EXCERPTS FROM HEARINGS, 267

turers to combine for purpose of export trade, I should not consider it a panacea
for all the difficulties in the way of building up our export trade. In my own
particular line—I am interested chiefly in textiles—I think it would not be of
any great advantage. We have tried to export to South America and to one
or two other countries, and have exported to some extent. The difficulties in
the way, however, of building up a large export trade in our own particular
line, the textile line, are not, it seems to me, connected with the possible opportunities
 to combine with other manufacturers in this country, but with the cost
of production in this country, which is itself a very great obstacle to that end.
John 8S. Lawrence, member of the firm of Lawrence &amp; Co., cotton
merchants, Boston, Mass., in explanation’ of his suggestion that
through cooperation and consolidation with some of his competitors
he might give a greater extension of lines to foreign consumers and
purchasers, said:

I should imagine that the most ideal position would be to take a few of those
concerns whom you have confidence in to cooperate in a buying and sales movement
 to carry the merchandise abroad. Now, a modern factory here has to
confine its styles to as small a number as possible. Of course, my field is
pnique. ‘That is true of the textile line. We make, I think, about 22 or 23
styles of goods. Only half of those are subject to export. Now, there are 12
styles. If I could pick out 12 from another manufacturer, and 12 more from
another manufacturer, I think we could show as wide a variation as English
manufacturers, whom I have particularly in mind, actually do show to-day with
p. factory half the size of our own mill. And the reason we can keep them
out is on account of our costs. Our wages are 33 per cent above theirs; our
costs are 33 per cent below, and that is merely because we adhere to that
arbitrary standard.
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I should say the way to organize for foreign trade would be to carry samples
and let the expenses of the salesmen be divided up among the mills in proportion
 to the sales secured.

Ernest G. Howes, president of the Howes Bros. Co., manufacturers
of leather. Boston, Mass., said:

One of the methods for this definite policy would be the establishment of a
separate corporation in the country in which the business is to be done, the
number of shares to be purchased and divided in proportion to the volume of
the business of each manufacturer entering into the agreement, and a further
ngreement that the quantity or value of goods should be sold in proportion to
the stock holdings of the different companies entering into the agreement.
This would also divide the profits or losses of this organization in their true
relation.
At hearings held at Spokane and North Yakima, Wash., a committee
 representing the Fruit Growers’ Council of the States of
Washington, Oregon, Montana, and Idaho proposed and presented
a plan for the cooperation of the growers of apples, principally in
the supervision of the distribution and marketing of the fruit. The
plan provides so far only for such marketing in the United States.
It appears from the hearings, however, that about 10 per cent of the
apples raised in these States are exported to various parts of the
world.
To the following inquiry on the part of the commission:

If the growers’ association develops in the next year or two and is successful,
have they in mind extending their business into foreign fields?
H. M. Gilbert, a fruit grower of North Yakima, Wash., replied :

Yes; that has been talked of. We would combine and have our own organization
 there, in addition, to receive the fruit and get the orders. You have got
to establish a certain amount of confidence and a certain financial connection
in order to get business with South America or with the Philippines,