54 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

The results attained by concentration.—The concentration of the
electrical industry in the hands of two or three firms is said to have
had, as a result, improved quality and lower price. The advantages
of such enterprises as compared to many small struggling undertakings
 do not require discussion.
Outsiders—The two large concerns, A. E. G. and Siemens, do not
deliberately exclude outsiders; either one is on the lookout for an
available opportunity to absorb any troublesome competitor. There
are several small concerns, such as Levy or Armin Tenner, who make
lamps, motors, electrical supplies, and installations, and do a good
business in spite of their great competitors.
Export competition from outsiders—Smaller competitors also sell
a certain amount of their products abroad. However, the smaller
company is even at a greater disadvantage abroad than at home,
because successful salesmanship in a foreign country is dependent
upon the maintenance of a well-organized branch office or offices
with the necessary engineering talent, warehouses, exhibition rooms,
and the like. Such a foreign-sales organization entails a large general
 expense. Modern foreign trade methods have made the general
agent obsolete, and no permanent success in a foreign market can
be hoped for without a well-equipped office of the home company on
the ground. It is therefore to be expected that the smaller companies
 in Germany will lose ground in their exports.
No governmental discrimination—The Federal Government of the
German Empire and also the State governments of the Federation
treat all alike, so that the small firm has the same freight rates on
the railroads and the same export rebates as the Government accords
the A. E. G. or Siemens. The Government, both Federal and State,
has been extremely friendly toward the electrical industries of Germany,
 in which they have taken great pride and in which they see
an economic advantage to the country. Their appreciation has been
shown principally in noninterference and in a generous distribution
of titles and decorations to the leading men of the industry.
Can Americans successfully compete?—The General Electric Co.
has long since reached an understanding as regards patents with
A. E.G., Siemens, Bergmann, and Auer, and a division of territory of
the world. The relations to the A. E. G. are closer than to the others.
The Westinghouse Electric Co. has gradually retired from the field
or reached patent agreements with these companies.
Nevertheless the electrical industry is so widely diversified that
some independent American firm may bring out a patent or a discovery
 at any time which would be of such value that the firm could
sell the products successfully in the German market. Successful
competition along the general electrical lines of lamps, motors, and
apparatus, in the face of the excellent quality and low price of the
German products. is. however. hopeless.

COMBINATIONS IN THE WALL-PAPER INDUSTRY.

Names, location, and preliminary remarks.—The Verband deutscher
Tapetenfabrikanten (The Association of German Wall-Paper Manufacturers),
 founded 1912, is a loose association, including about 31
wall-paper manufacturers, as against 24 outsiders (1913).