392 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

same organization and one happens to develop his export trade much faster
than the other one. He would naturally not care to give the secret of his
success over to his competitor. Rather would I have several organizations in
one town than have competitive concerns in one organization.
Antagonistic products could not be handled together—A dealer in
elastic goods selling in many foreign markets contends that he does—
« * * pot think it would be practical for combinations to be open to all lines.
Why not organize several different combinations—one each for kindred lines?
One organization, we contend, could not handle successfully machinery or lumber
 together with suspenders and drygoods, whereas it would be practical to
handle suspenders, garters, neckwear, underwear, hosiery, and all kinds of
men’s furnishings, ete.
Must not abandon competition—A baking powder manufacturer
avows that membership—
* * x ghsolutely must be restricted to noncompeting lines. Any other conception
 would necessarily imply pooling of results, or other prearrangement
Involving the abandonment of competition between producers and manufac-Lurers
 of any single commodity.
Could not get full value out of such an arrangement.—A member
of a clothing firm gives this answer:

I would limit these combinations to noncompeting products. It would not do,
I think, to have a selling combination contain two or more members who were
competitors of each other. No one of them could get full value out of the
arrangement.
The vice president of a concern handling refrigerating machines
says that export combinations should—
# *= » he restricted to trade in noncompeting products, otherwise neither
the interests of buyer or seller can be intelligently conserved.
REASONS WHY MANUFACTURIBS 20 NOT ENGAGE IN FOREIGN

(Manufacturers®' schedule, question No. 8.)

Question 8 in the schedule sent to manufacturers was as follows:
If you do not engage in foreign trade, please explain what conditions have
determined your policy in this respect.
Out of 1,410 replies received from manufacturers, 1,110, or 79 per
cent, stated that they were engaged in foreign trade, 238, or 17 per
cent, that they were not so engaged, and the remaining 62, or 4 per
vent, were noncommittal.
These replies show that a number of important conditions exist
that have prevented many manufacturers from engaging in foreign
trade. The majority of the replies are to the effect that the small
size of their concern is the principal reason. Many of these add that
they could do so profitably if they were permitted to become a member
 of a combination of some kind orgagized for the purpose of engaging
 in foreign trade. The reason next in importance, as evidenced
 by the replies bearing on the point, is the character of the
foreign competition. These replies indicate that the principal reasons
 for the difficulty in meeting foreign competition are that foreign
labor is paid low wages; that the cost of material is lower abroad;
and that encouragement is given by the foreign Governments to concerns
 doing an export business. This encouragement is attributed
fo their laws in general.