New-York tribune., 1919-03-03
Webb Law May
Be Extended to
Affect Importers
Hundreds of American Con-
Germs Are Joining With
Competitors to Promote
Trade in Foreign Countries

Opportunity to expand the business
of American manufacturers and bust
ness men in foreign fields, offered to
them under the Wcbb-P Pomerene act
is being grasped by men in all lines
Of industry The formation of more
than 100 ociations which will en-
gage in foreign trade is under discus
sion in addition to those which have
already been formed, chief among
which has been the Copper Export AS
sociation, Inc.
These facts are revealed in an ar
ticlc in "The Americas" which is pub
lishcd by the National City Bank. In
speaking Of the organizations which
arc under contemplation, an article IN
"Thc Americas says thcy are mpor-
tant, not only in size but in their char
actcr. They may require months be
fore they arc completed. Many con
ferences relative to the formation Of
new associations have already been
held with representatives Of the Fed
eral Trade Commission by groups in
advanced formative stages.
"Thcrc is every sign OF the fact
that, suppementing the large scale
coordination and super organization
of great national phases Of business
enterprise in foreign fields by great
corporations like the American Inter
national Corporation, which is able to
'tc-in' for combination economies per-
haps impossible in Independent COM
petition such big service enterprise in
foreign business as shipping harbor
works cable and wireless, great steel
plants, merchandising organization,
etc, are able to see great develop
ment of genuine merger of American
manufacturing enterprises in units for
exclusively foreign effort through the
medium of the export association, and
even going beyond its limitations"
Consideration is already being given
by officials in Washington to the posi-
bility Of the formation of some safe
form Of corporation resembling the ex-
port association, which may be permit
ted to do import business, says the
writer in "The Americas" at is also
being considcrcd," he continues
"whethcr the Webb Pomerenc act may
not be circumspectly broadened to per-
NIT limited domestic activities on the
part of export associations, some trade
II, tho pnrt RI 6rnrtiNp and -{oi
clusively foreign business that some
authorities in the Federal Trade Board
now think they are barred from doing
at is seen plainly that this would
mean the addition of many paying ac-
tivities that would be of help to Ameri-
can business in general. 1t is of con-
siderable significance that some men at
Washington who are uncompromising
in opposition to a change of public pol
icy toward trusts and the present anti
trust laws are now disposed to seek out
safe notifications of those if it can be
found possible to permit limited activi-
ties looking to freedom of co0rdinated
effort in world trade.
"What is now happening is this: The
adoption of the Webb -Pomerene law
legalizing combination in export bust
ness, and the organization of several
leading groups of manufacturers into
export assoc iations has advertised all
over the country the advantage Of for
NAL combination in conducting fore ign
business, and there is very big de-
velOpment in progress that seems to
indicate the certainty that our coming
effort for export business will consist
very largely of highly organized COM
blnation, amounting in some cases to
super organization of grouped bust
ness interests, and we are in d wave
Of consolidation and merger as applied
to our developing foreign trade that is
very much like an exact counterpart
industrial, railway, banking, and com
mercial combination Of about twenty
years ago.
''In the first place, there has been Il
rush of business concerns already in cx-
istence to incorporate, if not already
chartered, and to file their charters and
formal reports as required by the Fed
ernl Trade Commission, for the purpose
of being recognized as export associa-
tions.' Commission houses, trading
companies. international jobbcrs, for
oign subsidiaries of American manu-
featuring concerns. corporations formed
before the Webb -Pomcrenc law was
adopted for the purpose of taking on
output and marketing them abroad, con
struction companies formed to do for
cgn business or to build foreign works
these, and even private partnerships,
have gone to Washington and registered
as export associations.
"Somc Of them, by charter provision
or in actual practice, nrc doing domestic
business. or are engaged in incidental
importation. This seems to bar them
as export associations, but does not
make their business Illegal. Tho Fed
eral Trade Commission, on February
"A, had caused SO applications out Of
67 to be Withdrawn for reasons That
seemed to eliminate the companies.
There were 25 applications on the 'sus-
pensc hlc,' mainly for the reason that
they were originally organized and per-
mittcd by their charters to do many
things not permitted to export associ-
ations, although actually con6ning
themselves to export business. Nine
cOmnunioc Uaro apprOuad