Foreword HIS booklet contains a statement of the TH April 10, 1918), which permits associations and combinations in export trade, and suggestions as to how different types of combinations organized for foreign trade may avail themselves of its provisions. The full text of the law is also given. The reader will see clearly that the essential object of this law is to give American exporters a fair chance to compete with the exporters of other countries by enabling them to reduce the expenses of marketing, thus permitting the quotation of such prices in foreign countries as will make American products attractive to the consumer. Unfair methods in competition with rivals of other countries or with other American exporters are alike forbidden. Our Foreign Trade Bureau will be glad to discuss with inquirers the details of these suggestions, and other applications of the law. Executives of Trade Associations, merchants, and manufacturers desirous of taking advantage of these new opportunities are invited to consult us. Guaranty Trust Company of New York Export Trade Combinations TH HE Webb Law, permitting combinations in export trade, which was approved April 10, 1918, is an important and necessary step in enabling manufacturers and producers to prepare to meet the post-bellum demands of foreign commerce. Although this country has built up an export trade of considerable magnitude, our manufacturers and producers have been at a disadvantage because of the uncertainty of the application of the Sherman and the Clayton Anti-Trust Acts to combinations and associations of exporters. Coöperation is necessary in order that they may participate in foreign trade on an even basis with foreign competitors, and at the same time, not be compelled to compete with each other. The Act as passed, would seem to allow to exporters the freedom of contract necessary for their protection and necessary to meet the competition of foreign combinations and agencies, at the same time placing ample check on unfair methods and abuse. To Compete on Equal Terms The remarkable increase in the value of American exports during the last four years has been due to abnormal conditions occasioned by the war. Such conditions, of course, cannot be expected to continue. When trade again assumes its normal trend, the extraordinary demands of foreign countries for the products of this country will naturally be lessened. Foreign countries which have been engaged in the war, will again meet our manufacturers and producers in competition in the world's markets. To meet that competition, it is essential that American exporters be placed on equal terms with their competitors. The Webb Law gives them privileges of association which they have never before enjoyed, because of the uncertainty of the prohibitions of the law. Combinations in other Countries The purpose and intent of the law is to give to American exporters the privileges and advantages of dealing through combinations, associations, or agencies similar to those which have so long existed in foreign countries. Nearly every country with which we compete permits and encourages manufacturers and producers to organize combinations to advance its foreign trade. In Great Britain manufacturers and producers are permitted to consolidate through the medium of an export company. In fact, most of the leading products are exported under lawfully authorized agreements, syndicates, and combinations. Similar coöperation is authorized or permitted also in France, Italy, Switzerland, Holland, Japan, and other countries, and the trade covers practically every article or product which we manufacture or produce for export. Types of American Organizations Mr. Gilbert H. Montague, of the New York Bar, who was counsel to the special committee of the American Manufacturers Export Association in support of the Webb-Pomerene Bill, has made a study of the several types of selling organizations which may be formed under the Webb Law and the manner in which |