REPLIES TO CARD AND SCHEDULE INQUIRIES. 439

should an attempt be made to reguldte prices within this zone, the combination
would immediately be facing competition with coals from adjoining districts,
even though these latter were not able to reach. the seaboard market. The
coal industry occupies a unique position in this respect, the channels of trade
being very delicately adjusted by transportation charges, and any variation
tending to disrupt existing price differentials will immediately divert the usual
coal from or to the affected area, as the case may be.
Effect on prices would be natural and not artificial. —It is claimed
by many that the economic laws of supply and demand would naturally
 adjust prices and prevent any restraint of trade by price fixing
on the part of export combinations. In many cases, it 1s agreed that
export business would have the effect of stabilizing and stimulating
the domestic market.
A large dealer in metals answers:
Aside from legal safeguards * * * there would be the fact that prices
would inexorably be fixed by “demand and supply,” and not only is there no
suggestion, even, that production be restricted, but it can not be so long as increased
 production accompanies increased prices.
Another respondent replied:
It would have a tendency to steady prices to a profitable basis, but not beyond
that- point, because competition would arise if profits became abnormal.
Abnormal profits follow a period of extreme price cutting, which eliminates
rompetition.
By providing a steady and fair export market, It would be difficult to drive
competitors out of business by price cutting, and so a monopoly could not be
formed.
A manufacturer of metal specialties wrote:

We believe it would stabilize the domestic market in affording an immense
outlet for surplus product, assuring increased production and lower production
costs, and a share of the resulting profit would, by the result of normal domestic
competition. be shared with the domestic consumer.

Others contend that any change in domestic prices would not be
artificial but a natural result of the opening of a new market, and
that, in any case, increased production would prevent any tendency
toward abnormal prices.
A manufacturer of machinery wrote:.

We see no reason why it would restrain trade in this country; except as any
foreign-trade outlet by affording more markets would have a tendency that
way, but the increased production would soon correct that. ’
A business man said:
Shipments are sometimes made abroad with the effect of reducing the home
supply and, consequently, steadying or raising prices. If combinations are permitted
 in connection with foreign trade, it may be that, thereby, the home
market will be affected to some extent, but I think that the benefits which may
he expected to follow an increase in the total amount of business will more
than offset the disadvantages.
A canner of peas wrote:
Manufacturers desire these selling combinations to take care of the surplus,
If the demand at home would equal the supply, there would be no necessity
of extending our markets; but the manufacturing of the United States has
progressed faster than the consumption, and instead of such combinations restraining
 trade in this country, they would be a benefit for the manufacturer
and the laborer, the laborers here being the consumers.
A manufacturer of cloth and fabric headwear wrote:

We base our reasons for this belief on the fact that most manufacturers at
certain periods of the year, especially when manufacturing season merchan-