The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-04-26
THE WEBB LAW

The Webb law, permitting combi-
nations in export trade, which was ap-
proved April 10, 1918. is an important
and necessary step In enabling manu-
facturers and producers to prepare to
meet the post-bellum demands OF for
eign commerce. Although this coun-
try has built up an export trade OF
considerable magnitude, our manufac-
turers and producers have been at q
disadvantage because OF the uncer-
tainty of the application of the Sher-
man and the Clayton antitrust acts
to combinations and associations OF
exporters. Cooperation is necessary
in order that they may meet condi-
tions Of foreign trade on an even
basis with foreign competitors, and at
the same time. not be compelled to
compete with themselves. The act as
passed. would seem to allow to ex-
porters the freedom of contract neces-
|sary 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.
Following is the text OF the Webb
law:
An act to promote export trade and
for other purposes,
Be it enacted by the senate and
house Of representatives OF the United
States Of America in Congress assem-
bled, That the words export trade"
wherever used in this act mean solely
trade or commerce In goods. wares, or
merchandise exported. or in the course
of being exported from the United
States or any territory thereof to any
foreign nation: but the words export
trade" shall not be deemed to include
the production, manufacture, or sell
ing for consumption or for resale,
within the United States or any terri
tory thereof, of such goods, wares. or
merchandise, or any act in the course
of such production, manufacture, or
selling for consumption or resale.
That the words trade within the
United States" wherever used in this
act mean trade or commerce among
the several states or in any territory
of the United States, or in the District
of Columbia, or between any such
territory and another. or between any
such territory or territories and any
state or states or the District Of CO.
lumbia. or between the District Of
Columbia and any state or states.
That the word association" wher-
ever used in this act means any cor
poration or combination, by contract
or otherwise. OF two or more persons.
partnerships, or corporations.
Sec. 2. That nothing contained in
the act entitled "An act to protect
trade and commerce against unlawful
restraints and monopolies," approved
July 2, 1890, shall be construed as de-
claring to be illegal an association
entered into for the sole purpose OF
engaging in export trade and actually
engaged solely in such export trade,
or an agreement made or act done in
the course of export trade by such
association, provided such assocfa-
ton, agreement, or act is not in re-
straint of trade within the United
States, and is not in restraint of the
export trade of any domestic com
petitor Of such association: And pro
vided further. that such association
does not, either in the United States
or elsewhere. enter into any agree
ment understanding, or conspiracy, OF
do any act which artificially or inten
tionally enhances or depresses prices
/ the Uultcu States vi SoAhAOul
ties of the class exported by such as
ISOLATION or which substantially les
sens competition within the United
States or otherwise restraints trade
ltherein.
Sec. 8. That nothing contained il
section seven Of the act entitled
l"An act to supplement existing law!
against unlawful restraints and mo
lnopolies. and for other purposes" ap
jproved October Is, 1914, shall be con
lstrued to forbid the acquisition O
Ownership by any corporation of tn
whole or any part of the stock o
other capital of any corporation OF
ganized solely for the purpose of en-
J gaging in export trade, and actual.
engaged solely in such export trade
unless the effect Of such acquisition
or ownership may be to restrain trad
Tor substantially lessen coMpetftio,
within the United States.
Sec. 4. That the prohibition agains
unfair methods Of competition" an