PROMOTION OF EXPORT TRADE. FRIDAY, JANUARY 5, 1917. UNITED STATES SENATE, COMMITTEE ON INTERSTATE COMMERCE, Washington, D. C. in room The committee met pursuant to call, at 10 o'clock a. m., 326, Senate Office Building, Senator Francis G. Newlands presiding. Present. Senators Newlands (chairman), Pomerene, Myers, Robinson, Underwood, Cummins, Poindexter, and Brandegee. The committee proceeded to consider the bill (H. R. 17350) to promote export trade, and for other purposes, which is as follows: H. R. 17350. An Act to promote export trade, and for other purposes. 66 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the words export trade" wherever used in this act mean 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; but the words "export trade" shall not be deemed to include the production, manufacture, trading in, or marketing within the United States or any Territory thereof of such goods, wares, or merchandise, or any act in the course of such production or manufacture. That the words "trade within the United States" wherever used in this act mean trade or commerce among the several States or in any Territory of the United States, or of the District of Columbia, or between any such Territory and another, or between any such Territory or Territories and any State or States or the District of Columbia, or between the District of Columbia and any State or States. That the word “association" wherever used in this act means any corporation or combination, by contract or otherwise, of two or more persons, partnerships, or corporations. SEC. 2. That nothing contained in the act entitled “An act to protect trade and commerce against unlawful restraint and monopolies," approved July second, eighteen hundred and ninety, shall be construed as declaring to be illegal an association entered into for the sole purpose of engaging in export trade and actually engaged solely in such export trade, or an agreement made or act done in the course of export trade by such association, provided such association, agreement, or act is not in restraint of trade within the United States, and does not restrain the export trade of the United States. SEC. 3. That nothing contained in section seven of the act entitled "An act to supplement existing laws against unlawful restraint and monopolies, and for other purposes," approved October fifteenth, nineteen hundred and fourteen, shall be construed to forbid the acquisition or ownership by any corporation of the whole or any part of the stock or other capital of any corporation organized solely for the purpose of engaging in export trade, and actually engaged solely in such export trade, unless the effect of such acquisition or ownership may be to restrain trade or substantially lessen competition within the United States. SEC. 4. That the prohibition against "unfair methods of competition" and the remedies provided for enforcing said prohibition contained in the act entitled "An act to create a Federal Commission, to define its powers and duties, and for other purposes," approved September twenty-sixth, nineteen hundred and fourteen, shall be construed as extending to unfair methods of competition used in export trade against competitors engaged in export trade, 3 even though the acts constituting such unfair methods are done without the territorial jurisdiction of the United States. SEC. 5. That every association now engaged solely in export trade, within sixty days after the passage of this act, and every association entered into hereafter which engages solely in export trade, within thirty days after its creation, shall file with the Federal Trade Commission a verified written statement setting forth the location of its offices or places of business and the names and addresses of all its officers and of all its stockholders or members, and if a corporation, a copy of its certificate or articles of incorporation and by-laws, and if unincorporated, a copy of its articles of contract or association, and on the first day of January of each year thereafter it shall make a like statement of the location of its offices or places of business and the names and addresses of all its officers and of all its stockholders or members and of all amendments to and changes in its articles or certificates of incorporation or in its articles or contracts of association and of all contracts, agreements, and understandings had with any foreign or domestic association in regard to the conduct of or practices in foreign trade. Any association which shall fail so to do shall not have the benefit of the provisions of section two and section three of this act, and it shall also forfeit to the United States the sum of $100 for each and every day of the continuance of such failure, which forfeiture shall be payable into the Treasury of the United States and shall be recoverable in a civil suit in the name of the United States brought in the district where the association has its principal office, or in any district in which it shall do business. It shall be the duty of the various district attorneys, under the direction of the Attorney General of the United States, to prosecute for the recovery of the forfeiture. The costs and expenses of such prosecution shall be paid out of the appropriation for the expenses of the courts of the United States. Passed the House of Representatives September 2, 1916. 1916. The CHAIRMAN. The committee will come to order. The committee has fixed this date for the hearing of House bill 17350, "An act to promote export trade and for other purposes." The clerk will insert at this point these telegrams and letters upon the subject of this bill, as follows: (The documents referred to are here printed in full, as follows:) CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, Mr. L. M. HULL, Washington, D. C. DEAR MR. HULL: I notice that the draft of the Webb bill which you have inserted in the record shows the bill as it was originally introduced by Representative Webb. Some changes were made in the text before the bill was reported from the House Committee on the Judiciary, and several further amendments were made on the floor of the House. Although I can understand that Senator Newlands may have directed that the earlier form of the bill be placed in the record, I attach a copy of House bill 17350, as printed for the Senate, for your possible convenience. About the spelling of the name of the gentleman who followed me I am not altogether sure. I notice, however, that you have it in the record in two ways, the first being in the style "Licken." I have always understood that the name begins with 'Mc" and, in fact, have corrected the transcript to show the spelling of the name as I understand it. It is my recollection that the gentleman in question spelled his name for the reporter. Very truly, yours, Senator F. G. NEWLANDS, JOHN M. REDPATH. SPOKANE, WASH., January 4, 1917. 2236 Massachusetts Avenue, Washington, D. C.: Understand Webb bill. providing for combinations for foreign trade, now be fore your committee. Strongly urge its passage by Congress in form in which it was originally introduced. Believe it of great importance that legal situation with regard to such combinations be fully cleared up if foreign trade of country is to prosper. MCGOLDRICK LUMBER Co., |