FEDERAL TRADE COMMISSION. REPORT COOPERATION IN AMERICAN EXPORT: TRADE (IN TWO_PARTS) PART TI. Exhibits JUNE 30, 1916 fA 510 29 2) FS WASHINGTON + ~~ GOVERNMENT PRINTING OFFICE 1916. FEDERAL TRADE COMMISSION REPORT DON COOPERATION IN AMERICAN EXPORT TRADE (IN TWO PARTS) PART II. Exhibits JUNE 30, 1916 2 alee 3 SAY - J MERA WASHINGTON GOVERNMENT PRINTING OFFICE 1916 FEDERAL TRADE COMMISSION. JOSEPH E. DAVIES, Chairman. EDWARD N. HURLEY, Vice Chairman. WILLIAM J. HARRIS. WILL H. PARRY. GEORGE RUBLEE. LroNDAs L. BRACKEN, Secretary. Jaa Sr a° l AN (J B19. ber v % Vad Kiel 5 X 53h A / d oo 2 ot! Le by ma on Errata. Page 11. Read: Marcotty, Kuhn & Co. Page 16. Read in footnote: Pt. I, p. 214. Page 29. Read at end of table: Freie Vogel & Unv. Page 44. Read: international cartel on the cement market. Page 47. Read: Bonner Bergwerks-& Hiitten- Verein. Page 97. Read in footnote: Pt. I, p. 122. Page 180. Read in footnote: Pt. I, pp. 194 to 198. Page 241, 242. Read: Societd Italo Americana pel Petrolio. Page 479. Read in footnote: (See p. 239.) Page 497. Read: (See Pt. I, pp. 194 to 198.) Read in footnote: The copy from which this translation was made bearsan imprint date of 1915. kd Page 528. Read: Deutsch-Niederlindische Telegraphengesellschaft A.-G. Coln. Page 575. Read: (See Part I, pp. 180 to 181, and 325 to 347.) . Ph CONTENTS. PART II.— EXHIBITS. Exhibit .—SPECIAL REPORTS FOR THE FEDERAL TRADE COMMISSION FROM UNITED STATES CONSULS. FOREIGN CARTELS, SYNDICATES, OR COMBINATIONS. EUROPE. Germany: Page. Special report of Consul General Julius G. Lay, Berlin, November 2-16, 1915. 3 Extent and character of cartelization in Germany. . 8 The cartels of important German industries. .... Combinations in the &oal, iron, and steel industries. . The steel industries and the Steel Works Union Co............... The Steel Works Union Stock Co., Diisseldorf (A.-G. Stahlwerksverband)..... . Name, location, and preliminary remarks. . Organization............. The general meetings..... Foreign markets. ... Products. .......... Extent of monopoly of home market. Extent of monopoly of exports. . Selling methods at home. .. Selling methods abroad. . Character of competition. . Central selling organization... Terms of sale and delivery. Dumping. ..... Relations to the home Government = Relations to other business interests at home. eee Relations to foreign Governments and to foreign business interests. .....ccciiienanna.. The results attained by combination. . No important manufacturers excluded. Export competition from outsiders.. No governmental discrimination. . Can Americans successfully compete? Coal Syndicate Co. . Name, location, and preliminary remarks. Organization... Foreign markets. Products. .......... . Prices and selling methods at home. Dealers’ unions........... The Coal Syndicate Co. and coal transportation.......... Character of competition. - Central selling organization. . Terms of sale and delivery il 11 11 12 12 12 «al IV CONTENTS. Germany—Continued. Special report of Consul General Julius G. Lay, Berlin—Continued. Combinations in the coal, iron, and steel industries—Continued. The Coal Syndicate Co.—Continued. Dumping. ....... Relations to the German ‘Governmen* Relations to other business interests in Germany. .. The results attained by combination. Concerns outside the syndicate . The Braunkohlensyndikat..... .. Cree The Upper Silesian Coal Convention (Die Oberschlesische Kohlenkonvention). .. Export competition from outsiders. . Governmental discriminations... ..... Can Americans successfully compete?... The Transition Syndicate The combines in pig iron.... Name, location, and preliminary remarks. Organization...... Products. ........ Extent of monopoly of the home market. . . Extent of monopoly of exports. . Selling methods at home. . Selling methods abroad. . Character of competition. . Central selling organization. Terms of sale and delivery Dumping. ...... Special relations to the home Government. . Relations to other business interests at home. The results attained by combination. Outsiders. . . The potash industry... i. Name and location of syndicate. . Organization.... Foreign markets... Products. ........... Extent of monopoly...... Selling methods at home. . . Selling methods abroad. . . Terms of sale and delivery. . Dumping. . . Special relations... The results attained by combination. . No exclusion of producers... The cartels of the German Portland cement industry... Names, location, and preliminary remarks. . Organization........ Agreements between groups. . Foreign markets.... Products. ...... Extent of monopoly of home market....... Extent of monopoly of exports. Page. 24 25 26 26 26 28 28 29 29 29 29 30 30 31 32 32 32 32 32 32 32 32 32 32 32 32 32 32 33 33 35 36 37 37 37 37 37 37 37 37 38 38 38 1 42 42 42 12 CONTENTS. Germany—Continued. Special report of Consul General Julius G. Lay, Berlin—Continued. The cartels of the German portland cement industry—Continued. Page. Character of competition and the results attained by combination... .... .--Terms of sale and delivery.. Dumping. . ....----Selling organizations. . Relations to other business interests at home.. Relation to outsiders.. Can Americans successfully compete?. The electrical industry... Two principal companies. . Organization. . ...... Foreign markets........ Products. ......... Extent of monopoly of home market... Extent of monopoly of exports... Selling methods at home. . Selling methods abroad.. Character of competition. . Central selling organization. Terms of sale and delivery. Dumping. ...... Special relations. ..... ’ Relations to other business interests at home. Relations to foreign Governments. - Relations to foreign business interests. The results attained by concentration. Outsiders. . . ....--. Export competition from outsiders No governmental discrimination... ... Can Americans successfully compete? Combinations in the wall-paper industry...... Names, location, end preliminary remarks. . Organization....... Foreign markets..... Products. -..... Extent of monopoly of home market. Selling methods at home and terms of sale and deliverv. Selling methods abroad and dumping. . Character of competition... Central selling organization Special relations. ........... The results attained by combination.. Manufacturers excluded The outsiders. ....... .. Export competition from outsiders... Can Americans successfully compete?.. The print-paper combine. .. Cartels of the textile industry.. . Name, location, and preliminary remarks. .... Organization.............-Foreign markets. 43 45 45 45 46 46 46 48 18 49 30 50 50 51 51 51 52 52 52 52 52 53 53 53 54 54 Su 5¢ 55 55 55 55 56 56 57 57 57 57 57 57 57 57 58 58 58 59 £0 VI CONTENTS. Germany—Continued. Special report of Consul General Julius G. Lay, Berlin—Continued. Cartels of the textile industry—Continued. Products..... Extent of monopoly of home market and of exports. . Selling methods at home....... Selling methods abroad... Character of competition. .... Central selling organization. .. Terms of sale and delivery. Dumping....... Special relations. .. The results attained by combination and the effect on outsiders. Can Americans successfully compete? The alcohol cartel... Name, location, and preliminary remarks. Organization...... ...... Foreign markets. ..... Products........... Extent of monopoly of home market and of exports. .. Selling methods at home. . Selling methods abroad... Character of competition. . Terms of sale and delivery. Dumping...... Special relations........ _._. The results attained by combination... Attitude toward outsiders.... Can Americans successfully compete?......... Concentration movements in other German industries... The plate-glass monopoly. The Association of Window Glass Producers... The concentration of the electrical glass industry... The Bottle Syndicate..... ~The aniline color combinations The Association of Linoleum Manufacturer The Soda Trust. .... The aluminum and zine organizations. The German glue combinations. . The dynamite agreement... . Monopolistic tendencies in the German book trade... . The rubber combination... German Gold and Silver Parting Works. ... .. Concentration in the incandescent light industry... Artificial Silk Trust. .... The stoneware combination... .. The tinsuccessful German rice monopoly... ....... .... - The concentration movement in the storage-battery industry... The Jute Syndicate. . The proposed nitrate monopoly... i orm en mena List of German cartels showing signs of activity during 1913.... The German war companies. Page. 60 80 80 81 fl 81 52 32 62 62 32 33 33 ao 3& 5 5 hy 85 8 86 86 66 66 67 7 g2 Ia 68 70 70 70 70 1 11 71 72 72 73 73 3 73 73 74 74 75 CONTENTS. Germany—Continued. Special report of Consul General Julius G. Lay, Berlin—Continued. Combinations of foreign manufacturers......cceeeeeeecann- Cee Operations of foreign combinations limited by international agreements. ....-The steel corporations of England and America. .......... The International Plate Glass Syndicatein Brussels. ......--The international shipping agreements... The Nobel Dynamite Trust...... — The German control of goods imported from the colonies. ... Operations of American trusts and cartels. arm mA 4 No other prominent foreign combinations operating in Germany. . International cartels, syndicates, and combinations.... ........ . General remarks on the formation of international combinations. . Limitations of international cartels. ... Prominent international cartels... North Atlantic Shipping Pool..... The international steel combinations. . _The International Zinc Syndicate... The International Aluminum Syndicate. .. Efforts to form an international combination in the textile industry......... The European Bottle Union. List of international trusts........... Combinations of buyers of American goods...... . Competitive conditions in Germany affecting American goods. ....... Activities of the German Government in fostering the Gerrnan trade. . Special report of Consul Harry G. Seltzer, Breslau, Germany, February 24, 1916. _... Increased prices of Upper Silesian pig iron, rolled iron, and rivets... . Special report of Vice Consul in Charge Frederick J. Schussel, Munich, Kingdom of Bavaria, November 4, 191% England: Special report of Consul General Robert P. Skinner, London, England, December 20, 1915......... The trust movement......... Existing combinations. . International trusts... Conditions following the war.....x. Notes from Commercial Attaché A. H. Baldwin. Informal combination in South American meat trade.............. Special report of Consult Howard D. Van Sant. Dumfermline, Scotland, February 21, 1916....ceunns oe oan Cooperative societies in Scotland. France: Special report of Consul General Alexander M. Thackara, Paris. November 17, 1916. .uueun.... Legislation for the regulation of combinations. . Description of principal combinations... Comptoir Métallurgique de Longwy......... Organization for the comptoir’s foreien trade Comptoir des Poutrelles............ Comptoir d’exportation des produits métallurgiques.............. Comptoir des Essieuy VII Page. 75 75 75 75 76 76 76 76 78 78 78 79 79 79 81 82 82 82 83 83 85. 87 88 89 89 89 90 90 91 91 92 92 92 94 94 94 95 96 97 99 99 101 102 VIII CONTENTS. France—Continued. Special report of Consul General Alexander M. Thackara, Paris, November 17, 1915—Continued. Description of principal combinations—Continued. Comptoir des Ressorts de Carrosserie. . .. Union des Teinturiers et Appréteurs. Syndicat des Pétroles Francais. . .. Comptoir Général de Vente pour la France et les Colonies—Manufactures de Glaces.......... Société Générale des Papeteries du Limousin .. Syndicat de la Meunerie Francaise... .... Société des Nouvelles Galeries. . . . . . Principal obstacles to American trade in France. ........ ... .. Special report of Consul General A. Gaulin, Marseille district, France, November 15, 1915.. Sulphur refiners. . Roof and floor tile and brick factories... Candle industry. . . Rice mills. ......... Foreign combinations. ........ . . ERRATA Special report of Consul Kenneth Stuart Patton, La Rochelle district, France, November 5-6, 1915... x oo wey 4 5 3 PERE The Association Centrale des Laiteries Coopératives des Charentes et du Poitou (Central Association of the Cooperative Creameries of Charentes and Poitou). . ...... Société Salinidre de 1’Ouest (Western Salt Society)...... . ...... Special report of Vice Consul John J. Ernster, Lyon district, France, October 28, 1915 Combination of velvet manufacturers of Lyon, France... ....... Special report of Vice Consul A. Hutt. Nantes district, France, November 10, 1915. . Netherlands: Special report of Consul General S. Listoe, Rotterdam, Netherlands, November 1, 1915._ . Spain: Special report of Consul General Carl Bailey Hurst, Barcelona, Spain, October 24, 1915... . _. eens Fostering of syndicates by the Government. . . . The Association of Bankers of Barcelona. . . Sugar combination. . Alcohol combination. . . Paper combination. . Glass combination. ......... Sheet-iron and tin-plate syndicate........ . Syndicate of bleaching, dyeing, and finishing works. . . Other syndicates................ _........ Fostering of foreign trade by Spanish Government. Finland: Special report of American Vice Consul in Charge Felix Cole, Petrograd, Russia, May 16, 1916... .... The Finnish Window Glass Office. The Finland Metal Industry Office. . . The Finnish Pulp Mill Union. . The Finnish Match Union Co. . The Finnish Paper Union. .... The Finnish Sawmill Selling Union. . Buying combinations. Page. 103 103 104 106 105 106 106 107 107 108 109 109 109 110 110 110 113 115 115 117 118 119 119 120 121 122 122 123 123 124 124 125 125 125 126 126 127 27 128 129 CONTENTS. IX Portugal: . Page. Special report of Consul General W. L. Lowrie, Lisbon, Portugal, November 9, 1915... . 128 Greece: Special report of Consul General Alexander W. Weddell, Athens, Greece, November 27,1915... ....-.. LL The Privileged Company” (currant combination). .... -. La Société Hellénique des Vins & Spiritueux (The Greek Wine & Spirits Go.) «o-oo... Wine and Alcohol Distillers’ Co... Standard Oil Co........... No international cartels or buying combinations. . American goods at a disadvantage.......... Little governmental aid for Grecian products. 130 130 131 131 133 133 133 133 Turkey: Special report of Consul General Gabriel Bie Ravndal, Constantinople, Turkey, December 2, 1915. ........---. The Oriental Carpet Manufacturers (Ltd.).... Other combinations........ Turkish trade of the nations.... Great Britain... France.... Ttaly........ Belgium...... Austria... Germany.... International combinations. . America. . 133 134 134 135 135 135 136 136 136 137 140 140 NORTH AMERICA. Canada: Special report of Consul General John G. Foster, Ottawa, Canada, October 12, 1915.. The merger movement... : Amalgamated Asbestos Corporation ( Litd.), Montreal........... Amalgamated Land & Mortgage Co. of Winnipeg (Ltd.)........... American Sales Book Co.....o.... Ames-Holden, McCready (Litd.), Montreal.. Asbestos Corporation of Canada (Ltd.)...--.... Asepto Soap (Ltd.), St. John, New Brunswick. Belding Paul, Corticelli (Ltd.), Montreal....... Black Lake Consolidated Asbestos Co., Montreal.............-Black Lake Asbestos & Chrome Co. (Ltd.). British Columbia Breweries (Ltd.)