To remedy this condition and make the law really effective, supplementary legislation was passed by Congress, on October 15, 1914, known as the Clayton Anti-Trust Act. By some of its provi sions a manufacturer was forbidden to sell goods to a merchant on the under standing that he should not be free to buy from others as well. Another pro vision forbids a corporation from selling to different dealers at different prices. With certain exceptions holding com panies and interlocking directorates were forbidden. The most valuable feature of the law was the establishment of the Federal Trade Commission, which has the power to determine what constitutes unfair methods and acts "in restraint of trade." It also has the power to make special investigations, order hearings and to enforce its decisions through the Circuit Court of Appeals. It has been of real value in exposing to the public the methods of vicious combinations through the publicity attending its investigations, even though the facts made public do not come within the provisions of the law.
The report of its investigation of the packing industry during 1918 and 1919 created such intense public sentiment against the meat trust that the latter was compelled to offer an effective com promise with the Federal authorities, though there was substantial reason to doubt whether a case could have been made out against it.
Two important decisions were rendered in 1920 by the Supreme Court in connec tion with the prosecution of trusts. In both cases the decision was made by a vote of four to three, two members of the Court not taking part in the deliberations. That against the Reading Company was a complete victory for the Government, compelling the coal in terests to be separated from the railroad interests of the corporation. The case against the packing companies was also an undoubted victory, though won by other than court proceedings. Accord ing to the compromise the trust agreed to sell all its holdings not connected with the actual meat and packing trade and furthermore agreed never to engage in retail distribution.