376 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

Safeguards for domestic consumers and competing producers.—The
objections which are urged with the greatest force against liberty
for cooperation in export business are that the resulting combinations
will exploit consumers in the home market and oppress their American
competitors in the export trade. These are serious dangers and they
must be considered frankly and guarded against effectually. The
Commission believes that the advantages to be gained by effective
cooperation in foreign markets need not entail any sacrifice of the
firmly established policy of this country in regard to the maintenance
of fair competitive conditions, and the prohibition of monopolistic
control within the United States. At the same time, cooperation
for export trade will enable the exporting manufacturer to realize an
increased return for his products along with decreased costs through
larger scale production, and the country will enjoy greater industrial
stability resulting from a broader market.
The safeguard to the interests of the domestic consumer against
any artificial stifling of domestic competition through combinations
or unfair practices lies in the enforcement of the present antitrust
laws, such as the Sherman Act and the Clayton Act, and of the Federal
Trade Commission act. To allow American firms to cooperate for
export and to permit the use of certain methods abroad which are
legal in foreign countries but are not permitted in the United States
in no way implies that such cooperating firms will be allowed, through
their activities in export trade, to bring about results in this country
which could not otherwise be legally secured. This is the case
whether the results take the form of prices artificially fixed through
combination or agreement, or the form of employing against American
 competitors any practices which, under American law, would
be held to be unfair. In other words, it is no part of the proposal
of the Commission to suffer export combinations to be used as a blind
to cover attempts to restrain trade at home. The legislation must
be framed so that any such attempt shall remain subject to the full
rigors of the antitrust laws.
The question may be raised as to the effect of export combinations
on prices in this country. Prices to the domestic consumers are
always likely to be affected where changes occur in the volume of export
 trade, whether such changes are due to the efforts of an export
sombination or to other causes. For some products, particularly
among manufactured articles, there may be some lowering of the domestic
 price. With the broader market, larger-scale manufacture will
be possible. The resulting economies may lower the cost of production
 per unit, and with competition in the domestic market the
natural tendency under such conditions of lower cost would be to
lower prices to the domestic consumer,