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T II E C U B A R E J' I E W 



Commercial Law 



In the two years of its existence the 

 Division of Commercial Laws has been 

 called upon to aid hundreds of American 

 exporters in connection with legal difficul- 

 ties in foreign countries. 



When the division was created it was 

 not planned to shape its usefulness along 

 the lines of active intervention in trade 

 disputes. The field of compiling informa- 

 tion on the legal aspects of the conduct 

 of business abroad is indeed sufficiently 

 broad to occupy the entire attention of a 

 unit of this character in the bureau. The 

 changing methods of taxation, the for- 

 malities connected with the establishment 

 of branches and subsidiary companies or 

 the domestication of American companies 

 operating abroad, the divergent commercial 

 codes, the complex practices, with regard 

 to the protesting of drafts, the diversified 

 laws on bankruptcies and agencies — these 

 and many other topics furnish a wide scope 

 for research, tabulation, and information. 



Aid i.\ Collecting Foreign Accounts 



The organization of the Division of 

 Commercial Laws occurred in a somewhat 

 critical period in the annals of American 

 merchandising in foreign countries, and, 

 true to the spirit which pervades the entire 

 service of the department, this division, 

 with the aid of the bureau's field men and 

 of consuls, took an active part in the col- 

 lection of overdue accounts and in the 

 settlement of trade disputes. The reason 

 for so doing was a desire to render help in 

 the unusual situation prevailing at the time. 



The bureau, with the invaluable help of 

 consular officers and of its own field men, 

 has greatly aided in improving American 

 collection facilities abroad. In many for- 

 eign cities attorneys have been found who 

 undertake the collection of overdue ac- 

 counts on reasonable terms. Law firms 

 in the United States have been assisted 

 in strengthening their affiliations in foreign 

 countries. There does not exist at the 

 present time, except in isolated instances, 

 any need for the district and cooperative 

 offices of the bureau or for the Division 



of Commercial Laws to engage in the ac- 

 tive collection of overdue accounts abroad. 



It is gratifying to note that in numer- 

 ous instances successful collections through 

 the offices of the bureau and its connec- 

 tions abroad have been effected. Occa- 

 sionally, however, the Government agencies 

 which have been responsible for this suc- 

 cess have found themselves embarrassed in 

 their other activities because of having in- 

 tervened in these cases. In one or two 

 instances quick action was needed and the 

 Government officials concerned found 

 themselves in the delicate position of say- 

 ing "yes" or "no" to a question involving 

 concessions and compromises. The possi- 

 bility of dissatisfaction in such cases is 

 always present. 



It has been decided, therefore, to dis- 

 continue this feature of the service on any 

 large scale and to intervene in overdue 

 accounts only in cases of an entirely ex- 

 ceptional character; for instance, whert 

 the absence of adequate facilities consti- 

 tutes a handicap to American commerce. 



Bureau IVIay Be Freely Consulted 



There are a great many trade disputes in 

 which the representatives of the bureau and 

 consular officers may tactfully intervene 

 in order to smooth out misunderstandings, 

 to conciliate conflicting interests, or to pre- 

 serve trade connections threatened by dis- 

 agreement. Where, however, it is merely a 

 question of slowness in payment and the 

 services of a dunning attorney are called 

 for, an American Government representa- 

 tive in a foreign country can not undertake 

 to act personally in the interests of Ameri- 

 can exporters, although his advice and sug- 

 gestions are always at their service. In 

 such cases the Division of Commercial 

 Laws is ready to submit the names of at- 

 torneys and collection agents who are in a 

 position to render efficient service. There 

 are, of course, numerous contingencies in 

 which official intervention may be properly 

 sought and rendered, and the division may 

 be freely consulted in the event of any 

 difficulty involving the legal aspects of 

 foreign trade. 



