168 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

competition of the European combinations than was the case before
the war. In some lines, especially in cases where the cartel or combination
 was international in character, there is reason to believe that
there will be a new alignment of interests after the war is over. In
other lines there are evidences that as soon as peace is restored the
combination will again be active. In fact, such combines will probably
 make use of their advantage of unity of action to an even greater
extent than before and will wage a fiercer competition in order to
regain markets now largely supplied by American goods. They are
endeavoring to make contracts with the prominent importers to handle
 their products exclusively and guaranteeing them in that case
prices lower than any price that might be offered by an American
manufacturer.
Some of the European combinations which were formerly active in
the South American market are now dissolved, others are in a state of
suspended animation, while others are keeping up their distributing
organization and their hold on their customers by supplying the
latter chiefly with goods of American origin. At present, therefore,
the competitive conditions are very different from what they were
prior to the war. As to these former conditions, the Commission has
collected a variety of information. Obviously, the practical value of
such information is dependent on how far these conditions will be
resumed upon the conclusion of peace. In Brazil, Uruguay, and
Argentina, at least, the conditions will be changed. The recent
marked increase in the use of goods of American origin, the efforts of
American manufacturers to exert a larger measure of control over the
distribution of their products in these markets, and the present as
well as prospective investments of American capital in those countries
 are the chief factors in assuring the change. By far the most
important of these factors is that relating to the investment of Amercan
 capital.

SECTION 3. THE NEED OF AMERICAN SHIPPING TO CARRY
AMERICAN GOODS.

For many years a combination has existed between the different
British lines of steamships running between the United States and
various ports in Brazil, Uruguay, and Argentina. This combination
has used its control of the carrying facilities to restrict the growth
of American trade and to favor instead the British trade, which was
carried over their lines between the same South American ports and
Great Britain. The lines belonging to the combination are usually
known as the Conference lines, and their rebate agreement as
the Conference agreement. Under this agreement a rebate of 10
per cent on the freight charges is paid to those shippers who make
shipments only on boats of the Conference lines. The payments