104 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

ADVANTAGES OF FOREIGN COMBINATIONS ENHANCED BY AID FROM
I'RANSPORTATION COMPANIES AND BANKS.—The opinion of a number of
those making replies is that in England as well as in Germany it is
not so much their syndicates and cartels in themselves that have
caused success in domestic and export trade, but that rather the success
 has been due to the general attitude of these countries in regard
to export trade. It is this, the replies state, that has made it so difficult
 for American exporters to compete either in England or Germany
 or in any country to which exvorters of these two countries
ship their products.
In this connection they lay great stress on the cooperation existing
between transportation companies, banks, and manufacturers in the
export trade of England, as well as in that of Germany. From a
large number of replies along these lines a few have been selected.
The first ones speak of the cooperation that appears between the
manufacturer and the shipper, thus:
An officer of a cement company asks:
15 there any better type for our purpose than the North Atlantic steamship
combination participated in by England, Germany, France, Sweden, etc., which
makes overmastering rates against our trans-Atlantic shipping in times of peace;
or than * * * the European shipping combination that overmasters us
In rates to South America? Availing of those overmastering rates, any agreement,
 any cartel, is open to any trade interests seeking to worst our similar
rade.

The sales manager of a coal company replies that:

Owing to advantage In securing rates, the English and German coal trade
especially have consjderable advantage over the American trade. As I understand
 it, they can safely make contracts for export and are able to arrange for
water transportation without trouble owing to the large merchant marine owned
by these countries. .
These conditions enable the coal sales agencies to establish branch agencies in
such countries as South America and elsewhere, while in this country, and
especially from the Gulf, as we find the situation, it would be practically necessary
 for the coal company to own the water transportation facilities.
Other replies speak of combinations between manufacturers and
banks, thus:

The close cooperation of over-sea bankers and exporters in foreign countries
overcomes the difficulties of export business in general. This close cooperation
is lacking in this country.
The following statement of a large exporter and importer of fish
is of interest:
I know that on this coast there is in San Francisco a combination of English
marine insurance companies who get together and do absolutely as they like
with foreign trade. The cargo on any large vessel is worth much more money
than any one insurance company will write, consequently no large cargo can
be shipped without the consent of this combination. Freight rate or no freight
rate, exchange or no exchange, prices or anything else, unless that combination
says the cargo may move it can not move, as American companies can not carry
these large cargoes alone.

SYMPATHY AND AID GIVEN FOREIGN COMBINATIONS BY THEIR GovgrnMENTS.—The
 strength of the European cartels, syndicates, and
combinations is held, in many of the schedule replies, to lie in the
strong backing and assistance given by most of the respective Governments
 to these combinations. In some of the replies the attitude
of the foreign Governments in this respect is contrasted with that of
the United States. Thus an American exporter says: