ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION.

WASHINGTON, D. C., November 15, 1916.

To the Senate and House of Representatives:

The Federal Trade Commission, in compliance with statute, herewith submits to Congress its annual report for the fiscal year ending June 30, 1916.

This report is the second annual report of the Commission, but the first to cover a full year, the Commission having been originally organized on March 16, 1915.

THE COMMISSION.

According to its organic act, the Commission elects its own chairman. The Commission has adopted the policy of annual rotation of the chairmanship, the order or service in that capacity to be according to the seniority of appointment. This arrangement went into operation on July 1, 1916, with the intention that subsequent changes in the chairmanship should take place at the beginning of each fiscal year. The vice chairmanship was regulated in like manner, the incumbent of this position becoming chairman after serving one year.

Although occurring since the close of the fiscal year, it should be noted that the office of one commissioner became vacant through the fact that the Senate did not confirm the nomination of Hon. George Rublee. Mr. Rublee served on the Commission, however, pending the Senate's action from the original date of organization until the expiration of his commission at the end of the last session of Congress, and throughout the fiscal year covered by this report. We desire to express our appreciation of the exceptionally valuable service which he rendered while a member.

GENERAL ORGANIZATION OF THE STAFF.

The staff of the Commission is organized in three main departments, namely, administrative, legal, and economic.

The administrative department is under the direction of the secretary, who is also the formal channel of communication between the Commission and the other departments. The assistant secretary, acting solicitor, and chief clerk are directly under the secretary, as well as the chiefs of the docket, mails and files, supplies, and stenographic divisions.

The Commission had an advisory counsel as the head of the legal department during a part of the fiscal year, but this office is now vacant because the present appropriation makes $5,000 the maximum

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