-..... Canada Bolt & Nut Co., Toronto, Ontario. Canada Bread Co. (Ltd.)...-.... Canada Carbide Co. (Ltd.), Montreal Canada Cement Co. (Ltd.), Montreal. Canada Consolidated Clay Co. (Litd.) Canada Foundries & Forgings (Ltd.} Canada Machinery Corporation (Ltd.), Galt. Ontatio.......--Canada Machinery Corporation (Ltd Canada Steamship Lines (Ltd.)...----. Canadian Car & Foundry Co., Montreal..... i emmy Canadian Cereal & Milling Co.. Lumsden Building, Toronto. ...:. 141 141 142 143 143 143 143 143 143 144 144 144 144 144 145 145 145 145 146 146 146 146 147 CONTENTS. Canada—Continued. . Special report of Consul General John G. Foster, Ottawa, Canada, October 12, 1915—Continued. The merger movement—Continued. Canadian Cereal & Flour Mills itd.) cnwne=Canadian Coal & Coke Co., Montreal...... Canadian Coal & Coke Co. (Ltd.) (holding company)............. Canadian Consolidated Felt Co. (Ltd.), Montreal... .. Canadian Consolidated Rubber Co. (Litd.), Montreal. Canadian Converters Co. (Ltd.), Montreal. Canadian Explosives (Ltd.).... Canadian Fairbanks Morse Co. (Ltd.), Montreal. Canadian Jewelers (Ltd.), Montreal. ... Canadian North Pacific Fisheries (Ltd.), Victoria. British Columbiz Canadian Pacific Lumber Co. (Ltd.), Vancouver. .. Canadian Rogers Co... Canadian Steel Foundries (Iitd.), Montreal Canadian Soaps (ILitd.).. . Canadian Western Natural Gas, Light, Heat & Power Co., Calgary Carriage Factories (Ltd.), Montreal. .. Cassidy’s (Ltd.), Montreal. . City Dairy Co. (Ltd.), Toronto. Conger Lehigh Coal Co.—Sterling Coal Co., Toronto. .......... Consolidated Ice Co., Montreal. Dominion Box & Package Co. (Ltd.), Montreal Dominion Bridge Co.............. Dominion Explosives (Ltd.), Montreal. Dominion Glass Co. (Ltd.)....... Dominion Manufacturers (Itd.).... . Dominion Canners (Litd.), Hamilton, Ontario...... Dominion Steel Corporation (Ltd.), Montreal (holding company). Dominion Steel Foundry Co. (Ltd.). Dominion Textile Co. (Ltd.).. veer International Milling Co. of Canada, Moosejaw, Saskatchewan. . Macdonald, A., Co. (Ltd.)..... Maple Leaf Milling Co., Toronto. .. ... Maritime Fish Corporation, Montreal. . . Matthews, Laing (Ltd.), Toronto. ...... Metal Sheeting & Siding Co... Mooney Biscuit & Candy Co. Ttd)... .. .. Montreal Light, Heat & Power Co. Ltd.) ooo... Montreal Public Service Corporation (Inc.). . Montreal Abattoirs (Ltd.). . Murray-Kay (Ltd.), Toronto..... National Breweries (Ltd.), Montreal.. Northern Ontario Light & Power Co. (Ltd.). Nova Scotia Clay Works (Ltd.)....... Ontario Steel Products Co. (Ltd.)........ Ottawa & St. Lawrence Electric Railway Co. Provincial Paper Mills. . Quebec Railway Light, Heat & Power Co, (Ltd.). Renfrew Flour Mills (Ltd.). .. PR Richelieu & Ontario Navigation Co. (Sec Canada Steamship Lines (Ltd.)). Page. 147 147 147 147 148 148 148 148 148 148 149 149 149 149 149 149 150 150 150 150 150 151 151 151 151 151 152 153 153 153 153 154 154 154 154 154 155 155 155 1565 155 156 156 156 156 156 157 157 157 CONTENTS. Canada—Continued. . Special report of Consul General John G. Foster, Ottawa, Canada, October 12, 1915—Continued. The merger movement—Continued. Riordon Pulp & Paper Co. (Ltd.), Montreal... Robin, Jones & Whitman (Ltd.), Halifax.. Sherbrooke Railway & Power Co., Montreal. . Sherwin Williams Co. of Canada (Ltd.), Montreal... Siemon Co. (Ltd.), Toronto... Smart-Woods (Ltd.). ..... Spanish River Pulp & Paper Co. (Ltd.), (1912). Spanish River Pulp & Paper Co. (1813). . ..oocooooeniiiiien te Standard Chemical, Iron & Lumber Co. of Canada (Ltd.), Toronto. Steel Co. of Canada (Ltd.), Hamilton. . Steel & Radiation (Ltd.), Toronto. . Tuckett Tobacco Co. (Ltd.) Union Natural Gas Co. of Canada (Ltd.).. Other amalgemations. . Government attitude in regard to trade combinations. Independent establishments. .. Foreign and international combinations Combinations of buyers or consumers. . Competitive conditions............ Activities of Government in fostering foreign trade. . oo. Special report of Consul General Robert E. Mansfield, Vancouver, British Columbia, transmitted Dec. 15, 1915.. . The Vancouver Board of Trade. . .. The British Columbia Lumber & Shingle Manufacturers (Ltd.). ... --The British Columbia Salmon Canners’ Association. 21 Page. 157 157 158 158 158 158 158 159 159 159 159 159 160 160 161 163 163 164 164 165 166 166 166 168 Honduras: Special report of Consul E. M. Lawton, Tegucigalpa, Honduras, Oct. 27, Salvador: Special report of Vice Consul Lynn W. Franklin, San Salvador, Salvador, Nov. 20, 1915 (approved by Consul General Henry F. Tennant) wn Haiti: Special report of Consul John B. Terres, Port au Prince, Haiti, Nov. 30, 1915 1915 ... 170 171 173 SOUTH AMERICA. Brazil: Special report of Consul George H. Pickerell, Par, Brazil, December 12, 1915. . ‘un Argentina: Special report bi Vice Consul in Charge John 8. Calvert, Buenos Aires; Argentina, December 8, 1915. . . The meat industry... .... Foreign capital invested in Argentina... Covernment attitude toward the industries. Chile: Special report of Consul General L. J. Keena, Valparaiso, Chile, December 2. 1915...... . Ecuador: Special report of Consul General Frederic W. Goding, Guayaquil, Ecuador, October b. 1915... 176 177 178 179 180 180 183 X11 CONTENTS. Peru: Special report of Consul General William H. Handley, Callao-Lima, Peru, January 24, 1916.......... General business conditions in Peru. Operations of the Peruvian Corporation (Ltd.). Venezuela: ~ Special report of Consul Homer Brett, La Guaira, Venezuela, November 9,1915...... Sugar syndicate. . _ Foreign combinations. ...._. British and Dutch Guiana: Special report of Consul Georze E. Chamberlain, Georgetown, British Guiana, October 30. 1915... British Guiana. . . . Dutch Guiana. Page. 183 183 184 185 185 186 186 186 187 ASIA. Japan: Special report of Vice Consul Harold C. Huggins, Yofohama, J apan, November 25, 1915. . The guild system.. The Tea Guild. . ; el Government regulations under which tea associations are organized..... Agreements of the Central Tea Association. . een Agreements of the Shidzuoka-Ken Joint Tea Association. ..... Other conditions. . . Chosen (Korea): | Special report ¢f Consul General Ransford S. Miller, Seoul, Chosen (Korea) y November 9, 1915... Weights and measures. . Ginseng monopoly. .. Salt manufacture. . Timber undertaking........ Foreign combinations. . ON, ain ene Tobacco........... The South Manchuria Railway Co. . . Government attitude toward industry. .. China: Special report rendered by William B. Webster and approved by the American minister, Paul S. Reinsch, Peking, China, January 15, 1916... Organization of domestic trade of China. . Foreign combinations in China. . International combinations. . Foreign investments in China.... . Governmental development of Chinese export trade... The British Engineers’ Association. . The scope, objects, and constitution. The association’s work in China. The objects. ...ccveeaean oo... The qualifications for membership......... The immediate advantages of membership. . 187 188 189 189 191 195 199 199 200 200 200 200 201 201 202 202 203 204 204 205 206 207 207 208 212 212 213 214 214 CONTENTS. XIII China—Continued. Special report of Consul C. E. Gauss, in charge of consulate general at Shanghai, China, December 1, 1915..... Combinations, syndicates, etc., native to China.. Foreign combinations exporting into China... International syndicates, etc.... Combinations of buyers of American goods... Competitive conditions... . Government attitude. China, Manchuria: Special report of Consul General P. S. Heintzleman, ‘Mukden, China, October 12, 1915..... French Indo-China: Special report of Consul Lawrence P. Briggs, Saigon, French Indo-China, November 16, 1918 229 India: Special report of Consul General James A. Smith, Calcutta, India, December 1, 1915... 230 Ceylon: Special report of Consul Walter A. Leonard. Colombo, Ceylon, November 1, 1918.00 000 No important combinations in Ceylon.. Ceylon products organizations...... Ceylon Chamber of Commerce.... Planters’ Association of Ceylon....... Low Country Products Association.... Combinations of manufacturers exporting to Ceylon... British domination of Ceylon import trade. No combinations of American goods buyers Other competitive conditions in Ceylon. Page. 231 231 231 231 231 231 232 232 232 239 AFRICA South Africa: Special report of Consul General George E. Murphy, Cape Town, South Africa, December 3, 1915....... Steel and machinery... Buying organizations..... Influence of foreign investments and management... . Government aid to industries. . - Wool, hides, and skins.. Sugar......eee--Supplemental report from the consul at Durban.. Se Special report of Consul E. A. Wakefield, Port Elizabeth, South Africa, November 9, 1915... East London merchants’ combine. Shipping combine. Egypt: Special report of Consul Arthur Garrels. Alexandria, Egypt. November 13, 1915.. Algeria: Special report of Consul Dean B. Mason. Algiers. Algeria. November 9.1915. No native combinations of manufacturers. - - The French influence... Combinations foreign to Algiers. ..... The Kali Syndikat (Potash) of German» 232 233 233 234 234 234 234 995 236 236 237 Page. 237 238 238 238 239 229 XIV CONTENTS. Algeria—Continued. Special report of Consul Dean B. Mason, Algiers, Algeria, November 9, 1915—Continued. Other conditions........ International Harvester Corporation Society Italo Americana pel Petrolio Kongo: Special report of Vice Consul in Charge Harry A. McBride, Boma, Kongo, November 13, 1915... _. . .. Peculiarities of import and export trade hinder the formation of combinations... Financial groups... Manner of operation of the financial groups... European addresses, legislation, etc. . AUSTRALIA. Special report of Consul General J. I. Brittain, Sydney, Australia, November 22, 1915............ “Understanding” in coal and coke trade. The coastal steamship situation. The sugar industry....... Foreign buying methods..... The question of competition. Government enterprises. .... ....... Provisions of the constitution of the Commonwealth Exhibit IL.—_EXCERPTS FROM PUBLIC HEARINGS HELD BY THE COMMISSION. Foreign combinations competing with Americans: Organization and operation. ._....... Effect 8n American export trade... foreign buying combinations: Organization, methods employed, etc... Effect on American export trade. . .. st gy EeREE American export cooperative agencies and combinations already existing or proposed... .. a Advantages of American export combinations: Competing lines... Noncompeting lines..... i Disadvantages of American export combinations: Competing lines..... mi $4 Effect that American export combinations would have on competition in the domestic market....._. ‘ha Essential factors in the export trade: Effects of tariff. . Transportation ......_ Banking and credits.............. Financing credit through banks Credit information........ ce eee [Influence of investments of nationals in foreign countries on buying... Influence of nationals in foreign countries on buying. . . Advantages in industrial efficiency .. _ Page. 240 240 241 2492 243 243 244 245 245 246 246 247 247 248 248 249 253 258 259 261 262 270 92809 293 300 304 307 313 313 315 316 317 218 OONTENTS. Essential factors in the export trade—Continued. Selling methods...... Samples and exhibits. . Salesman...... . Method of quoting prices.. Export agents.... Commission houses. . Quality and price of goods. Character of goods. ........ Unfair methods of competition.... Miscellaneous. XV Page. 319 319 319 320 320 321 321 322 323 3925 Exhibit IIL.—SCHEDULES—FORMS. Inquiries for manufacturers and producers or selling companies maintained by them .... . cee Inquiries for export commission houses, manufacturers’ export agents, export merchants, etc ........... Inquiries for domestic merchants, importers, etc.. —— Inquiries for publicists, economists, lawyers. bankers. engineers, contractors, ete . Exhibit IV.—REPLIES TO CARD AND SCHEDULE INQUIRIES. I. Tabulation of replies: Replies to postal-card inquiries. ... Replies to schedule inquiries...... ........ am 8 kk 88 Sem Opinion of business men as to legality of export combinations. .... Existing joint selling agencies and joint advertising campaigns. . .. Advantage or disadvantage of export combination or’ cooperative organization ............ ares Membership and effect of export combinations or cooperative organizations .. Additional suggestions for developing foreign trade... cea Reasons why manufacturers do not engage in foreign trade........ Foreign combinations of buyers and sellers and other competitive conditions in foreign trade.......... Replies grouped according to size of concerns. .. II. Summary of replies to schedules and letters, with excerpts.............. Advantages and disadvantages of cooperation in export business...... As viewed by manufacturers in their own business. . . . .. Combination not advantageous. . Combination advantageous. . “es As viewed by exporters. domestic merchants, professional men, etc. Export combinations compared with individual manufacturers or exporters. . . .. General efficiency of combination over competition. . Advantages in improved mechanism of foreign trade. . Advantages in development of new foreign trade. . Specific advantages over commission houses and export agents... Qualified replies . . - Disadvantages .. .. ERY Lack of individual self-interest and direction...... Danger of abuse. ...... General economic objections. . 331 333 334 335 339 341 341 342 343 344 346 246 346 347 349 349 349 350 351 353 353 354 354 355 356 357 357 357 357 358 358 27941 ®—pp 2—16— Xvi II. Summary of replies—Continued. Advantages and disadvantages of cooperation—Continued. As viewed by exporters, etc.—Continued. Export combinations as an aid in meeting foreign competition. . A. Advantages..................... ia Greater economy and efficiency in mechanism of producing and exporting ............ .............. Superior ability to meet the methods of foreign competitors, combined or individual ........._...... Superior ability to tempt foreign buyers... ........ Qualified advantages... B. Disadvantages. ....... General inefficacy to meet the situation.......... Evil effects on home market . . . wes 5 ue Export combinations as an aid in dealing with combinations of foreign buyers. .. A. Advantages .... .. Better ability to cope with aggression of foreign buyers The ability to tempt the foreign buyer by doing more forhim.._...... B. Disadvantages. ... Inefficacy to meet the situation... Lack of necessity for such organization .. Direct evil effects... - Opinions as to whether combinations solely for export business are for or against the public interest... A. General summary.... B. Export combinations are in the public interest. . Reduction in expenses... Efficiency.......... Export business increased ............. } Participation of small concerns facilitated. .... Securing market and credit information.. Ability to meet foreign combinations... . La Wd Elimination of competition between American concerns... Greater employment for capital and labor.. Resultant stability of demand.. Effect on prices.... Better selling methods...... Standardization of products. ... Prestige of combinations..... Effect on ocean transportation. .. Example of other nations... Establishing of branch banks.....o...... Export combinations are not in the public interest........... Foreign trade not an advantage but a danger............... Effect of export combinations on domestic market....... Effect on prices... Danger of international combinations... ..._ . Foreign trade should not be treated differently from domestic trade........... Disadvantage to small manufacturers. D. Replies expressing doubt... Page. 359 359 359 3€0 362 3C3 363 363 263 364 364 264 366 366 366 367 367 367 367 368 368 369 369 370 371 371 372 373 373 374 375 375 375 876 376 376 377 377 377 378 278 378 378 270. CONTENTS. II. Summary of replies—Continued. Limitation of membership in export combinations... - A. Advisability of a combination being permitted to control its membership at will.......... . Typical replies in favor of membership open to all........... Open membership subject to rules for the good ofall . ... Liberty of action essential.......... - pu Open to all limited by size of organization and reputation of members......... cece ws Open to all limited by reputation of member, but not by gize of organization.............. . J, Open to all at discretion of Federal Trade Commission. ... Reasonable regulations should govern.. - Open membership would control the ambitions of the few. Business honesty necessary to membership.... Business momentum would be gained. .. . Typical replies favoring exclusion of members at pleasure. ... Avoid legal restrictions... .-..- .. J. Should not be hampered by unbusinesslike legislation. . . Economy in shipping. «..eceveecaeiicemarinanniennn.. Voluntary grouping is logical and natural, and smaller concerns have to be considered.. Diversity of business principles. . so Impractical from a business and ethical standpoint to admit all....... i SRB Right to organize and exclude should be determined by mutuality of interests.......... wr Those abusing foreign trade should be excluded........... B. Should combinations have the right to exclude concerns controlled by foreign interests. . Cerne Typical replies favoring the exclusion of foreign-controlied interests...... i ceeennaaen Typical replies favoring the admission of foreign-controlled in-LOEOHB. as svi rvsvenevrnsnmmyaren Ce eee C. Should membership in combinations include competing as well as noncompeting products, or be restricted to noncompeting only.... rte. Typical replies in favor of both competing and noncompeting products. ....... Ceeeesie a eeemmeanan Typical replies in favor of limiting membership to noncom-~ peting products. 3 wiwm———— Reasons why manufacturers do not engage in foreign trade............ Inability of small concerns to go into foreign trade. Combination needed. . ae Low costs and prices of foreign competitors an important difficulty. . Credits....... Ocean transportation... .. Deterrent effect of United States laws. Tariffs in foreign countries. . Export commission houses blamed .. American competition for foreign trade. . Other difficulties.........- eeeieenanan Foreign combinations competing with American export trade.......... General character of foreign combinations xvi Page. 879 380 380 380 380 380 381 381 381 381 381 381 381 382 382 382 382 382 382 383 383 384 884 3285 388 388 391 392 393 394 396 397 398 399 399 399 400 400 401 409 XVIa II. Summary of replies—Continued. Foreign combinations competing with American export trade—Contd. Advantages of foreign combinations enhanced by aid from transportation companies and banks. .. #5 FEE Bympathy and aid given foreign combinations by their Governments. Combinations in particular industries. . Bacon (Denmark)........ Butter (Denmark and England).. Carbon products (Germany)..... ee Cement (England, Germany, France, and Belgium). ......... Chemicals and dyestuffs (Germany)...........ooo.o. ......... Chinaware and embroidery (France and Switzerland). ........... Coal (Germany and England).. Br HA we = Electrical machinery and apparatus (Germany, principally)...... Fertilizers (Europe)...... Flour (Germany and France) .. Hardware—pliers and nippers (Germany)... . Iron and steel (Germany, principally). . Leather tanners (England)... Sole-leather tanners (Austria). Glazed-kid trade (Germany)..... ..... Metals other than iron and steel (Europe). . Musical instruments. . Qils, mineral........ Optical goods (Germany and England). . Paper._..... Pottery (England).. Silk ribbons (Germany) Spool cotton (Scotland).......... eee Tobacco (Great Britain, France, Italy, Austria. Spain)......... Toys (Germany). .. Velvet (Germany, France, Austria).... Wire cloth (Germany).. — Spruce, hemlock, and soft woods (Austria, Roumania, and Bosnia). Lumber (Germany, Belgium. and Canada). Chairs (Austria). . . Bedsteads (England)... .. Woven wall coverings (Scotland)... Effects on American exports of combinations of buyers abroad. ...... Buving combinations in particular industries. Chemicals, fertilizers, ete Conl... caus Cotton........ . _... Cottonseed products... Foodstuffs. . . Leathers, manufactures of. ... .. Lumber and manufactures of wood. Machinery.......... Meat products. -.. Metals. .......... Musical instruments... ...___ Naval stores..... .......... Textiles, fabrics. etc. Page. 404 404 406 106 406 107 107 407 407 408 408 108 408 408 408 410 410 410 411 411 411 411 412 412 412 413 418 413 413 413 418 414 414 414 414 415 416 416 417 417 417 417 418 418 419 419 419 422 492 199 CONTENTS. II. Summary of replies—Continued. Further statements concerning competitive conditions and additional suggestions for developing foreign trade. . Need of banking facilities abroad . Long credits necessary........ Becurities could be handled to better advantage... ........ Comparison of credit terms between Europe and America. . .. How branch banks should operate. ... Patriotic cooperation of German bankers. . Suggestions in regard to our banking laws. B. Conditions and needs of American shipping. . ih Suggested methods for developing an American merchant marine........ A shipping combination........ American ship registry important............. gu oe we Operations of the shipping conferences and pools............ Need of facilities for securing reliable information.......... Bonded warehouses and the German system.........ccenunn. Additional information on foreign trade conditions. .......... Influence of foreign capital.. Concessions to foreign syndicates and capitalists. . Activities of foreign Governments. Government cooperation.... -... Pp. Customs of the country in which sales are to be made......... Necessary to cater to the desires of foreign customers......... Packing of goods. . Miscellaneous... Probable effect of export combinations on domestic trade.... ..... .. A. Belief that export cooperation would result in restraint of domestic trade............. Cee ae B. Belief that export cooperation would not result in restraint of domestic trade... ....... ...... Export and domestic trade unrelated..... Domestic market more important... ....-ccc. +. evecennn Competition from outside concerns would prevens.......... Competition from new concerns would prevent.............. Effect on prices would be natural and not artificial. ......... Public sentiment and a desire to comply with the law would prevent..... No greater danger than from present orcanizations.......... Intimate relationships established would not tend to restrain domestic trade...... cree C. Suggestions for preventing export combinations from restraining trade in the domestic market. _. Enforcement of existing laws. Tariff adjustment....... Strict limitation by law on activities of export combinations. . Limit by law to export. Prohibit export bounties. .. Preference to be given domestic market... Limit size of organizations... Penalize violators. ....... Federal incorporation. XIX Page, 423 423 423 124 426 425 426 126 427 127 429 129 430 430 130 431 131 431 131 432 132 433 433 433 434 435 436 437 437 438 438 439 440 440 440 442 442 143 43 443 443 444 444 444 445 XX IT. Summary of replies—Continued. Probable effect of export combinations on domestic trade—Continued. C. Suggestions for preventing export combinations from restraining trade in the domestic market—Continued. Administrative Federal supervision or regulation........... General control... Publicity.......... Federal representation in export organizations............ Prices, output, and profits to be regulated. . CONTENTS, Page. 445 445 447 448 449 Exhibit V.—EXAMPLES OF PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. Swiss chocolate..... .. Conventional agreement of Swiss chocolate manufacturers. . German ball-bearing convention........._ Index to the provisions of the convention. German porcelain manufacturers. . oo Terms of sale of the Association of German Porcelain Factories for the Development of the Porcelain Industry. Limited. . Conditions..... . Emballage and packing expenses ... Rebut (Bruch)... Selection (Wahl)... German Potash Syndicate—Agency contract and sales conditions... ...... Agreement. . 5 General conditions Special conditions.. Union of fuse manufacturers of Germany and Belgium. . Selling prices..... Selling conditions........ Metallic Capsule Manufacturers’ Association. . Agreement (A)........... Rules and regulations... Committee ....... _ Offices of the treasurer... Functions of the manager... ... . Meetings of the members of the association. . .. Agreement (B)... [odine combination.......-. Constitution of the iodine combination. . Objects of the association. ........ . Obligations and rights of members of the association... First class—Old producers... - Second class—Recent producers . Third class—New producers. .... The administration of the association. The board of directors. . .. Powers and duties of the president of the board of directors. ......... Meetings of members . . Temporary article. . . Contract of association. . 453 453 458 458 475 475 476 477 477 477 479 479 480 481 483 483 483 484 484 492 492 493 494 494 495 497 497 497 498 498 498 499 500 501 502 502 502 503 CONTENTS. Combination of cacao producers of Ecuador. . Constitution of the Association of Planters of Ecuador Objects of the association. . Funds of the association. . Government of the association.... ] Administration and representation of the association.. The treasurer... . Distribution of the funds and the dissolution of the association. ... .. Contract of the German Potash Syndicate with American buyers. .-.. General . . . Term ...... Grades.... Deliveries. . Quantities . - Prices.... Protection . ....... Weights and analyses. ... Payments... Freight ..... Insurance. ... Orders..... Enhancement. ... Interruption of navigation. Strikes. .... United States taxes or duties. . .. Discharge of goods .. Protection . ....... Scale of discounts.... Cuba and Porto Rico shipments. . California requirements . European shipments . Purchases for 1911. . Outstanding contracts. . CGraranties. XX1 Page. 504 504 504 505 506 507 508 508 509 510 51g 510 510 510 510 511 b11 511 511 311 511 512 512 512 813 513 513 513 514 514 b14 p14 514 b1H Exhibit V.—MISCELLANEOUS DATA CONCERNING FOREIGN COR-PORATIONS AND COMBINATIONS. INTERRELATIONSHIP OF GERMAN BANKS AND INDUSTRIALS. Direct connections of the larger German banks. . Reichsbank. ......... Disconto-Gesellschaft........ Bank fiir Handel und Industrie... National Bank fiir Deutschland.......... Bank des Berliner Kassen-Vereins. . Deutsche Hypothekenbank A. G. .... maaan TO. Direct connections of the Siemens-Schuckertwerke and Siemens & Halske A. G.. 519 519 523 526 528 530 H32 b34 XXII CONTENTS. BRITISH INVESTMENTS ABROAD. Partial list of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada. ........ Summary by countries and by character of companies ... List of companies. ......... Steam railroads... Cable, telegraph, and telephone companies... Local public utilities other than telephone. . Mining and similar companies. . - Industrials.......... Plantation and similar companies. ... Trading, banking, and miscellaneous companies. _ APPARENT INTERRELATIONS IN THE EXPORT COAL TRADE ON THE UNITED KINGDOM, 1. Principal coal companies in England and Wales exporting to South America and the Mediterranean, names, output, exports, and facilities. . .. South Wales........ Monmouthshire. .... .. Glamorgan ... The Northern Field... Durham (North). . Durham (South). Northumberland Yorkshire. Co. 2. Facts regarding the interrelation of British coal operators, dealers, and ship lines with each other and with railway and industrial companies in foreign markets... Coal .... Dealers ... Railways .... Docks ..... _.... Shipping... : Consumers ........ . Cee ll x snp Organization and output of the Consolidated Cambrian Co. and the affiliated interests. Number and extent of holdings of D. A. Thomas in coal mines, docks, coaling stations, ship lines, and distributing agencies. ........... Additional facts as to combinations and interrelations in the coal industry of Great Britain which affect British coal exports. . 3 Page, 537 538 b41 541 542 543 545 b59 560 570 575 575 875 577 579 579 580 581 582 584 584 584 588 588 589 589 590 595 LIST OF TABLES. PART IH. P: I. Quotas of the Transition Syndicate in German bituminous coal which oa go into effect January 1, 1916, for a period of 1} years... . a 29 II, Exports of potash from Germany, 1912, 1913, and first six months 1914. 36 III. Dividends of members of groups of German cement manufacturers, 1910.. Summary of replies to commission’s inquiry card. I . Summary of replies regarding belief as to legality of export combinations. VI. Summary of replies regarding existing cooperative efforts.’ ............ VII. Summary of replies regarding ad vantage of export combinations....... VIII. Summary of replies as to whether export combinations are in the public . interest....... cee IX. Summary of replies as to whether export combinations would restrain domestic trade.... « EPO X. Direct connections of the larger German banks with the * Direction” (management) of other German corporations. ...... swe XI. Direct connections of the “Direction” (management) of Siemens-Schuckertwerke and Siemens & Halske A. G. (electrical manufacturers) with the “Direction” of other German corporations. ......... XII, Summary of British organized or controlled companies whose properties are located outside of the United Kingdom, United States. and Canada, by countries and by character of companies... oi XIII. List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada. XIV. British coal industry—Production and exports, 1913, by fields........ XV. British coalindustry—Exports, 1913, by destination. 46 341 342 343 344 345 345 519 534 H38 541 596 596 XXIII EXHIBIT L SPECIAL REPORTS FOR THE FEDERAL TRADE COMMIS-SION FROM. UNITED STATES CONSULS. FOREIGN CARTELS, SYNDICATES, OR COMBINATIONS. 27241°—pT 2—16——. EXHIBIT 1. SPECIAL REPORTS FOR THE FEDERAL TRADE COMMIS-SION FROM UNITED STATES CONSULS. FOREIGN CARTELS, SYNDICATES, OR COMBINATIONS. Through the courtesy of the Department of State the Federal Trade Commission was enabled to utilize the services of the United States consular officers in this investigation. These officers were advised of the purpose and scope ‘of the study and were requested to prepare special reports for the commission, giving all pertinent information available. Through their efforts, in spite of the exceedingly difficult conditions now prevailing, the commission has obtained valuable data for consideration in its study of foreign combinations and other conditions affecting the foreign trade of the United States. The more important of these special reports are printed herewith.