ber mills in order to serve as a convenient meeting place for agreement upon export policies. Branch offices and agencies may be maintained in this country and abroad. In view of the wide variety of products that have been exported under the act, the association agreements have varied considerably, each drafted to meet the needs of the particular industry to be served. The three general types that have been used are (1) that in which the association serves as a central selling agent for all of the members, taking orders, negotiating sales, and handling the shipment of the goods; (2) that in which the association directs the exportation of its members and retains certain functions in export trade, but the orders are placed by agents already established by the members abroad; in this case the export department of one member may handle foreign orders for several members; and (3) the export company formed for the purpose of buying the members' products and reselling them abroad at terms agreed upon by the members. The first and second methods of selling may be combined, the members using their established agents for some markets and the association sales office for new markets or those in which the trade is not well developed. An association may have more than one class of members, dependent upon the service that it contracts to perform for them. One association has a full membership and a limited membership; another has a packers division and a merchants division. In addition to its sales of products of the member companies, some associations obtain and sell the products of other manufacturers in order to meet the demands of their foreign customers; for this purpose a separate department of sales may be used. Some of the association agreements cover the entire export trade of the members, some are limited to specified products or certain-named markets. A Webb-law association is a voluntary organization and may or may not include a large percentage of the industry. Some of the functions that have been reported to the Commission by associations now in operation may be listed here: Serving as export sales agent for the member companies, in all foreign markets or in certain markets to be agreed upon, for all goods exported by the members or for only certain of their products. Purchasing the members' products for resale in foreign markets, under terms and conditions agreed upon by the members. Employing agents and directing the agents of the member companies, maintaining offices, in this country and abroad, promoting conferences and agreements in export trade. Obtaining and selling goods of producers outside of the association, in order to fill the association's export orders. Exploitation of members' products abroad, especially introducing them in new markets. Joint advertising and use of joint trade-marks. Promoting sales for the members' brands and patented goods. Agreeing upon price for export, terms and sales policies in foreign markets, and adopting uniform forms of contracts. In some cases only a minimum price is agreed upon; in others members are free to quote price but agree to report to the association any change in price. Dividing the export business of the association among the members in predetermined proportions; for this purpose a quota system may be agreed upon and the orders allotted in accordance therewith. Recording sales of the members' products, in export trade, keeping copies of invoices and other documents; this is important when a quota plan is adopted. Standardizing products for export and improving the quality of the goods. Maintaining inspection service, employing claims agents, and settling disputes over export sales. Establishing rules and regulations for packing and shipping the goods in export. Arranging for freight rates, cargo space, and shipping dates; consolidating the shipments of the members; taking out insurance and shipping documents. Providing for storage during transit and warehousing abroad. Collecting and disseminating trade information as to market conditions abroad, foreign credits, stocks available for export by the members, the exchange situation, tariff requirements, shipping rules and regulations, foreign laws that affect our foreign trade, and other data of value to American exporters. ADVANTAGES OBTAINED BY WEBB LAW GROUPS Advantages obtained from the various functions listed above are obvious. A centralized agency may effect economy in sales cost; it may get better freight rates by consolidating shipments; and it may reduce the shipping expense by arranging for cargo space, insurance, and other details. Cooperation in storage during transit and warehousing abroad are of especial advantage if the products are seasonal and better prices may be obtained when the goods are fed into foreign markets throughout the year. Agreements upon price and terms of sale are to the advantage of the American exporter and also to the foreign buyer who prefers a quotation that does not fluctuate daily. Orders may be placed several months in advance of shipment; credit may be arranged for longer periods to meet demands in foreign markets. An association may bid on and secure large orders for shipment over a long period, which no single member could handle. In many cases it is selling to combines or buyers in large quantities who prefer to deal with an organization with ample source of supply. In improving the service to buyers and the quality of the goods shipped, through standardization and inspection before shipment, the associations have reduced claims of buyers, and have offered an efficient service in handling disputes. The association is in a position to obtain and disseminate trade. information, to handle advertisement, and to do exploitation work with minimum expense to the members. So far as it was in operation before the armistice, the law was of benefit in developing new markets in South America, and some foodstuffs and raw materials were shipped to Europe for use of the Allies. During the period of readjustment after the World War, American exporters found advantages in cooperative effort, and in 1929 and 1930 substantial sales were made. During the years of depression, a number of associations have reported to the Commission that their members would be unable to export without Webb law organization. PRODUCTS EXPORTED Products exported by the Webb law groups have been divided by the Commission, in its annual reports, into five general classes: (1) Metal and metal products: Copper, iron and steel, metal lath, zinc, machinery and implements, foundry equipment, locomotives and railway equipment, electrical apparatus, signal apparatus, tools, pipes, valves, and