EXCERPTS FROM HEARINGS. 255

for the purpose of adjusting any questions of remuneration or working conditions.
 Out of those negotiations about 50 of the producing bedstead firms
In England formed a combine, which practically meant the entire bedstead
Industry of Great Britain, with the idea of eliminating reckless competition
and adjusting prices.
In some of the rules laid down there were very severe penalties in the event
that any firm in the combine did not live up to the rules or withdraws.
The retail merchants and jobbers in Great Britain and abroad were asked
to sign a statement whereby they agreed to buy 100 per cent from the
federation. By buying of the Federation they receive a 10 per cent deferred
rebate once a year. If they buy any beds outside of the Federation, then they
lose that rebate. That is the competition we have been up against and run
into when we got into the export business—this rebate system.
As to combinations in the chemical industry, Eli Winkler, of
Isaac Winkler &amp; Bros., Cincinnati, Ohio, selling agents for the
Columbia Chemical Co., said:
We come in contact with syndicates and combinations purely. There are
no independent manufacturers. There are these cartels and arrangements and
combinations of all kinds; they do not only fix the price, but they divide the
territory, and act in perfect unison all the way through. -
H. E. Horrocks, manager of the Pacific Creosoting Co., Seattle,
 Wash., in advocating the manufacture of creosote in this country,
stated :
If there was some way devised whereby we could get together and develop
this foreign market, we would help the lumber industry and we would help
ourselves at the same time. It is a big field and one that can not, as I say,
be carried—that burden can not be carried—by any one company. It must
be carried by some organization.
* * * We know—without having the absolute evidence—as a matter of
fact that the manufacturers of creosote and the distillers of coal tar in
Great Britain and in Germany are in a combination. We know that, because
creosote has been f. 0. b. vessels in European ports progressively increasing
in price, and we know that we can not look around, for we could not find any
independent seller of creosote with whom we can deal. We have got to deal
through iust about one source.

Of methods employed by foreign competitors in South America,
Calvert Townley, the assistant to the president of the Westinghouse
Electric &amp; Manufacturing Co.. Pittsburgh, Pa.. said:

In most of the southern countries the individual concerns were represented
alone. I mean to say that they were not in combination, but it is generally
understood by European countries that there is an understanding or cartel
In a number of lines of electric produce in Europe. For example, the incandescent
 lamp is one. But, in South America, the individual concerns have
nsually individual representatives in some form or other.
* * * In some of the countries they compete quite vigorousfy—Brazil, for
instance. The Siemens-Schuckertwerke and the Allgemeine Elektrizitiitsgesellschaft,
 two large German companies, are hoth represented by substantial
sellers.
Maurice Coster, the export manager for the same company, said:
The Germans have been able to reduce their selling expenses by making
agreements between themselves as to the territory to be exploited. For instance,
 a few years ago we would hardly ever meet any German competition
in Argentina excepting that of the Allgemeine Elektrizitiitsgesellschaft—the
A. E. G. On the other hand, in Chile, we would have nothing but the Siemens-Schuckertwerke;
 whereas we would 'find all the leading American electrical
companies competing with each other in both Argentina and Chile. By reducing
 their selling expenses the Germans have been able to sell apparatus
cheaper. I think, if we should ga to our principal competitors in this country
and make such an agreement, we might be called to task, on the ground
that we were moving against the provisions of the Sherman Act. We would
like to make such an agreement, because South America is an immense fleld.