EXCERETS FROM HEARINGS. 271

The important thing in the developing of a market is the organization of
a sales campaign, the developing of a demand for a particular article. That
-un not be done with the present machinery for the small manufacturer.
He must have some other way to do it, and the only way that he can do it is
by being permitted, in conjunction with others in his line, to combine their
resources and to pool their efforts, and to divide their expenses.
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We take our cotton and we pay a couple of brokerage profits, and we pay
» shipping charge, and send it over to England. We get a good deal of it
back here in the way of manufactured cotton, and we allow England to make
that profit and add to its value, and thereby increase its wealth. We do
that because our cotton manufacturers have not gotten together; because our
cotton industry has never been viewed and studied extensively by a big man
with the idea of developing a large cotton export business. What I should
like to see, and what I think is necessary in this country, is the possibility of
an export organization of cotton manufacturers making unbleached cottons—
an export organization started by these cotton manufacturers which shall
intensively study these foreign markets, shall employ experts, shall study
efficiency methods in production—all with a tendency of decreasing the unit
vost in this country, of developing a market in the foreign country, and of
running our industry at a greater speed. By * greater speed” I mean to decrease
 the cost and to increase the output. That can not be done unless there
is some provision whereby, for export business alone, and for the purpose of
studying the industry, there may be under our laws some provisions for the
organization of such a company or sogiety which will develop an expert corps
of salesmen and of efficiency experts working for the building up of the
Industry.
* * * The things that enter into the cost of export business (and when I
speak of the cost of export business I mean particularly to the small manufacturer)
 are the cost of representation abroad—and if that representation is to
pe efficient it must be personal ; the cost of sales campaigns, of advertising, and
of promotional campaigns of all kinds abroad, for the development of a market;
the burden of financing the shipments; and the expense caused by a lack of
facilities for obtaining credit experience and credit information.
Now, those four elements very largely multiply the cost, and the cost of those
four elements can be reduced by organization for the individual manufacturer,
and that is the only way to reduce them.
If I might suggest to your Commission, it would seem to me that the essential
thing, at this time, is for manufacturers who are planning to go into this foreign
business, or who have lately entered it, to be advised of the limits. In other
words, we have had so much of “ Thou shalt not ” in this country that we ought
to have something of the “ You may.” * * * But that work, valuable as it is,
is not sufficient, and it must be supplemented by the most intensive kind of
investigation into foreign markets if this foundation is to be rightly laid. And
right here is where there is an immediate necessity. It will not do to wait until
the Sherman Act is amended. There is an immediate necessity for organization,
for cooperation, and for that kind of cooperation which will be effective; and
to be effective it must be vigorous, and it must be a cooperation which will
produce an efficient working organization. }
Now, my opinion is that such cooperation is entirely feasible under the Sherman
 Act at the present time; but you have got to reckon, gentlemen, with a
feeling on the part of manufacturers that the Sherman Act is a weapon which
they hold very much in awe.
* * * The Sherman Act must be amended to permit combinations in export
trade under certain proper restrictions, if the United States is going to develop
any permanent foreign commerce of large proportion. .
« * * What I am trying to urge is simply the necessity of a combination
of resources in the development of foreign markets to meet the kind of competition
 we have to meet, particularly from Germany and England and from others
of our competitors who are more thoroughly organized.

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Mr, Waterman will not want to combine with anyone, because he has a pen
that has a distinctive value, and he has built up a trade name. It is only
along those lines where a staple product is made—unbleached cottons, copper
wire, certain of the steel products, cement—staple products where the brands
are staple and there is not much variance. Along those lines it is perfectly