402 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
A manufacturer of metal balls said :-‘We
 have none [i. e., no information] definite enough to give, but we know
that there are strong ones [cartels] in Germary, Austria, etc, as we have
come in contact with them in business,
Many replies seem to indicate that while the respondents know
of no particular cartels or combinations in -their line, they believe
that certain competition which they have met may be due to some
such combinations. Thus, a manufacturer of electrical specialties
said:
I have no specific facts or details, but understand German manufacturers
have combines in competing lines of trade and successfully (apparently)
market their goods abroad. In our own line of trade it would appear that
they have been so combined, but I have no facts to support this—only my
own inference from conditions prevailing.

Few of those replying make the claim that they have never encountered
 or felt any competition from foreign combinations, and
the majority of these believe that, though they have never met cometition
 in their own line, it does exist in other lines. Some state,
Pane: that foreign combinations whose competition is felt are
limited to manufacturers of staple lines.
GENERAL CHARACTER OF FOREIGN COMBINATIONS.—While a great
many state that they have encountered competition from foreign combinations
 in Europe, South America, Japan, and elsewhere, a large
roportion reply very generally. Since the question asked merely
bor a “brief ” statement, the replies naturally do not give any detail
as to the character of this competition, and do not state in just what
way it has affected the individual or.concern in its export trade.
A number of the replies received, without giving particulars regarding
 individual cartels, give an idea of the general character of
the cartels, syndicates, or combinations which are being encountered
by Americans, their strength and importance, and how they operate.
A large manufacturer engaged in a considerable export trade is
quoted :

We. encounter in South America, Cuba, and nearly all the other countries,
combinations in the German trade in particular. They have made a specialty
of working together, regardless of their diversified interests, They are assisted
 by the Government, steamship lines, and banks. and it makes a very
strong combination against our trade.
A large manufacturer of steel products refers to the German competition
 as follows:

We encounter many of the combinations mentioned in export business, but
will cite only the case of the most successful, namely, Germany :
First. The export business is secured not for any particular manufacturer
or group of manufacturers but for Germany. There is no competition among
the various manufacturers, but, with the sanction or rather by the orders of
the Government, a combination is formed among the manufacturers of similar
articles. The business is secured by one of these and then divided as the conditions
 may demand.
Second. The matter of cost is not considered when making the selling price
In other countries. The capable and efficient agents of the German manufacturer
 ascertain the price necessary to secure the business and quote accordingly.
 This price may have been driven by ruinous competition each time of
bidding to figures below cost. They then grant long credits which the branches
of the German banks must carry. The Government directs investments be
made in the properties with the provision that on equal terms the business be
given Germany, knowing the terms offered will be better than offered by
other countries. It must be understood that with Germany’s efficient methods