FACTS WORTH KEEPING IN MIND. In connection with the formation of an export association under the Webb-Pomerene Law certain important facts should be firmly grasped and constantly borne in mind, viz.: First: The Webb-Pomerene Act does not specifically designate a corporation as the proper or necessary organization for carrying on export business. Any combination of individuals will answer the purpose. In the majority of cases, however, the corporate form will prove the most practical and efficient means of conducting the business. Avoidance of interruption of the enterprise through death of members, obviation of individual liability; duration practically unlimited-all these paramount advantages pertain to the corporate form. Second: If the export association within thirty days after its creation files with the Federal Trade Commission copies of its charter, by-laws, partnership papers, contract of association, a verified written statement setting forth the location of its offices or places of business, and the names and addresses of all its officers, stockholders or members, and a like statement with amendments to and changes in its charter or agreement on January first of each year thereafter, and conducts its affairs as prescribed by law, it has done all the statute requires. No certificate or license is demanded. The statute does not provide that the manner of organization shall be approved by the Commission. It may be advisable, obviate misunderstanding, and save expense and delay if doubt exists whether or not a given method or practice is proper or not, to communicate with the Commission regarding such matters, prior to filing the papers mentioned. Third: It is important that the charter powers of an association, or that section of the articles of agreement of an unincorporated association which sets forth the purpose for which it is organized, shall be distinctly limited "solely and actually to export trade," as that term is defined in Section 1 of the statute. (See page 289.) Fourth: Failure to file the organization papers, including lists of officers and members, involves a fine of $100 a day; and the association presumably forfeits the benefits of the Act. Fifth: Prohibitions directed against "unfair methods of competition" in domestic commerce apply with equal force to transactions carried on in export trade. Sixth: Export associations must not engage in importing. Seventh: An export association must not be a mere pricefixing agency. It must be engaged in bona-fide exporting. It becomes liable to prosecution by the Department of Justice, under the Sherman Anti-trust Law, if it engages in fixing domestic prices. CHAPTER XVI. The Webb-Pomerene Law in Operation. Practical Results Obtained. More than two years have passed since the Webb-Pomerene Act was placed on the statute books of the United States, having been approved by President Wilson on April 10, 1918. The interval which has elapsed since that date covers a period so wholly abnormal as not to permit of any final conclusions as to the operation of the Act. Nevertheless, a survey of its general working up to the present time, from a legal as well as an economic point of view, may show how far the expectations of those who advocated the enactment of this law have been realized. In addition to this, certain trends of development can be readily observed in connection with the operation of the Act which open up a number of interesting new phases in the history of trade combinations, and in a wider sense of international trade. Then, too, an analysis of the forms of organization, and of the agreements of some typical export associations will prove of interest in several ways. Enumeration of Exporting Concerns Qualifying Under Act. According to data published by the Federal Trade Commission in its annual reports about one hundred concerns have filed certain statements under Section 5 of the Webb-Pomerene Act since its passage. Many of these concerns did not qualify under the Act, some being ordinary export and import commission houses, others having registered without a thorough consideration of the law in the belief that they could obtain some advantage thereby, still others in order to avoid any question as to the penalty imposed by section 5.1 Omitting all the concerns which 1U. S. Federal Trade Commission. Foreign Trade Series, No. 1, p. 7. for one reason or another did not qualify under the Act, there are now 