EXPORT TRADE DIVISION EXPORT TRADE ACT An "Act to promote export trade, and for other purposes," was passed by Congress on April 10, 1918, and administration thereof intrusted to the Federal Trade Commission. (See p. 96.) PROVISIONS OF THE LAW This law, commonly known as the "Export trade act," or "WebbPomerene law," authorizes the formation of combinations or associations" entered into for the sole purpose of engaging in export trade and actually engaged solely in such export trade. Exemption from the antitrust laws of the United States is granted to such an organization, with the proviso that there shall not be restraint of trade within the United States, or restraint of the export trade of any domestic competitor, nor shall the association either in the United States or elsewhere, enter into any agreement, under standing, or conspiracy, or do any act which artificially or intentionally enhances or depresses prices within the United States of commodities of the class exported by such association, or which substantially lessens competition within the United States or otherwise restrains trade therein. Under the law, such an association may be "any corporation or combination, by contract or otherwise, of two or more persons, partnerships, or corporations." Export trade is defined by the act as "solely trade or commerce in goods, wares, or merchandise exported, or in the course of being exported, from the United States or any Territory thereof to any foreign nation." ASSOCIATIONS FILING PAPERS DURING THE YEAR Export associations organized during the fiscal year are the Salmon Export Corporation, of Seattle, Wash.; the American Brake Beam Manufacturers' Export Association, of West Nyack, N. Y.; and the California Dried Fruit Export Association, of San Francisco, Calif. Several other concerns have such an organization under consideration. Fifty-one associations filed papers with the commission during the year: American Brake Beam Manufacturers' Export Association, West Nyack. Rockland County, N. Y. American Corn Products Export Association, New York City. American Locomotive Sales Corporation, New York City. American Milk Products Corporation, New York City. American Paper Exports (Inc.), New York City. American Provisions Export Co., Chicago, Ill. American Soda Pulp Export Association, New York City. American Spring Manufacturers' Export Association, Pittsburgh, Pa. Cement Export Co., The, care of Morris Kind, Hercules Cement Corporation, Philadelphia, Pa. Chalmers (Harvey) & Son Export Corporation, Amsterdam, N. Y. Copper Export Association (Inc.), New York City. Davenport Pearl Button Export Co., Davenport, Iowa. Delta Export Lumber Corporation, Memphis, Tenn. Export Clothes Pin Association of America (Inc.), New York City. Florida Hard Rock Phosphate Export Association, Savannah, Ga. Grand Rapids Furniture Export Association, Grand Rapids, Mich. Hawkeye Pearl Button Export Co., Muscatine, Iowa. Pan American Trading Co., New York City. Phosphate Export Association, New York City. Pioneer Pearl Button Export Corporation, Poughkeepsie, N. Y. Sugar Export Corporation, New York City. Sulphur Export Corporation, New York City. United Paint & Varnish Export Co., Cleveland, Ohio. United States Alkali Export Association (Inc.), New York City. United States Button Export Co., Muscatine, Iowa. United States Handle Export Co., The, Piqua, Ohio. United States Maize Products Export Association, The, Wilkes-Barre, Pa. Walnut Export Sales Company (Inc.), Chicago, Ill. Walworth International Co., Boston, Mass. Wisconsin Canners Export Association, Manitowoc, Wis. EXPORTS DURING 1925 Exports during 1925 by associations reporting to the commission totaled about $165,500,000, an increase of $25,500,000 over exports during the previous year, this in spite of the fact that in a good many instances prices were lower in 1925. Copper, cement, phosphate rock, crude sulphur, soda pulp, and alkali exported by Webb law associations during 1925 totaled about 1,400,000 long tons, valued at $57,000,000. Machinery, locomotives, railway equipment, pipe fittings, and valves were valued at about. $4,000,000. Lumber (about 890,000 M feet of pine, fir, redwood, gumwood, oak, walnut, etc.), naval stores, and wood products totaled about $38,000,000. Foodstuffs, including milk, meat, sugar, corn products, flour, and dried fruit, totaled about 998,000,000 pounds, valued at $42,000,000. Paper, abrasives, rubber goods, cotton, webbing, furniture, paint and varnish, buttons, clothespins, and general merchandise amounted to about $24,500,000. Competition abroad is said to be very keen. The aggressive policy of European manufacturers in increasing their export trade, the ability of German and Belgian manufacturers to undersell in practically all markets, the lower labor costs and increased capacity of mills in Japan and China, and a general tendency by foreign countries to increase tariff rates are cited as handicaps which American. exporters are attempting to meet through cooperative selling. Webb law associations have the advantage of economy in sales expense, standardization of materials, uniformity in methods of packing, stamping, and handling of shipping documents, and centralization of inquiries and orders which is conducive to more prompt deliveries and better all-round service to customers. One association reports that "Foreign business in any volume would be impossible without the association." Trade promotion is carried on through the united efforts of combining exporters. One association reports that $30,000 was spent during 1925 for exploitation in foreign markets, which expense was apportioned throughout the membership and was therefore not a burden upon any one company. Restriction of the practice of selling on consignment is said to have been a real accomplishment of inestimable value in some industries. As reported by a lumber company: If our members were operating separately, they would also probably send consignments, which is the curse of the export business and a wrecker of a stable market. The quality of American products is being raised by export associations to an increasingly high level. As stated by an association. exporting food products: We are striving to place the quality of goods in foreign markets that is second to none, and the facilities allowed under the Webb Act will thus be directly instrumental in assisting American manufacturers to retain and largely extend their foreign trade, despite heavy competition. 