The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-19
EXPORTERS TO FORM
IN SEVERAL GROUPS
Manufacturers in Given In
dustries Have Decided on
Separation.
WEBB LAW is DISCUSSED
Impossible to Say at This
Stage What Advantages
Are, Expert Says.
WEBB LAW IS DISCUSSED

In forming combinations for export
the Webb law. 1t has been decided in
several instances not to bring all the
manufacturers in a given industry into
one association, but to form several
groups totally independent There is in
consequence some discussion as to the
affect on foreign trade in general Of the
existence Of several Webb law corpora
lions operating in the same field. and
handling the same products.
Allen Walker. manager Of the foreign
trade bureau of the Guaranty Trust
Company Of New York, whose advice
has been sought in the formation Of
many Of the combinations already In ex-
istence, said yesterday that II was i'm
possible to say at this stage OF the pro-
cess whether the advantages obviously
afforded by single combination were
more important than the questions of
policy which had been raised In justifi-
cation Of a group of competing combina-
lions.
This Is a matter We can decide bet
ter" said Mr.. Walker, when we have
more data to go upon, when we have had
opportunity to observe over longer Pc
riod OF time the workings OF the combi-
nations already formed. Conditions in
the industry under discussion would
| have to be considered, and also the stu
alton in the markets in which IL was
proposed to operate.
I'VE know. for instance. that foreign
buyers have criticised the Webb law
combinations as an attempt at expioita-
ton through monopolistic methods. To
| this our answer has been that while the
Webb law corporation which includes all
the members Of an industry may be
| monopolistio from the sellers point OF
view, It Is not monopolistic from the
buyers point of view. because even a
Webb law corporation is subjected to the
! competition Of manufacturers OF other
countries. In fact, the Webb law, by
making IL possible for American manu-
facturers to offer their goods in markets
hitherto closed to them, gives the for
| eign buyers in such markets a wider
range In their buying than they were
previously afforded.
Then we must remember, too, that
| the Webb law was framed to eliminate,
at least in the foreign field. destructive
| competition of the kind which we have
had so often to deplore at home. II
was designed to give the small pro-
Queer, through cooperation with others
chance to operate In those fields where
hitherto only the strongest and largest
| of American manufacturers could sup
port themselves The existence OF sew
eral combinations handling one group Of
products would bring about a tendency
on the part of the foreign buyer to be-
gin again that playing of one seller
| against another which has always been
so costly In the past. In other words, 1t
might we'll be that several Webb law
combinations would end by devouring
each other.
AT home there are certain obvious
advantages which come with the merg-
| ing OF all producers into one export as
1 ISOLATION. In the matter OF shipping
| for instance, the Government, In the
mapping OF routes and the ALLEGATION Of
| tonnage, will necessarily listen to the
exporters OF the country. II there are
in each industry several dissenting
groups. with varying ideas as to the
relative Importance OF markets, the
| chances for intelligent and satisfying
action by the Government will be less
likely than II the exporters were in a
| position to thresh out their differences,
| IN camera, 30 to speak. and present as
| a unit the net result OF their delibera
lions. In all Government matters, as
we learned through the war. those in
dustries fare best which are able TO
agree upon a united policy. II it were
a question of dealing with foreign Gov
ernments. the same principal would hold
good.
I'VE must admit that uncontrolled
monopoly brings q temptation toward
exploitation which must be sedulously
guarded against II there were no way
Of avoiding the abuses OF monopoly
then 1t might be we'll for the industry
concerned to consider all the posslbili-
ties in advance and agree to subdlvide
itself into several combinations totally
| unrelated.