204 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. :

turers, who have been attempting to do this direct business, and have done this
direct business, making shipments under orders received, and drawing against
them, have realized there is another side to the question. I mean, the payment
of their drafts. We all know that payment on very many drafts has been
refused—some drafts come back—, the goods have been declined, and the shippers
 of the goods have had to take their chances as to getting out the best way
they could. }
William H. Douglas, of Arkell &amp; Douglas, New York City, export
 commission merchants, said:

I think the attitude of the commission houses in New York, and elsewhere,
Is entirely liberal and free from prejudice. They are desirous of having the
utmost freedom allowed all manufacturers in connection with the export trade,
and, I think, they are very agreeable to have the business handled in any way
which the manufacturer seems to feel would be for his best interest.
The question of combinations of the small manufacturers is a difficult problem,
and one, I think, which should have very careful study. It does appear almost
as if the large manufacturers were anxious to have the small manufacturer
have something which he does not know whether he wants or not, although very
probably the large manufacturer may know that he wants the privilege. That
is a line of argument, perhaps, a little different from what has been presented
here, and it seems to me it is something that should be gone into. The small
manufacturer, as a rule, has so many channels open to him now to do trade
that are far greater to his advantage than a combination of a half dozen small
manufacturers, that I fail to see where he is going to realize any improvement or
benefit by doing anything of this kind. * * * I have failed, after careful
‘investigation, to find very many small manufacturers who desire it, and I have
neen unable to discover any good reason to justify the proposition.
Presuming several manufacturers combined—small people—they have got to
make some arrangement among themselves as to how to pool the profits, or as to
whose goods are to have a preference, because, if you tried to put them on an
aqual basis, you would never succeed in accomplishing that, and the final result
would be that, in a short time one or two of those manufacturers’ goods would
se sold largely and the other three, four, or five who have been in the combination
 would do no business at all. Goods abroad are sold largely by brands;
they are introduced by hard work, and, once established, hold the market. It is
jifficult for another manufacturer to come in and displace them, and the result
is that the man, who gets his goods in, will be pleased, but the other manufacturers
 will never be satisfied, even, with the division of profit, and if the
combination is broken up, he will find, outside of a little profit, that he will have
no market at all and have to start and do his work all over again.
Then, again, there is a broader question—the question of international
obligations; whether we want to say to the world that we do not care to have
things done at home because they are wrong, but we are willing they should be
done abroad. That is another problem which is very worthy of careful consideration.

There is, further, the question of the large manufacturer. I can appreciate
how a copper man would like to have the right and privilege of making these
combinations, because it will extend his field of operation very rapidly, and the
Arst thing you know it will be a world combination, not an American combination,
 and he will get prices which will suit him and suit the other countries in
the world where a similar line of products is taken out of the earth. Whether
that would be for the benefit of this country or not, I do not know; that is for
the Commission to study. There are very many other grave complications
which an organization of that kind would result in. I have never been in favor
of allowing the manufacturers of this country, unless on special lines, to decline
to sell to everybody and anybody; I think it is a detriment to the country and
to the general interests of the broad advantages this country should derive from
export trade. Those combinations would unquestionably lead to a few people
having selling agencies, controlling exports, while others who might care to
Join would be absolutely debarred from doing so and securing advantages
contemplated.
*« * * JT have tried to satisfy myself as to the merits of the case, but I
haven't reached a conclusion. definitely, whether thew are advisable or not.