SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 221

trolenm Co., (British). These not only maintain their own agencies
at the treaty ports, and, in the case of the oil companies, their tanks
and oil installations generally, and as to the tobacco company, their
depots for supplies, but they have established Chinese agents under
the title of dealers at all important interior points not opened to
trade, and, with extensive foreign staffs, maintain constant supervision
 and direction over the whole selling organization, the distribution
 of supplies, the regulation of prices with outside competition,
 and the settlement of claims disputes, difficulties with the officials,
 ete.
But these companies are engaged in selling special commodities of
general distribution throughout the whole market.
As to competition by American producers with the foreign firms,
there is little to be said that has not already repeatedly been set out
in trade reports and addresses by Government officers and business
men in the Far East. Americans have not satisfactory representation
in this field. The large foreign organizations are not willing to
accept American agencies, or, when they do so, are sometimes Ikely
to take them for the purpose of stifling any possible American competition.
 The small American producer, offering one particular
product, finds, in the first place, difficulty in obtaining reputable
representation, and, in the second place, that his other foreign competitor
 has the advantage of the large organization of his representative,
 the technical advisers and promoters, the financial conneclions
 for financing industrial enterprises in which his products may
be used, etc.
{nternational syndicates, etc—The consulate general has nothing
to offer under this head except to point, in passing, to the groups of
bankers interested in Chinese Government, railway, and industrial
loans, with corresponding benefit to the foreign machinery, engineering,
 general contracting, and equipment manufacturers.
Combinations of buyers of American goods~—No such combinations
 exist in China.
Competitive conditions.—So much has been said, and so repeatedly,
 on the subject of the great deficiencies which prevent the
development of American trade in China that more than a brief
sketch here in the form of recapitulation is unnecessary.
The advantage of other foreign countries in China has been due
bo two things, (1) organization and (2) investment. By organization
is meant the existence of large commission and trading houses capable
 of taking up and hagas the representation of foreign manufacturers,
 with large sales and technical staffs, engineering departments,
 good financial connections with liberal credit facilities when
necessary, and such extensive organizations, including not only import
 and export, but specialized departments, control of coastal,
riverine, and foreign shipping lines, insurance departments, ownership
 and management of local industries, etc.
Investment of capital by means of Government, railway, and
industrial loans, with the consequent control of the appointment of
engineers, managers, purchasing agents, and others for railways,
or in public services where their influence may always be exerted in
behalf of their own nationals, the specifications drawn up according