EXCERPTS FROM HEARINGS, 2817
C. A. Malboeuf, manager of the Western Fruit Distributors’ Aszociation.
 Portland, Oreg., said:

Only through large cooperative organization, or cooperation between organizations,
 in harmonious working, and through correct distribution, orchard
economics, standard practices in general, will the problem of the Northwest
apple grower be ever solved. Common sense dictates the logic of supporting
tonnage through large organizations, preferably of cooperative character, and
embracing all these conditions as the natural means for broad operation that
will serve both the producer and consumer equally profitably.
Frank L. Moore, president of the American Paper &amp; Pulp Association,
 New York City. said:

We have been afraid of a combination on account of the Sherman law. We
have got to get together so as to meet conditions which we feel we are obliged
to meet on account of foreign competition.
* sh
We must, as has been said, get together, and perhaps discuss things and do
things that might be interpreted, strictly so, as being in antagonism to the
Sherman law. ; .
¢ * * Some way should be devised whereby the small manufacturers in
any line will be able to compete for foreign trade as well as the large companies
 and organizations. They must be protected, not only because they may
want foreign trade but, I believe, for the benefit of our own country here
as well, because it is the small producer who is really the backbone of prosperity
 when we get right down to the final analysis.
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They should be. allowed to get together. Hardly any manufacturer—particularly
 a small one—could expect to put more than a small part of his output
into a foreign market on account of the expense that would be imposed. It is
impossible for him to conduct it himself. I believe, too, that in merchandising,
the more directly a manufacturer and consumer come together, when doing
business, the more satisfactory and more profitable it is going to be.

In every industry it is found necessary, in order to secure a permanent as
against an intermittent export trade, that the industry as a whole or some
important unit of it take upon itself the conquest of the export field ; in a word,
that the manufacturers themselves, preferably as a body through a special
agency of their own, make an active bid for such trade.
As an illustration of this point we might take any one of the largest industries
 of the country and show that no permanent or systematic foreign trade
existed in any one of them until an important and leading member, individual,
or corporation got, through its own men and agents, into direct contact with the
foreign consumer. * * *
Fifteen years ago there were occasional small parcels of news paper sent
to Great Britain and Australia from this country. Other products of this industry
 in the United States were seldom found in foreign countries.
About 12 years ago an export trade was organized in a systematic manner by
one of the large producers of news paper in the United States, the manufacturer
 making it a point of getting into direct connections with the consumer
in every country to which it was possible to export. The result has been that
for the last 10 years the news-paper manufacturers of the United States have
contributed to the foreign trade of this country a volume of exports of a value
of $2,500,000 per annum.

&amp;*

Most of the manufacturers of the varied products of the paper industry
are unable, singly and severally, to install the equipment for rarrying on
this export trade for their product. An export equipment is too expensive
for each one. It must be entirely distinct and separate from the equipment for
distribution in the domestic market. It implies a considerable expense in the
propaganda for the sale of the goods, the use of a staff acquainted with the
needs of the foreign trade, with the conditions existing in the foreign market,
with the distinct packing and shipping methods, and with the financial arrangements
 prevailing in such a trade—a staff preferably composed of men versed
in various languages, traveled men, personally acquainted with consumers at