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tariff, and you have to have somebody administer it. I think that that is within the administrative process and not the legislative process. I think, if Congress tries to get into the administrative process, that you naturally get partisan and sectional interests pressing a Congressman even away from his own inclination. I don't think you get on net balance something that helps the American economy.

Mr. DEWEY. Well, a 3-year period is, in times like these existing today, rather long. A great many things can happen in 3 years, and it just occurred to me particularly at a time like this, a more periodical review is needed. In normal times it might not be necessary. We do have certain, you might say, administrative functions, because we set the appropriations,

Mr. CAREY. I think that is very fortunate that you do.

Mr. DEWEY. Take the appropriations that are recommended by the various executive branches. They may see the situation very different than we do, and ask for a great deal more latitude than we are willing to give them; and that is the reason I was wondering and am still in a quandary as to the advisability of having some authority similar to the escape clauses given to Congress.

Mr. CAREY. Well, Mr. Dewey, I presume that what would happen, if I as an individual manufacturer were in trouble because of a devaluation in some country that imported goods into the United States of the kind I manufacture, I would go to the State Department, I would go to you, I would go to Mr. Knutson, I would go to Mr. Cullen, I would go to anyone I could with whom I had contact, so that you all would know my point of view.

Now, these things are not corrected in a day, but I have never myself had any experience with the State Department indicating that they were not perfectly willing to listen to a manufacturer's point of view. Now, they may not be willing to act on it. They are perfectly willing to listen.

You, as a Congressman, if I came to you in such a circumstance, would be perfectly willing to use your influence to help if you agreed with my position; if you agreed that there had been this devaluation or some changed condition, to try to bring about the withdrawal. through the operation of the State Department, of the particular agreement with the particular country concerned. So I think that within the 3-year period in which this act will run, if extended for that period, the manufacturer has a perfectly good process.

Now, by and large, firms in the United States—and I am getting on another subject, but I am terribly interested in it-cannot exist in the future just because they have existed in the past. I think that American" firms must be competitive to exist. Now, I do not mean fully competitive with the lowest producer in the world, either, because I am not a free-trader, but I think we must be reasonably competitive with the world in things we produce, and fully competitive within our own domestic market.

So I do not personally fear this situation, provided the Congress will take a look at it every 3 years. I am further perfectly agreeable to the suggestion which was made here before, that there be a yearly report as to the developments. In fact, I think that would be a

constructive thing to do, so that Congress would be more fully informed than Mr. Knutson feels they are now.

Mr. DEWEY. Well, I think that would be a step along the lines that I have indicated. However, there might be occasions when the Congress was not quite in sympathy with a point of view of the administration on some major policy.

Now, take, for instance, what was to become it has already been mentioned a great number of times in the hearings, and that is the future of rubber; whether we will go on with a development of our synthetic rubber or whether we will scrap it or close down, and continue to be binding in the free list a lot of natural rubber products that will come in. That is more the example rather than the single individual that comes in, that is being injured by importation, reduced tariff rate, on some particular article; and it seems to me that if there is no way for the Congress to express an opinion except once in 3 years it might cause a great deal of damage.

Mr. CAREY. May I just say a few words on the rubber situation?
Mr. DEWEY. Pardon?
Mr. CAREY. May I just say a few words on the rubber situation?
Mr. DEWEY. Please; I would be very interested to hear you.

Mr. CAREY. I am not a rubber manufacturer. I know a number of rubber manufacturers, as all of you do, but that operation, to me anyway, is not one to cause us great concern. Our costs of synthetic production are coming down. I think by the end of this war there is every reason to believe that in certain types of rubber-I am not talking about all types of rubber—the United States will have a lower cost than the imported product except in distress periods. There are certain types, as you realize, that for certain purposes--oil resisting and so forth, are already superior and even at a higher price are the desirable product to buy.

Now, if we have a reasonable synthetic-rubber industry in this country, which I have just outlined I think we will have anyway, I see no reason we should not use the world market for the balance of our rubber supply. Just because we have had a disastrous experi. ence here and had a shortage of rubber doesn't mean that we needed to or need to in the future. With the basic plant capacity for the rubber production that we will have, with the continuous experimentation that will be going on in synthetics, and with a reasonable supply in this country-perhaps a year, which would be a very cheap thing for us to carry-I cannot see any particular danger of our being short of rubber in the future. And my main premise is this: use the goods of the world at the cheapest price so that we can maintain our American standards of living through having a better product at a cheaper price. And that is all that American business is in business to do.

Mr. DEWEY. Thank you very much, Mr. Carey.
The CHAIRMAN. We thank you for your appearance.

Mr. REED. I just want to put in, in connection with his statement, a list of Business Advisory Council for the Department of Commerce.

The CHAIRMAN. Without objection that will go in.
Mr. COOPER. I think that was in.
Mr. REED. You see, it is separate from the statement.
Mr. COOPER. I agree with you.

(The membership list of the Business Advisory Couneil for the Department of Commerce is as follows:) BUSINESS ADVISOBY COUNCIL, FOR THE DEPARTMENT OF COMMERCE

(February 1943) Honorable Jesse H. Jones, ex officio general chairman R. R. Dupree, chairman.

