Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-10-13
INFORMATION POOL
To HELP AMERICAN
COMMERCIAL LINES
By FREDERIC j. HAsKIN

w ASf11NC IL. -, OCl' "
The next device to increase and
protect American foreign trade
probably will be the important COM
bination. In all probability congress
will be asked at the forthcoming
session to enact legislation which
will authorize combinations of inn
porters, dealing in the same gen
eral line of goods, to form assocla-
tions or cooperative organizations
through which they may jointly I'M
port their goods. Importers are IN
need of some new method to enable
them to keep possession OF thelr
home market.
About a year ago a new flood OF
imports began coming into the
United States The Fordney tariff
bill was designed to keep them OUT
so that the American market would
be kept as a special prerogatlVe OF
the American producer and manu-
facturer, but it did not succeed very
well at this. The reason IS the
high price and wage level IN TINS
country. Over the last twelve to
eighteen months prices nave been
climbing IN. BY the first of 1923
they had reached a level where for
eign-made goods, produced with
United States. pay the high tariff
rates, and still underSen American
goods made with the highest paid
labor in the world.
There are many American manu-
facturers using foreign raw material
Thew import this, manufacture II
into finished goods in the United
States and sell to the American con-
sumers. They can buy abroad on
about the same basis with foreign
manufacturers using the same types
of raw material, but when the ma
.erial is brought here for manufac-
lure. higher labor and other costs
operate. so that the finished prod
vet must bring a higher price than
the same sort of article manufac'
tured abroad. Therefore, the I'M
porters desire legislation which Will
enable them to import their raw
material more advantageously. Ii
is believed that an import comblna'
ton would bring this about.
A typical example of the problem
Is furnished by the rubber industry
About a year ago, this industry
awakened to a realization that Great
Britain, which controls the best
tire rubber in the world, had placed
an import restriction and a nigh eX'
port tax on the rubber produced IN
the various British tropical colonies.
This added about $200,000,0 900 year
to the American rubber bill. mas
much as the various crude rupper
importers were all working lndepend'
entity. they were unable to combat
the move and had to pay the price.
1t is thought that had there been
An import combination in existence
II could nave exerted enough lnflu
ence to have prevented the British
action or at least could have made
cooperative arrangements which
would have cut down the cost OF
importing. -.
Americans Against Each Other
The same situation is true of
number of products which are neceS-
sary to American manufacture, out
which are not produced on American
territory. Spain, for instance. con-
trolls the cork, Japan the camphor,
Peru the quinine, Mexico the slsai'
India the jute, and Chile the al
trates, All of these products art
used in great quantities in Anaerl-
ran manufacture, and all come from
foreign sources.
The department of commerce mas
been assisting the importers III
working out more advantageous
methods than now exist for the i'm
portation of these commodities anu
has even gone so far as to send
forth expeditions seeking places
where rubber can be produced I'M
der American control but as MAJ
ters stand now, even though the
government can be of much assist
ance, the importers are all compel
ing against each other because eacli
Ia acting separately. The foreign
nroducers of these important raw
materials know the situation. They
know that two American copsull
lrs are lust as likely to bid against
zach other for supplies as an Amerl
IAN and a Frenchman. AS the re-
mlt of this bidding, the price is
run I'D to a high point and TINS hlgn
a..oa must be reflected in the final
retail selling price of the flnlsned
srodI1ct to the American consumer.
If American importers of rubber
sor instance, were permitted to form
IN import association, competltlon
m baving the raw material Wouio
diminish. The rubber planters III
ne tropics would find that, instead
If having hundred separate Amer
ran customers, all bidding against
ZACH other and running up the price
here would be but one customer:
,o.operative buying agency. Inc
limited States consumes more run
ser than all the rest of the world.
The sherman law forbids such
combinations at present. The gov
,rnment takes the position that II
rnwise to permit dealers or man
sfacturers to combine and ANTITRUST
u1its are brought against all such
attempted combinations. The reason
n,. this is that it is feared that IL
he rubber manufacturers all We're
working together they not only
gould be able to get low prices IN
suvins their raw material but Wou!o
,oree on uniform high prices III
,e11ing their product to the pubic
4 is recognized that there would OF
in advantage in permitting the man
sfacturers to combine t. get low
,rices if low prices would penell'
he ultimate consumer
The task before congress, in Tram
NO the new legislation, is TO de
rise some scheme by which, the
manufacturers could be permitted L
combine in buying raw materla1S
RON, foreigners, but which woulc
lot hermit them to remain in com
dnation when it came to the sen
ns. In a word, the new law mus
provide that the rubber trade or th'