South American Fruit Exporters, Inc., New York City Standard Oil Export Corporation, New York City-.. Steel Export Association of America, The, New York City. Sulphur Export Corporation, New York City Textile Alliance Export Corporation, New York City. (Name changed to Textile Manufacturers Alliance in 1919.) Textile Export Association of the U. S., New York City. Textile Manufacturers Alliance, Inc., New York City. United Export Lumber Association, Seattle United Paint & Varnish Export Co., Cleveland_. U. S. Alkali Export Association, Inc., New York City U. S. Button Export Co., Muscatine, Iowa-- U. S. Forest Products Co., Kansas City, Mo.. U. S. Handle Export Co., The, Piqua, Ohio__. U. S. Maize Products Export Association, Inc., Wilkes-Barre, Pa‒‒‒‒‒ 1926-30 1932-35 1931-35 1927-31 1929-35 1928-35 1922-35 1922-35 1919 1930-35 1919-20 1931-32 1920-29 1919-35 1921-28 1919-22 1919-35 1920-26 1919-20.) U. S. Office Equipment Export Association, New York City. U. S. Provision Export Corporation, Chicago_ Walnut Export Sales Co., Inc., Kansas City, Kans. Walworth International Co., New York City- Western Plywood Export Co., Tacoma, Wash_ Wisconin Canners Export Association, Manitowoc, Wis__. Wood Naval Stores Export Association, Wilmington, Del– Zinc Export Association, New York City. 1918-23 1919-22 1918-35 1920-35 1927-35 1920-29 1935 1920-23 1925-34 EXHIBIT 8 [Federal Trade Commission] FOREIGN TRADE WORK EXCERPTS FROM ANNUAL REPORT OF THE FEDERAL TRADE COMMISSION FOR THE FISCAL YEAR ENDED JUNE 30, 1937 NOVEMBER 24, 1937. FEDERAL TRADE COMMISSION WILLIAM A. AYRES, Chairman; GARLAND S. FERGUSON, JR., Vice Chairman; CHARLES H. MARCH; EWIN L. DAVIS; ROBERT E. FREER; OTIS B. JOHNSON, Secretary. Foreign trade work of the Commission includes administration of the Export Trade Act, commonly known as the Webb-Pomerene law, and inquiries made under section 6 (h) of the Federal Trade Commission Act, which empowers the Commission to investigate trade conditions in and with foreign countries. This work is handled by the export trade section of the Legal Division. THE EXPORT TRADE ACT The Export Trade Act, passed by Congress in 1918, grants exemption from the antitrust laws to export combines or associations, which are required to file with the Commission copies of their organization papers, annual reports, and such other information as the Commission may require as to their organization, business, conduct, practices, management, and relation to other associations, corporations, partnerships, and individuals. In case of violation of the law, the Commission may conduct inquiries and make recommendations for readjustment of a business. Should an association fail to comply with the recommendations, the matter may be referred to the Attorney General for further action. Such an association must be solely engaged in export trade; and the law provides that it shall not restrain the export trade of a domestic competitor; artificially or intentionally enhance or depress prices within the United States of commodities of the class exported by the association; substantially lessen competition or otherwise restrain trade within the United States. EXPORTS INCREASE IN 1936 Reports of associations filing papers under the Export Trade Act show an upswing in exports for the year 1936, due to improved conditions abroad, a lessening of trade restrictions in foreign countries, and strong association effort to increase sales in spite of foreign competition. Total exports for that year amounted to $149,296,525, and exceeded by approximately $11,600,000 the associations' exports in 1935, in spite of the fact that two of the largest groups, exporting petroleum, were dissolved in 1936. Association exports for the years 1935 and 1936 1935 1936 Metals and metal products, including iron and steel products, copper, metal Lumber and wood products: Pine, fir, redwood, walnut, hardwood, plywood, Other manufactured goods: Rubber, paper, textiles, glass, cement, abrasives, Total.. FORTY-FIVE ASSOCIATIONS OPERATING UNDER THE EXPORT TRADE ACT New associations organized under the Export Trade Act during the fiscal year ended June 30, 1937, were: California Alkali Export Association, comprising three member companies in California, with headquarters in Los Angeles; Pacific Fresh Fruit Export Association, comprising nine member companies in California and Washington, with headquarters in San Francisco; and Scrap Export Associates of America, comprising three member companies in New York and Pennsylvania, with headquarters in New York City. At the end of the fiscal year, 45 export trade associations were on file with the Federal Trade Commission, as follows: American Box Shook Export Associa- American Locomotive Sales Corpora- American Provisions Export Co., 80 East American Tire Manufacturers Export California Alkali Export Association, Carbon Black Export, Inc., 500 Fifth Metal Lath Export Association, 47 West Avenue, New York. Thirty-fourth Street, New York. 6 Place, New York. Northwest Dried Fruit Export Associa- Signal Export Association, 74 Trinity tion, Title and Trust Building, Portland, Oreg. Pacific Flour Export Co., care of Fisher Pacific Fresh Fruit Export Association, Plate Glass Export Corporation, Grant Rubber Export Association, 19 Good- Steel Export Association of America, 75 Sugar Export Corporation, 120 Wall Sulphur Export Corporation, 420 Lex- Textile Export