{78 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

The present activities of the British alkali combination which controls
 a large part of the trade in caustic soda, soda ash, and allied
products illustrate the efforts of such organizations to retain their
hold on their trade. The principal members of this combination have
been the Brunner Mond Co. and the United Alkali Co., which in turn
control a number of other companies. Late in May, 1916, it was
reported that the combination had been still further strengthened by
a merger between the firm of Brunner, Mond &amp; Co. (Ltd.) and the
Castner-Kellner Alkali Co. For several years the latter company
was understood to be acting in harmony with Brunner, Mond &amp; Co.
(Ltd.) and the United Alkali Co. The combined capital of Brunner,
Mond &amp; Co. (Litd.) and the Castner-Kellner Alkali Co. will be more
than £8,500,000 ($42,000,000). One of the principal objects of the
merger is stated to be the extension of the British foreign trade in the
chemicals manufactured.
The combination is reported to have had trade agreements with
German manufacturers in the same lines and to have controlled 80
per cent of the British output. Before the war it monopolized the
South American trade of its various products, particularly in caustic
goda, a chemical needed by soap makers. For example, in 1913
caustic soda of British origin formed 85 per cent of the total imported
 into Argentina and 96 per cent of the total into Brazil. Since
this chemical is in great demand for war purposes, at first its exportation
 from Great Britain was restricted, and later on absolutely
prohibited. The demand for it in Europe became so great that large
quantities of the American product were imported for British and
allied consumption. The American price, stimulated by an increased
domestic demand and an unprecedented foreign demand, both from
belligerent and neutral countries, soon doubled and trebled. For a
time, while their exportation was merely restricted, the British
combination, in order to retain its hold on the South American
trade, made sales of caustic soda to its customers there at a price
substantially less than that at which the chemical was being bought
for European consumption. The British manufacturers in the combination
 contemplated, in case the war came to an early end,
being able by this procedure to hold their markets. There was
no inducement for an American manufacturer to attempt to
develop a market in Argentina at a time when the European market
offered much higher prices. The prolongation of the war, however,
and the enforcement of an absolute prohibition of exportation made
it impossible for the British companies to continue their export trade.
As a result, the United States is to-day the only source of supply for
the South American markets.
Before the war South American soap makers demanded a certain
popular British brand of caustic soda, of 70° to 72° test, which was