BEPLIES TO CARD AND SCHEDULE INQUIRIES, 409

However, in their efforts to capture trade the German Steel Syndicate has
hesides received very adequate backing of the German Government instead of
having hindrances put in its way, and this official support was seconded by
close cooperation between manufacturers on one hand and banking institutions
on the other, and by cooperation among the manufacturers themselves; by
export bounties ranging from 15 marks per gross ton on semifinished steel
products to 20 marks per ton on sheets, etc.; by substantial rebates granted
by Government-controlled railroads on all tonnage conveyed to the seaboard
for export; by keeping in close touch with the requirements of the foreign
markets through effective and expensive representation on the ground; and
by backing up the credits granted by individual manufacturers by way. of
securing initial business. (From a large manufacturer of iron and steel.)
We understand that the German steel trade in particular is divided into
various syndicates, recognized and permitted by the German Government, and
that amongst these there is one export syndicate which pays a bounty upon
German steel exported of about $3 per ton, which, in itself, is sufficient to cover
the ballasting rates paid on steel shipped from Hamburg to ports on the south
Atlantic and Gulf coasts, and to the West Indies. The vessels, as previously
stated, returned with cargoes of cotton to Germany, the freight on the
cotton being sufficient to cover the entire cost of the round trip. In this
way we have found German and Belgian steel laid down at Gulf ports several
Jollars per ton below our cost of production and freight to the same port.
(From a manufacturer of iron and steel who exports over half his product.)
Numerous instances could be cited, the most conspicuous one, as we are
Informed, being the general practice followed In Germany, especially among
the iron and steel men, when a foreign order is in prospect, of calling together
those vitally interested in producing the article itself, all those producing the
raw materials entering into the finished article, and finally transportation companies
 and shipping companies, in order that they may together agree upon a
price satisfactory among themselves, and one which will take the foreign
business.
We are informed, and—as we think—credibly so, that the Government has
a sort of commissioner who helps arrange these details. (From a large manufacturer
 of forgings.)
The Stahlwarksverband, a German® syndicate, is supposed to parallel the
United States Steel Corporation. This is not a fact. They group their prodacts,
 allot production, and also restrict production. All costs for export purpose
are reduced, rebates being given to exporters. The writer purchased their
billets * * * at 75 shillings c. I. f. New York; their domestic market was
36 shillings. (From a large producer of iron, steel, coal, and coke.)
To the best of our knowledge and belief European manufacturers in our line
have been operating under some joint arrangement or agreement for several
years. We are led to believe that prior to August 1, 1913, there was an understanding
 between them whereby the United States was apportioned to German
manufacturers and by the German manufacturers to the Bochumer Verein.
We encountered competition of the latter .concern almost entirely in this country,
 while in Canada and Mexico the competition of Krupp was strongly in
evidence. In South America, Japan, and Australia the competition of English
manufacturers predominated. An analysis of the prices with which we met in
these various countries admitted of no other conclusion than that a tacit
anderstanding as above mentioned existed between these foreign manufacturers.
In nearly all South American countries many of the railroads have been
financed and built by European syndicates, under whose control they are operated.
 The same conditions likewise obtain in China. The purchasing agencies
or management of such roads do not seek the competition of American manutacturers,
 who are accorded little or no consideration in their attempts to gain
a foothold on this trade. In several attempts we have made to secure at least
a small portion of the business in our line, we have quoted a wide range of
prices, but without avail. While foreign specifications for products in our
line of manufacture may contain no restrictions as to source of supply, all
English specification sheets contain the proviso, * Material must be of British
manufacture.” In Germany the specifications are also open as to source of
supply. yet the advertisements for tenders or bids are printed in some obscure
or exclusive publication, copies of which we have never been able to obtain,
as the number thereof is restricted or limited. Competition under these conditions
 is absolutely prohibitive to American manufacturers. (From a manufacturer
 of locomotive supplies.)