New Britain herald., 1919-04-04
WAY IS PAVED FOR
 WORLD WIDE MARKET
Webb Law Is Important Step
 Toward Prosperity
(By Garret Smith,

New York, April 4.~-1n clearing the way for Americas postwar pros neritv no more important step has been taken than the passage of the Webb Law, approved April 10, 1918, which puts ample checks on unfair methods and at the same time per- mits our exporters to combine forces in marketing their goods in foreign countries. For the first time since the opening of the era of antitrust legislation, American producers can compete on equal terms with their foreign business rivals.
 The importance of this step is suc- cnctly stated in a pamphlet by the Guaranty Trust Company of New York, Referring to the disadvantages under which exporters have labored in the past, it says:
 "The remarkable increase in the value of American exports during the last four years has been due to ab- normal conditions occasioned by the war. Such conditions, of course, can not be expected to continue. When | trade again assumes it's normal trend, l the extraordinary demands of foreign i countries for the products of this l country will naturally be lessened 1 Foreign countries which have been 1 engaged in the war will agan meet 1 our manufacturers and producers Ill l competition in the worlds mafhe's' ! To meet that com petition, 1t IS es- 1 sential that American exporters De 1 placed on equal terms with their con- 1 petitors. The Webb Law gives them l privileges of association which they | have never before enjoyed, because l of the uncertainty of the prohibitions | of the law
 Webb Law Defined.
 This Webb Law sets aside the l Sherman Antitrust Act in the case
 of export com binations, providing
 these organizations limit their actlvl-
 ties to export business. They must
 not in any way restrain trade "lthlh
 the United States nor hamper the eA- 1 port trade of any domestic competltor.
 The law carefully provides against
 any agreement or act which shall
 raise or lower prices or lessen com
 petition within the United States.
 The Clayton Act is also set aside in
 the case of corporations engaged
 wholly in the export trade, allowing
 all or part of their stock to be pur
 chased by another corporation, pro- l viding that trade or competition with
 in the United States is not interfered 1 with.
 l The measures adopted by various l American industries to take advantage 1 of the Webb Law and the benefit ac- l cruing to smaller dom estAc concerns which have not hitherto been able to
 compete successfully i'll the export
 trade are well illustrated by the fol-
 lowing typical case:
 The Law Applied.
 The export trade in a certain Amer
 ican industry had been confined to
 several large concerns each represent
 ed abroad by a branch house or an
 export house. With the return of
 peace it became apparent that in this
 industry there would quickly come
 about g. general over-production at
 home while abroad there would be an active and constant demand in , various markets.
 Now, the larger concerns already [, selling abroad were willing to com 1 bine for export trade but were not F ready to abandon their branch houses or export houses. They would, how
 ever, make satisfa ctory agreements
 with a joint selling organiza ton in- f | cluding the rest of the industry. - A / 1 formed under the laws of one of the l Eastern States with it's purposes
 carefully limited to those permitted 7 by the Webb Law. The capital stock / consisted of 5000 preferred shares s and 5000 common shares the pre- r { ferred shares to pay eight per cent l per annunl, with par value of $1QC 1 each. The com on shares were with l out normal or par value and Issue s only as bonus. No participating con. cern had more than one vote an6 each was represented upon the board of directors. Each concern made the corporation : it's exclusive agent for the sale of its : entire export product. This export
 product must consist of specified
 percentage of the participating con
 cern's output and of specified grades e and quantities. The corporation fxes the price at which 1t shall sell, and
 bills and collects therefor in its owr
 name. The participating concerr
 stande rdizes labels, marks, tags and
 ships it's export product as directed
 by the corporation and protects the Y latter in respect to all claims by pur. ' chasers. The participating concerr
 bears all freight and other charges tc
 the seaboard. but beyond the sea a 1 board such charges are borne by ths 1 corporation together with all selling
 expenses.
 For products which the participat
 ing concern furnishes the corporation n 1 the former is credited upon the ba s
 of prices arrived at by one of Variou y ways. Thus the corporation may take 'C from each concern an option for s specified period upon. certain grade - 1 and quantities at certain prices. O. r, when the corporation wishes to quot e upon the prospective order it ma.