The association offers to its members a method of presenting their claims before boards and conferences. One reports that:

During negotiations with the conferences and steamship lines this association, particularly this year, found of great value the control of the tonnage exported by its different members and was able to obtain a satisfactory ocean freight rate for the year 1939.

Another states that its ability to deal with large purchasing combines abroad has been of material benefit. Some of the associations have presented data to the United States Government in connection with proposed reciprocal trade treaties that could only have been compiled by cooperative action.

As an illustration of association action during disturbed conditions in Europe in 1938, one reports:

We were able to take advantage early in the year of strengthened exchange abroad and improve our selling prices in several countries. Later with war clouds on the horizon, we were enabled to keep careful track of shipments en route, divert them to different ports or hold them in warehouses at European ports until the situation cleared and we could complete delivery. Thus no credit losses were sustained from territories which were taken over by Germany.

SUPPLEMENTAL REPORT ON ANTIDUMPING LEGISLATION

Under section 6 (h) of the Federal Trade Commission Act, a supplemental report on antidumping legislation and other import regulations in the United States and foreign countries, covering the years 1934 to 1938, was presented to Congress in June 1938. Copies are now available for distribution upon request.

TRUST LAWS AND UNFAIR COMPETITION IN FOREIGN COUNTRIES

Also under section 6 (h), the Commission follows current trust legislation and unfair competition in foreign countries. The following measures are noted:

Algeria. A decree in 1938 required formation of syndicates by all commercial producers of citrus fruit to enforce regulations pertaining to the planting, cultivation, sale, and transportation of the fruit. The French law of October 5, 1938, noted elsewhere in this report, is applicable to Algeria.

Argentina.-The grain board was reorganized and the minimum price guaranty program reestablished under laws passed in September and November 1938. A decree on December 8, 1938, extended the program to include cattle, under administration of the National Meat Board. Subsidies paid to producers of grain and cattle are covered by profits from control of exchange. An antidumping bill was sent to Congress in September 1938 but failed to pass before adjournment on September 30. A provincial law in Buenos Aires in 1939 declared the business of supplying electric current a public service, to be administered by a Bureau of Electric Services.

Australia.-The Motor Industry Bounty Act and the Newsprint Paper Bounty Act became effective in December 1938. The bounty payable on exports of citrus fruits was continued. Under a plan adopted in 1938, a tax will be levied on all wheat milled for consumption in Australia; funds derived therefrom will be used to make up the difference between the export price and the domestic price if the latter is maintained above world prices.

Austria.-Under a decree dated July 14, 1938, the German cartel legislation was introduced in Austria.

Belgium.-In September 1938 a series of emergency measures were made effective to safeguard domestic supplies of foodstuffs, raw materials, and other necessities. The Minister of Economic Affairs was authorized to grant export permits, to prohibit the use in animal feedstuffs of any products that might serve as food for human beings, to inventory stocks of merchandise and regulate their use, and to regulate production, manufacture, and distribution of products for human consumption.

A royal decree dated January 18, 1939, limited the period of special sales in the retail trade in order to protect traders and consumers from unfair competition. Another decree, March 22, 1939, prolonged authority of the Government to regulate the use of designations under which products are sold in commerce when the interests of producers, distributors, or consumers so demand.

Bolivia. Under a constitution adopted in October 1938, all mineral wealth, public lands, and their natural resources, waters, and sources of power are the property of the nation. The state is empowered to regulate commerce and industry in the public interest.

Brazil. The Monopoly Act, No. 869 of 1938, declared violation thereof a criminal offense, punishable by fine and imprisonment. No bail will be allowed and no pardon or conditional freedom granted. All such crimes will be tried before the Tribunal of National Safety: Destruction or illegal use of raw material or products necessary for consumption of the people; abandonment of tilled land or the closing of factories in return for payment to restrain competition; promotion or participation in combinations or agreements to restrain competitors in material used in production, transportation, or commerce, for the purpose of increasing profits; retaining or monopolizing raw material, means, or production, of products necessary for the consumption of the people, for the purpose of dominating the market and causing increase in prices; selling merchandise below cost price for the purpose of restraining competitors; using false news, fictitious operations, or other fraudulent means to increase or decrease prices, the value of public bonds, articles of value, or salaries; the use of false indications or statements in the sale of bonds or shares; interlocking directorates or officers of companies in the same line of business for the purpose of restraining competitors; operating fraudulently banks, banking and capitalization societies, insurance companies, savings banks, mutual benefit societies, aid and pension societies, or cooperative societies, by causing their bankruptcy or insolvency, or by breach of contract resulting in loss to interested parties; fraudulent entries, registration, or reports for the purpose of concealing profits, dividends, or percentages, or the fraudulent use of reserve funds; entering into agreements to impose a resale price or demand that the buyer shall not purchase from another; departure from official prices of merchandise; attempting to obtain illicit gain by fraudulent processes such as "chains," etc.; violation of contracts of sale or installments, cheating in the drawing of lots, failing to deliver without return of the installments paid, in case of a contract rescinded by the buyer; fraudulently tampering with weights or measures standardized by law; and usurious practices such as charging interest in excess of that permitted by law, or obtaining

