268 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

A. Rupert, president of the Rupert Co., dried and canned fruit exporters,
 Portland, Oreg., which company sells the product of the 11
canneries in Oregon, said:

We have an arrangement with these different canning plants, or rather an
exclusive selling contract, which is not in the nature of a price-controlling
arrangement exactly, but it enables us to not compete with each other to a
ruinous extent like in the lumber business at the present.

D. E. Skinner, president of the Port Blakely Mill Co., Port
Blakely, Wash., in regard to combination in the lumber industry,
said:

My own opinion is that the law does.not now prevent us from combining in
the strictly export trade. With that in view, we incorporated the Douglas
Fir Exploitation &amp; Export Co. a year ago last February, I believe, with the
idea that we would secure the signatures of enough of the export mills to
control a sufficient percentage of the volume of business shipped to foreign
countries to at least control in a reasonable way the prices and the conditions
of the sale of our own material.
* * c® * ® *
Our idea Is to set aside sufficient money to be able to send the representatives
abroad.
We have no quarrel with the broker; he is simply following a system he is
:ompelled to follow; but we do propose to inject into this business means by
which we can obtain fair and remunerative prices for ourselves and allow him
a fair and remunerative price for his position in the business, if he wants to
remain in it. If he does not, he will be eliminated and we will do the business
direct.
We expect to try and increase the trade and increase the volume exported
from 600,000,000 feet in 1913 to 800,000,000 or 1,000,000,000 feet by 1916.
E. A. Selfridge, jr., president of the Northwestern Redwood Co.,
Willits, Cal., speaking of the effect of the Redwood Export Co.,
which handles about one-half of the product exported, says:
As consequences flowing from, rather than as causes or motives leading up
to, this limited cooperation, it is found that: (a) There has been a relative
stability of price, a matter of great moment to the purchasers of this product
from the mills. The fluctuations in over-seas freight rates are embarrassing
enough without adding thereto fluctuations in the price to be paid the manufacturer
 in the United States. (b) It is believed that a better price has been
received by the manufacturer in the United States for certain grades of the
exported product. (¢) The smaller redwood mills are enabled to participate
in thig export business. (d) With greater stability of price in the importing
country the retailer and wholesaler there are less fearful of carrying more
liberal stocks, this resulting in benefit to the manufacturer in this country,
owing to the increased demand that flows from the continuous ability of the
retailer and wholesaler in the importing country to meet the demand of the
consumer, and, furthermore, creating a steady importing demand which can be
more economically and profitably contracted for far in advance of the actual
time of consumption of the imported product. The securing of charters or
space for the. transport of this product is something that must be arranged
many, many months ahead. (e) With one selling agency handling practically
all the export business, then, and not until then, does exploitation work become
possible or produce results. In this particular the redwood industry encounters
all the difficulties which usually are met with in the introduction of any new
material and many others that are peculiar to itself, but which time will not
permit us to enumerate. In this connection it is worthy of note that since
Redwood Export Co. was incorporated a very considerable tie business has
seen developed with India and the United Kingdom. The east coast of South
America iS now engaging the attention of the company, but present transportation
 conditions prevent results.
In conclusion it should he added that the usual proportion of the annual
cut of redwood which is exported amounts to about 123 per cent.
I think it would be impossible to have an organization of all of the redwood
operators. There are certain mills that are equipped for export, other mills