SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 185
VENEZUELA.
Spent report of Consul Homer Brett, La Guaira, Venezuela, November 9,
Sugar syndicate—So far as the investigations made by the consulate
 have revealed, the only combination or syndicate native to
Venezuela is the Compaiiia Anonima Unién Agricola, the headquarters
 of which are in Maracaibo. Its object is solely to maintain the
price of “ papelon,” as brown sugar in cones is called, and of other
kinds of sugar. It accomplishes this object by dumping the surplus
upon the English market at whatever price is obtainable, so that
Venezuela presents the anomaly of exporting from 2,000 to 4,000
tons pf sugar annually while the price of sugar in the country is
never less than twice the price ruling in the open markets of the
world. As the quantity exported is increasing and six modern
centrals are being erected, it is probable that it will be continually
more difficult to maintain the high domestic price.
Foreign combinations.—Of foreign combinations the first is the
well-known German potash syndicate. This has an agent here and
has done considerable propaganda work, but almost entirely without
success, as land is too cheap in Venezuela for the importation of fertilizers
 to be profitable.
The Union Comercial Francesa, with headquarters in Paris,
maintains an agent in Caracas. Exact information is not obtainable
but it appears that the combination sells principally drugs and
pharmaceutical products; that other French manufacturers compete
with it successfully. The agent is a local business man and it is not
apparent that the union spends any unusual amount of money in
trade development or is in any way to be particularly feared by
gompetitors.
The only other combination of which the consulate has been able
to obtain knowledge is the Consorcio de Fabricantes Italianos, which
appears to be only an association of Italian manufacturers in noncompeting
 lines for convenience in seeking foreign trade. Its main
office is at Milan. From the scope and character of its operations in
Venezuela it does not appear that it has any resources or methods
that would enable it to monopolize any market that would otherwise
be competitive.
In the main it is considered that conditions in Venezuela are not
favorable for the operations of syndicates or combination, as trade
in any one line is too small usually to constitute a business of importance.
 All merchants are general merchants and almost without
exception make their foreign purchases through export houses which
grant the long credits required. Accurate and dependable information
 regarding credits is unobtainable, and commerce depends upon
a personal knowledge and taking of risks not compatible with the
exact and machinelike methods of large corporations. The West
India Oil Co. constitutes an exception to the foregoing, as by maintaining
 a stock of its products in the country it has obtained a commanding
 position in the oil trade.

Addresses of syndicates or combinations in Venezuela.

Sr. J. Pauly, representante de la Union Commercial Francesa, Caracas.
BE. B. Levi y Ca., agentes del Consorcio de Fabricantes Italianos, Caracas,
Alberto Moreno, superintendent of the West India Oil Co., Caracas.
Salas &amp; Lavery, agents German Potash Syndicate, Caracas.