EXCERPTS FROM HEARINGS. 278

shall belong to the export corporation as a profit, and upon all sales all members
 shall pay to the export corporation the same percentage as a commission.
5. Whenever a demand shall be found.to exist in a particular market for a
certain quantity of goods which must be sold at a lower price than quoted by
any of the members in order to meet foreign competition, all members shall be
notified of the possible order and given an opportunity to meet the foreign price.
Competitive bids will be received, and the lowest bidder is to receive the order;
or, if there are a number of low bidders, the order is to be divided.
6. All profits, after deducting all expenses, and setting aside such a sum as
shall be deemed necessary for promotion, advertising, establishment of permanent
 quarters, ete., shall be distributed equally among the members. }
7. The export corporation shall provide an expert, who shall collect statistical
 data and information of value to the industry, which shall be distributed
promptly and under the same conditions and in the same manner to all members.
 The export corporation shall also have on its staff an efficient engineer,
who shall make intensive study of methods of production in the industry, cost
of production, competitive margins, and the productive capacity of various
plants. His services shall be available to any of the members for the purpose
of giving advice as to the development of greater efficiency in production,
diminishing the cost of production, or increasing the output. He shall alsg
give to all members technical advice as to the best methods of meeting peculiar
requirements of foreign markets.
8. The export corporation may also act as a purchasing agent for raw materials.
 Being able to purchase in large quantities, as a representative of many
consumers in a given line, it will be able to buy in foreign markets at the lowest
prices. All members will be entitled to the corporation’s services in this respect
upon the same terms.
It is, of course, not necessary to limit the membership in such an organization
 to particular lines. Groups of manufacturers in allied lines could profitably
anite to form one export company, which could conduct a sales campaign for
all, as, for example, a drug manufacturers’ export corporation might well include
 manufacturers of toilet articles, cosmetics, perfumes, and bathroom accessories.
 Manufacturers of cottons, woolens, and silks might combine in one large
textile export association.

Edward A. Filene, president of William Filene’s Sons Co., Boston,
Mass., and vice president of Fifth International Congress of Chambers
 of Commerce, advocated export combinations:
I am very strongly in favor of making of any changes in the Sherman law,
or any other law, that are necessary to permit of combinations for foreign
trade. The Sherman law was made to help the smaller manufacturer and producer.
 In this respect it defeats the very purpose for which it was intended.
Foreign markets, as Mr. Joy, who has just been down there, has told you, are
difficult to study, and difficult to hold after they are once secured, because evil
deeds of exporters, not only purposely done, but done through ignorance of conditions,
 ruin not only the evildoer’s business, but also ruin the business of the
Nation, or the States. So, it finally comes down to such a combination as will
leave it practically free, afterwards, for the producers to determine at all times.
[ am urging this very strongly upon you—that in any legislation that there
might be enacted, the producers shall be free to try all kinds of experiments in
combination for the selling of their goods in foreign markets, !
® -

I believe that combination among the producers in this country is necessary
In order to get and hold foreign trade. It is costly to do the pioneer work, and
men will decline to do it if they think some other men are going to come in
and reap the benefit of their work. It is unfair, and unjust, and breeds ill
feeling.

A. H. Weed, attorney at law, representing the Manufacturing
Chemists’ Association of the United States, Boston, Mass., stated
the necessity and advantages of export combinations in the chemical
trade as follows:

With the outbreak of the European war and with the consequent shortage
caused in the supply of chemicals from abroad, the Association, acting through
27241°—pt 2—16-—18