450 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

allow those manufacturers, with the knowledge of the Federal Trade Commission,
 to establish average cost bases or selling-price bases as in Germany,
where the Government permits and yet controls the taking of a reasonable
profit on an intelligently devised cost basis. Given that aid and restraining
force, the American manufacturers can be trusted to deal honestly with the
people, of which they form a very important part. %
A lumber producer said:

I would prevent same [i. e., restraint of trade] by legislation enabling producers
 of lumber—in fact, all producers of those things the supply of which is
now known and can not successfully be increased—to organize and operate
under the supervision of the Federal Trade Commission. They should have the
power to restrict their output by agreement, to correspond with demand, and I
believe this will solve the question of conservation of our natural resources,
all acts-of the combination to be under the supervision of and subject to the
control of the Federal Trade Commission.
From a manufacturer of augur bits:
We would have the Government fix the price at which such goods could be
sold, after a thorough examination of business conditions under which they were
manufactured ; allowing the manufacturer a fair profit only.
A manufacturer of soda-water ingredients suggests prevention of
restraint—

« * = By not allowing them to make an excessive profit in the domestic
market as compared with their profits in foreign markets. They should be
allowed a liberal profit, but uot an excessive one, the profits made when competition
 was keen, being used as a basis.