is charged with the prevention of certain specified practices, i.e., unlawful price and related discrimination.

(3) Amendment to Packers and Stockyards Act-The provisions of this amendment extend the Commission's jurisdiction to cover certain matters previously subject to the exclusive jurisdiction of the Secretary of Agriculture.

The amendment, in effect, grants the Commission jurisdiction over the activi ties of packers not related to livestock, meats, meat products, and the like. The Commission is granted additional power and jurisdiction over all transactions in commerce in margarine and oleomargarine and over retail sales of meat and related products. Other matters involving meat and related products are made subject to the Commission's jurisdiction where the Secretary requests the Commission to investigate and report or where, under certain circumstances, action by the Commission is necessary to exercise effectively its power or jurisdiction with respect to retail sales of meat and related products.

(4) Export Trade Act-The Commission is responsible for receiving and filing articles of association or incorporation of "associations" organized under the Export Trade Act; investigating their operations which may adversely affect competition within the United States; making recommendations to the associations for readjustments deemed necessary therein; and, where considered appropriate, making recommendations to the Attorney General for panel action. (5) Wool Products Labeling Act-Under this statute the manufacture for introduction into commerce, or the introduction, sale transportation or distribution, in commerce, of misbranded wool products, is unlawful, and constitutes an unfair method of competition and an unfair and deceptive act and practice under the Federal Trade Commission Act. The Commission is authorized to make inspections, analyses, tests and examinations of all wool products subject to the Act and to make such rules and regulations as may be necessary and proper for the administration and enforcement of the Act. In addition, the Commission is also empowered under the statute to prevent the movement of misbranded wool products in commerce by injunction and to proceed by libel action in certain cases for condemnation of such products.