PART VII. FOREIGN TRADE WORK

EXPORT TRADE ACT

The Commission administers the Export Trade Act, commonly called the Webb-Pomerene Law, which grants exemption from the antitrust laws to associations or cooperatives solely engaged in export trade under certain conditions set out in the law.

Export associations are required to file with the Commission copies of their organization papers and periodic reports; and if the Commission has reason to believe that an association is not operating in accordance with law, an investigation may be made and recommendations issued for readjustment of the association's business.

The law prohibits restraint of the trade of a domestic competitor of the association, artificial enhancement or depression of prices within the United States, and substantial lessening of competition or other restraint of trade in this country.

FORTY-NINE ASSOCIATIONS OPERATING UNDER THE ACT

At the close of the fiscal year the following 49 export associations were on file with the Federal Trade Commission:

American Hardwood Exporters, Inc., | California Alkali Export Association, 901 Carondelet Building, 608 Latham Square Building, Oakland, Calif.

New Orleans.

AMTEA Corp.

American Spring Manufacturers Export Tacoma, Wash.

Association,

30 Church Street,

New York.

American Tire Manufacturers Export

Association,

30 Church Street,

New York.

Douglas Fir Export Co.,
530 Henry Building,
Seattle, Wash.

Durex Abrasives Corp.,
63 Wall Street,

New York,

Export Screw Association of the United Rubber Export Association, The

Friction Materials Export Association, Textile Export Association of the

Motion Picture Export Association, Inc., Walnut Export Sales Co., Inc.,

Pipe Fittings & Valve Export Associa- 717 Market Street,

NEW ASSOCIATIONS

The Maine Sardine Packers' Export Association was formed in July 1946, and now represents 11 sardine packing companies located on the coast of Maine. Association offices were established in Eastport, Maine, and New York.

The American Phonograph Cooperative, Ltd., was formed in September 1946 by 23 companies to export used coin-operated phonographs, with offices in Chicago.

The United States Scientific Export Association, organized in November 1946, will ship scientific, chemical, technical and laboratory apparatus, instruments, equipment and supplies to foreign countries for its five member companies in Illinois, Pennsylvania and New York. The association office is in New York.

The Citrus Corporation of America filed its organization papers with the Commission in February 1947 and established offices in New York and Delaware. Members are producers of citrus fruits in Florida and include one growers' association, a packing company and four individuals.

EXPORTS IN 1946 TOTAL $322,597,224

Exports during 1946 showed a substantial increase over 1945, especially in metal products and foodstuffs:

INQUIRIES AND RECOMMENDATIONS

Several inquires as to operation of certain export associations were in progress during the fiscal year.

Summons and bill of particulars were issued in August 1946 to the Pacific Forest Industries, an association exporting plywood from the West Coast. This was a reopened case, continuing an inquiry made in 1939 and 1940 (Docket 202-1). Hearings were held on the West Coast in the Fall of 1946 and the matter is still pending.

Inquiries involving Carbon Black Export, Inc., Electrical Apparatus Export Association, General Milk Co., Inc., and The Pipe Fittings & Valve Export Association also are pending (Dockets 202-5, 202-4, 202-6 and 202-9).

After formal hearings, the Commission issued recommendations for the readjustment of the business of Sulphur Export Corp. (Docket 202-6) on February 7, 1947, as follows:

1. That Sulphur Export Corp. refrain in the future from formulating, promoting or participating in any plan, program or agreement whereby either or any of the following described provisions, or provisions of similar purport or effect, are continued, entered into or effectuated, to wit:

(a) Provisions such as those in the agreement between Sulphur Export Corp. and the Ufficio per la Vendita Dello Zolfo Italiano, whereby said Sulphur Export Corporation bound itself to deduct from its tonnage quota of shipments of American sulphur for export, certain shipments of sulphur from the United States made by or through American producers not stockholders or members of said

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(b) Provisions such as those in the agreement between Sulphur Export Corporation and the Ufficio per la Vendita Dello Zolfo Italiano, whereby the latter was guaranteed the right to sell a specified minimum tonnage of sulphur in a certain designated period, on a priority basis over and above the tonnage of sulphur to be sold by Sulphur Export Corporation in said territory during the same period;

(c) Provisions such as those in the agreement between Sulphur Export Corp. and the Ufficio per la Vendita Dello Zolfo Italiano, requiring that shipments of manufactured sulphur from the United States made by or through American exporters be deducted from the tonnage quota of export shipments of crude sulphur made by Sulphur Export Corporation;

(d) Provisions such as those in the agreement between Sulphur Export Corp. and the Ufficio per la Vendita Dello Zolfo Italiano, requiring that the parties to such agreement were to maintain the status quo in the manufactured sulphur industry in the trade territories to which said agreement applied and to do nothing which would encourage any alteration in the competitive trade situation in said industry in said trade areas.

