SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 81

Finally, the Hamburg American Line and North German Lloyd conflict
 was settled by a compromise, and the pool continued to exist.
[t is thought that both of the large German companies have not
always been satisfied with the pool arrangement, and that when an
opportunity offered they would demand a change of relations. It
has often yo stated that the present offers such an opportunity,
and that now many of the entangling shipping alliances which hamper
 the movements of the North German Lloyd and Hamburg
American Line can be thrown overboard. - Upon the conclusion of
peace many changes will likely take place in the pool arrangements
and many new and satisfactory combinations be formed.
The international steel combinations.—Previous to the year 1911
it was remarked that there was a growing tendency toward international
 combinations. This tendency was regarded as being a result
of the internationalization of capital. In this international movement
 the German Association of Steel Works was always interested
and willing to agree to proposals coming from other countries. Immediately
 after the German Association of Steel Works had been
formed it sought to form some kind of an agreement with the Belgian
Steel Association, the United States Steel Corporation, and the English
 and French steel combinations. As a result of these endeavors,
as early as November, 1904, an international steel-rail agreement was
established by the German, Belgian, French, English, and American
producers. According to this agreement, the North American rail
market south of the Great Lakes was left free to the United States
Steel Corporation, while Canada and the South American market
were given over collectively to Germany, England, France, Belgium,
and the United States. In all other markets the European combing.
tions were free from American competition. In this form the Rail
Trust was extended in December, 1906. The outstanding combinations
 of Austria-Hungary and Spain entered the combination in 1908,
while in Russia three factories joined immediately, and in the year
1910 two more works became affiliated.
Besides the Rail Trust, an international understanding exists in
products “A,” as well as in beams and half-finished material. A beam
agreement was arranged in November, 1904, with the Belgian Steel
Works and a certain number of French works. In this agreement the
English organization was absent. An international pipe cartel was
also decided upon. This combination went into effect January 17,
1908. Tt was In the form of an agreement between syndicates. It
was disrupted in July, 1908, by the American participants because
prices were lowered by some of their competitors. Shortly -afterwards
 a new agreement was reached between the German and American
 firms, but this understanding was dissolved because the German
local organizations went to pieces on June 80, 1910. In the wire-nail
and screw industry an international agreement also was reached.
The German Screw Syndicate agreed with the leading English works
that.after October 1, 1905, a German work could not accept an English
 order and no English work could accept a German order. In the
smaller articles of the iron and steel industries international agreements
 are formed and easily disrupted. Consequently it is very difficult
 from the meager information which has been published to discuss
 all of the lesser combinations,
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