EXHIBIT 1.

SPECIAL REPORTS FOR THE FEDERAL TRADE COMMIS-SION
 FROM UNITED STATES CONSULS.

FOREIGN CARTELS, SYNDICATES, OR COMBINATIONS.

Through the courtesy of the Department of State the Federal
Trade Commission was enabled to utilize the services of the United
States consular officers in this investigation. These officers were advised
 of the purpose and scope ‘of the study and were requested to
prepare special reports for the commission, giving all pertinent information
 available. Through their efforts, in spite of the exceedingly
 difficult conditions now prevailing, the commission has obtained
valuable data for consideration in its study of foreign combinations
and other conditions affecting the foreign trade of the United States.
The more important of these special reports are printed herewith.—
FeperaL Trappe COMMISSION.

EUROPE.

GERMANY.

Special report of Consul General Julius G. Lay, Berlin, Germany, November
2-16, 1915.

Extent and character of cartelization in Germany.—Germany is
regarded as being the greatest country in the world for the concentration
 of industry. The tolerant attitude of the German Government
 in regard to cartels, syndicates, and combinations has greatly
assisted the concentration movement. In general, any cartel or
syndicate is not restricted hy law in monopolizing the sale and production
 of a commodity until it prevents an independent organization
 from setting up an establishment. (For further information
concerning the legal aspects of German cartels see Consul General
Thackara’s report from Paris, France, May 10, 1912.) The result
of the lack of deterrent legislation and the favorable manner in
which “Big Business” is viewed has been the gradual formation of
organizations, either by purchase or by fusion, until the producing
iniorosie of the German Empire are now largely subject to carte
control.
Such restrictions as have been placed upon combinations or cartels
in monopolizing industries are of an immaterial nature and embrace