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a profit exceeding one-fifth of the current or fair value of the installment made or promised.

Under a presidential decree of December 15, 1938, flour mills will be required to purchase home-grown wheat at a fixed price and in quantities to be determined on a quota basis. Imports will be limited, and the Government's efforts to increase wheat production to the point of self-sufficiency will be continued.

Canada.-The Canadian Grain Act was amended on April 7, 1938. The Dominion Government submitted to Parliament in April 1939 a report presenting a new wheat-marketing policy in the form of a cropinsurance plan. To facilitate the plan bills have been introduced for the regulation of the Winnipeg Grain Exchange and the encouragement of cooperative marketing; the wheat board would operate as a central selling agency for cooperative organizations.

The Dairy Industry Act, Farmers' Creditors Arrangement Act of 1934, and the Seeds Act of 1937 were amended on July 1, 1938. An act to assist the Provinces of Alberta and Saskatchewan in financing the cost of seed and seeding operations for the crop year 1938 was passed on April 7, 1938. An act to assist in the alleviation of unemployment and agricultural distress, supplemental to acts passed in 1936 and 1937, was passed on May 25, 1938.

An act to regulate the inspection and sale of binder twine and to establish weight of bushel for certain commodities was passed on June 24, 1938; the inspection and sale act of 1927 was repealed. The Food and Drugs Act was amended on April 5, 1939, and the Meat and Canned Foods Act on May 2, 1939. The Radio Act of July 1, 1938, provided for regulation of broadcasting stations. The Transport Act, July 1, 1938, created a Board of Transport Commissioners to regulate transportation by railways, ships. and aircraft. The Shipping Act of 1934 was amended on June 24, 1938.

Under the Combines Investigation Act, report was issued on August 31, 1938, on an inquiry into an alleged combine in the distribution of tobacco products. The Combines Commission found that retailers and wholesalers had been refused supplies for the purpose of maintaining fixed prices and monopolistic trade restrictions, resale price maintenance, certain standardization of packaging, and other uniform trade practices, had contributed to a lessening of price competition. As a result of the inquiry, action was brought under section 498 of the Criminal Code charging monopoly by 35 corporations and 10 individuals, including manufacturers and wholesale distributors in the tobacco industry. Hearings were held in the superior court at Edmonton in April 1939; the case was to be continued at a later sitting of the court.

A report by the Combines Investigation Commission on an alleged combine in the manufacture and sale of paperboard shipping containers, was submitted on March 14, 1939. The Commission found that two combinations had operated to the detriment of the public through a series of written agreements under which prices were fixed and maintained, and a system of sales allotments or quotas developed, with penalties imposed if a member sold beyond his quota. An alleged combine in the distribution of fruits and vegetables in western Canada is now under investigation by the Commission.

A provincial investigation of farm-implement prices and distribution resulted in a report by a legislative committee in Saskatchewan

in 1939. Several plans were proposed to bring about lower prices of agricultural implements, including a recommendation for prosecution under the Combines Investigation Act, and adoption of a purchasing plan through a cooperative association with Government financial assistance. A provincial law was passed on April 1, 1939, authorizing the Saskatchewan Cooperative Wholesale Society, Ltd., to do retail as well as wholesale business. This organization might be used to further the agricultural-implement plan. The Saskatchewan Cooperative Associations Act of 1930 was also revised in 1939.

A Natural Products Marketing Act, passed in Manitoba on April 17, 1939, empowered a board to control transportation, packing, storing, and marketing of any natural product within the Province. Prices fixed by the British Columbia Milk Producers' Clearing House Cooperative Association, organized as a selling agency under the Natural Products Marketing Act of that Province, were attacked in the courts in 1939. An injunction issued against the association in April was set aside by the supreme court of the Province in May.

