New-York tribune., 1919-05-21
Export Combine
For L. S. Chemical
Industry Outlined
Sl5,00O,00O Corporation
Is Suggested by the For
eign Trade Committee of
Chemical Alliance, Inc.

lcal corporation under the Webb Pom
creme law is recommended in a report
just submitted 70 the Chemical Ali
ance, Incr by its foreign trade COM
mittee. The capital will be divided
into $4,000, 900 of common and S.
OOO,000 of preferred stock The
former is to be subscribed by manu-
facturers participating fully in the
plan and the preferred stock will be
offered to manufacturers who desire
TO cooperate but wish to retain their
individual organizations. Participa-
tlon will be on the basis of average
annual sales of each chemical handled
by each manufacturer and profits will
be distributed in the same proportion
as dividends on the common stock.
In recommending that such cor
poratlon be organized, the committee
states that its Investigations have led
the following conclusions:
l. Export markets present natural
outlet for surplus production.
2. The most serious obstacle is trans
portation and there is hope of solu-
tion Of this question
s. Strong foreign combinations can
best be met by strong American or
ganzation.
A. American banking facilities are
now equal to the demands of the situa-
ton; war finance corporation a vaiu-
able aid
3. Unsatisfactory middle men will be
eliminated.
6. large combination would gain
recognition for adequate tariff legis-
/ lation.
Purpose of Organization
Some of the purposes the organiza-
tion is to serve are enumerated as.
follows: To engage in export trade
IN all branches of chemical industry;
buy and sell for its own account for
eXportatlon; act as representative Of
others IN respect to transportation,
purchase, sale, etc. in the course of its
export trade; acquire interest in, and to
operate vessels; acquire interest in
lands, docks, terminals, maritime and
riparian rights, wharves, warehouses,
etc; engage in construction in a for
eign country of any article made
partly or entirely from any article of
the association; appoint representa-
tives in all parts of the world; acquire
and dispose Of stocks, bonds and other
evidence Of Indebtedness of any cor
poration; to issue in exchange there
for, its own stocks, etc. and to exer-
else all powers acquired by such hold
ings; aid by loans, etc. any corpora
ton in which the association holds an
interest
Stockholders Rights Limited
1t is proposed that the preferred
and common stocks shall have equal
voting rights and that the dividends
on the senior issue shall be at the
rate of 7 per cent with a cumuia tive
provision. Only per cent of the
common is TO be paid in on organiza-
ton, The balance to be subject 20 call.
Upon organization each member trans
ferring his entire export business will
receive equal blocks of stock, adjust
ment to be made later on basis of
participation quotas.
All common stockholders are to re-
port their annual sales, during pre-
ceding five years, of association chemi-
Gals.
A rough basis for allotment of pre-
ferred stock suggested is that each
manufacturer be required to take
stock equal 10 10 per cent Of the value
Of its export sales Of association
chemicals per year
Limitation is placed on the rights
of stockholders to the extent that
shares arc not transferable except with
the approval of the board of directors
Foreign Trade is Huge
Exports of chemicals and allied
products from the United States in the
year 1913 exceeded imports by $278,-
100000, whereas in 1914 imports ex-
ceeded exports by $80000,O 900. The
total of foreign trade in chemicals and
allied products in 1918 was $500, ,00O,-
900, which was 80 per cent of the
country's total foreign trade and %
rer cent Of the total exports OF this
sum 1919 100000 represented exporta
tons of explosives. Because of this
fact the report emphasizes the i'm
portance Of expanding trade in gen
eral chemicals TO offset the reduction
in shipments of explosives which has
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