AMERICAN TRADE LAWS.

Taihape Daily Times, Volume XI, Issue 3511, 24 June 1920, Page 3

AMERICAN TRADE LAWS.

NO -UNFAIR" COMPETITION The matter of the Webb-Pommer-ene Act came before a special meeting of the Auckland Chamber of Commerce recently, and as a result the Prime Minister was written to and asked to take such steps as he deemed advisable to protect the commercial interests of New Zealand. The Chamber has received a reply from Mr. 'Massey stating that the matter was being closely watched by the Department of Industries and Commerce which had been asked to report to him upon any development which might warrant Government interference. The department had. said Mr. Massey, brought under his notice a report appearing the April number of the "Australasian-American Trade Promoter/' which contained a reply to the criticism made on tin's Act by Mr. A. W. Ferrin, United States Trade Commissioner to Australia, as follows: —

"The Webb-.Pommerene Act. referred to as the third salient feature in Australian-American commerce, has been interpreted by many Australians as a device to enable the American trusts to operate in foreign countries in a manner forbidden within the confines of the United States. This is very far from being the intention of the framers of the law. which was meant to allow mills and factories | too smell to establish independent 1

agencies abroad, to combine in i'cy;m ing export associations with sellingbranches in all parts of The world. Mills making different kinds of soft goods, for example, goods could by this association, jointly introduce their products into markets which no one of them could .afford to cultivate alone. It is true that among the as-

sociaticns already formed are very large copper producers, steel manufacturers and others, who can well afford to act independently, but by their association they are able 4 a effect vital economies which ought to be to the benefit of the consumer. Competition of producers of other countries than America should furnish ample protection against monopolistic practices. A world 'trust' is a most difficult, if not imposible thing to accomplish. The associations of American copper producers and steel manufacturers will have 10 compete ."■gainst strong associations of other countries, and the net result will be lower price s rather than higher.

"One of the chief purposes of the Sherman Act, the Clayton Act. ;

others, which critics of ihc- \V< b- • Pormhe.rene Act say forbid American.-; to do at heme what the Webb Act promise them 10 do abroad, is to prevent unfair competition as well as monopolies to keep up prices. By section 4 of the Webb law unfair competition is prohibited in foreign as well as in the domestic trade, a point which the Webb law enemies have apparently overlooked. The Federal Trade Commission, one of the most powerful of America's Government instrumentalities, is empowered tr say what unfair competition is. and to take steps to stop it. "A decision has already been rendered under this section ordering a great international company to desist from certain unfair practices in Mexico, from which decision the int. >•< " seems to be clear that the Trade Commission is "prepared to stop linfair practices wherever they occur. If the force of international competition is not strong enough to regulate the associations roamed, jund.er ":lie Webb Act. persons or countries having any cause for complaint have in the Federal Trade Commission a body to appeal to for redress, and 'he composition of that Court i s such thai a.fair deal to everybody seems to be assured. 'lf, however, present legislation is not sufficient to assure for countries against American trust practices, which are prohibited in America, additional legislation will be forthcoming. Specific complaints against individual American mills, apart from the Webb law associations, will likewise be beard by the Federal Trade Commission, when a course of procedure now being elaborated is completed, and (bis body is expected to protect the good name of American manufacturers in general, and the interests of foreign customers of tlfose manufacturers in every way."