EXPORT TRADE SECTION Foreign-trade work of the commission includes administration of the export trade act (Webb-Pomerene law) and inquiries under section 6(h) of the Federal Trade Commission act which directs the commission to "investigate, from time to time, 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." J This work is handled by the export trade section of the legal division. OPERATION OF THE EXPORT TRADE ACT The export trade act has completed 10 years of service to American exporters. Enacted in April, 1918, "to promote export trade," the law offers exemption from antitrust laws to an association "entered into for the sole purpose of engaging in export trade and actually engaged solely in such export trade" with the qualifying provisions that such an association may not (1) restrain the export trade of any domestic competitor of the association, (2) artificially or intentionally enhance or depress prices within the United States of commodities of the class exported by the association, or (3) substantially lessen competition within the United States or otherwise restrain trade therein. Export associations organized under the law, file with the Federal Trade Commission copies of their organization papers and amend ments thereto, and furnish such information as the commission may require as to their organization, business, conduct, practices, management, and relation to other associations, corporations, partnerships, and individuals. In case of violation of the law the commission may investigate and make recommendations for the readjustment of the association's business. In case of failure to comply with such recommendations the commission's findings may be referred to the Attorney General of the United States for further action. One of the primary purposes of the law was to enable American exporters to operate in foreign markets on an equal footing with foreign combines. This has been accomplished through cooperative agreements stabilizing export prices, reducing selling costs, standardizing grades, contract terms and sales conditions, improving the quality of the products exported, and assuring buyers of prompt and efficient service in the filling of orders. The Webb law association is also in a position to present a solid front to the buying combines which might otherwise play one exporter against another and beat the price down to an unprofitable basis. Many economies have been effected through operation under the law and many advantages reported by associations filing papers with the commission. The organization and operation of a Webb law association are varied to meet the needs of the particular industry to be served. The two outstanding types are that of a company incorporated under State laws with stock issued to the combining members, and that of a more loosely drawn unincorporated association predicated upon agreements or articles of association. Various plans are adopted for the development of export trade and its apportionment among the members. In case of seasonal products, arrangements are made for warehousing abroad and distribution at regular intervals in order to prevent an oversupply at any one time and consequent low prices in foreign markets. In case of heavy cargo, consignments are consolidated and steamers chartered. Small orders are also combined and lower freight rates obtained thereby; for this reason the association office is usually located at an export center-New York, New Orleans, San Francisco, Portland, or Seattle. Member companies are scattered throughout the States. Offices and agencies of Webb law associations have been established in all parts of the world. SUCCESS OF THE WEBB LAW The commission is sometimes asked whether the export trade act has been a success. It is difficult to estimate the measure of success achieved, but producers and manufacturers throughout the country have reported that exportation of their products would be impossible without their organization under the provisions of the act. Webb law associations have shared with other exporters the handicaps presented by postwar conditions in Europe and internal revolutions and catastrophes in Latin America and the Orient, but they appear to have weathered the storm; comparatively few of them have gone out of business, and new associations are formed each year. The volume and value of their exports have increased annually, totaling in 1924, $140,000,000; in 1925, $165,000,000; in 1926, $200,000,000; and in 1927, $371,500,000. EXPORTS DURING 1927 TOTALED $371,500,000 A variety of commodities was exported by Webb law associations. during 1927, including lumber and wood products to the amount of $35,400,000 (pine, fir, redwood, walnut, hardwoods, doors, plywood, wooden tools, barrel and box shooks, clothespins, and naval stores); metal and metal products to the amount of $180,000,000 (copper, zinc, iron and steel products, machinery, railway equipment, pipes, valves, and screws); chemical products valued at $3,100,000 (caustic soda, soda ash, liquid chlorine, soda pulp, paints and varnish); raw materials such as phosphate rock, crude sulphur, etc., to the amount of $15,200,000; manufactured products such as paper, abrasives, rubber, cotton goods and linters, buttons, and miscellaneous goods, to the amount of $84,800,000; and foodstuffs valued at $53,000,000 (milk, meat, sugar, corn products, flour, rice, canned salmon, and dried fruit). NEW WEBB LAW ASSOCIATIONS New associations formed during the fiscal year ending June 30, 1928, included: American Soft Wheat Millers Export Corporation, comprising 33 flour millers in Pennsylvania, Maryland, Virginia, West Virginia, and Washington, D. C., with headquarters office at Washington. Northwest Dried Fruit Export Association, comprising 24 packers and merchants of dried fruit in Washington, Oregon, and California, with headquarters at Portland, Oreg. South American Fruit Exporters (Inc.), comprising 7 exporters of fruit and fruits products in New York City. American Rice Export Corporation, comprising 15 rice growers