The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-30
PRICES OF EXPORTS
CONGRESSMAN TAWNEY GETS AID
VANCE REPORT ON TRUST
PRODUCTS
HOME PRICES AND FOREIGN
Investigation by Industrial Commis-
sion of Charges That Trust Prod
ucts Bring Higher Figures
Here Than Abroad.

OO-'eoA S'-oiiioh oWlley IdS received dQ-
vance proof sheets of a publication by
the industrial commission at Washington
or compilation of foreign and domestic
prices of American products.
MT TaWney was largely instrumental
IN having the compilation made. The in
formation Mr.. Tawney desired was the
price of trust-made products sold in for
elgn countries compared with the price
asked in the United States
The introduction of the report receiyAi
by Mr.. Tawney says
In view of the frequent assertion that
exporters of American-made goods often
sen them IN foreign countries at lower
prices than are obtained for similar goods
at nome, the industrial commission has en-
deavored to secure from the business in
tereSts OF the United States full and
frank statement covering the efforts TO
extend consumption of products in for
eign markets. In sending out the sched-
ule OF questions pledge was given that
the answers should be treated as conf
oentlal The questions submitted included
the following:
Is the establishment, firm or corpora
ton engaged in exporting to foreign
States?
If so, to what country or countries?
II SO, TO what aggregate value during
your past business year?
What percentage of the total yaIue of
your manufactured product do your ex-
ports equal?
w nat class or classes of goods do you
Do you sell in foreign markets for
price less than that charged for exactly
similar articles in the United States? :
II SO, please name leading specific ar
t1cles SO sold and state the price re-
ceived therefor at home and abroad.
If you sell goods for lower prices
abroad, please give the reason.
WI What business policy or method, if any,
Would you suggest to secure for our home
consumers equality of price with that
charged in foreign markets by the same
producers for the same goods?
10 the 1000 inquiries sent out 416 per-
tlnent replies were received Approx
mately $50 answers stated that the estab-
hshment replying did not have any export
PUSH business SIS and these answers were ac-
OF the other 4l6 The great majority of
the answers indicated that prices are no
lower abroad than they are for domestic
consumers, and several indicate that for
elgn prices are higher Continuing the
report says:
Those who state that they sell for low
er prices ABROAD give various reasons for
lower prices, which may be classified as
permanent reasons and temporary rea-
sons. The permanent reasons to which
are ascrlbed the greatest Importance are
tnoSe OF cash payments and large pur-
chases in the foreign trade. whereas fha
domestic trade is based on credits and
small purchases.
another reason for the permanently
eral establishments, is the drawback or
rebate OF the tariff on imported raw ma
terlals manufactured for export. This is
particularly noticed in the sales of ont
soles and sole leather, where the dItv Of
nIteen per cent being refunded in case
OF export trade permits a lower price in
the foreign market. Also in canned
goods, where a drawback is given on the
TIN plate of the cans in which the goods
are. exported, and in wire rope where
me duty on copper wire is refunded A
son somewhat eNla similar distinction exists in
the case OF bottled beer; where an allow
ance is made from the internal revenue
duties IN case of export goods.
Some establishments, in answering the
question as to what means they would
use to secure an equality of prices at
nome and abroad, recommend a reduc
u or removal of the protective tar
m ~ ana an Lee several oppose any change in
the tariff. The great majority of an
SWers do not refer to the tariff in one
Way Or the other, and it is natural to as
sumo that those not referring to it are
either indifferent or prefer to have It
left undisturbed. A few establishments
reply that they make lower prices in
orGer to overcome the tariff of other
countries. This applies particularly to
Canada Along with this reason for low
er prices is given that of the expenses
OF shlpment-insurance freight and extra
boxing and packing preparatory for an
ocean voyage.
Besides the foregoing permanent rea-
sons for lower prices abroad there are
several esta blishments which assign what
may be called occasional or temporary
reasons, especially the need of securing
new markets or of disposing of their sur
plus product. One of the exporting hous-
es quoted states that in order to create
demand for American material, low
prices had to be made originally. After
this was accomplished, prices could be
raised, as the demand had been created
and people abroad educated to the adj
VantageS of American goods.
A lew exporters indicate that rri0r fo
189S prices were lower abroad than at
home, and that this condition was brought
about in order to keep a stable market
IN this country, and as one establishment,
puts it, we want the foreign market
to cut our price in, so as not to disturb
the domestic market
Other establishments state that prices
are more stable abroad than at home
and consequently when they are high
here they will be lower abroad and that
they continue to sell under such condi-
tons in order to keep up their connec-
TONS
1t should be noted that several estab-
hshnents give a general answer that av-
erage prices at home and abroad are
about the same, not indicating how this
average is computed. An answer of this
kind may be taken to mean that the av-
erage price Of different goods at the
same time are equal, in which case one
line of goods may be sold at lower prices
abroad, while another line is sold at high
err prices abroad. Or the answer may be
taken to mean that the same goH,s are
sold at lower prices abroad at one time
and at higher prices abroad at another
be drawn that lower prices are made to
establish trade or to sell a surplus
without disturbing the domestic market.
and that at later times, when the trade