CONDITIONS IN PARTICULAR INDUSTRIES. 31%
against another and to cheapen the prices of his product. In the
case of redwood, where the buying combination has had to reckon
with a selling combination, the result has been that the manufacturers
 have not only expanded their trade but have done so at
prices satisfactory to them.
The Redwood Export Co. is actively engaged in developing new
foreign markets and is conducting a considerable propaganda work
in India, the United Kingdom, and Argentina.
Two other export companies have been organized, but are not yet
in active operation. One, the Douglas Fir Exploitation &amp; Export Co.
(Inc.), is capitalized at $200,000. The purpose of this company is
to handle the export trade of manufacturers of Pacific coast lumber
on a brokerage commission basis. The corporation will guarantee
the payments of all accounts handled through it within 10 days after
receipt of complete shipping documents from the manufacturer.
Part of its profits are to be used in the further development of foreign
markets. It will deal either through the foreign broker, or if found
advisable it will sell direct to the buyer. It is planned to control a
sufficient producing capacity of the mills which saw for export to
make it impossible for brokers to accumulate sufficient quantities
from the mills outside of the selling agency to compete with it at
cut prices. The company has not yet commenced business. One
reason seems to be that it has not yet been able to secure the cooperation
 of a sufficient proportion of the export mills. Some manufacburers
 have been opposed to joining the combination because they
do not believe in the principle on which it is founded and consider
that it will be unsuccessful; others are in favor of the trade extension
 part of the work and would be willing to support the propaganda,
 but object to having their lumber sold through the combination.
 A still more important reason, however, for the inactivity of
the Douglas Fir Exploitation &amp; Export Co. is the question which
has been raised concerning its legality. Although organized solely
for the purpose of engaging in trade in foreign countries, there is felt
to be a possibility that the character of the organization and some
of its proposed activities might he held to be in violation of the
Sherman Antitrust Act and of certain parts of the Clayton Act. It
is apparently their doubt as to the legality of the project which has
deterred many manufacturers from giving their support. Whijle
numerous producers have not been willing to join the combination,
not one was found who thought he would be injured by it. If the
project wqrked successfully, the export mills left outside of the combination
 would also benefit by the more stable market conditions, the
propaganda work, and the higher export prices which would be
brought about through its activities,