66 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

cured in his own establishment, and only those consumers received the
rebate who promised to purchase all their requirements from the
cartel.
Three important German industries, the celluloid, the lacquer, and
the perfumery, all of which use great quantities of alcohol, complained
 that the policy of the alcohol syndicate in selling for export
much cheaper than in the domestic market has paralyzed their foreign
sales, and in many cases has enabled foreign competitors to sell their
products in Germany cheaper than the German factories, paying
high prices for alcohol, could possibly do it. In consequence of these
difficulties seven (German lacquer manufacturers established branch
factories in Austria, Holland, Belgium, Sweden, and Switzerland.
The industries which use alcohol for lighting, heating, and power
purposes are much better treated. As the cartel is anxious to encourage
 the use of industrial alcohol these industries receive considerable
 price reductions.
So far as kidown the Alcohol Cartel has no direct relations with
foreign Governments or foreign business interests.
The results attained by combination—The Alcohol Cartel is undoubtedly
 a success. This can be attributed to nothing else than
organization, by which it has obtained complete control of the domestic
 market and has made Germany by far the most important export
country.
Attitude toward outsiders—The Alcohol Cartel does not exclude
any distillers or refiners. On the contrary, it seeks to include.them
all. In this object it has been successful, by reason of the evident
advantages to a distiller or refiner in belonging to the syndicate. At
present no important distillers or refiners of alcohol in Germany
are not members of the cartel.
The outsiders have never engaged to any extent in the export business.
 Owing to the ability of the cartel “to dump ” at its pleasure,
putsifiars who attempted to compete in foreign markets could only
ose.
Independent distillers and refiners enjoy the same protection from
the Government in the domestic market as does the cartel.
Can Americans successfully compete?—In view of the extraordinarily
 strong position of the German Alcohol Cartel it does not seem
that American producers of alcohol can at this time compete successfully
 with the cartel in Germany. The disadvantages under
which competitors would labor can well be seen from the organization
 of the cartel, described in more detail in Dr. Goetz Briefs’ “ Das
Spiritus-Kartell,”* and from the discussion of the alcohol industry,
contained in pages 201 to 209 of the volume “ Das Land der Monopole:
 Amerika oder Deutschland?” by Dr. J Singer.?
CoNCENTRATION MoveEMENTS IN OTHER GERMAN INDUSTRIES.

In many lines of German industry companies have been formed
which have succeeded in obtaining a more or less complete monopoly.
Summaries of the concentration movements in many of these lines

i Briefs. Goetz, * Das gL Karlsruhe §. B.: G. Braun, 1912 (IV, 252 8.).
Volkswirtschaftl, Abh. d. bad. Hochschulen N. F. H. 7.
2 Singer. J., “Das Land der Monopole: Amerika oder Deutschland?’ Berlin. Frans
Riemenroth. 1913 (365 S.).