FIFTY WEBB LAW ASSOCIATIONS NOW IN OPERATION Fifty export associations filed papers with the Commission under the Webb law during the first 6 months of 1933: Alabama-Florida Pitch Pine Export Association, Whitney Building, New Orleans. American Hardwood Exporters, Inc., Marine Building, New Orleans. American Locomotive Sales Corporation, 30 Church Street, New York City. American Paper Exports, Inc., 75 West Street, New York City. American Pitch Pine Export Co., Pere Marquette Building, New Orleans. American Provisions Export Co., 80 East Jackson Boulevard, Chicago. American Soda Pulp Export Association, 230 Park Avenue, New York City. American Soft Wheat Millers Export Corporation, 3261 K Street, Washington, D.C. American Spring Manufacturers Export Association, 30 Church Street, New York City. American Textile Trading Co., 1410 G Street, Washington, D.C. American Tire Manufacturers Export Association, 30 Church Street, New York City. American Webbing Manufacturers Export Association, 20 West Thirtyseventh Street, New York City. California Dried Fruit Export Association, 1 Drumm Street, San Francisco. Carbon Black Export Association, Inc., 60 East Forty-second Street, New York City. Cement Export Co., The, Pennsylvania Building, Philadelphia. Copper Export Association, Inc., 25 Broadway, New York City. Copper Exporters, Inc., 33 Rector Street, New York City. Electrical Apparatus Export Associa tion, 31 Nassau Street, New York Export Petroleum Association, Inc., General Milk Co., Inc., 19 Rector Grapefruit Distributors, Inc., Davenport, Fla. Gulf Pitch Pine Export Association, Whitney Bank Building, New Orleans. Hawkeye Pearl Button Export Co., 601 East Second Street, Muscatine, Iowa. Metal Lath Export Association, The, 60 East Forty-second Street, New York City. Northwest Dried Fruit Export Asso ciation, Title & Trust Building, Portland, Oreg. Pacific Flour Export Co., care of Fisher Flouring Mills Co., Seattle. Phosphate Export Association, 393 Seventh Avenue, New York City. Pipe-Fittings & Valve Export Association, Branford, Conn. Producers Linter Export Co., 822 Perdido Street, New Orleans. Redwood Export Co., 405 Montgomery Street, San Francisco. Douglas Fir Exploitation & Export Co., | Rubber Export Association, The, 19 Signal Export Association, 74 Trinity Steel Export Association of America, Sulphur Export Corporation, 420 Lex- United States Alkali Export Associa- United States Handle Export Co., The, Walnut Export Sales Co., Inc., Twelfth Walworth International Co., 19 Rector Western Plywood Export Co., Tacoma Zinc Export Association, 500 Fifth The Shook Exporters Association was formed during the current year for exporting wine shooks to Argentina, Uruguay, and Brazil. Offices are maintained in New York City, Nashville, Tenn., and Pekin, Ill. The member companies include the Chickasaw Wood Products Co., Memphis; Export Cooperage Co., Memphis; Rocky River Coal and Lumber Co., Nashville; Paducah Cooperage Co., Paducah, Ky.; Pekin Cooperage Co., Pekin, Ill., and J. H. Hamlen & Son of Portland, Me. WEBB LAW EXPORTS IN 1932 Exports by Webb law associations in 1932 showed a substantial decrease under former years, due to the extreme depression in foreign markets. Decrease in money value was greater than that of volume because prices were much lower. One association reporting an export volume in 1932 closely approximating that in 1931 estimated the value as at least 33% percent less in 1932. Associations that reported last year a suspension of price agreements in order to permit members to sell at independent prices (the independent sales not included in Webb law totals) have continued that policy during the current year, resulting in a material decrease in Webb law totals under figures for 1929 and 1930. Some companies found it impossible to meet the prices prevailing abroad, and others were forced to curtail their exports on account of import restrictions in foreign countries, including exchange control, import quota and license systems, increased duties, and in some cases total exclusion of products heretofore imported from this country. One of the older Webb law associations, in operation since 1919, reports that the problem of foreign exchange is "the most serious obstacle with which we have ever had to contend." Associations shipping foodstuffs report heavy duties laid down in several of the larger consuming countries, amounting in some instances to more than the invoice value of the shipments. A "buyers" market" still obtained in 1932 and payment was slow; but, as reported by one of the food exporters operating as an association: The members are in a better position to trade with the large foreign buying combinations; in some articles there is practically but one buyer; a considerable saving in operating expense is also possible. Several of the larger associations exporting manufactured or semimanufactured products have found their business materially affected by the fact that import duties imposed in this country on the raw materials, have resulted in a decrease in the exportation of the finished products. An association shipping trade-marked goods reports that its decrease in volume and value was due principally to the competition of manufacturing countries that have gone off the gold standard and therefore benefited in their production by the 30 to 35 percent reduction in the value of their currencies. Voluntary abstention from doing business had to be practiced also on our part owing to the extreme difficulties in getting payment for our exports, particularly in countries where exchange control commissions restrict the return of gold to this country. Lumber exporters report a greatly decreasing demand with a corresponding decrease in price. But in spite of the depression and lack of business, cooperation of the mills regarding standardized exports and maintaining export prices was of great advantage. One association was able to reduce the "cost, insurance, and freight" value of its lumber products considerably during the year by collective freighting of