EXCERPTS FEOM HEARINGS. 257

think about 75 per cent. On that 75 per cent they get, for example, a price of
2} cents, in Germany, from the local papers. They sell the other 25 per cent of
their product in competition with the American mills at anything they can
get for it, down to 2 cents and under, delivered or c. i. f. at foreign ports. Of
course that competition is such that you can not meet it.
* « * *
My impression is that they control about 90 per cent of the paper marketed—
he news paper marketed—in Germany.
* *® » *
It is simply a selling organization; they make contracts with the individual
mills—contracts to sell their output.

Cdl

Frank L. Moore, the president of the American Paper &amp; Pulp
Association, New York City, said:

The great bulk of this product [news paper] consumed in other nonmanufacturing
 countries has been furnished by Germany, either from its
&gt;wn mills or from those of other European manufacturing countries whose
products were handled for export either by the associations themselves or by
aggressive commission merchants of Hamburg or Bremen absolutely controlled
by the manufacturing associations. .
ole

u*

Se

Germany, better than any other country, has known how to develop its foreign
rade in a most aggresive manner. The Imperial Administration has for years
acted through its consular and diplomatic service as the advance agent of the
German manufacturer and merchant. Special courses have been established
by the Government in various large centers of the Empire to teach the trade of
axports. Foreign languages are taught in public schools. In a word, the German
 was equipped, not only by private, but by Government means, as an export
agent and distributor of the nation’s manufacturers. Exports were given sperial
 rates on all Government railroads, and by special agreements German manufactured
 products were given rebates on German steamship lines, Manufacturers’
 associations agreed to devote a certain portion of the products of their
associated mills to the export trade at such low prices as would perforce give
them the consuming markets.

In enumerating the important factors in building up Germany’s
export trade W. S. Kies, the manager of the foreign-trade department
 of the National City Bank, of New York, said:

Cooperative societies were organized for the advancement of export trade.
Chambers of commerce, which were active bodies and not paper organizations,
rollected data and information for the benefit of all interested.
Charles M. Muchnic, vice president of the American Locomotive
Sales Corporation, New York City, said:

In France, for instance, the locomotive builders have an association called
the “ Comité des Forges.” This committee is apparently composed of all the
manufacturers of locomotives. It establishes prices. It fixes prices on the
various types of locomotives, and then the railways, both State and private,
must pay the price fixed by this committee. The orders are naturally apportioned
 to all the manufacturers in proportion to their output. It then becomes
not a rivalry of prices among the manufacturers but an effort on the part of
each one to turn out a better product than his competitor. After an experience
of over 10 years this arrangement has worked out entirely satisfactorily, as far
as I know, to the Government, the purchaser. and manufacturer.

dip

Of the railways in Argentina, fully 90 per cent belong to British companies,
 and it is tacitly understood by the local engineers, as well as by the
London boards. that no foreign manufacturer would be allowed to supply equipment
 fon the Argentine railroads—except the British—unless it is a question
of urgent need and delivery. These English roads purchase anywhere from
250 to 300 locomotives from England annually,
27941°—p1 2—16——17