TO AMEND THE ANTITRUST LAWS FRIDAY, JULY 28, 1939 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY, Washington, D. C. The subcommittee met, pursuant to call, in room 318, Senate Office Building, at 10:30 a. m., Senator Edward R. Burke (chairman) presiding. Present: Senators Burke (chairman), Danaher, and Miller. Also present: Senator Joseph C. O'Mahoney, of Wyoming. The purpose of the meeting this morning is to give the committee and the Members of Congress and others who may be interested to read these proceedings the opportunity to have the author of the bill, S. 2719, explain the provisions of the bill and what it is hoped may be accomplished by the enactment of such a measure. I would like for the record to show that it is the well-established custom of the Committee on the Judiciary of the United States Senate that when a bill is introduced and referred to this committee, if the introducer of the bill is a member of the committee, the chairman. appoints that person as the chairman of the subcommittee to consider the measure. I understand that in this case, although Senator O'Mahoney is a member of the Judiciary Committee, it was at his particular request that Chairman Ashurst of the committee appointed someone else. Senator O'Mahoney took the position that this is a matter of great importance. He felt that someone who had no connection with the drawing of the bill or interest in it other than as a general matter, wholly disinterested, should be chairman of the subcommittee; hence it became my lot to preside over this hearing. It it with very great pleasure that we will now hear from Senator O'Mahoney in reference to S. 2719. Senator O'MAHONEY. Thank you very much, Senator Burke. May I suggest that the record begin with the text of the bill, S. 2719? Senator BURKE. It will be so ordered. (The bill referred to is as follows:) [S. 2719, 76th Cong, 1st sess.] A BILL To provide additional civil remedies against violations of the antitrust laws, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 of the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies", approved July 2, 1890, is amended to read as follows: "SEC. 8. The word 'person', as used herein, means an individual, a corporation, a partnership, an association, a joint-stock company, a business trust, or any organized group of persons, whether incorporated or not; or any receiver, trustee, or liquidating agent of any of the foregoing in his capacity as such." SEC. 2. Such Act is amended by adding the following new section: "SEC. 9. This Act may be cited as the 'Sherman Antitrust Act"." 1 SEC. 3. Section 1 of the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15, 1914, is amended by striking out the third paragraph thereof and inserting in lieu of such third paragraph the following: "The word 'person', as used herein, means an individual or a company. "The word 'company', as used herein, means a corporation, a partnership, an association, a joint-stock company, a business trust, or any organized group of persons, whether incorporated or not; or any receiver, trustee or liquidating agent of any of the foregoing in his capacity as such. "The word 'director' means a director of a corporation or any individual who occupies a similar status or performs similar functions in respect of any company. "The word 'officer' means an officer of a corporation or any individual who occupies a similar status or performs similar functions in respect of any company. "The term 'antitrust provisions of the Tariff Act of 1913' means sections seventy-three to seventy-seven, inclusive, of an Act entitled 'An Act to reduce taxation, to provide revenue for the Government, and for other purposes,' approved August twenty-seventh, eighteen hundred and ninety-four, as amended by the Act entitled 'An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled "An Act to reduce taxation, to provide revenue for the Government, and for other purposes,' approved February twelfth, nineteen hundred and thirteen." SEC. 4. Section 14 of such Act is amended to read as follows: 999 "SEC. 14. (a) Any violation of any provision of the antitrust laws by any company shall be a violation of such provision by each officer or director of such company who shall have done, or authorized, ordered, or caused to be done, any act constituting in whole or in part such violation. In any proceeding against any officer or director of any company in respect of any such violation by such company, such officer or director, if he shall have had knowledge of any act constituting in whole or in part such violation, shall be presumed to have authorized, ordered, or caused such act; and if evidence shall be introduced in behalf of such officer or director adequate to rebut such presumption, the fact of such knowledge shall, nevertheless, be submitted to the jury, or, in any action tried by the court without a jury, shall be taken into account by the court, as evidence of such authorization, ordering, or causation. "(b) Any officer or director chargeable under subsection (a) of this section with a violation of any penal provision of the antitrust laws shall be guilty of a misdemeanor, and upon conviction therefor he shall be punished by a fine of not exceeding $5,000 or by imprisonment for not exceeding one year, or by both, in the discretion of the court. "(c) Any officer or director chargeable under subsection (a) of this section with a violation of any provision of the Sherman Antitrust Act, the antitrust provisions of the Tariff Act of 1913 or section 3 or section 7 of this Act by any company shall forfeit to the United States a sum equal to twice the total compensation, direct and indirect, whether in the form of salary, commission, bonus, share of profits or otherwise, received by or due to such officer or director from such company or on account of services to or in behalf of such company, in respect of each month during which any such violation or any part thereof shall have occurred: Provided, That if the sum computed as aforesaid should amount to less than $5,000, such forfeiture may nevertheless be fixed by the court in an amount not exceeding $5,000: Provided further, That in respect of any compensation received by or due to such officer or director which is not computed on a monthly basis, the portion of such compensation attributable to each such month shall be one-twelfth of such compensation as computed on an annual basis. Such forfeiture shall be payable into the Treasury of the United States and shall be recoverable in a civil action by the United States. "(d) Upon a proper showing in a civil action brought by the United States"(1) any officer or director chargeable under subsection (a) of this section with a violation of any provision of the Sherman Antitrust Act, the antitrust provisions of the Tariff Act of 1913 or section 3 or section 7 of this Act by any company shall be enjoined (A) from rendering any service directly or indirectly to or in behalf of such company, permanently or for a specified period not less than ninety days in the discretion of the court; (B) from receiving any compensation, direct or indirect, whether in the form of salary, commission, bonus, share of profits or otherwise, from such company or on account of services to or |