— FeperaL Trappe COMMISSION. EUROPE. GERMANY. Special report of Consul General Julius G. Lay, Berlin, Germany, November 2-16, 1915. Extent and character of cartelization in Germany.—Germany is regarded as being the greatest country in the world for the concentration of industry. The tolerant attitude of the German Government in regard to cartels, syndicates, and combinations has greatly assisted the concentration movement. In general, any cartel or syndicate is not restricted hy law in monopolizing the sale and production of a commodity until it prevents an independent organization from setting up an establishment. (For further information concerning the legal aspects of German cartels see Consul General Thackara’s report from Paris, France, May 10, 1912.) The result of the lack of deterrent legislation and the favorable manner in which “Big Business” is viewed has been the gradual formation of organizations, either by purchase or by fusion, until the producing iniorosie of the German Empire are now largely subject to carte control. Such restrictions as have been placed upon combinations or cartels in monopolizing industries are of an immaterial nature and embrace REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. in their field of operation all Germany. State control by Kingdoms and Provinces, such as Bavaria, Saxony, etc., is only exercised to a limited degree. The potash law of 1910 and the laws relative to brandy {Erangiweln) and distilled spirits are examples of the national character of German legislation. Although the monopolization and concentration of industry, as viewed Be a legislative standpoint, is largely national, the practical development of cartels and combinations has been along industrial lines. The very name of the Rhenish-Westphalian Coal Syndicate (Rheinisch-Westfilisches Kohlen-Syndikat, Aktien-Gesellschaft) shows it to be one of the products from the great industrial district from which the syndicate takes its name. The cartels of several other industries take their names from the lines which they represent, such as the wall paper, silk, and potash combinations. During the last few years the word “German,” as applying to the national character of organizations has been used more and more, showing that the industries designated in this manner have been so concentrated that they can be regarded as applying to the whole Empire. The number of German cartels can be variously estimated, depending on the method of classification. The official memorial of the German Government published in 1905 (Denkschrift iiber das Kartellwesen ; herausgegeben vom Reichsamt des Innern) gives the number of cartels exlming at that time as 366, of which more than 200 operate their own selling agencies. More than half of this number may be regarded as being cartels of the higher order. This classification includes all of the more important producing and manufacturing cartels and excludes smaller and imperfectly organized assoctations of dealers and sellers. Since the official memorial was issued it must be remembcied that some of the cartels mentioned as being individual have been further centralized and unified. It must also be considered that cartels and combinations have been established in many new lines. According to almost any reasonable classification which may be adopted, it is safe to say that there are about 400 individual cartels, syndicates, and combinations in Germany. The cartels of important German industries—Since all the cartels in Germany can not be discussed individually, it was thought advisable to take up only the more important combinations by industries. Without doubt coal and iron are the most important raw products of German commercial life. Consequently, steel, coal, and iron, with all of their interwoven combinations, will be studied in the order named. As a type of Government monopoly, in which the United States is very much interested as a purchaser, the potash syndicate will be covered as the next subject. Since the United States competes in all parts of the world with German cement, electrical goods, paper, textiles, alcohol, etc., these subjects will be discussed in the order given. The limited time allowed for the completion of this report will not permit separate studies to be made of the concentration movements in the book business, glass, aniline color, linoleum, soda, aluminum, glue, dynamite, and other industries. Therefore, brief summaries, which partially cover the indicated field, are respectfully submitted. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. ComBINATIONS IN THE COAL, IRON, AND STEEL INDUSTRIES. 5 The three important industries, coal, iron, and steel, are organized n the three great combines, the Rheinisch-Westfilische Kohlensynlikat at Essen, Roheisenverband, and Stahlwerksverband at Diisseldorf, each representing a combination which amounts practically to a monopoly. Grouped around these combinations and closely allied with them, through direct agreements or contracts, are numerous other rings, syndicates, and cartels. In considering these three combines in detail it is necessary to have in mind the lesser organizations which are subsidiary to them and have a constant bearing on their operations. The three named leading combines controlling coal, iron, and steel are not trusts in the American sense, inasmuch as the firms which make up these syndicates are bound together and to the incorporated selling company by contract only. They have not sold out their property rights in any manner, and remain independent firms, the personal property of individuals or families or stock companies, and may at any time at the expiration of the contract secede from the combination and even destroy the union by failing to join it again. The large family estates in particular lay great stress upon their individual family character and could not be moved in any way to give up these family properties as would happen on selling out to a stock company or trust. The feudalistic organization is, however, gradually disappearing and the family estates are becoming stock companies which are more amenable to amalgamation. Cartels in general fall into two classes. The cartels of the first class are those having a central organization with a selling office. In addition to coal, iron, and steel there are first-class cartel combines tor shipbuilding steel, sheet iron, tinplate, rolled wire, wire cables, woven wire, steel springs, car parts, and cast-iron pipe, also many dealers’ cartels or unions which will be discussed ol selling methods. Some of the iron industries which are organized under the second class of cartels or those loose combines without a central selling organization are the malleable iron, weld iron, band iron, wire ware, screws, cast-iron ware, building hardware, and pipe strips. All these lesser combines are closely interrelated with the three big combines controlling coal, iron, and steel, but the dominating force over all is exercised by the Steel Works Union (Stahlwerks Verband) from its great headquarters, the Stahlhof in Diisseldort. The steel industries and the Steel Works Union Company. —Before entering into the discussion of the Steel Works Union lin it is advisable to have in mind a few of the lesser combinations so closely associated with it and which in practice, although not legally, are branches of it. Some of the most important combinations related to the steel industry are the following: Schiffsbaustahlkontor (Shipbuilding Steel Office), which has been continued for another three years from December, 1912, was founded, 1908, by a number of leading steel plants to make it possible to deliver shipbuilding materials to the growing German shipbuilding industry. The German shipyards, situated on the coast and being free from any duties on shipbmilding materials, were in a position to purchase shipbuilding supplies from England more cheaply than 6 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. from the German steel industries located inland. This was possible for two reasons. First, the water freight rates from England were cheaper than canal and railroad freight rates from German mills geographically nearer. Second, the English steel industry had specialized in shipbuilding materials and by standardizing them for their own shipyards were able to underbid their less experienced and more recently established German competitors. For this reason the Shipbuilding Steel Office (Schiffsbaustahlkontor) was founded. This or. ganization endeavored to collect all shipbuilding orders in one central point and there distribute the orders in such a way that a standardization could be accomplished, i. e., the firms belonging to the combination received all there was to be had of each kind of work. These orders were then distributed in a manner which enabled each firm to concentrate on a few kinds of material and thus reduce the cost of production per unit. The society aimed not at profits, but at driving out fog competition by distributing the losses among their members. The members of the Shipbu ding Steel Office were joined, 1912, by the Dillinger Hiittenwerke and the Bismarckhiitte. The other firms participating are those members of the Steel Verband manufacturing shipbuilding supplies, especially steel ribs and plates. The Stabeisenverband or “ Bar Iron Union” was first founded in 1893, but broke up. The Rhenish-Westphalian and Silesian industries combined in 1901 with 9 members Agape 50 outsiders. This combination broke up in 1902. In October, 1909, practically all bar-iron producers united and set a minimum price of 102 marks ($47.60) £. 0. b. Neuenkirchen. The outsiders were: Hochst, Gelsenkirchen, de Wendel. Also all the Martin steel works were against the combination, so that the combination again broke up. An attempt was made in July, 1913, to reorganize the rod-iron industry, but it again failed and this industry is to-day unorganized. The Verein Deutscher Eisengiessereien {Union of German Iron Foundries) is composed of the Deutsche Gussrohrensyndikat (German Cast Iron Pipe Syndicate), with an office at Cologne and a branch office in Berlin. Originally only a Rhenish-Westphalian industry, in 1913 it was extended to include all Germany. This syndicate is of importance because about 18 to 20 per cent of the entire pig-iron production is used in castings. There is also a radiator combine and a combine of tempered steel castings closely allied with this union. A syndicate of the producers of heavy forgings has been attempted. but failed. The tin-plate industry is combined in the Weissblechkontor (Tin Plate Office) in Cologne. It was originally composed of five members: Aktiengesellschaft Dillinger Hiittenwerke, Dillingen a. d. Saar; Rasselsteiner Eisenwerksgesellschaft, Rasselstein bei Veuwied: Les petits Fils de Francois de Wendel & Cie., at Hayingen; Hiistener Gewerkschaft Aktien-Gesellschaft zu Hiisten i. Westfalen; Aktiengesellschaft Phonix, Abteilung Westfilische Union zu Nachrodt in Westfalen. If the contract under which the products of the firms are syndicated 1s not discontinued by one of its members six months before the end of the calendar year, the contract continues automatically in force. There is no specified quota of production, and each plant is free to produce as it desires. The syndicate is formed not to limit production, but to concentrate selling. The orders are distributed as equally SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 7 as possible among the members, with due consideration for the wishes of the purchaser and the location of the plant (freight rates). These five plants are the only manufacturers of white sheet metal in Germany. Because of the cheapness of the English product they are only able to sell about 60 per cent of the demand of the whole market, the other 40 per cent being imported from England. In 1912 the above-named five firms were joined by the Vereinigte Stahlwerke van der Zypen and their new plant Wissener Eisenhiitten A.-G. in Koln-Deutz and the Capito and Klein A.-G. in Benrath. This led to a reduction in the price of tin cans of 25 pfennigs a case. A “Central Selling Agency for Iron Packing Bands, Limited ” (Verkaufsstelle fiir a .G. m. b. H.) was founded as a limited stock company in Diisseldorf, composed of the following firms with definite quotas assigned to each: Boecker & Haver, Boecker & Rohr, Weber & Giese, Vereinigte Walz- und Rohrenwalzwerke A.-G., all located in Hohenlimburg ; Gewerkschaft Deutscher Kaiser, a Thyssen concern, in Dinslaken ; Eisen- und Stahldrahtwerke G. m. b. H., in Schwelm; Ernst Selve, in Augustenthal ; and Vereinigte Bierbachs’sche Drahtwerke, in Altena, i. W. The Deutsche Feinblechverband G. m. b. H. in Kéln (German Sheet Union, Limited), founded in 1902, syndicated all so-called commercial sheet iron not having special quality specifications and all fine sheet iron under 5 mm. thickness made from iron or steel. Out of 60 to 65 plants, 45 joined the Verband. Also a half dozen firms were connected loosely with the Verband under contract. This combination expired in 1904 because of foreign competition and the price policy of the Steel Works Verband. The allied industries were immediately reorganized, however, with the Stahlschwarzblechvereinigung (Black Sheet Steel Union), including only about one-eighth of the entire industry. This reorganization was to take advantage of the export bounty paid by the Stahlwerksverband only to an organized industry. The Rohrenkonvention (Tube Convention), whose former convention was dissolved in 1912, has been reorganized again. The Mannesmann-Rohrenwerke-Verkaufsgemeinschaft (Mannesmann Tube Works Selling Union), an organization for supplying the market for seamless gas pipes, has been perfected through an understanding between the Mannesmann and Thyssen interests and the Gewerkschaft Kifernburg zu Nassau. The Manriesmann interests withdrew their discounts, running from 15 to 20 marks ($3.57 to $4.76) a ton, and the Thyssen interests agreed not to ent the Mannesmann prices. The Deutsche Abflussrohr-Verkaufsstelle (German Drainage Pipe Selling Office) is a central selling organization for the drainage-pipe industry. The Walzdrahtverband (Rod Union), manufacturers of rolled wire, 98 per cent of which is used by the drawn-wire and nail industries, was formed in 1908 under the name of Drahtwalzwerke A.