45 associations which have filed their charters, articles of association, agreements, etc., with the Federal Trade Commission,1 viz: American Export Lumber Corporation, 505 Stock Exchange Building, Philadelphia, Penna. American Locomotive Sales Corporation, 30 Church St., New York, N. Y. American Milk Products Corporation, 302 Broadway, New York, N. Y. American Paper Exports, Inc., 136 Liberty St., New York, N. Y. American Pitch Pine Export Co., 522 Audubon Bldg., New Orleans, La. American Provisions Export Co., Room 319, Royal Insurance Bldg., Chicago, Ill. American Soda Pulp Export Association, 200 Fifth Ave., New York, N. Y. American Tanning Materials Corporation, Marion, Va. American Textile Machinery Corporation, 60 Federal St., Boston, Mass. American Webbing Manufacturers' Export Corporation, 395 Broadway, New York, N. Y. Canned Foods Export Corporation, Care National Canners' Association, Washington, D. C. Carolina Wood Export Corporation, Norfolk, Va. Cement Export Co., Inc., 280 Broadway, New York, N. Y. Consolidated Steel Corporation, 165 Broadway, New York, N. Y. Copper Export Asociation, Inc., 60 Broadway, New York, N. Y. Douglas Fur Exploitation & Export Company, 260 California St., San Francisco, Cal. 1 Export Clothes Pin Association of America, Inc., 90 West Broadway, New York, N. Y. Exporting Rye Millers' Association, 520 Flour Exchange Bldg., Minneapolis, Minn. Florida Hard Rock Phosphate Export Association, 106 East Bay St., Savannah, Ga. Florida Pebble-Phosphate Export Association, I Wall St., New York, N. Y. Foundry Equipment Export Corporation, Room 114, 40 Wall St., New York, N. Y. General Alcohol Export Corporation, 60 Wall St., New York, N. Y. Grand Rapids Furniture Export Association, 214 Lyon St., N. W., Grand Rapids, Mich. Gulf Pitch Pine Export Association, 1212 Whitney-Central Bldg., New Orleans, La. Locomotive Export Association, 30 Church St., New York, N. Y. Millers' Export Association, Inc., 7 West 10th St., Wilmington, Del. Mississippi Valley Trading and Navigation Company, 708 Equitable Bldg., St. Louis, Mo. Namusa Corporation, 30 Church St., New York, N. Y. Pan American Trading Company, 45 Pearl St., New York, N. Y. Pennsylvania Millers' Export Association, 524 Bourse Bldg., Phiiade!phia, Pa. 1See U. S. Federal Trade Commission, annual report, 1920, pp. 67-8. Phosphate Export Association, 1 Wall St., New York, N. Y. Pipe Fittings & Valve Export Association, Care A. E. Rowe, Secy., Branford, Conn. Redwood Export Company, 260 California St., San Francisco, Cai. Textile Manufacturers' Alliance, Inc., 11 Thomas St., New York, N. Y. United Paint and Varnish Export Company, 601 Canal Road, N. W., Cleveland, Ohio. United States Alkali Export Association, Inc., 171 Madison Ave., New York, N. Y. United States Forest Products Co., Care Corporation Trust Co., of Delaware, Dover, Del. United States Handle Export Co., Piqua, Ohio. United States Maize Export Association, 17 Battery Place, New York, N. Y. United States Office Equipment Export Association, 350 Broadway, New York, N. Y. United States Provision Export Corporation, 308 Webster Bldg., Chicago, Ill. Walnut Export Sales Co., Inc., 115 Broadway, New York, N. Y. Location of Member Concerns. The forty-five concerns listed above comprise a total of 754 members, whose plants and factories number about one thousand and are distributed over forty-six states of the Union. In the state of New York there are 118 plants, in Pennsylvania, 87, and Massachusetts, 81. Along the Pacific Coast we find 15 plants in California, 62 in Washington, and 19 in Oregon. In the North Central States there are 35 in Illinois, 46 in Wisconsin, 29 in Minnesota and 18 in Michigan. In the South there are 16 in Texas, 5 in Louisiana and 10 in Florida. The products and commodities exported by the different export associations are drawn from all sections of our country. From California go out lumber, hardware, chemicals, fertilizer, general merchandise; from Illinois, meats, evaporated milk, iron and steel, lumber, distilled spirits; from Michigan, furniture; from Maryland, paper, canned foods, leather; from Massachusetts, textiles, paper, hardware, soda pulp. Other commodities shipped from various states are copper, agricultural and textile machinery, building materials, cement, locomotives, webbing material, paints, varnishes, dye-stuffs and tanning materials, phosphates, soap and cereals, including wheat and corn products. |