Arthur Kudner, vice chairman. Paul G. Hoffman, vice chairman. Walter C. Teagle, vice chairman. G. M. Humphrey, vice chairman. Walter White, assistant to the chairman.


W. L. Batt, president, SKF Industries, Inc., Front Street and Erie Avenue,

Philadelphia, Pa. John D. Biggers, president, Libbey-Owens-Ford Glass Co., Toledo, Ohio. Mason Britton, vice president, McGraw-Hill Publishing Co., Inc., 330 West Forty.

second Street, New York, N. Y. W. Gibson Carey, Jr., president, the Yale & Towne Manufacturing Co., Chrysler

Building, New York, N. Y. C. S. Ching, vice president, United States Rubber Co., 1230 Sixth Avenue, New

Building, New York, N. Y. W. L. Clayton, Assistant Secretary of Commerce, 811 Vermont Avenue, Wash

ington, D. C. John L. Collyer, president, the B. F. Goodrich Co., Akron, Ohio. Carle C. Conway, chairman, Continental Can Co., Inc., 100 East Forty-second

Street, New York, N. Y. Edw. B. Cosgrove, president, Minnesota Valley Canning Co., Le Sueur, Minn. Chester C. Davis, Administrator, Food Production and Distribution Administra.

tion, Department of Agriculture, Washington, D. C. R. R. Deupree (chairman of the council), president, the Procter & Gamble Co.,

Cincinnati, Ohio. W. Y. Elliott, department of government, Harvard University, Cambridge, Mass. Charles T. Fisher, Jr., member of the board, Reconstruction Finance Corporation,

811 Vermont Avenue, Washington, D. C. Ralph E. Flanders, president, Jones & Lamson Machine Co., Springfield, Vt. Robert V. Fleming, president, the Riggs National Bank, Washington, D. C. M. B. Folsom, treasurer, Eastman Kodak Co., 343 State Street, Rochester, N. Y. Clarence Francis, president, General Foods Corporation, 250 Park Avenue, New

York, N. Y. John H. Goss, president, Scovill Manufacturing Co., 99 Mill Street, Waterbury,

Conn. W. A. Harriman, chairman of the board, Union Pacific Railroad Co., New York,

N. Y. Paul G. Hoffman, president, the Studebaker Corporation, South Bend, Ind. Thomas S. Holden, president, F. W. Dodge Corporation, 119 West Fortieth

Street, New York, N. Y. Lou E. Holland, president, Holland Engraving Co., Kansas City, Mo. Charles R. Hook, president, the American Rolling Mill Co., Middletown, Ohio. James W. Hook, president, the Geometric Tool Co., New Haven, Conn. Jay C. Hormel, president, George A. Hormel & Co., Austin, Minn. Amory Houghton, chairman of the board, Corning Glass Works, Corning, N. Y. G. M. Humphrey, president, the M. A. Hanna Co., Leader Building, Cleveland,

Ohio. Eric A. Johnston, president, Brown-Johnston Co., Spokane, Wash. Harrison Jones, chairman of the board, the Coca-Cola Co., 310 North Avenue NW.,

Atlanta, Ga. William S. Knutson, lieutenant general, Army of the United States, Director of

Production, office of the Under Secretary, War Department, Washington, D.C. Arthur Kudner, president, Arthur Kudner, Inc., International Building, Rocke

feller Center, New York, N. Y. E. H. Lane, president, the Lane Co., Inc., Altavista, Va. Roger D. Lapham, chairman of the board, American-Hawaiian Steamship Co.,

215 Market Street, San Francisco, Calif.

Thomas B. McCabe, president, Scott Paper Co., Front and Market Streets,

Chester, Pa. Charles P. McCormick, president, McCormick & Co., Light and Barre Streets,

Baltimore, Md. Paul B. McKee, president, Portland Gas & Coke Co., Public Service Building,

Portland, Oreg. George H. Mead, chairman of the board, the Mead Corporation, 131 North

Ludlow Street, Dayton, Ohio. Robert L. Mehornay, president, North-Mehornay Furniture Co., 1101 McGee

Street, Kansas City, Mo. D. Hayes Murphy, president, the Wiremold Co., Hartford, Conn. D. M. Nelson, Chairman, War Production Board, Washington, D. C. Nicholas H. Noyes, vice president, Eli Lilly & Co., 740 South Alabama Street,

Indianapolis, Ind. C. R. Palmer, president, Cluett Peabody & Co., Inc., 10 East Fortieth Street,

New York, N. Y. Robert H. Patchin, vice president, W. R. Grace & Co., 7 Hanover Square, New

York, N. Y. Richard C. Patterson, Jr., chairman, Radio-Keith-Orpheum Corporation, 1270

Sixth Avenue, New York, N. Y. H. W. Prentis, Jr., president, Armstrong Cork Co., Lancaster, Pa. Frank C. Rand, chairman of the board, International Shoe Co., 1509 Washington

Avenue, St. Louis, Mo. Philip D. Reed, 570 Lexington Avenue, New York, N. Y. Reuben B. Robertson, executive vice president, the Champion Paper & Fibre