-G. (Rod Rolling Mills Company), which superseded an earlier Berlin organization. The old offices were moved to Diisseldorf in order to be in closer touch with the Stahlwerksverband. The Berlin office had been founded in 1902 as successor to the Deutsche Stahlwerke Syndicate, which had marketed its goods through the 8 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, banking house of Delbriick, Leo & Co., which also was their legal representative, commissioner, and clearing house. The members are many firms of the wire and nail industry, who not only produce rod wire, but also manufacture drawn wire.” To equalize this advantage of plants combining both stages of wire rolling and wire finishing, every plant in the syndicate manufacturing drawn wire must buy a minimum of 1,000 tons from the Rod Syndicate every year. Nail manufacturers have been organized from time ‘to time, but no syndicate has held together, so that the wire-nail industry is at present unorganized. The Verkaufsstelle der Vereinigten Deutschen Drahtgepflechtfabriken G. m. b. H. Koln (Central Selling Office of the United German Woven Wire Manufacturers, Limited) is contracted to run until 1916, and includes most of the woven-wire industry. Related to the wire industries is the Verband Deutscher Federstahlwerke (German Steel Spring Union), with headquarters in Hagen. The steel spring manufacturers cooperate through the bank called Bergisch-Mirkische Bank. The Schirmstahlfabriken (Umbrella Steel Factories), who maintain their own selling office in the form of a limited liability company (G. m. b. H.) in Cologne, are also closely allied. As a result of the entire tendency to combination, dealers’ unions for iron and steel products have resulted in every industry in which there is a manufacturer’s syndicate. A characteristic of these dealers’ unions is that they can thrive only when the manufacturers of the industry which they represent are organized, and collapse as soon as the producers’ union dissolves. The aim of the dealers’ union is to reduce the expense of selling, to stabilize the market, to eliminate rice cutting in the open market, and to insure to the wholesale dealers, who are members, that the producers will fulfill their contracts. The manufacturing syndicates are glad to deal with the wholesalers’ union, because it simplifies matters and also acts as a reservoir to take up the shocks of the unequal demand of the open markets, i. e., well-organized dealers’ unions offer the factories an equal flow of orders, thus insuring an even rate of production. Some of these dealers’ unions are as follows: Westdeutsches Eisenhindler Kartell ; Bergisch-Mirkische Eisenhiindler Vereinigung; Vereinigung Hannoverischer Hindler; Verband Schlesischer Eisengrosshiindler; Rheinisch-Westfilische Trigerhindler Vereinigung; Nordwestmitteldeutsche Triigerhindler Vereinigung; Berliner Trigerverkaufscomptoir, reorganized 1912 under the name of Eisenbaucomptoir; 0 Stabeisenhiindler Vereinigung; Strassburger Stabeisenhiindler; Mittelbadische Stabeisenhindler-Vereinigung, Karlsruhe; Linksrheinische Stabeisen-Vereinigung Miinchen-Gladbach; Stabeisenhéindler Vereinigung Koln; Dortmunder Stabeisen Vereining: Vereinigung von Stabeisenhiindler in Hamburg-Altona; Verfr fiir Gasréhren in Diisseldorf; Vereinigung Rheinisch-Westfilischer Gasrohrenhiindler. These organizations of wholesalers have resulted in the exclusion of all other wholesalers not having sufficient capital to carry a large stock. Through the organization of the entire industry these associations of large dealers have reduced their profits to figures which amount to a fixed commission of only 2 to 8 per cent. The function of these dealers’ unions SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 9 in connection with the Stahlwerksverband will be taken up later ander “Selling methods.” THE STEEL WORKS UNION STOCK COMPANY, DUSSELDORF (A.-G. STAHL-WERKSVERBAND). Name, location, and preliminary remarks.—The production and distribution of steel in Germany is thoroughly organized into an almost absolute monopoly by means of a stock company known as the Aktien-Gesellschaft ore or Steel Works Union (referred to below as the Steel Verband). The first effort to organize the German steel industry was made in 1862 when the Weissblechontor in Cologne for tinplate was founded, which is still in existence. In 1864 a cartel for steel rails was founded which was dissolved by the Steel Verband. The introduction of the protective tariff of 1879 and the founding of the Coal Syndicate Company in 1893 have had an important bearing on the development of the steel industry of Germany. The first efforts at combination were loose associations of plants situated together, which signed contracts to observe a fixed minimum price. Various combinations in the forms of cartels, pools, rings, unions, syndicates, price conventions, and the like were in a constant state of flux and disorganization. One principal mistake was the lack of legal incorporation of the selling slices which gave the office no legal status to sue or be sued. ‘The foundation of the Steel Verband in 1904 incorporated in Prussia as a stock company, brought order out of chaos. It united the Halbreugverband (half-finished products) at Diisseldorf with 19 members, the Trigerverhand (beams) in Wiesbaden with 21 members, the Schienen-Gemeinschaft (rails) in Essen with 24 members, and the Schwellengemeinschaft (railway ties) in Essen with 21 members. Organization.—The Stahlwerksverband A.-G., Diisseldorf, is an incorporated stock company composed of 31 firms at the time of the foundation, but through fusion among the members the number of individual members has been reduced, although their capital stock and annual production has been much increased. The Steel Verband was founded on March 1, 1904, with a capital of 400,000 marks ($95,000). The capital is only needed for the expenses of operating 4s office and is in no comparison to its enormous turnover of more than a billion marks ($238,000,000) annually. The members are held together by double contract. The first, the syndicate contract, designates the relation of the Steel Verband to the steel plants who are members of the syndicate and the second contract specifies the relations of the plants to each other. ‘The contracts went into force from April 80, 1904, to June 30, 1912, when they were renewed and are still in force. The contract can be amended or annulled by two-thirds vote of all the members, 17 firms. In case new competition should arise amounting to 2 per cent of the entire steel production of the home market, or competition from outside amounting to 4 per cent, only a majority vote of the members is redyind to amend or annul the contract. roducts are divided into two classes, “A” and “B.” The “A” products are half-finished steel—ingots, slabs, blooms, billets, puddled blooms—railroad supplies, including rails, ties, fish plates, bolts, 10 REPORT ON COOPERATION IN.AMERICAN EXPORT TRADE, spikes, bed plates, and structural steel, including T, U, and I beams of more than 80 mm. face. The “B” products include rods, steel bands, barrel hoops, rolled wire, sheet metal, tin plate, tubes, caststeel railroad axles, steel forgings, steel rollers, etc. This division into “A,” or half-finished products, and “ B,” or staple iron and steel products, has had a wide influence on the Verband and the market. The most important arrangement to keep in mind in considering the Steel Verband is that the Verband has an absolute sales monopoly only for “A” products, and that “ B* products may be sold by the plants independently. "This distinction entails the stress of conflict-Ing interests in many parts of the industry. The entire demand of the market is distributed among the members according to the capacity of each plant at a certain fixed amount of production called the plant quota. This quota is relative, i. e., in fixed proportion to the entire steel production of the syndicate as absorbed by the market. Sales to foreign markets are also negotiated by the Steel Verband. All orders placed with the Steel Verband are distributed among the members according to their quotas, but with due consideration for the geographical location of the plant and also for certain specialties of the plant, which may be particularly desired by the customer. The tendency is toward a standardization of the products in the open market and a specialization of certain plants in particular lines, thus bringing about a standardization and concentration of the entire steel production which entails a more economical division of labor and plant organization. All the steel plants in the Verband must dispose of their entire “A” products to the Verband. Mixed plants are required to purchase all their supplies of “A” products over and above their own production from the Verband, so long as the same is desirous of sclling. If the Verband is not desirous of selling, the members may purchase “A” products elsewhere, but under the supervision of the Verband. The Verband buys and sells “A” products at its own risk and on its own account. Therefore it is not an agent, but an independent selling company. The quotas of the entire ton production are not only divided among the plants pro rata, but each plant quota in each line or type of product is fixed, so that if a plant which runs short of orders in one department but has plenty to do in another line can not shift its production quota from one line to the other, the Verband acts as a *learing house for redistributing quotas. If a plant exceeds the assigned production quota they pay a fine of 5 marks ($1.19) per ton for “A% products and 23 marks ($5.47) per ton for “B” products. For any other violation of the terms of the contract each owner of the steel plant is liable to a fine of 1,000 marks ($238) for each offense. Section 47 of the contract provides: (a) If a plant in violation of the terms of this contract should sell, on its own account, any products or scrap from class “A” he is liable to a fine of 100 marks ($28.80) for each ton of products thus sold. (5) Whoever, through his own fault, fails to meet his contracts for a delivery may be held to a fine for each ton of undelivered goods, the amount of each fine being fixed by the annual general assembly. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 11 The general meetings.—The Steel Verband is governed by general meetings of all the members. Each member has one vote for each 10,000 tons of his quota. The vote, according to the quota, depends upon the subject or line of products under consideration, i. e., 1f the vote concerns “A” products the vote is taking according to the quota of each firm in “A” products. Members may use their own “A” products to manufacture their own “B” products without having to buy the same from the Verband. This gives the plants of mixed nature, who manufacture “B?” products, a decided advantage over competitors in manufactured goods who do not produce their own raw material or are outside of the Verband and must buy from the Verband. The result has been that the quotas in “ B” products have been raised more rapidly than the “A” products. Only the “A” products are sold by the Verband, the “ B* products being sold by the plants directly to the trade. The result has been an overproduction of “ B” products and a fall in prices in finished steel manufactures. Foreign markets.—The home market for the Steel Verband is the German Empire and Luxemburg. All else is considered the foreign market. Prior to the founding of the Steel Verband, in 1904, individual firms had their own agents, commissioners, or branch officers abroad. This led to price cutting among the German firms against one another, as well as against non-German firms. With the formation of the Steel Verband, in 1904, steps were taken at once to consolidate the German steel-plant selling interests in all their foreign markets, which resulted In an entire reorganization. The most important foreign markets are Scandinavia, Belgium, and South America; also Turkey, Asia Minor; and to some extent Russia. The Steel Verband maintains (1912) the following offices abroad: London, a limited company; Amsterdam, Naamlooze Venootschap Vertegen Woordinging van het Stahlwerksverband; Brussels, Société »ivile Morcolty Kuehn & Co., Agence du Stahlwerksverband. The position of these companies is a mean between commissioner and direct officials of the Verband. The result has been curtailing of price cutting in export trade, especially in half-finished products, and a normal difference between home price and export price. Products.—The products of the united steel industries controlled by the Steel Verband, as mentioned, fall into classes “A” and “B,” group “A” being absolutely under the control of the Verband, group “B* being handled by the individual firms. The Verband regulates the quantity of production, but not the sale of class “B.” The Verband has standardized the products of the “ B” class as to size and quality and the “A” products as to quality, and is very active in maintaining both standards. It has even introduced a technical bureau to test the products of its members and, if possible, help to increase the uniformity and improve the quality. The result has been increased recognition in the world market for the high quality of the products and uniformity of specification. Only certain products of a higher stage of manufacture are trade-marked. Extent of monopoly of home market.—The Steel Verband at its foundation controlled 88 per cent of the entire steel production of class “ B ? for the German Empire and Luxemburg. January, 1905, it controlled 90.6 per cent, and in 1912, 95 per cent of the entire steel 12 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, product of this class. It controls practically all of the “A” products in Germany. Ewtent of monopoly of exports—The exports in 1911, all controlled by the Verband, amounted to more than one-third of the entire steel production in class “A,” i. e., 87 per cent of the half-finished steel, 44 per cent of railroad supplies, and 25 per cent of structural steel. {See table, Leisse, p. 185.) Selling methods at home.