209 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

The dividends paid by the three first-named concerns in 1914 were
19, 19, and 20 per cent, respectively. It is expected that a dividend
of 20 per cent will be paid by each for the year 1915.
Soda.—The Syndicate of German Soda Factories which has existed
since 1900 regulates the sale of soda in Germany. The German Solvay
 Works Stock Co., a powerful organization controlling the greater
part of the German production of soda, heads the syndicate. This
company also produces potash, other chemicals, rock salt, also hard
and soft coal.
Alcohol. —Germany is one of the most important producers of
industrial alcohol in the world, the spirit being obtained largely from
potatoes. The production in the year before the war was nearly
30,000,000 gallons from potatoes.® The industrial alcohol business
is controlled by The Central Agency for Distribution of Alcohol (Die
Zentrale fiir Spiritusverwertung), which exercises a- practical moaopoly.
 A central selling agency is maintained which apportions
orders among individual factories, makes contracts for the sale of
alcohol, and controls prices of the various products, raising or lowering
 them according to the demands of the market. The quantity
which is to be assigned for production to each distillery is also determined
 by the central agency. The syndicate includes refiners as
well as producers. Refiners are subject to the same restrictions in
the matter of price and making of contracts as are distillers.
This alcohol cartel handles practically all of the alcohol exported
from Germany, most of which went to France and Spain before the
war. In these countries the former strong competition of Austria
and Russia had been driven out and Germany was the most important
 exporter of alcohol in Europe. This supremacy was won in many
instances by selling for export below cost.”
Effectiveness of the comb nations.—The foregoing statements indicate
 how Germany is equipped to suppress any development of American
 export or manufacture of those articles which make up the
German chemical industry. Consequently few American manufacsurers
 of chemicals of this kind have tried to seek trade abroad—
and many of them have been unable to compete even in their
home market. Only a small number of the American chemicals
whose export figures are of appreciable size come directly into competition
 with German products. Of these either the manufacture and
export in Germany is not feasible or else it is more profitable to Germany
 to furnish the raw materials and let Americans export the finished
 product. Most of the direct foreign competition encountered
by Americans, therefore, comes from England, France, Italy, etc.,
where organization is less comprehensive and complete and competitive
 conditions are more equal.

a _ - ee ree
| Commerce Reports, Washington, May 27, 1916, p. 770.  3Stat. Jahrbuch f. d. Deutsche Reich. 1915, p. 106.
} See Pt II, p. 70. «See Pt. II, p. 65.