Evening star., 1915-12-19

to pursue the inquiry to its limit. But
those in touch with the work do not
expect any definite ruling or specific plan
of cooperative organization. The COM
mission evidently feels that combina-
tions for foreign trade may run athwart
the Sherman act, and therefore it's re-
port is likely to take the form of
recommendation to Congress for a mod
ification of the antitrust law.
Soon after the National City Bank of
New York entered the South American
field its agents realised the necessity
TOR american a export cooperation. Ac-
were instructed to study the problem
and devise, II possible, a scheme that
would be practicable and still not Of
fend the Sherman act. The bank has
tion which is claimed to fulfill all these
conditions. So far as the writer knows
this is the only concrete proposition
that has been yet advanced for this
purpose.
The plan proposes the Incorporation
under state laws of an export associa-
tion with sufficient capital stock to per-
init all members of an industry
throuehout the country. or possibly re-
stricted to some particular locality. to
become members upon equal terms.
Each producer of goods subscribes to
an equal amount of stock, and sufficient
stock is retained by the corporation to
provide for future members.
X
The corporation will enter into con-
tract with its members along the fol-
lowing lines:
1. The corporation pledges fairness to
all it's members: the test Of ability only
is to be used in selecting a manage
ment.
2. The membership Of the directorate
is to rotate so that in time every men,
Der receives representation. The cor
poration will provide a permanent ar
bitration committee made up of out
siders which shall settle all matters in
dispute and shall act at any time upon
the request of any member.
3. At the beginning of each year each
member will report to the corporation
the amount of products it can produce
for export in the following twelve
months. stating the conditions of de-
livery and orders, and the price at
which it will sell. The member may
change these conditions from time to
time and increase or decrease the
amount of goods he is willing to export.
4. The export corporation will then
sell these products to the best advan-
tage. making use Of it's own sales or
SdnlZdllon ana all OIner market agen-
cies available. The profit for the cor
poration shall consist in each case in
the difference between the price quoted
by the member and the price obtained
in the foreign market. The corporation
will also collect from its member
commission on the sale and all COM
missions shall consist of the same per-
centage in each case.
5. At times the corporation will find
demand for goods at a price lower
than that quoted by any of its mem
bers. In such cases the corporation
Will notify its members of the possible
order and receive competitive bids
giving the order to the lowest bidder
ders are low.
6. The corporations profits. after de-
Quoting all expenses and setting aside a
sum agreed upon for promotion and the
like, shall be divided equally among
the members.
Z. The, corporation will undertake to
supply its members with instant infor-
nation of value from the foreign mar
kets. and shall also maintain an eff
be at the disposal Of any member and
who shall give expert advice as to the
development OF plant efficiency, includ-
ing diminished costs and increased pro-
duction. This department will also sup
ply members with technical advice on
methods of meeting the requirements
of foreign markets.
8. 1t is also proposed that the cor
poration act as a purchasing agency
It's service In this respect will be at
the disposal of all members upon the
same terms.
The merit Of this plan, when our exist