SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 65

To-day, owing to pressure on outsiders of the Branntweinsteuerreform
 law of 1909, it exercises a practical monopoly.
The Alcohol Cartel handles practically all of the alcohol exported
from Germany.
Selling methods at home.—The Alcohol Cartel has established in
Germany a very modern and very effective selling organization.
Agencies have been established all over the Empire and public interest
 in new uses of alcohol for heating, lighting, cooking, etc., has
been created by advertising and by exhibitions of the many uses to
which alcohol can be put. These methods have increased the domestic
sale from 88.2 million liters in 1903 to 159.3 million liters in 1908.
The cartel provides uniform prices for alcohol in all parts of Ger
many by bearing itself the differences in transportation charges.
Commission houses are not permitted to increase arbitrarily the prices
set by the cartel. An interesting feature of the selling methods is the
fact that whenever, in consequence of a change in the condition of the
potato market, a higher price for alcohol appears nécessary, this increase
 is placed as far as possible upon the spirituous liquors and
not upon industrial alcohol.
Selling methods abroad.—In its foreign sales the Alcohol Cartel
uses ordinary import agents, who are placed in the principal foreign
markets.
Character of competition.—The success of the Alcohol Cartel in
its foreign markets 1s attributable to the high standard of its products,
 and to its ability to undersell competitors.
Terms of sale os delivery.—The terms of sale of the Alcohol
Cartel are the usual terms of German syndicates. For orders placed
before the 15th of the month payment must be made by the 1st of the
succeeding month, and for orders placed after the 15th of the month
payment must be made by the 15th of the succeeding month.
Dumping.—The German control of the foreign markets is made
possible by selling for export below cost. The cartel has never hesitated
 at dumping, and it is encouraged in this policy by the great
agricultural interests of East Germany. Overproduction in the potato
 crop usually means a further invasion by the Alcohol Cartel of
foreign markets. In this manner the Germans have driven the
former Song export competition of Austria and Russia so completely
 out of the field that the industry in these two countries has
suffered greatly. Russia has even become a large importer from
Germany.
Special relations.—The German Government aids the Alcohol Cartel
 with the high protective tariff, preferential freight rates, bounties,
and by encouraging in every way the prosperity of those districts
where most of the alcohol is produced, notably the eastern Provinces
of Prussia.
The cartel maintains close relations with the important industries
which manufacture from or use alcohol. The producers of spirituous
liquors are worse off than they were before the advent of the cartel,
as the latter has raised the price for prime spirits from an average
of 42 marks to 52 marks.
The cartel allowed the manufacturers of fermented vinegar (Gérungsessig)
 a rebate, which was only given under strict and exacting
conditions. The consumer was required to use all the alcchol pro-97941
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