The news scimitar. (Memphis, Tenn.) 1907-1926, 1918-12-13
FORM SOCIETIES
TO BOOST GOODS
MADE IN AMERICA
New Associations Avoid Law
Complications by Filing
Statements of Purposes
With Federal Commission.

WASHINGTON. Dee. I3-American
manufacturers are rapidly forming eN-
nort associations which plan TO carry
the products Of the United states TO
every nation on earth, to create and
enlarge demands for goods made in
America n to furnish CargoeS for
the American merchant marine TO
transport over the seven seas, The
trade invasion of other countries VIII
begin in earnest when Europe has been
supplied with food ana reconstruction
materials and the world gets back to Il
normal peace basis.
To avoid collision with provisions OF
the sherman a%ntitrus; act and the
clayton law, the new associations are
filing statements of their purposes with
he federal trade commission, taking
advantage of the Webb bill permitting
such combinations solely for the pur-
pose Of export trade 2 This act enables
Americans to combine their strength
to compete successfully with similar
combinations In other countries. Up
TO the present, 50 statements have been
rled, embracing combinations of ma
chtnery and tool makers, PAPER makers,
lumber manufacturers and general eX-
porters.
As a general rule, the combinations
have been effected along the line OF
trade associatiuns-that Is, all manu-
facturers in the producing Of a certain
article or series OF articles are banding
together, somewhat along the lines fol-
lowed by the Germans III pushing goods
to all corners Of the earth before the
war. Some experts believe that this
system is wrong and that the Combina-
tons should be effected along the de-
paTtment store idea-that is, that each
combination should include one or two
manufacturers of each article and that
the association should be able to fur
nish everything from a pin to a loco
motive. They argue this system would
save much expense in maintaining
statesmen and branch agencies and that
Just as strong organizations can be ef-
tected as under the other plan. Advo-
Gates of the one-ltne-of-busines Idea
contend, however, hat their system,
which sends out highly specialized
statesmen to sell one article only and
which ~allocates all orders among the
manufacturers embraced in the asSO-
citation, makes the stronger Combina-
ton to meet foreign competition only.
Officials who haVe studied the prob
lem think the danger of ar Outgrowth
of these export associations similar to
the great metalgesselsChaft of Germany
which controlled metals and metal prod
ucts in all parts Of the world both in
production and distribution, is ellmi-
mated by a provision of the Webb bill
which prohibits any exporters associ-
alton from engaging in importing &C
tivities. This is designed to present,
I VI AANhhV AAN'h ehANf ~ A"'
materials. 1t also is provided that the
acts of the combinations must not be
in any way in restraint Of trade within
| the United States, the federal trade
commission having continual supervis-
ion over their activities and zach in
dividual manufacturing or jobbing mem
Der of the association being amenable
to the Sherman and Clayton acts inso-
far as his domestic buslr ass is con-
cerned.
NJ r-.I-, - lN-nAoNfn
commerce Is prepared TO give AID TO
the combinations, in the way OF sta e
tiRtical and trade information o for
eign markets. Additional commercial
attaches and travelling agents are be-
ing sought by the bureau to handle the
expected increased volume of Amerl-
lean business and a movement Is under
/ way with the backing of the department
Of commerce, the CHAMBER OF commerce
OF the United States and other organl-
cations, to secure more consul under
the state department, part OF whose
duties would be to assist in this work,
Because Of the existence of long term
credits customs In foreign markets, es-
pecially in South America, which were
~inaugurated by the Germans and Eng
fish, it will be necessary for the Aneri-
can exporters to have an agenCy for
the quick d%iscountlng of trade accept
anCes and similar documents of in
debtedneSs. American bankers, awake
to this need. are moving hand in hand
with the manufaCturers-eVen "A few
steps ahead, and are establishing branch
banks in South America, the West In
dies, Italy, Denmark, Russia, China, the
Philippines, the Straits Settlements, the
Dutch East Indies, British India, Japan,
Panama, Great Britain ana other coun-
tries where 1t Is expected the export
associations will carry the products OF
Yankee ingenuity and a civilization.
With all this preparation accom-
plished and much more about to be be
gun, there remains one considerable
problem for the American merchants
to overcome before tney can make any
progress in foreign markets. This is
shipping.
Withdrawal of all merchant vessels
from normal trade routes and placing
Of them under absolute control Of the
shipping board under tae stress of war
necessity, makes It impossible to get
products to foreign buyers until some
tonnage is released by the board for
normal trade purposes. The situation in
Europe regarding FOOD ana reoonstruc-
ton material Is such that the board de-
sires to retain control or every vessel
until the emergencies have been passed
and it has been declared In some quar-
tiers that at least two years must elaDse
before all the abnormar needs of the
world can be supplied, ever with the
continual use of all existing bottoms,
| However, a plan may be evolved by
the division of operations or the ship
ping board under which after all YES
sells have been used for several months
exclusively in the fooc carrying to Eu-
rope, n proportion may be released to
| carry carEOes to other parts of the