REPLIES TO CARD AND SCHEDULE INQUIRIES. 431
C. ApprrioNal InrForMaTION oN Forex Trape CoNbprrioxs.

Additional information received in answer to the Commission’s
request for facts relating to competitive conditions abroad affecting
the export business to particular markets, such as investments of
foreign capital in local industries, the employment of foreign managers
 or engineers in local enterprises, concessions to foreign syndicates
 or capitalists, the activities of foreign Governments, etc., is
illustrated by the following typical replies:
Influence of foreign capital.—It is generally shown in the replies
received that many of the important houses in Mexico, Central and
South America are financed by German and French, as well as
English firms, and that naturally the management gives preference
to the manufacturers of their own country. A large manufacturer,
who exports about 10 per cent of his product, makes the following
statement:
Investment of foreign capital and employment of foreign engineers is one
of greatest means of increasing demand for goods made in the countries which
these capitalists and engineers represent. Most of locomotives on railways of
Argentina are designed and purchases controlled by consulting’ engineers in
London on account of the large amount of British capital invested in these
railways.
Relative to the investment of foreign capital and its effect in
bringing trade to the country furnishing same, the president of a
prominent firm of exporters gives this information along the same
line

As to foreign competition, at times we have lost business as the result of the
investment of foreign capital in local enterprises which had previously been
our customers. Engiish trade is in a great measure a result of the large investment
 of English capital in industrial enterprises all over the world.
Although there is more English than German capital invested in South America,
the investment of German capital is made even more a powerful factor for the
increase of German trade. Almost without exception, German capital invests
only in such enterprises as will bring substantial orders to German manufacturers.
 In the development of German export trade, there evidently has
been a very close working arrangement between the carriers, both by rail and
sea, the merchant and the banks, backed up with at least strong moral support
from the Government.
Concessions to foreign syndicates and capitalists—The vice president
 of one of the largest national banks replies that—
This question * * * covers, broadly, some of the chief obstacles that are
encountered in the promotion of American trade in South American countries.
There, in the past, the bulk of the financing of Governments, of States, of municipalities,
 of public utilities, and of promising developmental enterprises, whether
In banking, manufacturing, or the building of railroads, establishing of steamship
 lines, development of mines, etc, has been done largely by English and
German capital, in the handling of which large credits have been granted, and
along with these have been given oftentimes valuable and sometimes exclusive
roncessions.

Activities of foreign Governments.—A very barge milling concern,
 which exports about 17 per cent of its product, makes the
following statement:

The exporting millers of this country do not fear the regular competition
of millers of other countries, but do fear the activities of foreign Governments,
such as the German preferential tariff, under which, in effect, a premium is
given German millers for exporting certain high grades of flour, and, to a less
degree In France in times of peace, and such as the preferential tariff of