422 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

tion which has been built up in London and which can not be overcome except
0y similar concentration on the part of the various interests tbolved in this
country.
A large producer of steel and iron says:

The collective purchasing agencies abroad are a most vital feature of the
export combination. They serve essentially the same purpose as the purchasing
 departments of big domestic corporations, only on a more far-reaching and
comprehensive scale,
The Italian iron and steel manufacturers formed a syndicate in 1911, and
a certain Societa Ilva of Portoferraio was given the exclusive right to purchase
 raw materials for use in the Italian plants and to supply an association
composed of 32 steel and iron jobbers. This society regulates the domestic
market, basing its prices on foreign competition. All members were prohibited
 from purchasing foreign supplies direct.
The Italian Steel Syndicate was amalgamated with and absorbed by the
German Stahlverband. The result was that not only was the Italian market
virtually shut out from the rest of the world, but Germany utilized the purchasing
 power and the capacity of the Italian market, combined with her own,
to command the world’s supply of certain metals and raw materials.
Thus American copper was regularly purchased by the German Syndicate
at a price of 85 cents per hundredweight below that at which this metal was
sold to the largest domestic consumers and also for export to other countries.
The effect of such “cartels” of syndicated foreign buyers is that prices,
at which American goods may be sold in certain foreign countries, are fixed
by the combination of buyers. In other words, we sell our product to the collectively
 managed purchasing agencies of foreign nations and they fix the price
at which they will trade in these commodities.
A producer of copper, lead, and silver states that:

For many years past certain large metal dealers in Germany, France, and
England have joined with other dealers and large consumers in those countries
in manipulatiohs of the metal markets to work the prices down, and, having
succeeded, they bought large quantities from United States producers, who, in
the meantime, had accumulated stocks due to combined and agreed upon withdrawal
 from the market of large European buyers. Having bought large
quantities at low prices, the combined European dealers advanced prices to
higher levels, and in that turnover realized enormous profits without owning
the mines, smelters, refineries, or any of the great investments borne by the
United States producers. These manipulations, at times, have depressed the
markets here so far that it forced the curtailment of production, reduced wages,
and caused severe losses to the investors who own the mines. Such manipulations
 have been open, notorious, and frequent, and no cooperation of producers
could be had to offset them on account of fear of the law. :
Musical instruments—A large manufacturer and exporter of
musical instruments says:

I am not aware of any organizations of importers or jobbers in the musicalinstrument
 line in South America. I have heard from a number of sources,
however, that there are understandings between importers and European
suppliers in contravention of customs laws. Honest exporters in this country
suffer a handicap by reason of these agreements. ‘The theory of the importing
merchants seems to be that if their Government makes laws with the expectation
 that importers are going to get around them, it would be foolish on their
part not to get around them.
Naval stores—In this subsidiary industry a manufacturer of pitch
and tar products has reliable information that combinations of European
 buyers of rosin and turpentine have existed for many years.
Textiles, fabrics, etc—A. manufacturer of plushes and velvets states
that the Velvet Combine includes all English wholesale buyers and
many French, German, and other European houses. It persists, in
spite of the war, to the extent that an English firm could not buy
American goods without permission from the manager of the asso-