REPLIES TO CARD AND SCHEDULE INQUIRIES. 403
these investments are not made indiscriminately, but only to worthy buyers
such as we would seek.
Third. After the business is acquired and awarded to one or more manufacturers,
 he is permitted to make 10 per cent, or some other predetermined
profit on the transaction, regardless of the selling price.

The following from a manufacturer of safes is also in line:

We can not compete with the German cartel system. (1) They have greater
afficiency in an expert sales organization; (2) arrangement of foreign credits;
(8) discount of foreign paper; (4) the best and most complete information
‘from a man on the spot) of special trade requirements. .
These cartels or combinations, especially in Germany, are stated,
in many Instances, to control the export trade. A large manufacturer
 of lime phosphate says:
The export trade of Germany is almost entirely controlled by cartels with the
sanction and aid of the Government and in consequence of this, the export trade
of Germany has increased enormously to the great advantage of that country.
We can not recall any country, other than the United States, in which export
trade is not eagerly sought for and encouraged by the Government or where its
development and progress is obstructed or impeded by law,
Their effect on competitive conditions is discussed by a number of
respondents. It is frequently maintained that these combinations
set uniform prices on various commodities or manufactures. A
manufacturer of lead pencils says:
Germany, Austria, Switzerland, and other countries maintain syndicates
whose function it is to encourage foreign trade. They set uniform prices on
various commodities or manufactures which are absolute. A deviation from
these prices on the part of a manufacturer will subject him to heavy penalties,
Again, various replies assert that through combination of interest
they are able to sell at low prices; that instead of competing with one
unother the members of the combinations apportion the business; and
that they succeed in preventing the small dealer from purchasing
other goods than their own.
A piano manufacturer:

We find that by the cartel system, the manufacturers are able to present their
goods through the combination of interests at the least possible expense in
selling, freight, finance, and in practically every conceivable direction.
We would state that it has come to our knowledge that goods are sold
through this combination arrangement at very low prices in order to get the
trade, and they are able to do this, owing to the different concerns in the combination,
 each taking a share of the proportionate loss, if there be a loss.
A company that is one of the very large makers of locomotives
speaks of the cartels as an aid to Germany’s success in exporting:
It is a well-known fact that manufacturers of competing praducts in France
and Germany have for many years operated in the foreign market through joint
agencies, cartels, or other syndicates which placed them in a position to compete
nore successfully with foreign manufacturers, not only through more efficient
representation but by preventing competition among themselves for export trade,
and through the apportionment of the foreign business available, to satisfy small
and large manufacturers engaged in foreign trade.
A very important manufacturer of electrical goods:

Foreign competitors have, In many cases, divided their export territory among
their manufacturers in order to limit the selling expenses to the respective fields
nf activity of the various manufacturers.
A student:

In the French colonies, French (and sometimes German) syndi expor
» = cates or ex t
pzents successfully oppose the purchase
. y Opp D by the small dealer of goods not handled