the shipments, which made it possible to compete with forest products of Japan and other countries. Competition of Russian woods sold at low prices was difficult to meet. There is increasing demand for longer credit terms and great difficulty in meeting the hazardous credit situation. Business failures caused considerable loss. There is also an increasing tendency toward reclamation demands. Both the lumber and metal industries were affected by the further decrease in building operations abroad. Each year associations report new plans by which exports may be more economically handled through cooperative effort. A report recently received states that During the year a standardized service charge on invoices was adopted by most of our members. This took the place of previous irregular charges which were discriminatory. Cooperative measures were also taken through committees in negotiation with steamship line conferences regarding freight rates and with other bodies regarding exchange restrictions in foreign countries. A more recently organized group shipping to South America reports that The existence of our association undoubtedly prevented utter demoralization of sale prices on such business as was done. * Although our members * * ** have for many years sold exclusively in United States currency and have enjoyed all the ordinary banking facilities current in such lines for years, it was found impossible by any one of our eight shippers to find any bank in the United States to discount drafts against these 1932 shipments, notwithstanding the fact that sales were in United States currency and the shipping documents covered by sight drafts against same, drawn on high type concerns in South America. Practically all of these shipments were paid for in ordinary due course and the United States dollars were placed at disposal of the various shippers in this country in about the same length of time as was usual in normal times. * * This business doubtless would have been lost to the United States and perhaps never recovered. * A comparison of Webb law exports for the years 1929, 1930, 1931, and 1932 is shown as follows: Metal and metal products, including copper, Lumber and wood products, pine, fir, redwood, $21,000,000 270, 000, 000 315, 000, 000 73, 000, 000 56, 000, 000 26, 000, 000 22,500,000 35, 400, 000 Foodstuffs such as milk, meat, sugar, flour, rice, sardines, salmon, fresh fruit, dried fruit, and canned fruit ' 8,000,000 Other manufactured goods such as rubber, paper, abrasives, cotton goods, and linters, buttons, and chemicals.. Some question has been raised as to the effect of the National Industrial Recovery Act passed in June 1933 upon the Webb law and associations operating thereunder. Webb law associations are continuing their operation, and new groups are being formed. So far, no Webb law association has entered into a Recovery Act code, although the companies and industries represented have taken part in the recovery program. It is too early as yet to construe the new law or to predict what its effect will be upon the Webb law and those acting under it. INFORMAL FOREIGN TRADE COMPLAINTS UNDER SECTION 6 (H) Inquiries made under section 6 (h) of the Federal Trade Commission Act included nine foreign trade complaints handled by his office during the fiscal year ending June 30, 1933. These cases involve practices of American exporters (not Webb law associations) in their trade with foreign countries, reported in the first instance to the American consulates or trade attachés abroad and referred to the Commission by the State and Commerce Departments. TRUST LAWS AND UNFAIR COMPETITION IN FOREIGN COUNTRIES Also under section 6 (h) of the Federal Trade Commission Act, it has been our practice heretofore to give a résumé of trust laws and unfair competition in foreign countries during each current year. Due to recommendation of the Director of the Budget and the executive council as to economy in printing, this statement has been reduced to a bare recital of the recent measures. A mimeographed statement giving more detailed information as to these measures may be obtained upon request to the Commission. Cartel regulation and unfair competition laws included: Canadian unfair competition act, May 12, 1932, amending the trade-mark and design act of 1928. Inquiries under the Canadian combines investigation act involving alleged violation by the Canadian basket pool, importers and distributors of British anthracite coal and buyers of Ontario-grown tobacco. Chilean decree law of August 30, 1932, establishing a commissariat of subsistence and prices; and the foreign commerce law of August 23, 1932. Costa Rican act of July 15, 1932, prohibiting certain monopolistic acts. German unfair competition law further amended by decree of December 23, 1932, and acts dated May 12, 1933. Hungarian cartel act, October 15, 1931, providing for a cartel commission and a cartel court. Irish Free State control of manufactures act, October 31, 1932; and law of December 23, 1932, creating a prices commission. Lithuanian law against unfair competition, August 1932. Norwegian trust control of 1926 amended in 1932. Polish cartel law, March 28, 1933, providing for a cartel court as part of the Supreme Court of Poland. Recent antidumping measures may be noted: Amendments to the Canadian law in 1930, 1931, and 1933 to further prevent exchange dumping. Chinese dumping tax law of February 1931 made effective by enforcement rules in December 1932. French Presidential decrees imposing compensation surtaxes on imports. German emergency decree of January 1932 providing for exchange dumping duties. British India, safeguarding of industries act, April 16, 1933. Irish Free State, dumping and abnormal importation act of November 1931. Newfoundland exchange dumping regulations of January 1933. Spanish Presidential decree, September 1931, to offset surtaxes or import restrictions in other countries. Further measures toward government regulation or monopolistic control of production and trade have included: |