and millers in Louisiana and Texas, with headquarters at the “rice city," Crowley, La. California Sardine Export Association, comprising 19 sardine packers in California, with offices at San Francisco and Los Angeles, Calif. Steel Export Association of America, formed by the United States Steel Products Co. and the Bethlehem Steel Export Corporation, with headquarters office in New York City. FIFTY-SIX EXPORT ASSOCIATIONS FILED PAPERS IN 1928 Fifty-six export associations filed reports with the Federal Trade Commission during the first six months of 1928: La. American Brake Beam Manufacturers Export Association, West Nyack, N. Y. American Export Door Corporation, Washington Building, Tacoma, Wash. American Locomotive Sales Corporation, 30 Church Street, New York City. American Milk Products Corporation, 71 Hudson Street, New York City. American Paper Exports (Inc.), 75 West Street, New York City. American Pitch Pine Export Co., 1605 Pere Marquette Building, New Orleans, American Provisions Export Co., 140 West Van Buren Street, Chicago, Ill. American Rice Export Corporation, Crowley, La. American Soda Pulp Export Association, 200 Fifth Avenue, New York City. American Soft Wheat Millers Export Corporation, 3261 K Street, NW., Washington, D. C. American Spring Manufacturers Export Association, 921 Farmers' Bank Building, Pittsburgh, Pa. American Surface Abrasives Export Corporation, 82 Beaver Street, New York City. 1 American Tire Manufacturers Export Association, 30 Church Street, New York City. American Webbing Manufacturers Export Association, 395 Broadway, New York City. Associated Button Exporters of America (Inc.), 320 Broadway, New York City. Automatic Pearl Button Export Co. (Inc.), 301 Mulberry Avenue, Muscatine, Iowa. California Dried Fruit Export Association, 1 Drumm Street, San Francisco, Calif. California Sardine Export Association, 604 Postal Telegraph Building, San Francisco, Calif. Cement Export Co., The, Pennsylvania Building, Philadelphia, Pa. Chalmers (Harvey) & Son Export Corporation, rear 31 East Main Street, Amsterdam, N. Y. Copper Export Association (Inc.), 25 Broadway, New York City. Davenport Pearl Button Export Co., 1231 West Fifth Street, Davenport, Iowa. Douglas Fir Exploitation & Export Co., 1125 Henry Building, Seattle, Wash. Export Clothes Pin Association of America (Inc.), 280 Madison Avenue, New York City. Exporters of Wood Products (Inc.), 96 Wall Street, New York City. Export Screw Association of the United States, 101 Park Avenue, New York City. Florida Hard Rock Phosphate Export Association, Savannah Bank & Trust Building, Savannah, Ga. Florida Pebble Phosphate Export Association, 420 Lexington Avenue, New York City. Goodyear Tire & Rubber Export Co., The, 1144 East Market Street, Akron, Ohio. Gulf Pitch Pine Export Association, 1223 Whitney Bank Building, New Orleans, La. Hawkeye Pearl Button Export Co., 601 East Second Street, Muscatine, Iowa. Naval Stores Export Corporation, 1429 Whitney Building, New Orleans, La. Northwest Dried Fruit Export Association, 402 Security Building, Portland, Oreg. Pacific Flour Export Co., care of Centennial Mill Co., 506 Central Building, Seattle, Wash. Phosphate Export Association, 420 Lexington Avenue, New York City. Pipe Fittings and Valve Export Association, Branford, Conn. Rubber Export Association, The, 1213 Akron Savings & Loan Building, Akron, Ohio. Salmon Export Corporation, 3301 Smith Building, Seattle, Wash. South American Fruit Exporters (Inc.), 44 Water Street, New York City. United Paint & Varnish Export Co., 601 Canal Road, Cleveland, Ohio. United States Alkali Export Association (Inc.), 25 Pine Street, New York City. United States Button Export Co., 701 East Third Street, Muscatine, Iowa. United States Handle Export Co., The, Piqua, Ohio. Walnut Export Sales Co. (Inc.), 616 South Michigan Avenue, Chicago, Ill. Walworth International Co., 44 Whitehall Street, New York City. Western Plywood Export Co., 1549 Dock Street, Tacoma, Wash. Wisconsin Canners Export Association, Manitowoc, Wis. Zinc Export Association, 61 Broadway, New York City. PROPOSED LAW TO PERMIT IMPORT COMBINES During the past year an attempt was made to broaden the scope of the export trade act by inserting an amendment which, without changing the existing law, would have added thereto provision for similar antitrust exemption to be granted to import combines for the purpose of importing into the United States crude rubber, potash, sisal, or other raw materials or products of nature in a crude or unfinished state "which are certified by the Secretary of Commerce to be of a character not made, produced, or grown in substantial quantities within the United States, or to be controlled by any foreign government, combination, or monopoly." This proposed amendment was embodied in bills H. R. 8927 and S. 2312, introduced in Congress by Representative Newton and Senator Jones, respectively. H. R. 8927 was favorably reported by the House Committee on the Judiciary, but failed of passage in the House of Representatives. The Senate bill was not voted upon. TRUST LAWS AND UNFAIR COMPETITION IN FOREIGN COUNTRIES Under Section 6(h) of the Federal Trade Commission act the commission follows unfair competition and trade restraint laws in foreign countries, and other conditions in international trade that may affect the foreign commerce of this country. Some of the more recent developments along this line are as follows: INTERNATIONAL TRADE CONFERENCES The Sixth International Conference of American States was held at Habana, Cuba, in January and February, 1928. The conference approved and signed 11 conventions, 62 resolutions, 7 motions and 4 agreements. A plan for the reorganization of the Pan American Union was adopted. The committee on public international law reported progress in its study of codification of international law, and consideration of this subject was continued until the next conference. A code of private international law was presented by the commission of jurists and was accepted by 18 affirmative votes, with |