Dr. Compton AppraisesValue of Tra deAgreements

Chomber o[ Commerce Speaker Holds Tariff Bargaining to Stay

Washington, D. C.- Describing the lumber industry as one of the "most outspoken critics and among the staunchest industry supporters" of the Trade Agreements program, Dr. lVilson Compton, secretary-manag'er of the National Lumber Manufacturers Association, led ofi a round-table discussion on "\Morld Trade Outlook" at the United States Chamber of Commerce meeting here.

Speaking on the subject "How Successful Has Been Our Tariff Bargaining," Dr. Compton appraised the results of trade agreements, referring to the program as a gigantic process suc'cessively of taking away from Peter to give to Paul, and then from Paul to give to Peter, in the hope that "what is given will exceed what is taken away, and that eventually both Peter and Paul and the nations with whom they do business will have more than in the beginning."

While the first year of the operation of the Trade Agreements program had seen an increase in lumber imports of 50 per cent, and a decline in exports of. 2l per cent, Dr. Compton predicted that the reciprocal Trade Agreements program was here to stay, and that while the lumber industry's is a one-sided score, the ninth inning will not be reached for a long time to come. "The effort under way by our Government under the Reciprocal Trade Agreements Act to secure a general restoration of international commerce," said Dr. Compton, "is not only a good way, but the best way, and I am inclined to think the only practical way." As indicative of the good which may be expe'cted to flow from the repirocal trade agreements, he pointed to the record of the State Department in con,cluding agreements with 16 countries, representing 38 per cent of our total foreign trade, and to the fact that our exports in 1936 to the countries with which we have made trade agreements increased 15 per cent while to all other countries only 4 per cent.

Drawing upon the experience of the lumber industry as the basis for an appraisal of the strengths and weaknesses of "tarifi bargaining," Dr. Compton remarked that the State Department had described the lumber industry as "essentially an export industry," and pointed out that for decades, until 1931, the American lumber industry had been the largest factor in the competitive world export lumber trade. Today the lumber industry of the United States ranks fifth, this decline being largely due to duties imposed on lumber exported from the United States as high as 20 per cent, and averaging about 1O per cent, with no corresponding duties upon identical species of lumber shipped from Canada. The position of the lumber industry had been frankly stated as requesting protection of surplus species where protection was needed, and not of s'carce species where protection was not needed, and in securing for the lumber industry an equal chance in the great markets of the British Empire to compete without subsidies and without dis,crimination. The Trade Agreement with Canada not only left easy access to the domestic lumber markets of the United States, but it also left Canada in unchallenged possession of a privileged competitive position in British markets from which by the Empire preferential tariffs our lumber trade had by 1935 been practically excluded.

Declaring that no function of Government requires a higher quality of fidelity and of economic statesmanship than the "intelligent, equitable and patient administration of a world-wide system of recipro'cal trade agreements," Dr. Compton noted that the State Department had been relatively impervious or resistant to domestic "pressure politics," but that foreign "pressure politics" and even foreign "s,carehead salesmanship" had left a distinguishable mark on at least two of the major agreements.

Dr. Compton also commented on the provisions of Section 338 of the Tarifi Act, empowering the President to withhold favorable conditions of import of goods from countries discriminating against our commerce, comparing this provision of the law with a "club," not to be flippantly or promis'cuously used, but also not to be kept behind the door or in the wood-shed, or in "innocuous or semi-forgotten storage."

Remarking that in recent years the tariff had lost its major political force, and that more and more members of Congress are willing to pass its toughest tariff problems to be handled by the Tariff Commission and the State Department, Dr. Compton saw the end of the tariff as a party issue, at least a major party issue, and a growing unwillingness on the part of Congress to do battle to hold the "sacred tariff" for Congress and Congress alone to handle.

In conclusion, Dr. Compton, whose address was made before offi,cials of the Government Departments and a large gathering of business men from all sections of the country, urged that the State Department adopt a policy which would make proposed concessions public before they be,came binding, and recommended that these concessions be opened to public knowledge for a reasonable period of perhaps thirty days. During that period they should be subject to withdrawal if the empowered agency of the President has reason to believe that in the public interests the contemplated concessions are unwarranted and unwise. This, he admitted, may make ..life miserable', for the responsible agencies, but he contended that no agency of Government "should have or assume to exer,cise the vast and critical authorities involved in the administration of the Trade Agreements Act which is not able and not willing to defend and to justify the concessions whi,ch it p.roposes, and to do so before the agreement becomes binding, not afterwards."

Dr. Compton called on American industry to unclerstand' and accept the fundamental fa,ct that if we want to sell more goods abroad we must be willing to buy more goocls there. He asserted that ,no industry will challenge the ultimate objectives of the tariff bargaining; nor will it seek to be the initial sacrifice to gain those objectives. If industries have reason to believe that they will be fairly dealt with, they will cheerfully shoulder temporarily this additional burden, but only, in the opinion of the speaker, if such agreements are trulv reciprocal and are "open covenants openly arrived at."

Rustic Plywood

Laminex Rustic Plywood, manufactured by a special process from Laminex plywood was recently announced by the WheelerrOsgood Sales Corporation. This new material is recommended as being particularly well adapted for wall and ceiling paneling and the construction of false beams for cottages, cabins, recreation rooyns, tap rooms, offices, hotel lobbies, restaurants, attics, apartments, game rooms and taverns.

Referring to the new line, Larue Woodson, in charge of sales for Wheeler Osgood Sales Corporation for California, Arizona and Nevada, said:

"Rustic Laminex is the answer to the constantly increasing demand for a material which will lend itself to a more artistic treatment of interior walls and ceilings, without adding the penalty of greatly in,creased costs. Rustic can be used for ,curved and irregular-shaped surfacing because of its unusual workability. Its construction gives it exceptional strength and durability. It is economical, easy to install, and the color effects that may be obtained are almost unlimited."

Seattle Hearing on "Ellective Date Rule" Ordered bv U. S. Maritime Commision

Seattle, Wash., May 22-A hearing rvill be held in Seattle, June 7,by L. C. Nelson, chief of the Division of Regulation, U. S. Maritime Commission, on the "Effective Date Rule," originally published to take effect on May lA, 1932. This was announced today by the West Coast Lumbermen's Association, Seattle. A way was opened to this hearing on May 6, by the Commission's Suspension Order 77. This postponed effe,ctive date schedules of steamship tarifis on carg'o moving under intercoastal lumber rates.

The rule in question would, as published, have made lumber subject to the rate in effect on date of loading. Order 77 provides for a postponement of the rule, pending a hearirg. It applies specifically to schedules published to become effective in Intercoastal Freight Association and Calmar Steamship Corporation Tariffs related to the "Efiective Date Rule."

The Association and its General Maritime Committee based their original protest against the rule on the following facts:

It is the practice of the trade to sell lumber one to three months prior to shipment, booking space at the time of sale. The rate to apply on such cargo must be determined when space is booked.

Disruption of stabilized business methods, un,certainty as to rate to be charged, and discriminatory practices, would have been sure to result, according to the Association's statement, had the proposed rule not been postponed.

The question has been assigned for first hearing at New York, May 21. To afford interested West Coast operators and shippers an opportunity to present pertinent facts, the Association suggested to the Maritime Commission that a further hearing be held in the Pacific Northwest. The Commission's decision to hold a Seattle hearing on June 7 is the result of the suggestion.

The Association states that there is every reason to hope that, after full investigation, the Maritime Commission will order established a tariff rule for inter,coastal lumber that will be generally fair and satisfactory.