COMPETITIVE CONDITIONS IN SOUTH AMERICAN TRADE. 193

Thus was it also for the same reason that the local board was constituted
 mainly of the representatives of Messrs. Harteneck and Renner,
 the original pioneers, who created the quebracho industry, and
thus was it also that a great deal of the staf of the Jorestal Co. was
then German. But it was not only owing to the nationality of Messrs.
Harteneck and Renner, not only owing to the fact that they were the
largest shareholders of the company, that the staff was to a great extent
 German. It was due to causes inherent to the quebracho industry,
 and causes which I think it only my duty to explain to you.
We sell the product of the quebracho forests, from which we derive
our greatest revenue, in three forms—in the form of raw material—
that is to say, the logs which are used to make tannin extract; we sell
it in the form of solid quebracho extract, which we make in our own
factories; and it is also sold in the form of liquid extract, either pure
extract of quebracho or mixed extract of quebracho and other ccmosite
 extracts, so that it may go in a prepared form to the tanners.
bt so happens that there can not be a single factory in England making
quebracho extract from the raw material—the log. Both logs and
quebigsiha extract are introduced into England free of duty, and
therefore it would not pay the English manufacturer to introduce
fogs into this country. He buys the solid quebracho extract frcm
Argentina, and he converts it either into pure quebracho extract or
the composite extract. On the other hand, on the Continent, where
there are either small duties or no duties on logs and where the
duties on the quebracho extract are high, there are a number of factories
 which make quebracho extract by importing the logs from
Argentina, and which sell it on the Content either in the form of
solid extract in competition with ours or as liquid extract. Nearly
all, if not all, the quebracho factories on the Continent, be it in Germany,
 be it in Austria, be it in Russia, or be it in France, were either
owned, or controlled by, or were in alliance with Messrs. Renner &amp;
Co., and consequently it was in those factories that the personnel
were educated, selected, and recruited for the factories of the Forestal
Co., and, I may say, greatly to our advantage.
After describing the changes brought about by the war in the personnel
 of the English board of directors and the local (Argentine)
board of of directors, and the selling organization, Baron d’Erlanger
stated that the British Government was informed that—
If any further measures were to be taken we shoutd have to decline
rpogsibiliny as to furnishing English tanners and the allied countries
with the material called quebracho extract, which is absolutely imperative
 to the tanners if Tr are to comply with their war contracts.
Baron d’Erlanger described the relations of the Forestal Land,
Timber &amp; Railways Co. (the English company) with Messrs. Renner
% Co., the firm which, as he had already pointed out, cither owned,
controlled, or were in alliance with nearly all, if not all, the quebracho
factories on the Continent, whether in Germany, Austria, Russia, or
France. He said:
27941°—16——14