—As mentioned, in selling, the difference between products “A” and “ B ” is that the products “A” are sold by the Verband (are syndicated), while the “ B ” products are only regulated as to output, but are sold by the plants. The result is a very complicated distribution of these products. The Steel Verband buys the “A” products from mills on its own account and disposes of the same at wholesale on its own account. However, the Verband does not aim to make profits for itself, but distributes the profits among the members at the close of each fiscal year, after deducting the costs of administration, discounts, and sinking fund as a reserve, and the selling expenses. The surplus is distributed among the members of the Verband as a dividend on their capital stock. The result is an extremely low selling cost for the distribution of the products of the mills. During recent years the selling costs only amounted to from 27 to 41 pfennigs per ton (6.4 to 9.7 cents).! The high costs of 1910 of 41 pfennigs (9.7 cents) were due to the large exhibit of the Verband at the International Exhibition at Buenos Aires, Argentina, also the installation of a technical department and a large contribution to the International Congress for Mines and Metallurgy. - The Verband deals directly with a few large concerns, the dealers’ unions mentioned in the introduction. The Steel Verband was instrumental in the formation of five geographical divisions of dealers, and entered into well-defined relations with these dealers to prevent speculation, which is always bound to bring loss and disorder in the market. The Rhineland-Westphalia Beam Union, called the Rheinland-Westfalen Trigervereimgung Koln, composed of nine large iron wholesale houses, in turn formed a union in their district, with the help of the Steel Verband, of 120 smaller dealers. The size and importance of these dealer firms may be seen from the example of one member of the Berlin Union, the ee Ravené’-schen Stabeisen und Triigerhandlung, which consolidated 42 large wholesalers with the old Ravené firm and increased the capital stock from 8% to 23 million marks ($2,023,000 to $5,474,000). Dealers’ unions are obliged to purchase exclusively from the Steel Verband or suffer a raise in price of 5 marks ($1.19) a ton. Dealers ere assigned a purchase quota, based upon their average sales of the last three years. The actual purchases of each dealer at the end of the year are added together and those dealers who have exceeded their quota are required to pay an indemnity to those who have fallen behind their quota. Prices and conditions of payment are the same for all dealers’ unions of the first order and all dealers in them. The Steel Verband has a seat in the general assembly or directorate of pach dealers’ union, but has no vote. The Verband seldom makes 1 Leisse, Wilhelm, * Wandlungen in der Organisation der Eigenindustrie und des Eisen. handels seit dem i des Stahlwerksverbandes.” Miinchen u. Leipzig: Duncker § Hasibioy 22 (XII, 208 B.). Staats- und sozialwissenschaftliche Forschungen. H. 158. e, D. , SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 13 ase of this seat. The Verband also reserves the right to veto the wholesale prices set by a dealer’s union, but has made use of this veto only twice, once in the case of the Bremen Dealers’ Union and once in the case of the Hanover Union. Dealers realize a profit of only 2 per cent gross or about one-half per cent net, which is too small a profit in consideration of the fact that the market price fluctuates and dealers must carry a large stock and tie up a considerable capital. Nevertheless, the dealers, although nominally independent, are virtually commission agents. The unions after a struggle with the Verband succeeded in slightly raising their profits. Not only have the dealers’ unions been divided into the five geographical districts, but the wholesalers in these districts are assigned definitely prescribed territories. The wholesalers also assign to the retailer his definitely prescribed territory. Thus from the Verband to the consumer competition has been practically eliminated among members of this Verband hierarchy as well as among the producers. The result of this rigid sales organization has been twotold, It has stabilized the market, but, on the other hand, it has deprived iron dealers of any opportunity to exercise their own private initiative. The Steel Verband and the sales combinations connected with it show that although the modern tendency is for a few large firms to gradually absorb all subsidiary branches of their line of production from mines to finished product, and, through their own sales, force the distribution of the same to the consumer, in the case of the steel industries of Germany, this consolidation has only partly taken place, and the smaller plants and dealers have not been eliminated. The distribution of “B” products is highly complicated by the fact that the different trades which carry on the manufacturing processes organized themselves into cartels, unions, and syndicates, who in turn have their own selling organization independent of the Verband which also negotiates sales of “ B” products for its memvers, but not on its own account. Many firms sell through the Verband and its own sales organization in order not to lose contact with the market in case the Verband should be dissolved. These smaller trusts for drawn wire, woven wire, nails, castings, radiators, pipes, and the like were mentioned in the introduction. In the case of form iron, however, the Steel Verband has kept this line in its own hands and sells directly to the consumer through its own sales organization. The bar-iron industry is still unorganized in spite of various recent attempts to bring about a union. This disorganization is shown in the lower and violently fluctuating prices. Selling methods abroad. —The methods of exporting are guarded with extreme secrecy by the Stahlverband and lesser organizations. The export curve of steel products from Germany shows a marked npward tendency following the foundation of the Steel Verband in 1904. There is no doubt that the Steel Verband has given great attention to the pushing of exports of German steel products, half Gnished and finished. The Steel Verband collaborates with other German organizations in exhibiting at international expositions and the like, and it is generally conceded that it has been one of the most important factors in German exports during the past decade, since to foundation. It seems that it operates, whenever it pays to de so, 14 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. through branch offices, as mentioned above, and seldom through agents. Character of competition.—The Steel Verband endeavors to capture the market at home through both quality, sales organizations, and the maintenance of a monopoly. The maximum price limit is set by foreign competition. The Steel Verband and its subsidiary organizations endeavor to come as close to this price limit as possible without encouraging too strong competition from abroad. The object of the Verband has been to maintain profitable but not exorbitant prices. As a general business policy great stress is laid upon an equal and high standard of quality. Central selling organization.—The combination maintains its own selling organization for “A” products; that is, the Steel Works Union Stock Company is itself a selling organization. The subsidiary combines have their own selling organizations, or occasionally a cartel bank, or sometimes work directly with the consumers, but in general for two-thirds finished and manufactured products the distribution is in the hands of middlemen in the shape of dealers’ unions as has been described. . Terms of sale and delivery—The Steel Verband, the German Wire Rolling Mills Union (Verband deutscher Drahtwalzwerke) and the Pig Iron Union (Roheisenverband) demand payment before the 15th of the next following month after delivery. The wire-rolling mills and pig-iron combines demand strictly net cash. The Steel Verband gives 13 per cent discount. These terms are justifiable in view of the tremendous capital involved for the mills and have become standard terms of payment for big business. An extension of credit for such enormous amounts would greatly handicap the mills and affect the entire economic life of the country. The result of this policy of short payments has been that all the weak dealers have been weeded out, leaving only a few strong firms. These wholesalers in turn have been obliged to insist upon better payments from the retailers and consumers, which has intensified the movement of payments in the entire market. The Steel Verband makes its own terms of delivery. The individual plant receiving the order from the Verband reserves the right to set the date of delivery for each order, with due consideration for the activity of the plant at the time of taking the order. Obligations to deliver at a fixed date are not entered into unless the state of activity of the works permit. This irregularity of delivery makes it impossible for small dd to deal directly with the works, it being possible only for such large dealers as can maintain a stock as a buffer reservoir to take up the shocks of the irregularity in the open market. Dumping. —The Steel Verband believes in dumping. They justify their position as follows: Large steel plants must work at a certain maximum capacity without interruption if they are to remain efficient and produce at a minimum cost. It is impossible for the home market of any plant in any country to absorb a large output without interruption in the flow of orders due to periods of depresston, from economic causes outside the influence of the steel industry. Also.the increased complication of the coal, iron, and steel industries. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 15 the increased use of furnace gases for industrial purposes (gas engines), for running lighting plants for neighboring towns, also the concentration of all stages of production in a few large mills, have made it increasingly difficult to reduce production in any one line of all the allied processes without causing grave losses and disorganization in other lines. Also the combination of the steel works with the coal mines and coke burners, which, in turn, also must work at a certain maximum capacity in order to be profitable, makes the reduction of its steel output directly affect the entire coal mining, ore mining, and smelting industries. Of the entire coal output the members of the Steel Verband absorbed about half, the other half being controlled by the Coal Syndicate (treated separately). A reduction of steel production to a marked degree would therefore bring about a crisis in the coal industry. The Steel Verband therefore maintains that it is better for the entire economic life of the country in slack years at home to dispose of surplus products abroad at prices which may even cause a loss, inasmuch as the loss incurred by dumping abroad is in no comparison to the losses which would be incurred if production were reduced at home. Also, if production were reduced at home, the cost of production would rise in mills running at half time, which in turn would increase the prices of the products to such an extent that the home consumers would suffer a greater loss in the end than they would gain by a momentary price reduction. Immediately after the formation of the Steel Verband the Verband sought an understanding with foreign competitors as to foreign markets. What little is known about these arrangements is treated under the heading of “International combines.” The dumping policy has at times led to extremely low prices. For instance, at one time iron rods were sold f. 0. b. Antwerp for 90 marks ($21.42) a ton, which meant a price of 82 marks ($19.51) to 85 marks ($20.28) a ton f. o. b. factory. | An important element in the price policy abread is the export bounty. The increasing saturation of the home market makes. export imperative, if plants are to run at full efficiency. This has brought about a settled policy on the part of the Verband to encourage exports in “B” products and manufactured articles quite separate to the dumping policy just described which only affects momentary overflows of production. The first effort at regulation was made in 1902, when the “ Diisseldorfer Abrechnungsstelle fiir die Ausfuhr?” was organized by the Coal Syndicate, the Pig Iron Syndicate, the Half Finished Products Syndicate, and the Beam Union. In 1905 this association was reorganized and the directorate became identical with the directorate of the Steel Verband. The peculiarity of the situation in Germany is due to the division of products into the “A” and “ B?” classes—i. e., the 31 plants which make up the Verband are widely different in their capacity and organization. Some of them combine all the steps of production from ore to finished products, while others make only “ B ” products and must buy “A” products as materials for the manufacture of “ B” products. Inasmuch as the Verband has only a moncpoly on “A” products and the “ B ” products are sold in the open market by the plants manufacturing them, there arises a certain tension between the firms manufacturing “B* products from their own “A” product and those firms which must buy 16 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. their “A” product from the Verband. In the home market this tension is not so keenly felt, but when the Verband dumps “A” products abroad at low prices, these prices enable the English, Belgian, and Scandinavian manufacturers of “B?” products to buy their halffinished raw materials at such a low figure that they are able to sell manufactured products in the German market at a price which the German Ta who must pay the high price for their “A” materials, are unable to meet. Therefore the Ferband rather than to break the market at home, because of temporary low prices abroad, offers to the home industries exporting finished products made from “A” products purchased from the Verband, an export bounty. This export bounty is set by the Verband at a figure which aims to absorb the strain or margin of potentiality, resulting from the difference in price of German “A” products at home a abroad.! Only firms belonging to a union, ring, pool, cartel, syndicate, or other organization buying exclusively from the Verband, are given export bounties. It is this fact, as much as any other, which has influenced the organization of all the subsidiary combines mentioned above. For instance, the hardware industry is not organized and receives no refunds. In practice the largest exporters are firms who manufacture their own “A” products and are themselves the members of the Steel Verband, so that bounties need not be paid, because, as stated, such bounties are only intended to aid those plants mannfacturing “B” products alone. Bounties are not paid unless the difference in the price of halffinished products at home and abroad is marked. For instance, in June, 1907, when the price of sheet iron fell to 10 marks ($2.38) below cost in the home market and 20 marks ($4.76) below cost in the world market, the Verband gave a refund bounty of 10 marks ($2.38) a ton for all firms organized or independent. In December of the same year the V re withdrew the bounty from all unorganized exporters, but raised the bounty on organized exporters to 15 marks ($3.57). This price policy abroad has given the Steel Verband the name of the economic general staff. Critics say that the price policy of the Steel Verband at home and abroad tends to maintain a certain stability of production and prices, so long as ordinary conditions prevail, but that the organization of 31 large firms, governed by a general assembly, is too bulky and unwieldy to meet sudden and new situations. The case of the competition of the reinforced concrete firms in the building market is cited. The introduction of reinforced concrete came at the time of increasing building activity, the cement trust took advantage of it, and through clever salesmanship, advertising, and demonstrations, practically captured the entire building construction market and bridge work by substituting concrete at a much lower figure than steel girders could be purchased from the Verband. About two years too late the Steel Verband opened an office for competition against the concrete firms and reduced their prices. If this had been done sovner, before the public had gained confidence in concrete construction, the triumphal entry of concrete construction might have been retarded for some years. 1 For the latest available statement of the schedule of refunds of export bounties of the Rteel Verband. see Pt. 1. D. 222..—FEDERAL TRADER CCOMMISRION. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 17 Relations to the home government.