SPECIAL REVORTS FOR FEDERAL TRADE COMMISSION. 79

Limitations of international cartels—The cosmopolitan nature of
the international cartels is a great drawback to their formation.
The relations and conditions in various parts of the world are all
different and can not be unified unless it can be shown that great
profit would result from such a union. The international combinations,
 therefore, can not be developed along the same lines as national
 cartels. For instance, central selling agencies, fixed production
figures, and well regulated processes can not exist. The international
cartels which are Formed, are regulated by incomplete agreements
and understandings. The very fact that such agreements and understandings
 exist causes outsiders to spring up. This fact was to be
noticed in the experiences of the Rail Syndicate. Since the Association
 of Belgian Steel Works was outside of the combination, it was
given orders for railroad material from all parts of the world.
Buyers were glad to favor any organization which would defeat the
object of the international combination. The same condition of
affairs was noticed in Russia, and, to a certain extent, in England, in
the iron and steel industries. The development of industries in new
states always offers competition to international agreements. The
competition of Japan and Italy, where the iron industries are new,
has affected the success of such international agreements as have been
formed.
Prominent international cartels—The international agreements in
the shipping, steel, zinc, aluminum, and textile industries will be taken
up individually in the following pages. It has not been possible to
make separate studies of the international movements in the lead,
wire, chromo postcard, pipe, silk dye, linoleum, and other industries.
Nearly all of these are mentioned in the list of international cartels
which showed evidences of activity in 1913 (given as a conclusion to
this section of the report).
North Atlantic Shipping Pool.—The North Atlantic Shipping
Pool was formed in the year 1908 by the following 17 companies :
Hamburg American Line, Sloman Union Line, North German Lloyd,
Allan Line, Anchor Line, America Line, Atlantic Transport Line,
Canadian Pacific Co., Compagnie Générale Transatlantique, Cunard
Line, Red Star Line, Scandinavian American Line, Russian
Steamship Co. for Eastern Asia, White Star Line, Dominion Line,
Leyland Line, Holland American Line. The formation of the pool
was preceded by an agreement between the Hamburg American
Line and the North German Lloyd for the regulation of emigration
 traffic. The international shipping conference, which resulted
 in the forming of the pool, met at Cologne J anuary 17 and 18,
1908. All of the great continental lines were represented.” The object
of the meeting was to settle the rate difficulties which had arisen between
 the White Star and Cunard Line, and to discuss the complications
 which had broken out with the Canadian Pacific Railway Co.
An agreement was reached which went into effect February 7, 1908,
By this agreement the emigration business was regulated for three
years, and prices were fixed for first and second cabin traffic on the
trans-Atlantic steamers.
In 1912 difficulties broke out within the pool. The principal
cause of the disturbances was the fact that the Canadian Pacific
Railway Co. was granted a concession by the Austro-Hungarian
Government to enter the emigration traffic.” By the granting of this