1517326- -6 SECTION 6(H) OF THE FEDERAL TRADE COMMISSION ACT Section 6(h) of the Federal Trade Commission act directs the commission to investigate "trade conditions in and with foreign countries where associations, combinations, or practices of manufacturers, merchants, or traders, or other conditions may affect the foreign trade of the United States." Under this section inquiries are conducted by the export trade division along the lines of foreign commerce. Current information is gathered regarding trust laws, combines, and unfair competition in foreign countries. TRADE LEGISLATION IN FOREIGN COUNTRIES DURING THE PAST YEAR The Norwegian law regarding the control of competition, restrictions, and abuse of prices, passed by the Parliament on February 26, 1926, was approved by the King on March 12, and will become effective on July 1, 1926. This act takes the place of the provisional law of August 6, 1920, and provides for the establishment of a control bureau and a control council. These authorities are empowered to require reports and evidence regarding mergers of firms, binding or controlling agreements for the purpose of regulating prices, production or marketing conditions, or other information of sufficient importance to influence marketing conditions in Norway. For this purpose, business books and papers may be demanded by the control authorities or confiscated by the police if necessary. Industries are forbidden to fix or accept prices or compensation that may be considered improper. The control council may prohibit the fixing of minimum prices for further sale in cases where such prices can be regarded as causing an increase. A merger restricting competition may be ordered dissolved by the control council if it is established that it exercises a harmful influence on price, production, and marketing conditions in the country, or if its operating methods are considered improper. The law forbids business boycotts which tend to prejudice public interests, cause an unreasonable state of affairs, or appear unjust toward the boycotted firm. It also prohibits contracts granting exclusive or preferential terms which tend to prejudice the public interests or operate unfavorably toward other concerns. Appeal from orders of the control council may be made to a board of appeals appointed by the King, comprising five members, the chairman of which shall have the authority of a supreme court judge. On April 15, 1926, the German Reichstag passed a law providing for the establishment of a "Committee for the investigation of German industrial and commercial conditions," which shall have very broad powers of inquiry. The committee will comprise from 29 to 35 members, of which the Government shall appoint 11 members at the Reichstag's proposal, 9 members at the proposal of the chairman of the provisional economic council, and 9 members in its own discretion. Special subcommittees will be appointed to study such important problems as working hours, credits, taxes, and cartels. The powers of the committee are subject to provisions of the German regulations for civil suits, and appeal from the committee's decisions may be made to the federal economic court. The International Union for the Protection of Industrial Property, formed by a convention signed at Paris in 1883, modified at Brussels in 1900 and at Washington in 1911, held a meeting at the Hague on November 6, 1925, and revised the convention, the new draft to be ratified by the signatory countries. The original convention was signed by the United States of America, Germany, Austria-Hungary, Belgium, United States of Brazil, Cuba, Denmark, Dominican Republic, Spain, France, Great Britain, Italy, Japan, United States of Mexico, Norway, Netherlands, Republic of Portugal. Servia, Sweden, Switzerland, and Tunis. Canada, Greece, Syria, and Lebanon afterwards joined the union. The proposed amendments will include revision of article 10 bis which previously read, "All the contracting parties agree to assure to the members of the union an effective protection against unfair competition "; and will now be changed to read as follows: The contracting countries are bound to assure to nationals of the union an effective protection against unfair competition. Every act of competition contrary to honest practice in industrial or commercial matters constitutes an act of unfair competition. The following particularly are to be forbidden: (1) All acts whatsoever of a nature to create confusion, by no matter what means, with the goods of a competitor; (2) false allegations, in the course of trade, of a nature to discredit the goods of a competitor. A new merchandise marks (imported goods) bill is pending in the Britsh Parliament which would provide for the marking of goods in such a way that the consumer can not fail to understand as to whether they are "home produce, empire goods, or foreign merchandise." In Czechoslovakia an antitrust law has been drafted, which has been given considerable attention within the past year by the Ministry of Justice and the Ministry of Food Supplies. The Ministry of Commerce has also drawn up a bill against illicit competition. In New Zealand a dairy produce control board, similar to that in Australia, has been established, which shall exercise control of sales of all dairy produce exported to Great Britain, Europe, and North America, as from August 1, 1926. |