SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 57

Character of competition.—In the home market, where the designs
 are fairly well distributed among all the factories, competition
has been almost purely a matter of price. except in the very high
rades.
: Central selling organization.—The fault of the association is that
there is no central selling organization.
Special relations.—The relations of the association to the home
Government, as is the case with all the German combinations, is
iriendly ; in fact the Government would prefer a strong combination
to the present disorganization for purely national economic reasons.
 The relation of the combination to other members of the trade
is not so completely antagonistic as one might assume. On the other
hand, all the factories manufacturing wall paper, whether in the
association or not, stand each one by itself, with no friendly relation
 whatsoever toward the others. This is one fundamental reason
for the instability of the wall-paper cartel. The Association of
German Wall-Paper Manufacturers has no relations to foreign
Governments or to foreign business interests as such. As mentioned
above, a former cartel, the Tiag, had well-defined relations with the
English wall-paper combination, which passed out of existence along
with the Tiag. ,
The results attained by combination.—The results attained have
been very modest. With so many outsiders, such a loose combination,
and a falling market the association has at no time succeeded in
stabilizing the market or raising the prices sufficiently to assure the
trade reasonable prosperity.
Manufacturers excluded.—The exclusion of manufacturers from
selling to the dealers’.union because they refuse to deal exclusively
with the union, and, on the other hand, the exclusion of dealers who
deal with factories outside of the manufacturers’ association, has
been the storm center of the entire manufacturers’ and dealers’ associations.
 Inasmuch as both the manufacturers’ association and
the dealers’ union are too weak to enforce their will on the trade, the
result has been much controversy with no results of value.
The outsiders.—The outsiders amount to 24 firms, including some
of the larger factories. The outsiders manufacture the cheaper
grades, but occasionally enter the market with better grades whenever
 the association succeeds in raising the profits sufficiently to invite
 competition.
Export competition from outsiders—The export competition from
Jag ders amounts to almost as much as the exports of the association
itself.
Can Americans successfully compete?—In consideration of the
state of the building market in Germany, which will require several
years for recuperation, and in consideration of the long terms of payment
 in the industry, the German market for wall paper is most uninviting.
 In addition, a careful study of the market would be necessary
 in order to suit the taste of the public. Also the matter of width
is of importance. The German paperhangers are accustomed to
narrow widths, and experience the world over has demonstrated that
afforts to change established customs is attempting to swim upstream
against a rushing current. If the German market in wall papers
should again become worth the trouble, success would only be possible
to those firms who are willing to cater to the customs and taste of the