PART VI. BUREAU OF MEDICAL OPINIONS

DATA USED IN CASES RELATING TO FOOD, DRUGS,
DEVICES, AND COSMETICS

The Bureau of Medical Opinions furnishes the Commission with scientific facts and opinions concerning the composition, effectiveness, and safety of food, drugs, curative devices, cosmetics, and other commodities in relation to questioned advertising claims. It arranges for analyses of samples of products under investigation and gathers information with respect to their nature.

The Bureau provides medical opinions and scientific information needed in the preparation of formal complaints and the negotiation of stipulation-agreements, as well as in connection with affidavits of scientific experts. During the fiscal year it prepared 279 written opinions and rendered many oral opinions. A substantial amount of time was devoted to assisting the Commission's legal staff in its preparation for hearings in cases in which questions of science arose. Members of the Bureau staff attended many hearings, particularly where scientific witnesses were under cross-examination. The services of expert scientific witnesses were obtained in cases where it was necessary to determine scientific questions. During the year, 39 experts testified as witnesses in Commission cases.

The Director of the Bureau of Medical Opinions is the Commission's liaison officer with the Food and Drug Administration and with the Insecticide Division, Livestock Branch, Production and Marketing Administration of the Department of Agriculture. Through such cooperative relationships, the Commission has obtained much needed information and other assistance in connection with cases involving food, drugs, devices, cosmetics, and "economic poisons" such as insecticides, rodenticides, fungicides, and weed exterminators.

PART VII. FOREIGN TRADE WORK

EXPORT TRADE ACT

The Export Trade Act, commonly known as the Webb-Pomerene Law, enacted in 1918, is administered by the Commission through its Division of Export Trade. Designed to promote the export trade of the United States, this act authorizes the organization and operation of export trade associations among competing exporters, and grants to such associations an exemption from the antitrust laws, provided their operations do not restrain trade within the United States, restrain the trade of competing American exporters, or artificially enhance or depress prices within the United States.

With their activities subject to general supervision by the Commission, associations operating under the act are required to file periodic reports and such other information as may be requested from time to time. Under section 5 of the act, if the Commission has reason to believe that the law has been violated, it may investigate and, if it finds a violation, recommend that the offending association readjust its business to comply with the law.

Exporters interested in qualifying for operation under the act may obtain information and assistance from the Division of Export Trade. Its staff is available for informal consultation and advice and stands ready to be as helpful as possible in connection with all matters relating to this law. Detailed information may be obtained upon request. In some cases an export association acts as a central selling agent for export shipments of its members. In others it directs and controls export sales by the members under association agreement. Still other associations buy the members' products and resell them in foreign markets.

Typically, the groups are organized along cooperative lines. Some are incorporated, others are not. In most instances they operate on a nonprofit basis, the profit obtained on export sales being realized by the members individually.

The law was first used to facilitate the sale of goods to the Allies during World War I. It was of importance during the reconstruction period after that war when large quantities of materials were shipped abroad to rehabilitate Europe. The so-called "boom period"

opened new markets for American goods in foreign countries, and when the depression followed, cooperation in export under the law aided many American exporters to continue in business in the face of very unfavorable trade conditions.

Later, the war in China closed many oriental markets to American exporters, forcing the associations to develop other markets to take the place of that trade. And when war broke out again in Europe in 1939, the countries involved in that conflict were eliminated one by one as markets for American goods, so that trade was shifted again, this time toward Latin America and Africa. In some instances goods en route to European ports were diverted to other countries. These shifts were readily made by a cooperative organization with agents abroad and knowledge of foreign conditions.

Normal export trade did not exist, of course, during World War II. Since the war the problems which have been presented to American exporters have increased in difficulty and complexity. As a result of unsettled world trade conditions, cooperative effort under the Export Trade Act has assumed even greater importance than before.

OPERATIONS IN 1948

Total exports by the associations were less in 1948 than in the previous year, the decline being especially marked during the second half of the year. Some groups have found it difficult to get back into foreign markets closed during the war period. Despite the gradual trend from a sellers' to a buyers' market, the normal flow of business has been hindered by lack of dollar exchange, and associations have had many orders which could not be executed because of the inability of purchasers to establish credit.

Competition from foreign manufacturers has greatly increased as other countries have taken steps to build up their productive capacity and to export as much as possible in order to establish their position in world markets. In some countries an increase in the production of native crops has led to a decrease in demand for American foodstuffs. While during the war prices in some foreign countries were higher than controlled prices in the United States, foreign competitors in many cases are now underselling American goods. Among other things, production costs in foreign countries are held to a minimum by Government loans or subsidies, tax exemption, and other measures to encourage trade.

Several associations are now inactive, but report that the services rendered to members in the past justify continuation in the hope that export conditions will improve. Several associations went out of

business during the past fiscal year. One new association was organized during the year: Cerium Export Association, formed in March 1949 by the Cerium Metals Corp. of New York and General Cerium Co. of Edgewater, N. J. This association will export cerium misch metal, an element used chiefly in the manufacture of flints for cigarette lighters and other devices requiring a spark.

EXPORTS IN 1948 TOTAL $700,183,502

Total value of exports by the associations in 1948, as compared with 1947, is as follows:

ASSOCIATIONS OPERATING UNDER THE ACT

At the close of the fiscal year ending June 30, 1949, 45 export associations were registered with the Commission:

American Hardwood Exporters, Inc.,
706 International Building,
New Orleans.

AMTEA (American Machine Tool Ex

port Association),

30 Church Street,

New York.

Carbon Black Export, Inc.,
500 Fifth Avenue,
New York.

Cerium Export Association,
52 Wall Street,

New York.

American Spring Export Association, Citrus Corp. of America,

Inc.,

50 Church Street,

New York.

Box 231,

Lake Wales, Fla.

Door Export Co.,

Texas Rice Export Association,

Florida Hard Rock Phosphate Export 407 Jensen Drive,

Goodyear Tire & Rubber Export Co., United States Alkali Export Associa

Metal Lath Export Association, The, United States Scientific Export Associa