-—So far as I can learn the Aktiengesellschaft Stahlwerksverband has no particular connection or relationship with either the State or Imperial Government. The subject of freight rates for exports is an extremely complicated one, an explanation of which has been attempted with more or leds success In various special reports on that subject. (See reports on “ Railway rates,” of February 15, 1910, and “ German agricultural railway rates,” of June 15, 1914, from this consulate general.) These rebates are not peculiar to the Steel Verband, but are accorded by the railroads to all exporters. The export bounties are paid by the Verband as described above, but so far as known the Government does not pay such bounties. There has been no legislation bearing particularly upon the Steel Verband. This combination comes under the laws affecting all business organizations, such as the Gewerbeordnung, Handelsgesetzbuch, (esetz gegen den unlauteren Wettbewerb. Under these laws the Government may step in at any time if it considers a combination to be harmful to the public interests of the country. The Government railroads also place enormous power in the hands of the Government either to harass or encourage the steel combination through their purchases of railroad materials or manipulation of freight rates. Relations to other business interests at home.—The Steel Verband is associated with nearly every allied industry through personal union or interlocking directorates. The four great groups—coal, iron, and steel, and steel manufactured products—are composed in the main of the same men. -Nearly every combination for purchasing, manufacturing, selling, or exporting in these lines show among their directors Thyssen, Krupp group, de Wendel, Haniel, Stumm, ete. These interlocking directorates, however, are backed up by the interlocking firms themselves. For instance, if Thyssen owns coal mines that are in the Coal Syndicate, a woven-wire factory that is in the Woven-Wire Syndicate, etc., he, in his capacity as the head of the firm, which is a member of each syndicate, has an important influence in that syndicate. The influence of these interlaced business interests on the entire business of the country is naturally very great: on the Government, however, it is negligible. Relations to foreign Governments and to foreign business interests.—It is impossible to learn anything regarding the influence of the Steel Verband on the Government of foreign countries, because the entire foreign policy is kept strictly secret. The results attained by combination.—The formation of the Steel Verband came at a critical time in the German steel industry. The introduction of protection in 1879 made it possible for the German iron industry to introduce the Gilchrist Thomas process and made usable the enormous ore deposits of Germany and Luxemburg, which have a large percentage of phosphorus. From 1879 until 1900 the curve of production shows a sharp incline, but this production was entirely absorbed by the rapidly growing home market. At the beginning of 1900 there is a bend in the curve, showing a depression due to the fact that the production of halt- finished. products was increased faster than could be absorbed by the industry of the country. This led to disorganization. The formation of the Verband in 1904 stabilized the home market and provided for a distribution of the sur-27941°— pm 9 168. 18 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. plus products of the mills abroad which still kept them running ut maximum capacity. Prior to the formation of the Verband the individual plants had been dumping their half-finished products onto those foreign countries which were the sharpest competitors in finished products—France, Italy, Belgium, Netherlands, Switzerland, Great Britain, and the United States. This was ruining the German manufacturers, who must pay more for their materials than their foreign competitors. The Steel Verband immediately took this situation in hand. After the formation of the Steel a the exports to Great Britain were reduced 44.93 per cent and to Belgium 11.7 per cent, so that the entire German export of half-finished products to Great Britain was only 3.8 per cent of the total British consumption, an almost negligible quantity. The figures are: From January to December, 1913, “A” products to Great Britain 890,613 tons, 1904 only 215,118 tons; to Belgium, 1903, 105,599 tons, 1904, 93,198 tons. The total exports of half-finished products dropped 37.17 per cent, i. e., 638,182 tons in 1903 to 395,990 in 1904. On the other hand, through the new foreign sales policy of the Steel Verband the sales abroad of the products of home industries (“ B” products) increased from 844,000 to 1,188,000 tons. It is needless to add that this policy of diverting the raw and half-finished materials into, the manufacturing plants of Germany and giving the German people the benefit of the industry of refining them has strengthened the entire economic life of the country. The important point in the reduction of exports of half-finished products to England and other competing countries is not that England was deprived of these raw materials, but that the purchasing power of the home market was so increased by the selling policy of the Verband, as regards the disposition of finished products abroad, that the home market was able to absorb a great deal more half-finished material, so that there was less left over to be dumped abroad. The result was that England, instead of buying the supplies from Germany, bought them from America, i. e., as against 5444 tons of half-finished products bought from the United States in 1908, in 1904 England bought 814,324 tons. The Steel Verband therefore shifted the entire movement of half-finished materials, and the ultimate result was the struggle for supremacy in finished manufactured products in South America and the colonies. No important manufacturers excluded.—The Alktiengesellschaft Stahlwerksverband includes more than 95 per cent of all steel producers, and in higher stages of manufacture controls even a higher percentage. The outsiders are principally the producers of Martin steel. This percentage is constantly shifting, bécause the constitution or contracts on which the Steel Verband is based are renewed from time to time and firms may join or resign, as they see fit. The outsiders are of very little importance. As mentioned, they are the producers of Martin steel. Export competition from outsiders—The export trade of the entire steel industry is dominated by the Steel Verband. As has been described in preceding sections, it is becoming increasingly. difficult t Leigse, Wilhelm, “ Wandlungen in der Organisation der Eisenindustrie und des Risenhandels seit dem Griindungsjahr des Stahlwerksverbandes.” Miinchen u. Leipzig: Duncker * Humblot. 1912 (XII, 208 8S.) Staats-und sozlalwissenschaftliche Forschungen, H, 158. SPECIAL REPORTS FOR FEDERAL TBADE COMMISSION. 19 for the few outsiders to compete abroad; in fact, there is no particular advantage to be gained by staying out of the combine. No governmental discrimination—Independent concerns receive exactly the same treatment from the Government and also from the Government railroads as to freight rates, rolling stock, ete., as firms in the combine. ‘This not only applies to the firms of the Steel Verband but to all the smaller rings and combinations which are allied or connected to it. The Government-owned roads treat all alike. There is no discriminating. Can Americans successfully compete? —So far as the Steel Verband is concerned, controlling “A” and “B” products, competition from American or any other outside producers would be difficult but not impossible. The Verband has a number of points to its advantage which may be summed up as follows: Steel rails, bedplates, etc, which are sold to the Government for Government railroads, are contracted for for two and three years at a time. The last contracts in 1913 with the Government of Prussia for the Prussian-Hessian railways show a price of 121 marks ($28.79) for steel rails and 96 marks ($22.84) to 102 marks ($24.27) for various kinds of shapes and bars. It is hardly possible that the Government would buy these supplies from a foreign firm even at a reduced price. As regards selling to manufacturers of more highly finished products, we have seen above that all these various industries are more or less strongly organized and that the Steel Verband can exercise a great pressure upon them by means of the export bounties or refusing to sell to them at all other products which they need or withdrawing their exclusive agency rights of sale in certain districts, etc. In addition, the Steel Verband’s selling costs of only about 8 cents a ton, as against perhaps twenty-five times this amount in the case of American firms, gives an additional advantage. Then there is the advantage of a protective tariff, which, although not extremely high is sufficient to give protection on products with as small a margin of profit. THE COAL SYNDICATE CO. Name, location, and preliminary remarks—The Aktiengesellschaft Rheinisch-Westfalisches Kohlensyndikat, Essen a. d. Ruhr (hereafter called Coal Syndicate Co. or the Syndicate), founded in 1893, opened an era of big combinations in Germany. Until the middle of the nineteenth century the coal mines of the Ruhr district, the principal coal fields of Germany, were under the control of the local ruler, under the so-called “ Direktionsprinzip.” In 1850 there were 198 mines with a total annual production of 1,960,000 tons, while in 1910 there were 166 mines with a total output for the Ruhr coal district of 89,310,000 tons. During this period of enormous development some of the Government mines and, to a great extent, the private mines have passed over into large stock companies, who in turn were united in the Coal Syndicate. The first combination in the coal industry was the Westphalian Coke Syndicate (Westfilisches Koks Syndikat), founded on the 16th of September, 1890. In 1891 the briquet makers, who were beginning to attract attention, founded the Brikett Verkaufsverein. The final combination in the coal industry was accomplished in 1892 20 ' REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. with the foundation of the Coal Syndicate, which went into effect August first of that year. The three products, coal, coke, and briquets existed side by side for a number of years, but the directors and leading mine owners united them through interlocking directorates and in personal union. The three leading lights at the beginning of the Coal Syndicate era were Dr. Hammacher, Bergrat Kleiner, and Dr. R. Efferts. These three dominated all three syndicates. To-day in the Coal Syndicate there are 67 coal firms, 46 coke firms, and 30 briquet firms. The coal industry in the Rhenish-Westphalian coal district, which covers practically all the bituminous deposits in Germany, is divided into four groups of mines: The straight coal mines of the syndicate; the furnace mines belonging to the syndicate, but also the Steel Works Union; the outsiders; and the Government mines. The friction in the industry occurred among these four groups. In addition, the brown-coal deposits of south and middle Germany may be mentioned, which in the form of brown coal briquets are becoming a strong factor of competition. There is considerable strain between the straight coal mines (firms engaged solely in mining coal) and the furnace mines, which coke the coal and use it for their own smelters. For instance, in 1910, out of a coal production of 78,234,834 tons, 56,292,134 tons were from straight mines and 21,942,700 tons from furnace mines. If in addition we add 17,000,000 tons from coal mines belonging to the Steel Works Union (Stahlwerksverband), we have nearly as much coal controlled by the steel industry as by the Coal Syndicate itself. These facts are necessary to an understanding of the different internal strains or differences of potentiality which appear in the industry and are alluded to in the following paragraphs. Organization—The Aktien-Gesellschaft Rheinisch-Westfiilisches Kohlensyndikat is incorporated as a stock company with a capital of 2,400,000 marks ($571,200). (Note that this capital is much higher than in the case of the Steel Works Union, 400,000 marks ($95,200). This is to be accounted for in the wider activities of the Coal Syndicate, in particular in water-transportation interests.) From the syndicate’s contract of organization * the following may be noted : The organs of administration are (1) the management, (2) the board of directors, and (3) the general assembly. The management consists of two or more members, appointed by the board of directors. Official documents require the signatures of two members of the management or one member and an assistant manager having power of attorney. The board of directors consists of 12 members, which are elected by the general assembly for a term of four years, three of whom retire each year. The board of directors has the usual powers ander the laws of the land. The general assembly of the stockholders is called by the management or the board of Yc Each stock carries with it one vote. Between the Coal Syndicate Co. and the firms whose coal is exclusively marketed by the syndicate, there exists a blanket contract signed br all the members, and also a contract among the different mines regulating their relations to each other; a similar triangle to that of the Steel Works Union and other German cartels. The as-1 passow, Richard, “ Kartelle d. Bergbaues.” Leipzig u. Berlin: B. G. Teubner, 1911, (VI, 828 8.) Materliallen f. d. wirtschaftswissenschaftl, Studium Bd. i SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 21 sembly of the mine owners. is called by the managers of the Coal Syndicate. In this assembly each mine owner has one voice for every 10,000 tons of coal of his quota. A quorum requires two-thirds of all mine owners to be present. The owner may be represented by one or more persons designated by him. Each owner receives a printed copy of the minutes of the meeting. The general assembly accepts or rejects the suggestions of the Coal Syndicate in regard to prices, quotas, ete. Every mine owner may have a member on a board of advisers for every million tons of his quota. This board of advisers has the power to name special committees for investigating various problems pertaining to the industry. The annual quota is fixed by a commission, called commission C, which is composed of eight members and is elected by the mine owners. In this commission a member has no voice concerning decisions concerning the mine to which he belongs. The mines which are members of the Coal Syndicate obligate themselves to sell their entire product of coal, coke, and briquets to the Coal Syndicate, which guarantees to market these products in accordance with the policy adopted by its administration. Excluded from sale to the Syndicate are coal, coke, and briquets which are used in the plants of the members in such a way that they are no longer marketable (i. e., a firm must actually use, in its own plant, coal, coke, or briquets not sold to the Syndicate). The Syndicate is always required to sell to the furnace mines on demand for the actual individual use of such furnaces. A firm exceeding its quota of use or consumption must pay 1.50 marks (35 cents) fine per ton to the Syndicate. Mine owners may not use in their furnaces any coal not produced from the mines of a member of the Syndicate. Every member of the Syndicate binds himself to sell no coal or briquet to anyone except to the Syndicate. The members of the Coal Syndicate are 67 in number. Of these there are 46 coke firms and 30 briquet firms. The contract as it is in force to-day expires on the 81st of December of this year. Already a so-called “Transition Syndicate” has been formed to run for one and one-fourth years, i..e., to April 1, 1917, which includes 85 firms. Its composition may be seen from the accompanying list (p. 29), taken from the Handelszeitung des Berliner Tageblatts, Berlin, September 27, 1915. The importance of this list will become apparent in the following paragraphs. Many outsiders, including the Government-owned mines, which threaten to disrupt the Syndicate, have joined this “ Transition Syndicate,” the new members on the list being marked with an asterisk (*). The list shows the quotas for coal, coke, briquets, and also the amount assigned to furnace mines for the use of their own furnaces. Foreign markets—The Coal Syndicate has an almost absolute monopoly of the exports of coal. ' It has sold coal in large quantities to northern France, especially to the gas works at Paris, for many years. Aside from this and the bordering district in Holland, and also some convenient parts of Belgium, the Coal Syndicate has no important foreign markets. In 1909 Holland took from the Syndicate a total of coal, coke, and briquets amounting to 4,942,233 tons; Belgium, 8,713,294 tons; France, 8,597,025 tons; Switzerland, 758,558 tons; Italy, 527,303 tons; Austria-Hungary, 402,888 tons; Russia, 186,646 tons: United States and Mexico. 