The sun., 1919-04-26
WEBB ACT DEBATED
AT TRADE CONGRESS
John Walsh, Former Federal
Counsel, Tells How to Oper-
ate Under Law.
IMPORT RIGHTS DEFINED
Goods May Be Brought Here il
Intended for Reshipment
Abroad.
IMPORT RIGHTS DEFINED
ny WILLIAM JUsTus BoIEs,
Stag Correspondent OF THn suS.

CHICAGO, April 25.--The feature of
to-day's session OF tho National Foreign
Trade Convention was the spirited dis
cussion of the Webb act. under the pro-
vision Of which exporters have already
formed moro than eighty selling organi-
cations to market American products in
foreign countries.
John Walsh. formerly chief counsel of
the Federal Trade Commission, pointed
out that In order to take ADVANTAGE of
the Webb act II was not necessary for
exporters to organise a foreign selling
corporation at all, but merely to form
an association by joint agreement for
the purpose OF selling merchandise In
foreign trade through n joint represen-
tattve.
He added that many exporting con-
Germs found 1t impossible to claim the
protection OF the act because they were
also engaged in the importing business
He said that Congress did not intend
that combinations should be formed for
the control OF the Importation OF mer-
chandise. Then followed the most in
terestlng discussion that the convention
had listened to. for It was quickly APP
parent that both lawyers and business
men were in doubt as to Just what the
Webb net permitted American firms
to do
Protecting Foreign Sales.
1t was urged that 1t would DO legal
for foreign selling combination to
make sales In this country IL 1t was
clear that the things cold were for eS-
port trade only Such a foreign selling
agency did not have to police It's sales.
but in order to protect itself would have
to procure a certificate from the domes-
tic buyer showing that the goods pur-
chased were intended for sale abroad.
The interesting point was made that
since the PHILIPPINE Islands were not
governed by the laws OF this country
they might be considered foreign terri
tory within the meaning OF the Webb
act. This would not be SO in the case
Of Porto Rico or Hawaii.
S II. Bissell made the point that 1t
might be legal for n foreign selling cor
poEation organized under the Webb Act
to engage in import transactions II the
goods imported were taken in payment
for those exported. This gavo an ex-
| tccmely interesting turn TO the discus
sion. but the delegates were urged not
to take too much for granted In think
ing that the Webb act would legalize
any foreign trade combinations except
those connected with the expectation of
American products.
Another delegate combated this view.
declaring that the American business
man had a right to take the law as It
stood and enter upon transactions In
foreign trade which would not be per-
| United in domestic commerce owing to
| the restrictions Of the Sherman law
! lie contended that combinations formed
| under the Webb act would not be inter
| preted as holding companies at all &c
! long as they were organized for the
sole purpose of developing American
trade abroad.
Much Difference of Opinion.
These discussions disclosed great DIFF.
ference Of opinion as to Just how far for.
eign selling combinations could go ir
developing lucrative trade abroad fol
| American industries whose domestic
operations were rigidly restricted by the
| Sherman act
It was pointed out that groups Of
corporations allied In a foreign selling
might allocate n larger proportion o.
their product TO their foreign field so a:
to force up prices for the balance re-
served for the home market.
The delegates We're urged to make {
strong bid for South American trade
before It was all gobbled up by Grea
Britain and France. Tho convention
reached n high pitch OF excitement II
considering the alluring opportunities
for developing American trade abroad
but some OF the strongest delegates
urged American firms to make an ef
fective bid for such business without an,
delay II they expected to show UP vel
In competition with Great Britain
France and other countries.
James A. Farrell, president Of TIT
United States Steel Corporation. ant
other prominent business men were II
attendance.
The convention practically finished II
business to-day and will adjourn TO
morrow morning after a session devotet
chiefly to formal business.