[82 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
terials, etc. The reason given for carrying so varied a stock or engaging
 in sd many lines of trade is that Chile is so small a purchas-Ing
 market that a house of importance must necessarily engage in
many lines of trade in order to pay the expenses of its organization
and in order to fill the space on outbound steamers which these same
companies will refill with nitrate for the return voyage. The function
 performed by these import and export companies in the import
field is a necessary and an important one. They bring all classes of
merchandise to Chile, either as purchasers or on commission, land
and clear it here, sell it at conventional terms in accordance with
trade custom and with the needs of the local wholesaler ‘or retailer
and in commission work look after all collections in the interest
of the foreign shipper. In other words, they supplement the country’s
 general lack of capital for the direct purchase and financing
of its imports. Being engaged in both export and import trade, the
volume of their exports establishes credits abroad for the goods which
they import and effects for them a constant saving on exchange.
For the most part these companies are financed by foreign capital
and are controlled by their foreign offices. The two principal companies
 of this type which have their main offices in the United States
are W. R. Grace &amp; Co. and Wessel, Duval &amp; Co. All of the principal
English and German companies have a number of American agencies,
and to the best of my knowledge they all show a disposition to take
on more American agencies for any lines which could be competitively
 sold at a profit in the local market.
The type of business done by these companies and the fact that
their stocks are purchased for them by their offices (and for the most
part by their controlling offices) in foreign markets, financed, transported,
 and offered for sale by them in Chilean markets form conditions
 particularly favorable for dumping. It should be added,
however, that dumping in the Chilean market on the part of these
import houses is sporadic rather than regular, and is dependent on
opportune purchases made by the foreign offices of these houses.
As has already been stated, these large import and export houses
control the bulk of the Chilean import trade. In addition there are
a number of direct branch agencies of foreign manufacturers which
usually represent only one line of goods and a large number of
Chilean houses which import general or special lines for wholesale
or wholesale and retail trade. To the best of the knowledge of this
office all of these houses, except the branch houses of foreign manufacturers,
 operate with independent capital, and in accepting foreign
agencies are guided only by their judgment as to what would be most
profitable for themselves. It is probable that a number of these companies
 have been formed by combinations of manufacturers as a
working basis and for the sale of certain articles, but the market is
so limited that any growing import house must necessarily take on
other and more diversified lines of goods, and ordinarily goods of
the production of two or more different companies. This office
knows no reason why any American company now engaged in trade
with Chile or desirous of engaging in that trade could not enter this
market with any salable merchandise and prosper in accordance with
the efficiency of its organization, its command of the necessary capital,
 and its willingness to meet strong but free competition.