EXCERPTS FROM HEARINGS. 265

he subscribed by 50 manufacturers of widely noncompeting lines. Each
manufacturer thus contributing to the capital stock $2,000 has equal rights
In all the operations, property, and earnings of the company. The $2,000 investment
 puts the manufacturer in a position to have his own branch houses
all over Russia and through them do his business there in just the same way
as he transacts it at home. The $2,000 will be the only expense incurred by
the manufacturer, for these branches, as any other branch of a manufacturer’s
business, opened in this country or abroad, must be self-sustaining.
‘The plan of operation of the branch houses in Russia will be very much aimilar
 to those in the States. The main office will be in Moscow, the business center
 of Russia. This branch will be in charge of an American with long practical
 experience in the Russian field. The branches in Petrograd, Nizhni Novgorod,
 Kharkof, Rostof-on-Don, Armovoir, Odessa, Kief, Warsaw, and Riga
will be in charge of Russian people high in standing in their community and
with good local connections. Each of these branches will have at least 10 Russian
 salesmen of good sales experience in different lines of merchandise. Each
salesman will handle only a few lines which can be presented to the same
buyer; as, for instance, hardware, tools, electrical supplies, and paints will be
sold to the hardware trade; transmissions, belting, machine tools, and so forth,
will be handled by another salesman who calls on factories; and so on until
all the 50 lines are taken up. Some of these Russian people of high integrity
and selling ability are selected already. The eight latter branches will be under
the control of the Moscow branch, which in turn will be controlled by the Chirago
 office, which will represent a clearing house of the International Manufacturers
 Sales’ Co. in the States, This office in the States will be controlled
by a board of directors of the company, which body will be elected from the
manufacturers—members of the corporation—and managed by tie executive
officers, who also will be elected from the members—manufacturers of the
company. Thus, the full control at all times will be in the hands of the 50
manufacturers who paid $2,000 cash each when organizing the company.
In regard to prices for goods sold in Russia, it will be also very similar to
any manufacturer's branch house in the-States. Goods will be billed at the
same prices as the manufacturer bills them to his branch houses here. To these
prices there will be added ccean freight, inland freight in Russia, duty, cost of
handling of the goods, overhead expenses of the Russian branches and the Chicago
 office, and a certain commission in favor of the company. All these items
added to the manufacturers’ prices will be taken as the basis for quoting prices
to the Russian buyers. The commission being a net earning will be divided
between the manufacturers at certain intervals during the year. The only
difference between the branches of the manufacturer in the States and those
branches in Russia will be the absence of a ledger account with the customers
In Russia, because through a certain arrangement which I am working out now,
the payments for goods shipped by the manufacturer will be cleared immediately
 after shipment is made and the final shipping papers presented to the
Chicago office. These payments will be made by any bank in the States through
connections with Russian banks and four leading banks in Chicago.
The Merchants’ Association of New York reported that the following
 manufacturers of distinct and noncompetitive lines in Philadelphia,
 who have for several years united in the publication of joint
advertisements intended for foreign customers, furnish an example
of one of the various forms of cooperation for the promotion of
their mutual interests in export business that has been practiced for
many vears:

Henry Disston &amp; Sons (Inc.).
North Brothers Manufacturing Co.
Milter Lock Co.
Fayette R. Plumb (Inc.).
The Enterprise Manufacturing Co. of Pennsylvania.
Among the export associations that have accumulated much information
 concerning foreign markets are: -
National Association of Manufacturers, New York.
American Manufacturers’ Export Association, New York.
The Philadelphia Commercial Museum. Philadelphia, Pa.