2. That Sulphur Export Corp. refrain in the future from formulating, promoting or participating in any plan, program or agreement such as that provided in the ageement with Orkla-Grube Aktiebolag, that Sulphur Export Corp. shall acquire or control or participate in the acquisition or control of any share in patents or processes useful for or capable of being used in connection with the production of sulphur for commercial purposes, and that said Corporation in the future refrain from so obligating itself, financially or otherwise, in any such understanding or agreement.

3. That Sulphur Export Corp. in the future refrain from entering into any understanding or agreement with American producers of sulphur who are not regularly admitted and recognized members of said Corporation, whereby said producers or Sulexco agree not to sell sulphur in certain foreign markets, or to sell only at agreed or noncompetitive prices and terms, or to refrain from competing with each other in export trade in sulphur.

4. That Sulphur Export Corp. in the future cease and desist from selling, handling, marketing or disposing of sulphur for the account of or belonging to any American producer who is not a regularly admitted and recognized member of the Sulphur Export Corp.

5. That Sulphur Export Corp. in the future seasonably file with the Commission all information required by the Export Trade Act to be filed annually, and furnish all information and documentary evidence requested or required by the Commission, pursuant to said Act, whether called for by report forms, by questionnaires or communications, by personal visitation or otherwise.

It is ordered by the Commission that Sulphur Export Corp. file with the Commission within 30 days hereof a report stating whether it has elected to comply with the above recommendations, and if so, the manner in which it has so complied.

The sulphur association reported compliance and has continued to operate.

The Commission, after formal hearings, made the following recommendations for the readjustment of the business of Export Screw Association of the United States on February 19, 1947 (Docket 202–8):

1. That Export Screw Association of the United States refrain in the future from formulating, promoting or participating in any plan, program or agreement whereby either or any of the following-described undertakings, or undertakings of similar purport or effect, are abetted, continued, entered into or effectuated, to wit:

(a) Undertaking or practice, such as the participation in the purchase of the Falu Works of Sweden, by means of which foreign competitors who have or may ship their products into the United States are eliminated or their production terminated or abandoned.

(b) Undertaking or agreement, such as the agreement with the International Union of Wood Screw Manufacturers by means of which the United States was agreed upon as the home market for the members of the Association and the importation of wood screws into this country by members of the Union was prevented. (c) Undertaking or practice, such as the Association's cooperation with the International Union of Wood Screw Manufacturers, whereby machinery for the

making of wood screws was purchased or sequestered and made unavailable to manufacturers or potential manufacturers of wood screws.

(d) Undertaking or agreement, such as the agreement between the Association and Guest, Keen and Nettlefolds, Ltd., of Birmingham, England, a foreign competitor, whereby the export of wood screws from foreign countries into the United States and its territories and possessions was limited, restrained and prevented.

2. That Export Screw Association of the United States in the future refrain from entering into any understanding or agreement with American manufacturers of wood screws who are not regularly admitted and recognized members of said Association, whereby said manufacturers agree to sell only at agreed and noncompetitive prices and terms, or to refrain from competing in export trade in wood screws.

3. That Export Screw Association of the United States refrain in the future from fixing prices, terms or discounts upon or trading in any manner in wood screws marketed in Puerto Rico or any other territory or possession of the United States.

4. That Export Screw Association of the United States in the future seasonably file with the Commission all information required by the Export Trade Act to be filed annually, and furnish all information and documentary evidence requested or required by the Commission, pursuant to said Act, whether called for by report forms, by questionnaires or communications, by personal visitation or otherwise.

It is ordered by the Commission that Export Screw Association of the United States file with the Commission within 30 days hereof a report stating whether it has elected to comply with the above recommendations, and if so, the manner in which it has so complied.

The Screw Association reported compliance.

TRUST LAWS AND TRADE REGULATION ABROAD

Under section 6 (h) of the Federal Trade Commission Act, the Commission compiles information as to trust laws, unfair competition and regulation of trade and industry in foreign countries. A few of the more important measures are noted:

Argentina. A number of decrees in May and June 1946 effected reorganization of the economic and financial structure of the country. In October 1946 the President presented to Congress a Five-Year Plan including 27 basic laws for expansion of industry, agriculture, communications and trade; reforms in public health, education, and the electoral system; reorganization of Government offices; and regulation of fuel and power. As a step toward nationalization of public services, the Government purchased 3 French-owned railways in December 1946, and the British-owned roads in February 1947.

Australia.-The Commonwealth Wheat Stabilization Acts passed in August 1946 provided for a guaranteed price, control of acreage, continuation of the Wheat Board as a central marketing organization, and subsidy through a stabilization fund.

Austria.-A Nationalization Act passed July 26, 1946, was made effective September 17, 1946, for certain industries.

Brazil. A decree on April 4, 1946, prescribed a rigid system of price control. The new Constitution of September 18, 1946, set out principles for regulation of natural resources, business and banking. Canada.-The Combines Investigation Act was amended August 31, 1946.

China-Emergency measures were taken by the National Government in February 1947 in an effort to balance the budget. Wartime