Co., Canton, N. C. Emil Schram, president, New York Stock Exchange, 11 Wall Street, New York,

N. Y. John S. Sinclair, executive vice president, New York Life Insurance Co., 51

Madison Avenue, New York, N. Y. R. Douglas Stuart, president, the Quaker Oats Co., 141 West Jackson Boulevard,

Chicago, Ill. Walter C. Teagle, 30 Rockefeller Plaza, New York, N. Y. J. T. Trippe, president, Pan American Airways System, Chrysler Building, New

York, N. Y. J. W. Watzek, Jr., partner, Crossett Watzek Gates, 80 East Jackson Boulevard,

Chicago, Ill. Sidney J. Weinberg, partner, Goldman, Sachs & Co., 30 Pine Street, New York,

N. Y. W. H. Wheeler, Jr., president, Pitney-Bowes Postage Meter Co., Stamford,

Conn. S. Clay Williams, chairman, board of directors, R. J. Reynolds Tobacco Co.,

Winston-Salem, N. C. C. C. Wilson, Executive Vice Chairman, War Production Board, Washington,

D. C. James W. Young, director, J. Walter Thompson Co., Penablanca, N. Mex. Harry W. Zinsmaster, president, Zinsmaster Baking Co., Minneapolis, Minn.

The CHAIRMAN. I ask unanimous consent to insert in the record a letter addressed to me from the National Council of American Importers, Inc., written by M. M. Sterling, president; and also a statement on reciprocal trade agreements, submitted by Mr. S. Duncan Black, president, the Black & Decker Manufacturing Co., Towson, Md.

(The letter and statement on reciprocal trade agreements are as follows:)


New York City, April 19, 1943. Hon. ROBERT L. DOUGHTON, Chairman, Committee on Ways and Means, House of Representatives,

Washington, D. C. Sir: The National Council of American Importers, Inc., again desires to endorse the Reciprocal Trade Agreements Act, and respectfully urges that House Joint Resolution 111, proposing to extend section 350 of the Tariff Act of 1930,


as amended, for a further period of 3 years from June 12, 1943, be favorably reported by your committee and be passed by the Congress.

At a regular meeting of the board of directors of our organization held on January 21, 1943, the following resolution was unanimously adopted :

"The United Nations are determined to establish the foundation for a lasting peace after the defeat of the Axis Powers. Only a permanent global peace permitting fearless and voluntary cooperation between free peoples on a reciprocally fair and nondiscriminatory basis can make it possible to achieve more desirable standards of living.

“In support of this common aim, the production of commodities and their suitable distribution within and between all countries of the world must be increased, with a careful regard for the stability of national currencies and of their international convertibility.

"During the war, the land, sea, and air transportation and communication systems of the world have rapidly been improved and extended. These systems will have to be completed to reach all parts of the earth in order to maintain a global peace. After the war, isolationism will not be possible for any country.

"The need for dealing with international trade relations and markets in a well-informed, continuous, and far-sighted manner will, therefore, be greater than ever. National differences must be amicably adjusted, after a careful, objective study of the pertinent economic factors involved. Unnecessary barriers to trade and excessive restrictions must be eliminated in the common interest of the world's consumers and producers. It is therefore

"Resolved, That the policy embodied in the Reciprocal Trade Agreements Act should be maintained so that our Government will continue to have adequate authority to negotiate and conclude agreements for the reciprocal and selective reduction of tariffs, quotas, and other barriers of trade on a fair and nondiscriminatory basis, with provisions for public notice and open hearings, and clauses in each agreement providing, in case of unforeseen developments, for the modification or withdrawal of concessions in order to prevent serious injury to domestic producers.

"The long-established policy of our Government in insisting upon equality of treatment with other nations in all foreign countries, should be maintained."

The fundamental position of our organization with respect to the reciprocal trade agreements program was set forth in some detail during the hearings before your committee in January 1940, and the developments since that time have served to confirm the statement presented. We therefore request that the statement recorded on pages 1039 to 1042 in volume 2 of the hearings on House Joint Resolution 407 be included in this statement by reference. By direction of the board of directors. Respectfully yours,

M. M. STERLING, President.


The principles involved in the reciprocal trade agreements sponsored by Secretary Cordell Hull have, in my opinion, proved their soundness in actual operation.

The record speaks for itself. We are not dealing with an untried theory, but with a tried and proven business asset supported by voluminous statistics.

These agreements mark a great step forward in international dealings from both a business and a moral standpoint, and certainly can and will form one of the solid foundation stones upon which to build a workable peace. A peace that will not work from an economic standpoint for the benefit of all countries concerned cannot last, any more than a one-sided business deal can be permanent. We all know the only sound business deal is the mutually profitable one.

Further, I regard the Hull trade agreements as one of the existing foundation stones of a much greater structure we are right now designing. I refer to the great post-war program structure. Everyone who has studied this problem knows how nebulous are the present specifications for this edifice, and the planners should certainly welcome a few proven foundation stones.

By all means don't let's discard the substantial masonry Secretary Hull has already laboriously laid.

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