Evening star., 1901-10-21
in FOREIGN MARKETS
The Prices Paid for American Goods
in Other Countries,
INDUSTRIAL COMMISSIONS REPORT
Manufactures Paid More for Their
Products Abroad Than at Home.
STEEL CONCERNS RETICENT

That American manufacturers are re-
ceiving a better price abroad for their pro-
ducts Is set forth in a report on the export
price of American made goods compiled by
the Industrial commission, and issued for
publication today.
The report was called forth, 1t is stated,
in view Of the frequent assertion that ex-
porters Of American-made goods often sell
them in foreign countries at lower prices
than are obtained for similar goods at
home The Industrial commission has en-
deavored to secure from the business in
terests of the United States a full and
frank statement covering the efforts made
to extend consumption of products in for
eign markets In sending out the schedule
Of questions a pledge was given that the
answers should be treated as confidential
the name of the establishment concerned
and the town in which it was located being
withheld from publication. The commits
sion particularly asked for exact state
mentS as to the relative domestic and for
eign prices.
Out Of 1000 letters sent out the Commits
sion received 416 answers. While the num-
Der replying did not cover the entire list to
which schedules were sent, yet the answers
are suggestive and important. The great
majority of the answers indicated that
UTlCeS are no lower ABROAD tnan tney are
for domestic consumers, and considerable
number indicate that foreign prices are
higher.
Good Prices for Hardware.
In view of the bill introduced at the last
session Of Congress by Representative Bab-
cock to reduce the tariff on iron and steel
products, and the general discussion of the
advisability of a revision of the tariff, the
commission has paid special attention to
this class of goods, and states that
in past years it very often found
that American hardware and other
lines of goods similar to II could be pur-
chased cheaper abroad than in this country
However, this condition has changed ma
terially, and today there is but little diff
ference between domestic and export prices.
The size of the order governs the price
more than anything else. There are many
reasons why American goods should be
| sold cheaper for export than for domestic
use in certain classes of material, the prin-
, cipal one being that almost invariably
American manufacturers have insisted upon
cash in return for their foreign shipments,
whereas in this country, when selling the
| trade, long credits are demanded and given
| In the case of agricultural implements,
the commission quotes an exporter, who
writes:
I'VE do not know of a single instance
where manufacturer is selling his product
at a lower price for foreign shipment,
| where terms Of payment and conditions Of
sale are approximately the same.
In harvesting machinery and grain
| thrashers, which are sold in this country
direct to farmers by the manufacturers
| either through branch houses or local
agents. to whom commissions are paid, on
| terms ranging from one to three years, the
| prices are higher than when sold for for
| eign shipment. In the latter case sales are
| made in large bulk to responsible dealers,
| who pay. cash or its equivalent; but the
| farmer in foreign countries pays much
more than the American farmer, plus ocean
| and inland transportation and duty.
On all other classes of implements, sales
| in both cases being made to dealers, the
| basis of prices at factory is the same.
Individual Exceptions Noted.
number of establishments have stated
that they were selling at permanently lower
| prices abroad, and give as their reason the
| fact that they cannot get the benefit Of
| the drawback or rebate of the tariff on i'm
ported raw material of goods manufactured
| for export. This Is particularly noticed in
| the sales of cut soles and sole leather, where
| the duty of Is 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 the
| duty on copper wire is refunded. A some
| what similar distinction exists in the case
| of bottled beer, where an allowance is made
| from the internal revenue duties in case
| of export goods.
The manufacturers Of boots and shoes
state, as rule, that 1t Is impossible for
| them, for various reasons, to secure the
| drawback, although the manufacturers Of
| cut soles and sole leather are able to do so.
| Hence the boot and shoe manufacturers
| quite generally recommend, as means for
| increasing foreign trade, free trade In hides.
| A number of establishments, in answering.
recommend a reduction or removal of the
protective tariff, and number oppose any
change in the tariff. All answers to the
schedule which include reference to this
| subject are reproduced in the tables. The
great majority Of answers do not refer to
| the tariff in way or the other, and as
| this subject was not definitely mentioned
| in the schedules it is natural to assume that
| those not referring to 1t are either indif-
ferent or prefer to have it left undisturbed
| A few establishments reply that they
make lower prices in order to overcome the
tariff of other countries. This, it is stated.
applies particularly to Canada.
The Steel Trade.
The only data which the commission was
| able to obtain from the steel industry was
| from an establishment which produces
about 8 per cent Of the American structu-
| raj steel for buildings and bridges and sells
| about per cent Of its products abroad, at
prices no lower than domestic prices. This
| establishment writes: ut is good policy to
| keep production up to maximum, and, If
| necessary to do this. to make lower prices
| for export, which tends also to keep do
| nestle prices at a proper level"
An establishment which manufactures
about 60 per cent of the American output
of iron pipe writes: 1--WE meet competi-
| tive prices of foreign manufacturers In
| all markets of the world. Such prices are
| at times higher and at other times lower
| than domestic prices. Certain of our high
grade products, such well casng-drive
| pipe and tubing-are invariably sold on a
parity with domestic prices, and frequently
at higher prices. To demonstrate variations
| in the relation of foreign and domestic
| prices, we direct attention to the sale of
| ninety miles of four-inch line pipe at PAN
| cents per foot, against domestic price of
| % S5 cents This sale was made at price
quoted by foreign manufacturers Also