The Johnson City comet. (Johnson City, Tenn.) 1916-1917, 1916-12-07
COOPERATION
EXPORT TRADE
TRADE COMMISSION SAYS 1T Is
NECESSARY IN COMPETITION
SHIELD DOMESTIC PUBLIC
PRESENT LAWS REGARDING MON
OPOLY IN THIS COUNTRY
SHOULD REMAIN, But SHOULD
BE GREATLY MODIFIED As TO
EXPORT TRADE.

EXPORT TRADE.
Washington, Dec. 5.-In the mos
comprehensive review uf toreiei
trade conditions ever prepared by an!
gcyynmJn,al agency, the Foreig.
Trade Commission today expressed
opinion that the much discussed af
ter-the-war commercial ompetitiOG
from Europe will not be likely tc
come for some time after the con
clusion of peace,
High costs of raw materials, in
creased taxes, probably higher wages
to say nothing Of the capital anc
stocks of material necessary to repair
the wastages of war, the report says
are expected to delay the full power
of European competition until it re-
gains its normal state.
Laws to put the American exporter
on footing with his foreign rival by
selling agencies are recommended. A
brief summary of the report. made
public last May while it still was in
complete. recommended such legisla-
ton and was followed by inroduction
of the Webb bill, which still awaits
action and has the Endorsement Of the
administration.
In studying the export situation,
the trade commission, it is declared
has tried to take the problem in itS
broad historical aspect, considering
the present war as temporary inter
lude, the permanent influence Of
which it is difficult to estimate.
1T is frequently asserted" says the
report, 'the manufacturers and pro
ducers of the belligerent countries
will take effective measures to regain
their former trade. 1t is likely, how
ever. that some time will pass after
the close of the war before they vii
be able to exert their normal com
petitive power. Much capital, includ-
ing large stocks of material, will be
needed to restore the wastage of the
war. For som time, also, after peace
is declared their costs of manufacture
are likely to be higher in many lines
of industry than before the war, due
to increased costs of raw material
increased taxes and possibly higher
wages.
I'm their struggle to regain theil
former trade such foreign manufac-
turers and producers may be expect
ed to fully utilize their highly effici-
ent organizations for the promotion
of handling of trade beyond their
borders, even foregoing profits on
taking a very low profit til theil
costs again become normal and they
have re established their trade.
Hence competition from foreign in
dustrial combinations, aided by for
eign ship lines and foreign banks,
and backed by foreign governments,
may be even sharper than before the
war"
The commission does not consider
cooperation as the most important
factor in foreign trade, but it consid-
ers it an important and necessary
element in any effective plan.
Three important considerations.
it says, ARE involved in this prob
lem. These are, first, the presence
of concerted action among the foreign
competitors of American exporters;
second, the probable effect of similar
action by the American manufactur~
ers in foreign trade, including its
possible disadvantages to domestic
consumers and smaller competitors,
and, third, the effect of the present
laws of this country upon such co
operation on the part of American
manufacturers"
1t is apparent, the report sets forth,
that the country's organization for
export trade must be strengthened if
its manufacturers and producers are
To compete on more nearly equal
terms in the worlds commerce. OF
possible dangers to American con
sumers it says:
THE commission believes that the
advantages to be gained by effective
cooperation in foreign markets
need not entail any sacrifice of the
firmly established policy of this coun
try in regard to the maintenance OF
fair competitive conditions and the
prohibition of monopolistic contro
within the United States. At tht
same time co-opration for export
trade will nable the exporting manu-
facturer to realize an increased re
turn for his products along with de
creased costs through larger scale
production, and the country twill en-
joy greater industrial stability result
ing from q broader market
The present laws, the report says
in many cases as they stand operat'
to prevent formation of cooperative