SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 87
CoMPETITIVE CONDITIONS IN GERMANY AFFECTING AMERICAN (GOODS.

The investment of foreign capital and the employment of foreign
managers do not mly affect the sale of American goods in
Germany. In fact, little, if any, attention is paid to these features.
Occasionally it comes to notice that some firm refuses to buy because
of its foreign connection, but this condition of affairs is extremely
infrequent, as the large commercial figures in the local industry are
all German. It may also be said that on account of the high development
 of German manufacturing and the general policy of the
Government to assist local enterprises no concessions or contracts
of prominence are let abroad. Such subjects as foreign investments
and concessions apply to South American and other new countries and
do not affect the competition against American industry in Germany.
A competitive condition which is particularly applicable to German
 conditions is .he facility of local manufacturers and producers
in copying the best American models, fashions, designs, and factory
methods. This condreion prevails in the textile industry, where styles
play such an important part in making sales. Duplications of American
 collars, shirts, suits, overcoats, etc., can be easily made, thereby
saving the high rate of duty which American importers have to pay.
Likewise, many machine specialties which have not been patented
san be reproduced by a careful German manufacturer, who notes in
detail the advantages of the American product and has the raw
materials, factory, and labor at hand ready for immediate use. Germany
 has great natural resources, which place its manufactures in
a position to reproduce most articles which can be manufactured in
nther parts of the world.
The German general and conventional tariff is so constructed that
high rates of duty are placed upon foreign-manufactured articles.
I'he rates are fixed by a permanent body of experts, which tries to
immediately correct any injustices which may be done to German
industry by the German tariff. The very form of the German tariff
makes it amenable to sudden change and the correction of injustices.
The American Treasury Department frequently has cases brought
to its attention which have existed for a long term of years. Under
the present provisions of the American tariff countervailing duties
can be levied, but owing to the varied methods by which bounties and
discriminations are given it is often impossible to establish their
existence until a period of years has elapsed.
Preferential railroad rates to the seaboard for exported goods and
low steamship rates on domestic goods have long been a topic of
complaint with American firms in competitive lines. The ownership
of railways by the State affords opportunities for the careful working
 over of tariffs, so that they will assist the local industry where
it should be assisted. Railroad preferences is such a complicated
and technical subject that it alone would furnish a topic for an
American commission to spend months of study in Germany. It is
also another example of what the German Government has been able
to do to assist domestic industry.
The activities of ir high schools, industrial institutes,
and chambers of commerce are exceedingly beneficial along technical
lines. American firms frequently speak of the sale of one of their