410 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

I am president of * * * [a chain company] and as such have visited
various chain manufacturers in Germany, France, Belgium, and England. * * *
In the chain industry I know that through a system of cartels in Germany, to
which the manufacturers of all the various classes of raw material finally
entering into the finished product, each contribute their percentage of cost, so
that a lower price, of 10 per cent and sometimes lower, is made for export
than for home consumption. For instance, the secretary of the wire-rod syndicate
 in Diisseldorf told me that their then price of rods, domestic, was $30,
but intimated that a firm offer of $28 for export would be accepted.
I am also informed that a manufacturer in any village in Germany can go
to the railroad agent and get a freight rate on his commodity, no matter what
it is, to any point in the world, and have all the information given to him so
that he can quote a delivered price to destination in the money of the country
to which the exportation would be made. :
* =» 3» J have received unsolicited a quotation from a manufacturer of
chain and its attachments and this quotation was made delivered to * * *
in cents per dozen, freight paid to destination, the duty to be paid by the
importer. I afterwards called upon the shipper in person and he lives in a
village of probably 500 population in Westphalia.
The principal thing in this line is the Metal Bank, in Germany, which controls
 patents on a metallurgical process. We own patents on a rival process,
and in applying for patents, especially before the war, met with opposition
in every conceivable form in all foreign countries in securing our patents, even
though nonconflicting, and, after patents were allowed, in the erection of
plants. (From a manufacturer of pyrites, wire rods, etc.)
The only syndicate or combination of which I have fairly certain knowledge
is that making ferromanganese in England. All of the English makers work
together. They have agents in this country who can not sell except to a user
and who have to send to England the contract signed by the user. The
price of English ferromanganese is practically never higher in the United
States than in England. Even when there was a duty of $2.50 on this product,
they absorbed both the duty and the ocean freight; now that the duty has
been removed, they only absorb the freight, and the United States Government
loses the $2.50 per ton duty. At the present time the price of English ferromanganese
 is £20 in England and $100 a ton, Atlantic ports, f. q. b. cars.
They have cut the price at times as low as $36 f. o. b, Baltimore to prevent
American competition, but I think about £8 is as low as they got the price
in England.
There is no reason why ferromanganese should not be manufactured here,
except that this English syndicate, through their agents here, cuts any price
an American makes. All the ore used in England by these people comes from
Russia, England, and Brazil, and could come here as well as to England.
(From a manufacturer of iron.)

LEATHER TANNEBS (ENGLAND).

In England the tanners have a central committee for exchange of information
 and the reporting of abuses, and you are blacklisted if you fall down in a
pontract with any single one of them. (From a manufacturer of leather.)

SOLE-LEATHER TANNERE (AUSTRIA).

Austria a few years ago formed a combination of its sole-leather tanners
and included about 90 per cent. They advanced prices with the aid of an
extremely high tariff wall—about 20 per cent—and took care of her own overproduction
 by dumping in European countries in competition with American
leather, and after the duty was taken off in this country, they started just
before the war to dump in this country. (From a manufacturer of sole
leather.)
Grazep-Kip TRADE (GERMANY).

In Germany cartels or associations have made themselves felt, as they have
heen largely responsible for the modern industrial development of that country,
where they have been used for the economic saving and public benefit rather
than for exploiting the public. Had the recent war not come on, the kid trade
would have felt their competition, as the recent tariff enactment has removed
all duty from this article. (From a manufacturer of leather.)