Colombia.-A law passed in 1938 provided for the establishment of plants for the manufacture of iron and steel, by companies in which the Government may hold a majority of the capital stock.

Czechoslovak Republic.-A temporary governmental decree effective on November 8, 1938, provided for the licensing of trades, professions, and industrial enterprise. Its purpose is said to be to effect business reorganization in the State, and to avoid too hasty removal of industries from Austria and the Sudeten region.

Dominican Republic.-A decree issued on November 7, 1938, provided for the regulation of production, preparation, and marketing of rice.

Ecuador.-Under a decree of July 8, 1938, Government regulation of the banana industry will be effected. No one company may own more than 80,000 hectares of land; holdings in excess of that must be disposed of to Ecuadorans within 5 years or they will become the property of the state without compensation. Exportation will be supervised by the Ministry of Social Welfare.

Egypt.-A law passed on August 1, 1938, provided regulatory control for the cultivation of cotton. An advisory council was established on December 18, 1938, to study the cotton situation and assist in formulating a policy. Minimum prices have been fixed and short selling discouraged. Barter agreements with other countries, and plans for collection of debts owed to Egyptian exporters by countries with currency restrictions are under consideration.

Finland.-A new grain law effective from September 15, 1938, to January 1944, will regulate the use of imported wheat and rye.

France.-A law dated October 5, 1938, authorized the Government to issue decrees having the force of law, and to take measures intended to bring about the immediate economic and financial rehabilitation of the country. A number of decrees have been issued. The system of price control instituted in 1937 has been modified. Any increase in the retail price of goods or in the charges for services rendered to individuals, above existing levels, is prohibited unless authorized by price supervisory committees (certain food and perishable goods excepted). Increase in the wholesale or semiwholesale price of industrial products may be prohibited by decree, especially if the sales are made through cartel organizations or under agree

ments between producers, including international agreements; or if the goods are imported and subject to quota regulations. Decrees also include regulations as to marking of prices and goods offered for retail sale. The Government is authorized to raise the selling prices of monopoly products and to increase direct and indirect taxes in order to adjust them to present prices of goods and services.

A law on March 19, 1939, authorized the Government to issue decrees approved by the Council of Ministers, which may be necessary for the defense of the country. A decree on April 21, 1939, limited. profits which may be made by suppliers of materials to be used for the national defense; the Government may collect certain percentages of profits, varying with the amounts of the transactions.

The National Economic Council issued a report on January 1,. 1939, recommending a self-sufficient agricultural policy covering a list of farm products of importance in France and its possessions.

Germany.-A law dated February 25, 1938, provided for reorganization of the Reich Economic Court, and transfer to it of the functions of the German Cartel Court. A Reich Committee for Increasing Industrial and Economic Efficiency has been established by the Minister of Economic Affairs, to further cooperation between the state and economic organizations. Numerous orders have been issued by the president of the German Trade Development Board in regulation of commercial advertising.

Great Britain.-The Coal Mines Act of July 29, 1938, strengthened provisions of the act of 1930 for compulsory amalgamations, provided for the purchase and administration of coal royalties, and prolonged to December 1942 part I of the 1930 law which was the legal basis for the quota system and selling schemes.

The Prevention of Fraud (Investments) Act of April 28, 1939, added to blue-sky laws of Britain, further provisions intended to put a stop to "share pushing" and similar fraudulent practices in the sale of securities.

The Essential Commodities Reserves Act, passed in June 1938, empowered the board of trade to obtain from traders, information as to their stocks and facilities for storing commodities essential in time of war. The board was also authorized to create reserves of these products. A comprehensive Ministry of Supplies bill was presented to Parliament in June 1939.

The Bacon Industry Act, 1938, set up a new board to regulate the sale and purchase of bacon pigs, guaranteeing that for 3 years the price shall be adjusted to differences in the cost of feeding stuffs, and that the curer shall receive a standard price.

Administrative powers of marketing boards and schemes under the Agricultural Marketing Acts, Coal Mines Act, and the Herring Industry Act, are considered in a report issued in 1939 by a committee appointed to study this phase of regulation.

The Export Guarantees Act of 1939 replaced prior laws in effect since 1920, to provide export credit insurance.

Greece.-Law No. 1490, passed in 1938, required registration of exporters, prosecution of defaulting exporters, and control of the quality of exported merchandise, treating adulteration of exported goods as a criminal offense.