1st 56TH CONGRESS,} SENATE. THE PHILADELPHIA MUSEUMS. S REPORT MAY 18, 1900.-Read twice and referred to the Committee on Commerce. Mr. PENROSE, from the Committee on Commerce, submitted the following REPORT. [To accompany S. 417.] The Committee on Commerce, to whom was referred the bill (S. 417) providing for the addition to and completion of the collection of specimens of products, both natural and manufactured, of the United States and foreign countries, to be exhibited in the Philadelphia Commercial Museum, for the purpose of increasing the trade of the United States, beg leave to submit the following report and recommend the passage without amendment of the said bill (S. 417), which reads as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the sum of two hundred thousand dollars be, and is hereby, appropriated, out of any money in the Treasury not otherwise appropriated, to the Philadelphia Museums, for the purpose of completing the collection from foreign markets of samples of merchandise of the character in favor and demand therein, and of illustrating the manner in which merchandise for such markets should be prepared and packed, together with necessary business data concerning said samples and trade conditions abroad, as will be of the most benefit to American manufacturers, merchants, and producers, and to aid and assist them in extending their trade with and in opening new markets in foreign countries: Provided, That the material so collected, together with all data that the bureau of information of the Philadelphia Museums may obtain from its various foreign agents and from other sources, shall be distributed free to boards of trade, chambers of commerce, and other trades organizations throughout the United States, for the information of the American people in respect of the subject. The objects so collected shall be deposited with and in charge of the said Philadelphia Museums, subject to free exhibition therein under proper rules and regulations for their safe-keeping. There is at present no subject more deserving of serious public consideration, or of more engrossing interest concerning our national welfare, than the extension and development of our export trade. It is a matter of vital importance, for the continuance of our national prosperity, that we shall find markets for our products and manufactures. One of the chief obstacles to a more extensive growth of our foreign trade has heretofore been the lack of specific information upon the part of our producers and manufacturers regarding the wants and customs of foreign buyers. To overcome this difficulty, public-spirited citizens established the Philadelphia Commercial Museum as a means to enable our people to reach a clear understanding of the trade conditions prevailing in foreign countries. An extended description of the nature and operations of this institution is hereto annexed (Exhibit A). It is in no sense an institution operated for the individual profit or private gain of anyone connected with its management, but is rather a center of exchange of commercial ideas for the mutual benefit of all who are interested in our export trade. Its work is national in its scope and character, reaching throughout the entire country, and in carrying out its broad, helpful, and unselfish policy it would seem to be fairly entitled to governmental assistance. The museum has already been eminently successful in accumulating and disseminating data of the utmost importance in extending our foreign commerce, and its work is daily becoming more comprehensive and its influence continually more potent. Through its medium many of the difficulties heretofore existing in the way of our trade progress have been overcome, its special reports and trade samples having furnished our people exceptional facilities for becoming acquainted with foreign trade requirements. The results of its work thus far have been most highly appreciated throughout the country, and its value is most strongly attested in a vast number of commendatory letters and resolutions from leading manufacturers and producers in all the States of the Union. Extracts from some of these letters are hereto appended as Exhibit B. The object of the appropriation now sought is to enable this museum to increase its facilities for benefiting American manufacturers and producers, and making its usefulness more widespread by enabling it to complete its collection of commercial specimens to be kept on exhibition in Philadelphia. This object seems to be a most commendable one, and has met the approval of this committee. While the committee had this bill under consideration it received and heard vehement protests from the Bradstreet and Dun commercial agencies. These protests were based on the allegation that the Philadelphia Commercial Museum was engaged in work similar to that of these agencies, for which it was receiving compensation of its patrons after the manner of any other private enterprise, and that therefore it was not entitled to receive any public moneys for its support. Upon investigation the committee found that in the general scope of its work the museum would occasionally be required to furnish to inquirers somewhat similar information to that furnished by the Dun and Bradstreet agencies to the business houses of the United States. It was further found that a membership system had been devised by the museum, whereby on payment of an annual fee a member would receive constant reports on the state of foreign markets in his particular line. These annual fees range from $100 to $125, according to the service required. The reason for collecting these fees is the necessity of meeting the cost of clerical and other services in the prosecution of such special trade inquiries in behalf of individual firms which could not justly be defrayed out of public funds. This is the service which Dun and Bradstreet object to, because it happens that as an adjunct to its national work the museum finds it necessary occasionally to answer individual inquiries. But this is not a prime feature of the museum's work, it is only an occasionally necessary incident to it. And, moreover, as not a dollar of the public funds is expended in this service, the cost of which is met entirely out of membership fees, the committee can not find any reasonable objection to the appropriation carried by this bill, which is intended to be expended solely for public purposes and for no others. The committee, moreover, finds that its views in this regard are in accordance with those of the leading manufacturers and producers throughout the United States, as appears by the numerous letters which have been received, of which a number of extracts is hereto appended as Exhibit C. Special attention is called to the certificates embodied in Exhibit C from the governor of Pennsylvania, the mayor of Philadelphia, and the officers and trustees of the Commercial Museum, which establish the fact that the institution is not a private corporation, but a public