SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 77
Schneider on the petroleum trade! which discussed the methods of
the Standard Oil-Co. It may generally be stated that the outcome
 of the legal proceedings and business negotiations between the
Standard Oil Co. and the German concerns was the formation of a
German petroleum trading company which was organized to settle
the difficulties which had arisen.
The operations of the American and English tobacco companies
have been the subject of absorbing interest to the German press during
 the last few years. A consistent campaign was carried on by the
local associations of manufacturers by means of advertising propaganda
 and court suits to prevent the operation of these companies
from increasing. This campaign is supposed to have culminated in
the well-known Jasmatzi suit at Dresden (several consular reports
upon the American Tobacco Co. and the Jasmatzi suit were submitted
 by the consul general at Dresden and other consular officers
in Germany within the last two years).
The International Harvester Co. has succeeded in gaining the
larger part of the German market for the following reasous:
(a) The McCormick, Deering, and Osborne machines were the
first known in Germany, and their interests are consolidated in the
[nternational Harvester Co.
(5) The complicated nature of binders and reapers makes it difficult
 for a new firm to successfully enter the market; the secret of
success is in the construction of one approved model in a series of
several hundred thousand. The International Harvester Co. has had
less success with mowers than with binders. In selling the former
the German competition is exceedingly active. In binders the Germar
 firms have never been able to compete successfully with the
International Harvester Co. The Farmers’ Association (Bund der
Landwirte) purchased two German firms (the Wery and the
Richter-Brandenburg) for the express purpose of competing with
the International Harvester Co. They finally succeeded in making
a very good binder at about $5 to $10 under the price usually obtained
by the International Harvester Co. (640 marks wholesale). This
undertaking was started at such a late date and the quality of the
International Harvester products was so good that the farmers preferred
 to buy the American-made machines. The competition in
mowers, steel rakes, tedders, disk harrows, etc., was so keen that the
International Harvester Co. had to build a large factory at Neuss
on the Rhine. In this way duty and freight charges were saved, so
that the Harvester Co. was ok to meet the German prices. The
principal foreign competitors on the German market are the Massey-Harris
 Co. (Canadian), Walter Wood (American), Adriance, Platt
(American), and the Johnston Harvester Co. (owned by Massey-Harris).

The ¥ pternational Harvester Co. maintains seven offices in Germany,
 all of which have warehouses connected with them. These
offices are located at Hamburg, Neuss, Berlin, Mannheim, Breslau,
Konigsberg, and Munich. Each office is under the direction of a
manager and assistant manager, one of which is an American and
the other a German. Each of these offices is responsible to a central

1 Schneider, Dr. Rudolf, “ Der Petroleumhandel,” Tiibingen: H. Laupp, 1902 (94 B.).
Zeitschrift fiir die gesamte Staatswissenschaft., Trg.-H. 3.