314 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

European lumber manufacturers can secure, to a considerable
degree, stability of prices for their products. The sawmill men of
Norway, Sweden, and Russia establish once a year a base price for
their lumber. Preparations at that time have already been made for
the output for the year, The newly cut stock is allowed to dry for the
following year. The marketable stocks on hand, even to the quantity
of each grade, are known and their size determines the amount of
business to be done. The base price fixed upon is not deviated from
for the entire year. The purchaser knowing that, is absolutely safe
in placing his orders in January for June delivery, inasmuch as his
competitors handling that product have to pay the same price. He
san expect no such stability in prices of the American lumber which
meters Europe in competition with the Baltic lumber. It has to come
to the markets from much greater distances, ahd orders to the manu-Eacturers
 must be placed at prices prevailing months in advance of
the time of arrival of the lumber. An unavoidable delay on the part
of a manufacturer in getting a prompt charter, because of the difficulties
 encountered by American shippers, deperident on foreign carriers,
 has often resulted in shipments of later orders, taken at substantially
 lower prices, arriving at their destination simultaneously
with the earlier high-priced orders. Furthermore, the practice by
many American manufacturers of shipping cargoes on consignment
to various European markets and being obliged to sell them in transit
before their arrival leads to wide fluctuations in the prices of American
lumber at points of destination.
A cooperative association of the largest manufacturers of spruce,
hemlock, and other softwoods in Austria-Hungary, Roumania,
Bosnia, and neighboring States existed for a number of years prior
to the war. This combination, known as the Accordat, had headquarters
 in Vienna. The quantity of lumber manufactured and sold
through it was about 4,000,000,000 feet a year. The mills were
located within reasonable distance of the Danube, which was used for
‘ransportation purposes by means of a line of some 20 steamers
owned directly by the combination, besides a number of vessels
owned by the individual members. It did business in Mediterranean
ports as well as in England, Germany, and France, meeting competition
 where necessary, and holding prices higher in noncompetitive
markets. In delivering at Liverpool or Hamburg they had to meet
competition from Sweden, Norway, Russia, Siberia. the United States,
and Canada.
In South America, the third largest market, exports of yellow
pine are practically confined to the east coast, and those of fir to the
west coast. In the case of the yellow pine, almost all of the purchases
are made by importing houses, owned by European capitalists.
Most of these houses do a general importing business. They usually