enterprise, national in its scope and character, from the operation of which no profit can accrue to individuals composing its management. EXHIBIT A. THE PHILADELPHIA COMMERCIAL MUSEUM. The Philadelphia Commercial Museum is a public institution devoted to the general extension of international commerce, maintained by the city of Philadelphia and by private subscriptions from business firms. While the museum was created by a municipal ordinance, it is not local in its objects, but works for all sections of the country, and has received the sanction and financial assistance of the State of Pennsylvania and the United States Government. Legally the museum is a duly constituted body under the city charter of Philadelphia. Its high standing and reputation are due to the fact that it does not enter into actual trade of any kind and is in no way affiliated with any political organization. Its receipts and disbursements are subject to the audit of the municipal authorities, thereby insuring a strict impartiality in all its activities. It has no sources of revenue upon which profits may accrue, as all service rendered to individuals is in accordance with their specific instructions and performed at actual cost; and all the material in possession of the museum is, and always has been, freely at the disposal of the American public. TRADE EXPANSION AND ITS ATTAINMENT. The first aim and object of the museum is to foster and promote, by practical and systematic efforts, and by new, original, and effective methods, the foreign trade of America. In this work it has the support of an advisory board, comprising representatives of the leading chambers of commerce and similar organizations in the United States, as well as in foreign countries. It also has the benefit of similar advice from an honorary diplomatic board, comprising the ministers of many of the foreign countries resident in Washington. By special act of Congress and under the instructions of the Department of State, the museum receives frequent advices from the entire American consular service. It is also in constant communication with thousands of foreign correspondents, through whom it keeps in touch with every possible phase of international commerce. This extensive correspondence is carried on in more than a dozen different languages. SPECIFIC FOREIGN-TRADE REPORTS. A merchant or manufacturer who wishes to trade in a foreign market must first know, specifically, the nature and value of that market. Granted that its trade will repay the effort of securing it, he must know exactly what the market requires, what it can offer in return, what business houses to deal with, and what are the conditions on which business is customarily done. The activity of the museum is specifically directed to meet these various requirements by exhaustive commercial reports, which are further illustrated by collections of trade samples, both natural and manufactured. To the general business community the resources are made available by the bureau of information. This bureau is impartially reporting trade conditions existing in other countries to manufacturers and merchants in every part of the United States. Complete and detailed reports as to the demand of every market in the world, the style of goods required, method of purchase and shipment, customs, of receipt and sale, are all fully described to intending shippers, and every possible assistance is given them, not only in the proper preparation and forwarding of their goods, but in the most advantageous way of approaching possible buyers with a view of securing orders. Through the extensive and well-equipped foreign department of the museum, lists of buyers in all lines are received from all parts of the world and issued to American manufactures. Constant correspondence is maintained with firms abroad to interest them in American goods generally and the advantages of handling them. The interests of American firms are protected by requiring foreign applicants to present references and sufficient evidence of their responsibility, thereby insuring the safety of the museum's introductions and rendering trade with other nations no more hazardous than trade in the home market. PUBLIC CONTRACTS. The museum is promptly informed, through its agents and representatives, of all important enterprises in other countries-government contracts, tenders for public works-which are referred to probable American bidders through a special news bureau. TRADE LITERATURE. The trade literature of the world is gathered into a special library. Here will be found hundreds of trade and technical journals, in fully twenty languages, together with shipping and market reports, statistical publications of all countries, export and import manifests, etc. This information is indicated by a card-catalogue system, and every fact that has practical business value finds its way at once into the hands of a body of experts, who include it in the individual reports. TAKERS BROUGHT TO MAKERS. An elaborate system of reporting on the specific requirements of business houses in other countries has been established, whereby complete statements of responsible houses are issued on index cards and distributed to manufacturers and exporters in all parts of the country, who hold confidential cabinets of such cards placed in their hands by the museum. In this way there is furnished a reliable directory of foreign buyers specially prepared for each individual manufacturer. TRADE SAMPLES FROM FOREIGN MARKETS. The collections of trade samples belonging to the museum, which are used to illustrate and extend the work instituted by the commercial reporting, are classified under the following heads: Manufactured articles (a) Arranged in lines of manufacture. Raw products (a) Geographic arrangement of collections; (b) Monographic arrangement of collections. The museum shows the consuming capacity of any given country by collections of the goods that are most salable there. These are actual samples of what is in the market, selected with great care by experts of the museum. Textiles, hardware, clothing, household goods, cutlery, provisions everything that is imported-are represented in these sample collections. With each sample is found full information as to place of manufacture, price, terms of sale, distribution, etc. These collections are constantly renewed and extended. Having shown the consuming capacity, the museum then shows the producing capacity by collections of natural products. These show at a glance what is produced by any given country, and what it has to offer in the way of a return trade. These collections are made practically useful by scientific and technical laboratories, in which complete tests are made with especial reference to the industrial value of any given product. The usefulness of this work is well established in many countries, and merchants are continually sending samples of exportable products, in order that the museum may report on their usefulness for the American market. |