EXCERPTS FROM HEARINGS.

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&amp;¢ Simply change the law to say when you go outside the borders, the
shores, of your own country, into any other market in the world, you are to
tight for that market under the rules that you find in that market: but that the
rules you leave at home do not bind.
Waldo M. Marshall, president of the American Locomotive Co.,
New York City, said:
Now, I think manufacturers should be allowed to combine, and I think that
should be more or less voluntary, and they should be allowed to make. their
own arrangements, because those are going to vary in different trades. You
might think that if combinations of that kind are to be effective, it would be
very easy for manufacturers in different lines, perhaps, that are noncompetitive
entirely, to choose a representative, and perhaps let him conduct the business
for 10 different concerns in a certain country. But that presents a very different
 situation, for this reason: It is very hard to get one man that knows
enough about 10 different lines of goods to represent them effectively and
intelligently. The better way would be to allow those who are competitive
at home, or who are very nearly competitive at home, to get together, and in
that way they can get representation that will be intelligent and efficient and
cover their lines of goods thoroughly.
* * * - *
In most lines of trade they would not be necessarily large organizations,
Chey would be of moderate size.
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American manufacturers, it seems to me, when engaged in export trade,
if they compete with all the rest of the world, that ought to be sufficient
competition to cover that situation; * * * I do not see any reason why
they should not agree upon the prices to be charged in the foreign work,
and I do not see what harm it would do. If you can arrange that so that
you feel that it will not extend to the home market, I do not see any reason
why the American manufacturer should be compelled, in a foreign field, to compete
 with all the world and then with all the people at home, when we know
pretty well that his competitors are only looking after him, and do not have
to look after their people at home. It seems to me it puts an unnecessary
burden of competition upon the American manufacturer.

As to the desirability of permitting combination in the export
trade, Charles M. Muchnic, vice president of the American Locomotive
 Sales Corporation. New York City, said:

I believe that, unless such permission is granted, the small manufacturer
will be unahle to get his share of the foreign business. At the present time
most of the exports in railway materials or iron and steel products are made
by large manufacturers, and it seems to me that this in itself is convincing
 proof of the necessity of cooperation between manufacturers. * * *
The principal reason why the large manufacturer is able to command a large
share of the export trade 1s because of the capital he commands, and of the
well-trained sales organization which it has taken years of persevering effort to
develop. It is utterly impossible for the small manufacturer to command either
the capital or such foreign sales organizations and, therefore, unless the situation,
 as it is at the present time, is changed, the small manufacturer will eventually
 be barred from participating in any of the foreign trade.
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*
We have very keen competition, under normal conditions, from Belgium,
Germany, and England, whose locomotive builders cooperate on some such plan
ns above outlined, and unless we can combine—unless American manufacturers
can cooperate in meeting such competition—we will not make much further
headway. We have done fairly well, but we can not make much further
progress unless we are allowed to cooperate.
Of course, England is the largest exporter of locomotives. Fully 90 per cent
of the output of all the locomotive shops in Great Britain goes to foreign countries,
 whereas, in Germany, it represents between 50 and 60 per cent; and, with
us, it averages about 8 or 10 per cent. So we have hardly touched the possibilities
 of the export trade as compared with the Europeans.
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