CONDITIONS IN PARTICULAR INDUSTRIES, 319

there will_be a number that will prefer to remain outside of the proposed
 combinations. Such mills will be free to sell all or part of their
product in either the domestic or foreign markets as their individual
interests may dictate. The domestic consumer is thus assured of an
ample supply. Any injury to his interests would have to come from
the higher prices which the foreign consumer might be willing to pay
for the exportable lumber than the domestic demand will warrant.
To the extent that such higher foreign prices encouraged exportation
the supply available for domestic consumption would be lessened.
If exportation were stimulated to a sufficient degree, the American
consumer would have either to pay some advance in the prices of the
orades of lumber demanded by the export trade or use as a substitute
another grade of lumber, or material other than wood. In fact, the
present competition of wood substitutes is so acute that it contributes
in considerable degree to the present depression in the lumber industry.
Any attempt to raise domestic prices by mills whose location forces
them to depend wholly on domestic consumption must meet an
increased competition from wood substitutes. Any appreciable
difference in prices, due to the increased exportation, is likely to be
limited to certain high grades for the few woods whose physical
characteristics are such that it is difficult to find satisfactory substitutes
 for them. The practical effect which any possible appreciation
of domestic prices in such few instances would have on the domestic
market would be relatively insignificant. In so far as the export
mills participate also in the domestic trade, they must meet the prices
obtained for similar stock by the mills which are dependent exclusively
upon the domestic trade. These prices can not be substantially
affected by the volume of exports as long as the mill capacity is, as
to-day, greatly in excess of the actual production.
The possibility that the proposed export combinations would or
could be used to the detriment of the producers who remained outside
 of them must also be considered in the light of the actual conditions.
 Obviously the producers who might be adversely affected
would be limited to those in a position to sell lumber for export. The
way in which they might be adversely affected would be a curtailment
 of the export market now available to them through the loss of
their foreign customers to the combination. The only inducements
by which the combination could prevail upon such customers to
change would be better treatment, either in facilities afforded, lower
prices, or both. Since one of the principal objects of the selling combinations
 is to obtain higher prices for American lumber, the competition
 between the combination and the American producer outside of
it, would be principally on the basis of facilities afforded the foreign
customer. The ability of the combination to supply superior facilities
would be dependent on being able to operate more économically In