New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-02
HOW WE LIMlT
OUR POWER IN
WORLD TRADE
Federal Commission Holds
Anti Trust Laws Handi-
cap Export Business

nublished in two volumes called Ke-
mort on Cooperation in American TX
mort Trade" The nature Of the con-
illusions reached is indicated by the
title. Americans without a degree OF
co5peration. which now is Impossible
under existing laws are az a perma-
rent disadvantage in world trade, be-
cause they compete with the 600 car
tells Of Germany. the syndicates of
France and Belgium. the textile com
bination of Japan and the traditional
coordination Of the banking, shipping
and trading intelligence of the British
The commission finds:
N That other nations have marked ad-
vantages in foreign trade from superior
facilities and more effective organizauons'
(O That doubt and fear as to legal re-
strictions prevent Americans from deveiop-
ing equally effective organizations FOR over
seas business and thst the foreign trado
~ American manufacturers and producers
narticularly the smaller concerns suffers
in consequence.
The commission emphasizes the fact
that our foreign competitors not only
arc better organized to sell their prod
nets in the worlds markets, but that
they are at the same time effectively
organized for the purpose Of buying
raw materials in the American market
On this subject it says:
In various markets American manufact-
urers and producers must deal with hisnY
effective combinations OF foreign buyers
Thu, exporters Of lumber find such eomoi-
nations in Australia and on the Continent
Of Europe Cottonseed products are ham
died by combinations Of buyers in Holland
Denmark and Germany. and Austrian cot
ton-textile manufacturers have a buying
combination TO import their raw cotton
The Cooperative Wholesale Society (Ltd-)'
an astonishingy comprehensive wholesale
buving organization maintained by l,ioV
co-operative societies in Great Britain, has
one buyer in New York who annually pur-
ehases millions Of dollars worth OF Ameri-
can products. -Four London firms, known
rs the Fixing Board. daily set the price OF
silver for the world. and American mining
companies must sell their silver for either
the English or the great Indian market TO
one Of these four houses. For years the
eopper trade of the world has been ruled by
vast German metal-buying organization
centring in the Metallbank und Metallur-
oiscbe Beselschaft A. c.. of Frankfort-on-
tbe-Main. This combination has subsidiary
and affiliated companies in Germany, Eng
land France. Spain, Switzerland. Belgium.
Africa and Australia. controls copper and
lead mines and smelters in the United
States, Mexico and other countries. and
works in agreement with other German
metai-buying concerns.
These combinations naturally make indi-
vidual American producers bid against each
other. and are thus able 70 buy at compare
lively low prices. According 70 the presi-
dent Of one Of the largest American cop
per companies. the German metal-buying
combination. by such tactics as these and by
the manipulation of the foreign future
markets has bought millions of tons OF
American copper at prices averaging over
n series Of years nearly a cent a pound be-
!1w the prices paid BY American consumers.
considerable part Of the export trade
Of the United States consists Of raw or
semi-fnished materials obtained from nat
ural resources Of limited supply. II is
urged by many that il cooperation among
exporters Of such materials il established II
will tend 10 increase the price received for
such exports and enable the producers 70
reduce the wastes Of production. not only to
the profit OF the Industries concerned but
also 10 the advantage Of the public through
retarding the depletion Of the supply.
The recommendation OF the COM
mission are summarized as follows:
By its investigation the commission has
established the Fact that doubt to the
application Of .he antitrust laws TO export
trade generally prevents concerted action
by American business men in export trade.
even among producers Of non-competing
goods. IN view OF this fact and Ct the
conviction that cooperation should be en-
couraged in export trade among competi-
tors as well as non-competitors. the COM
mission respectfully recommends the en-
actment Of declaratory and permissive leg
islaton 20 remove this doubt. This recon-
mendation Is made subject to the condition
that the legislation shall be carefully safe
guarded and shall make absolutely clear
that the combinations for export business
are subject to all the rigors Of the Sher-
man Jaw II they are used TO restrain trade
in the United States.
The commission does not believe that
Congress intended by the antitrust laws
t. prevent Americans from cooperating in
export trade FOR the purpose OF competing
effectively with foreigners. where such
cooperation docs not restrain trade with.a
the United states and where no attempt is
made TO hinder American competitors from
securing their due share OF the trade II
Is not reasonable 10 suppose that Congress
meant 20 obstruct the development OF for
eign commerce by forbidding the use in
export trade OF methods Of organization
which DO not operate 10 the prejudice OF
the American public. are Lawful, in the
countries where the trade is 20 be carried
on and are necessary II Americans are to
meet competitors there on more nearly
equal terms.
U. S. Treasury Finances