312 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
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Edwin M. Herr, president of the Westinghouse Electric &amp; Manufacturing
 Co., Pittsburgh, Pa., favors the development of our merchant
 marine and said, in part, as follows:

The development of the merchant marine that will sail under own flag and
handle our products is of high importance. It is very difficult now to get, and
has been before the war, the right kind of transportation for our South
American products. We have frequently shipped produce for South America,
via England, in order to get to South America more quickly than we could get
it there direct, on account of the inadequacy of the transportation facilities
from here direct to South America. This has been due, also, to the-better
service that has been given; and our men in going to and from South America
have generally taken the course of going to England first and from there to
South America, rather than going from here direct.

Maurice Coster, export pag of the Westinghouse Electric &amp;
Manufacturing Co., Pittsburgh, Pa., in this connection, said :
Now, another very important thing is this: You gentlemen all realize that
we must have cheap shipping. If we have to pay more freight than our European
 competitors, we are put to large disadvantage.
G. J. Mitchell, manager of the National Stamping &amp;, Electric
Works, Chicago, I1l., manufacturers of lighting specialties, said :

Personally, I do not put a great deal of confidence in an American merchant
 marine as a cure-all for ‘all export ills. I do not believe that the lack
of a merchant marine makes the rates high so much as the lack of competition
between steamship companies. That means with the combination of foreign
shippers. And to overcome that competition probably the American merchant
marine is necessary. As far as shipping facilities are concerned I have had no
difficulty whatever.

Gilbert H. Montague, attorney at law, New York, representing
the Merchants’ Association of New York City, read the report of the
committee on the Federal Trade Commission and on foreign trade.
As to our merchant marine. he said:

Complete unanimity of opinion prevails as to the handicap to our export
trade, which will exist so long as it is carried wholly or chiefly in foreign bottoms,
 and as to the great desirability of reestablishing our merchant marine.
Unfortunately, however, thus far there has developed no unanimity of opinion
a8 to how this most desirable end can best be accomplished. Until we have
direct and adequate mail and freight service between this country and its export
 markets, American exporters will continue to be at a disadvantage as compared
 with their foreign competitors.
H. P. Davison, of J. P. Morgan &amp; Co.,, New York City, stated
that—

My feeling has been all along that the one essential to the successful development
 of foreign trade has been the development of our shipping facilities. I
have felt that until the shipping facilities were developed we could not expect
to have an important increase in our foreign trade, and that if they were developed,
 all other matters pertaining to the financing and carrying on of foreign
 trade would consequently and in sequence develop. In other words, if
we have shipping facilities, I do not think we need concern ourselves particularly
 about the financing of the business or the development of the business.
Financing might be arranged, and the goods might be there, but if we have
not the shipping facilities, neither the financing nor the goods would be very
important in the business. I appreciate that there are legal questions involved,
 and also the very vital question as to how best to increase the shipping.
 I do not know that I would care to make any particular recommendation
 as to that. There are very real and very many obstacles in the way of
developing that business, and it is a problem that must be solved if we are
going to look to an important Increase in our foreign trade. I do not think
this Commission can have any more serious problem before it than that of how
best to materially increase our shipping facilities.