Association of the United States Alkali Export Associa- Walnut Export Sales Co., Inc., Twelfth Walworth International Co., 60 East Wood Naval Stores Export Association, ADVANTAGES OBTAINED BY EXPORTERS IN 1936 Associations operating under the law represent mills, mines, factories, and processing plants in all parts of the country. Shipments are made to all parts of the world. The export association presents a united front to foreign competition; it concentrates and simplifies the problem of sales, makes for economy in operation, and generally builds up the prestige of American goods abroad. An association may adopt uniform sales terms as to price, credit, shipping dates, packing requirements, and other details of shipment. Complaints of foreign buyers against American shippers may be reduced through a centralized inspection service and an adjustment department. An arbitration board lessens legal expense. Cooperative purchase of cargo space was especially helpful during the maritime strike tie-up of 1936. The pooling of orders makes it possible to complete large sales contracts over a longer period of shipment than could be handled by one company alone. Standardization of products and improvement in quality, have been effected through cooperative effort. Foreign buyers show more confidence in dealing with a large group of exporters than with a single company less known to the trade. The association is in a position to obtain current information for dissemination among the members as to market conditions abroad, tariffs, shipping requirements, tax regulations, and exchange restrictions. Exports were somewhat lessened in 1936 by labor disturbances, notably the maritime strike on the west coast which delayed shipments and resulted in some cancelation of orders. There are still high duties and import quota plans in some countries abroad, although associations report that reciprocal-tariff agreements negotiated by the United States have served to lessen these restrictions. Revaluation of goldblock currencies at lower levels gave foreign competitors an advantage. The policy of some countries to increase production to the point of becoming self-sustaining in time of war has led to changes in producing areas. Manufacturing plants have been built in the Orient, much effort has been spent in the development of substituteproducts in Europe, and the cultivation of grain and other foodstuffs has been encouraged abroad. These changes must be met and new markets developed to take the place of old. The Webb-Pomerene law offers a method under which the expense and effort of developing new markets may be divided among a number of exporters, for the bene fit of all. TRUST LAWS AND UNFAIR COMPETITION IN FOREIGN COUNTRIES In accordance with section 6 (h) of the Federal Trade Commission Act, directing inquiries as to trade conditions in and with foreign countries, the Commission notes the following measures involving trust laws and unfair competition abroad: Argentina. Recent legislation authorized Government purchase and destruction of vineyards in order to reduce the production of wine grapes. An Executive decree of August 7, 1936, provided for appointment of a commission to study plans and present recommendations for agricultural laws and policies. A national wool institute was created by decree of June 10, 1936, to promote production and regulate prices. Under an Executive decree on July 20, 1936, all imports and exports of petroleum must be handled by a Government-controlled agency with authority to allocate markets and to operate a monopoly for sale of petroleum in the federal capital. Australia. Decision of the Privy Council at London in July 1936, invalidating the Dried Fruit Control Act, seriously affected the Commonwealth plans for production control. Government aid to agriculture had been effected for some years through bounties and marketing schemes. Domestic prices were maintained above export prices, and the difference paid to exporters, control having been administered by Commonwealth export control boards working in cooperation with control boards in the producing states. The Privy Council held the dried fruit control to be in violation of section 92 of the Commonwealth Constitution, which insures free trade between the Australian states (James v. Commonwealth of Australia). Thereafter amendments were proposed to make section 92 inapplicable to marketing laws, and to permit laws regulating aviation, the Commonwealth Air Navigation Act having been held invalid by the High Court of Australia. But the proposed constitutional amendments were rejected by the states in 1937. Section 7 of the Industries Preservation Act, which provides for freight-dumping duties, was amended December 7, 1936. Austria. Increased prices in raw materials and semifinished goods have led to an increase in retail prices, and a demand for governmental price fixing for necessaries. A price commissary has been appointed to receive claims and provide official hearings for disputes between producers, manufacturers, dealers, and consumers. Bolivia. The price and profits control decree of June 20, 1936, provided that establishments dealing in articles of basic necessity be limited to a maximum profit of 12 percent, and other firms to a maximum commercial profit of 20 percent. Stocks will be inventoried, actual costs of prime necessities computed, and selling prices fixed by |