CONDITIONS IN PARTICULAR INDUSTRIES. 321

transportation. The foreign carriers, which are largely under the
control of a small group of men who dominate the European shipping
 interests, would lose some of their present advantages of dealing
with individual shippers. If it should be found desirable, an export
combination could charter its own vessels, or, if necessary it could
own them. This would eliminate the expense of the ship broker.
In addition to its power of securing lower freight rates, the combination
 is expected to be able to secure cheaper insurance.
Through its distribution of the lumber abroad, to the yard men
and large consumers, it is claimed that the selling organization of an
export combination would be able to effect economies over the present
system. The volume of business would permit the establishment of
agencies in the different foreign markets, in charge of efficient men,
whose ‘sole interest would be to promote the sale of the lumber
handled by the combination. It might be found advisable to maintain
 stocks on hand in some foreign depots, in order to assure consumers
 of a steady supply; and it might eventually be found desirable
 to establish planing mills and retail yards, to promote the consumption
 of the lumber locally. The depots would be of service in
taking care of shipments which, for some reason, were not accepted
on arrival by the consignee, and would otherwise have to be sold at
a sacrifice price in the foreign market to avoid the heavy demurrage
charges. Such depots would also give the combination an advantage
in adjusting claims made by purchasers, since it would not have to
accept unduly disadvantageous settlements. Furthermore, by its
control over the character of the shipments made by the mills in
filling their export orders, it is claimed that the combination would
eliminate the causes of a large number of claims which are justly
raised at the present time by the foreign purchaser. The selling
organization would, furthermore, be in close touch with the credit
situation abroad, and be in a position to act promptly to protect its
interests should necessity arise.
(2) The economies effected in operation by the proposed export combinations
 would benefit primarily the stockholders and to a lesser
degree those outside producers who obtained cheaper facilities in
their export business through the combination than they could
otherwise have secured. The benefits of the work to be accomplished
 by the export combination in developing foreign markets
would be much more widely distributed. There are a number of
practices in the export trade as conducted to-day which prejudice
foreign buyers against American lumber. These abuses are in part
attributable to the ignorance or carelessness of shippers, in part to
actual dishonesty, and in part to the difficulty of fixing responsibility
 for mistakes in the business as at present handled through
brokers. The export combinations propose to eliminate these causes
27941° 16-99