SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 233

known, there is a cooperative control of the diamond industry in
South and Southwest Africa, but this relates to raw products and is
not of competitive interest from an American standpoint, its object
being to regulate the output to conform with the world’s demand
and thus to keep prices on a profitable basis.
Steel and machinery.—Prior to the present war there was a large
trade here in German steel, particularly rails for the mining industry,
 and this trade was fostered by the German Steel Works
Union. Likewise wire products were handled by Hamburg combinations,
 the selling being done through the different local agencies
of Messrs. Arndt &amp; Cohn. German combinations and a Belgian
syndicate also supplied fencing standards in very large quantities
at very low prices. The trade in galvanized corrugated sheets is a
large one here, and English manufacturers have long had a price
combination, the center of the industry in England being at Wolverhampton.
 Selling prices and the allotment of districts were arranged
 by the ring.
Requirements in rails and rolling stock for the railways are filled
as far as possible from Great Britain and British Dominions, even
in some instances, it is said, to the extent of giving a price concession
 in addition to the 3 per cent customs preferential rate.
Nevertheless foreign rails have in some cases been bought, but the
preference is usually given to British material. There is, however,
no hard and fast rule, for many good Government orders have gone
to America, such orders being won against competition and the preferential
 customs advantage.
The only concession of the Union Government of which I have
any information is one granted to an iron and steel corporation of
Johannesburg and Vereeniging. This is the Union Steel Co. It
rolls steel products, such as bars, small shapes, etc., practically all
of which is consumed on the Rand. It is principally engaged in
rolling up the accumulated scraps of the railways. Under contract
with the Union railway department such scrap is conveyed to them
from all parts of the country at a fixed rate of £1 ($4.8665) per ton.
At least this was the original agreement. As the finished products
of these works are near the centers of consumption, this is an advantage
 for the Union Co., but its possible output is not very large.
A resident American writes me:

I know of no combination in the machinery line, and I believe that all requirements
 in this country—for the mining industry they are considerable—
are catered for by individual manufacturers without any combination.

Buying organizations.—There are a few farmers’ cooperative societies
 here (such as the Western Province Agricultural Society,
the Fruit Growers’ Association, Cooperative Dairies, etc.) which may
occasionally buy from overseas, but most of their purchases are made
through local merchants. One of my informants states that the
Government has made attempts to assist the farmers with large cooperative
 schemes which have not borne much fruit. For instance,
about six years ago the department of agriculture at Pretoria allocated
 a large sum of money for the purchase of fencing wire, which
was to be sold to farmers on special terms to enable the latter to
fence in land at less expense than would have been possible if they
bought directly from merchants. The scheme, however, proved a
failure, and is not now in operation.