screws. (2) Products of mines and wells: Sulfur, phosphate rock, coal and coke, petroleum products, carbon black. (3) Lumber and wood products: Pine, fir, hardwood, redwood, walnut, naval stores, plywood, doors, furniture and office equipment, wood pipe, shooks, wooden tool handles, clothespins. (4) Foodstuffs: Canned milk, meat products, sugar, flour and other grain products, rice, sardines, canned salmon, peas, canned vegetables, and fruit (fresh, dried, and canned). (5) Other manufactured products: Paper, textiles, rubber products, abrasives, cement, fertilizer, paint and varnish, insecticides, alcohol, tanning materials, soda pulp, soda ash, alkali, other chemicals, cotton linters, clothing, buttons, and general merchandise. These broad groupings were adopted in order to give to the public information as to the kinds of goods exported, and their value, without divulging statistics reported by any one company or association. Total exports during the years 1920 to 1934, inclusive, were as follows: The decrease in the value of exports from 1931 to 1934 was due to depressed conditions in foreign markets, including the lack of purchasing power, uncertain credits, exchange control, import quota and license systems, increased duties, and, in some cases, total exclusion of products theretofore imported from this country. It was also due to the fact that by reason of the very low prices prevailing in foreign markets, some of the member companies were unwilling to ship and some of the associations suspended price agreements, permitting members to sell at independent prices; the independent sales were not reported or included in the Webb-law totals for those years. In round numbers. ASSOCIATIONS FORMED UNDER THE LAW, 1918-35 The first groups to form under the law were the lumber exporters, the copper and steel associations, exporters of machinery, railway equipment, phosphate, chemicals, paper, furniture, elastic webbing, and a number of exporters of foodstuffs (some of these for the purpose of selling grain products to the Allies). Several groups were formed to handle miscellaneous exports to specific markets, but this plan was not a success. An exporter of lumber is not equipped to sell food products or unrelated goods; and it was found a better plan to form the groups on the commodity basis rather than for regionaltrade development. Passage of the Capper-Volstead Act, granting antitrust exemption to agricultural cooperatives, in 1922, precluded the formation of those groups under the Webb law. The sulfur and rubber groups were formed in 1922, the petroleum associations in 1929, the textile groups in 1930, and the electrical association in 1931. Other important associations are noted in the list below. In 1920 there were 43 associations in operation. Several dropped out during the readjustment period, in 1921 and 1922; but others were formed, and in 1929, 1930, and 1931 there were 57 associations on the Commission's list. The number dropped to 45 in 1934, and 44 in 1935. Although exportation has been exceedingly difficult during the depression, most of the associations have maintained their organization and continued to operate to some extent. The following list includes associations that have operated under the law during the years 1918 to 1935: 10 Alabama-Florida Pitch Pine Export Association, New Orleans__-- 1929-33 1925-29 American Corn Products Export Association, New York City. 1922-27 1927-30 1919-20 1930-35 American Locomotive Sales Corporation, New York City. 1919-35 Name changed to U. S. Maize Products Export Association_ 1919 1920-26 American Milk Products Corporation, New York City. American Paper Exports, Inc., New York City- 1919-30 1930-35 1918-35 1919-35 American Producers Export Corporation of Delaware, New York City--- 1921-22 American Producers Export Corporation of New York, New York City-- 1921-22 American Provisions Export Co., Chicago__ 1919-35 American Rice Export Corporation, Crowley, La.. 1927-33 American Soda Pulp Export Association, New York City.... 1919-35 American Soft Wheat Millers Export Corporation, Washington, D. C---- 1927-34 American Spring Manufacturers Export Association, New York City 1923-35 American Surface Abrasive Export Corporation, New York City. 1923-31 American Tanning Materials Corporation, New York City-- 1919-23 1919-25 American Textile Trading Co., New York City 1930-34 American Tire Manufacturers Export Association, New York City-. 1923-35 American Webbing Manufacturers Export Association, New York City-- 1919-32 Association Button Exporters of America, Inc., New York City-- 1921-33 10 This list does not include a number of companies that filed papers under misapprehension during the first year of operation; they were found to be engaged in business other than exporting, and were dropped from the Commission's register. Atlantic & Gulf Export Co., Jacksonville, Fla-- 1921 1921-29 1925-35 1928-30 1919-23 1929-33 Some of the members now in the Carbon Black Export, Inc., New 1933-35 Carolina Wood Export Corporation, Norfolk, Va.. 1919-32 1919-35 Chalmers (Harvey) & Son Export Corporation, Amsterdam, N. Y. 1921-31 1921-23 1919-23 (Some members now in Steel Export Association of U. S.) Copper Export Association, New York City 1919-33 Copper Exporters, Inc., New York City 1926-35 Davenport Pearl Button Export Co., Davenport, Iowa.. Export Clothes Pin Association of America, Inc., New York City. 1919-30 1929-35 Export Screw Association of the United States., Providence, R. I__. 1926-35 1924-29 (Some members now in Shook Exporters Association.) Exporting Rye Millers Association, Minneapolis, Minu... 1920 Florida Hard Rock Phosphate Export Association, Savannah, Ga___ 1919-35 1919-33 Florida Pine Export Association, Jacksonville, Fla___ General Milk Co., Inc., New York City.. 1930-31 1919-21 1919-24 1930-35 (Was American Milk Products Corporation, 1919-30.) Goodyear Tire & Rubber Export Co., The, Akron, Ohio 1922-35 Grain Products Export Association, New York City 1922-27 Grand Rapids Furniture Export Association, Grand Rapids, Mich__. Metal Lath.Export Association, The, New York City-. 1929-35 Millers Export Association, Inc., Chicago, Ill___ 1919-22 Mississippi Valley Trading & Navigation Co., St. Louis, Mo. Northwest Dried Fruit Export Association, Portland, Oreg-. 1927-35 Northwest Lumber Exporters Association, Seattle, Wash__. 1929-31 (Some members joined Douglas Fir Association & Export Co.) Pennsylvania Millers Export Association, Philadelphia 1919-20 1919-35 Pioneer Pearl Button Export Corporation, Poughkeepsie, N. Y. (Some members joined American Rice Export Corporation.) Rubber Export Association, The, Akron, Ohio.. 1922-35 257769-40-No. 6-18 |