169.166 tons. 22 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Products—The peculiarity of the coal industry precludes any standardization; the quality of the Ruhr coal is excellent but varies trom deposit to deposit and often from shaft to shaft. The scientific department of the Syndicate has the different grades well classified as to calories in comparison to the competing coal mines, brown-coal mines, etc. Prices and selling methods at home.—The directors regulate the prices by fixing a certain “norm” price for the year, from April to April, called “ Richtpreis.” This norm is the minimum price to be asked in districts free from competition. Based upon the norm price. the market prices are calculated according to quality and location of the mine. The directorate then assigns this certain market or calculated price to each mine (called “ Verrechnungspreis”), which is the price the mine receives from the Syndicate. If in the open market the Syndicate is able to realize a higher price than the calculated mine price, the difference is refunded to the mine. The cost of maintaining the Syndicate, and especially the rebate necessary in districts threatened by competition, are covered by a pro rata deduction from the prices paid by the Syndicate to the mine. At this point a strain between the mines using their own coal for their own furnaces and those selling in the open market is to be discovered, because those firms, having only mines, must stand the brunt of the cost of price war against competition. It works as follows: About half of all the coal produced goes directly into the ovens and furnaces of the iron and steel industries, without having to pass through the hands of the Syndicate. Therefore the expenses for maintaining the Syndicate and cutting prices against outsiders is levied on the other half of the coal production passing through the hands of the Syndicate. This coal is almost entirely from the straight mines—those not belonging to iron and steel plants. The result is that (1) the furnaces get cheaper coal than anyone else, and (2) that the coal mines marketng coal through the Syndicate must pay the bills. nly prices and the sales policy of the mines are regulated by the Coal Syndicate Co., the technical improvement and all other internal affairs of the mining companies being left entirely to the individual members. Also the relationship between the works and their employees is a private affair of the mine. The Syndicate desires to interfere with the private affairs of each member as little as possible. The Syndicate also pays no attention to the welfare of a member. He may fail or sell out, as he pleases. Also, a member, if he wishes, may cease working several shafts and concentrate on one, or he may buy coal lands and sink new shafts. The only point of contact is the limiting of production and the sale of the same on the part of the Syndicate. German business firms, as well as individuals, are very jealous of their personal liberty and freedom in their private affairs. Wholesale dealers absorb only 40 per cent of the output. The Syndicate therefore must organize the coal market, in order to disose of the other 60 per cent. Large dealers, who purchase direct From the Coal Syndicate Co. are given uniform prices, these prices being set for one year and not changed during the year. The coal merchant must deal exclusively with the Syndicate. Agency districts are fixed by the Syndicate on the exclusive sales rights basis, similar to those of the Steel Verband. In 1899 to 1900, during a period of great industrial activity and large demand for coal, dealers SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 23 drove the prices so high that the Syndicate introduced the so-called * Handelskammerparagraph,” which placed a fine of 10 marks ($2.38) per ton on all dealers purchasing direct from the Verband, who in reselling coal demanded a price which gave a profit out of proportion to the efforts and risks incurred, according to the opinion of the Chamber of Commerce at Essen. The Syndicate is determined not to abuse its position of monopoly. Dealers’ unions.—As in the case of the Steel Verband, the organization of the coal industry in the Coal Syndicate Co. brought about a corresponding organization of dealers. On April 1, 1906, two dealers’ unions were founded, the * Gluckauf ” Kohlenhandelsgesellschaft in Kassel and the “ Westfalia ” Kohlenhandelsgesellschaft in Hanover; 1896, the Steenkohlenhandelsvereeniging Utrecht; 1897, Deutsche Kohlenhandelsgesellschaft Bremen; 1899, Westfilische Kohlenhandelsgesellschaft Dortmund; 1901, Westfilische-Kohlen & Koks Verkaufsgesellschaft in Magdeburg ; 1906, Westfilische Kohlenverkaufsgesellschaft in Berlin; 1906, Westfalen Kohlenkontor Hamburg; 1905, Diisseldorfer Kohlenverkaufsstelle Karl Briiggemann; 1908, Société Générale Charbonniére in Antwerp. The dealers’ unions at first were not welcome, but eventually the Coal Syndicate Co. recognized the value of dealing with them and has gained an influence in them, inasmuch as the chairman of the board of directors of each coal union is an officer of the Coal Syndicate Co. The result is a strong organization for the distribution of coal. The Coal Syndicate Co. and coal transportation.—There was no strain between the dealers and the Syndicate as regards transportation so long as the railroads were used, because the State railroads treat all shippers alike, and no sudden changes of freight rates need be expected which might upset the price calculations of the dealers. Water transportation, however, brought in an element of uncertainty, because the water transportation companies are numerous and unorganized. If the prices were to remain reasonably stable, the transportation question required settlement. The Rhine, which, with its tributary, the Ruhr, taps the Ruhr district, was used by all sorts of large and small shipping firms. The larger shipowners on the Rhine also owned their own mines and were also coal dealers themselves. These large river ship lines joined the Syndicate on the condition that the Rhine traffic be consolidated. This was done April 1, 1904, by forming the Rheinische Kohlenhandels- & Reederei-Gesellschaft (the Rhine Coal Dealing & Shipline Co.), usually referred to in the trade as the “ Kohlenkontor.” The object of this Coal Office is to buy coal from the Syndicate and send it up the Rhine and to South Reinking Switzerland, and Vorarlberg and there sell it on its own account as a coal dealer. The Coal Office does not own its own coal yards, fleet, and transportation machinery, but each member is required to place his terminal facilities and barge fleet, etc., at the disposal of the Coal Office at certain fixed rates. In this district the coal dealers of purely merchant character were forced out of business in favor of the Kohlenkontor. Some of these, however, were assigned to districts as middle men and aided in distribution to the small local dealers. The Kontor was founded Lfntly by the Coal Syndicate Co. and four shipowners, namely, ranz Haniel & Co., Mathias Stinnes, Gebriider Kannegiesser, and Hugo Stinnes. To-day there are 37 members, with a total annual 24 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. quota in the Kohlenkontor of 9,231,600 tons. The comparative importance of the members of the Coal Office is shown by the following figures: The Kohlenkontor has 1,431,800 tons annual quota; Mathias Stinnes, 1,156,200 tons; Gelsenkirchener Bergwerks Gesellschaft, which has absorbed the ship company of Raab, Kircher & Co., Strassburg, 1,064,000 tons. The firms Hugo Stinnes, Harpener Bergbau-Aktien-Gesellschaft, Franz Haniel & Co. have each quotas of about 700,000 tons. Nineteen other members have each less than 100,000. The Coal Syndicate Co. takes a preferred dividend of 5 per cent of the earnings of the Coal Office, and in addition participates in any remaining dividends pro rata with the other members. The Kohlenkontor therefore controls not only the coal but the transportation of coal in the entire district influenced by the water traffic of the Rhine. This extends far into south Germany, the Coal Office maintaining enormous terminal facilities at the inland harbor of Mannheim to facilitate reshipping for Bavaria. Character of rowpatiigens ips dominating factor of competition in coal is first of all price, but price in its relation to the heating qualities of the coal. Den with the English coal is primarily a matter of price, the heating qualities being similar. In competition with brown coal, it is heating properties and price, the heating proparties of bituminous coal being about three times that of brown coal. Central selling organization.—The Coal Syndicate Co. is in itself a central selling organization. The bank, to a large extent connected with the Coal oy is the Bergisch-Mirkische Bank, although other banks are closely connected. They are, however, not “cartel banks ” in the sense usually understood by that term. The economies of the central selling organization are manifold. Through the organization of the trade, through the dealers’ unions, and the assignment of districts to each dealer, there is alleviation of the enormous selling expenses, which are necessitated by frequent visits of many high-priced salesmen of competing coal companies to one and the same customer and by keeping such salesmen on the road in a large territory. The coal salesman, as such, has been practically eliminated, inasmuch as the sale of the entire output is concentrated in the office of the Coal Syndicate Co. at Essen as a focusing point and is bought at that one place by the large dealers’ unions, 2 in turn simply distribute the coal to the smaller dealers in their assigned districts. The economy of this sales organization, as also in the case of the Steel Verband and others, is enormous. Another economy is the one central office of testing experts for the entire industry. Terms of sale and delivery —The terms of sale for coal, the same as for iron and steel, are usually cash before the 15th of the month following delivery. Dumping —The Coal Syndicate Co. endeavors to keep the Taoles of the members reasonably well filled, which makes it possible for the members to maintain an even stream of production at a rate which assures an efficient working of the mine. The demands of the open market, however, sometimes fluctuate widely, as in 1900, demanding far more than the Syndicate can produce. In this case the Syndicate rather than give the English coal firms an opportunity oF coming into the market, bought directly from England to supply i This bank was absorbed by the Deutsche Bank in 1914.—Federal Trade Commission, BPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 25 the deficiency in their own deliveries. On the other hand, in periods of slack demand, the Syndicate dumps the surplus abroad, preferably in northern France, Belgium, and Holland, at the best rate possible, it being better to do this even at a loss than to disorganize production and distribution in the home market. Llelations to the German governsienir~The Coal Syndicate has no direct connection with the Imperial Government. The official relations of the Coal Syndicate are with the States in which it operates. The most important is with Prussia, in which it is incorporated and in which the Ruhr coal fields are located. Some years ago, at the time of an investigation on the part of the Prussian Diet of the Steel Works Union, the Coal Syndicate Co. was also investigated. The result of the investigation, which was conducted in an efficient and scientific manner, left a very favorable impression on both Government and public regarding the combinations in the coal, iron, and steel industries. The Government sees in the healthy growth of these industries, in their erganization, and in reasonable profits, unshaken by violent market fluctuations or price wars, a uniform: source of revenue for itself through income and other systems of taxation. Although these combinations have no influence whatsoever on the Government or on legislation, relations are very friendly. A point of direct contact between the Coal Syndicate and the Saver mat of the State of Prussia is to be found in the railroad reight rates on the Prussian-Hessian railroads. Coal comes under the lowest tariff, the so-called “raw materials tariff,” which is 2.2 pfennigs ($0.0052) per ton-kilometer for hauls under 350 kilometers, and 1.4 pfennigs ($0.0033) per ton-kilometer for hauls over 350 kilometers. To these rates is added a handling fee of 7 pfennigs ($0.016) a fon (Abfertigungsgebiihren). Of course water transportation, inland and ocean, is still considerably lower. For export the usual export rate or rebate is conceded to coal. The railroads also discriminate against imported coal by imposing a higher freight rate. The third and most important point of contact between the Coal Syndicate Co. and the State of Prussia is the competition of the State-owned coal mines. The output of the Prussian State coal mines of the Ruhr district grew from 308,000 tons in 1903 to 3,300,000 tons in 1912 and 5,000,000 tons (estimated) in 1913, which is over 4 per cent of the entire coal production of the district. The competition of the State mines had become so strong that a rupture of the Coal Syndicate Co. was prophesied unless the State mines (Fiskus) joined the Syndicate. The Syndicate threatened the State and maintained that the dissolution of the Syndicate would demoralize the coal market, abolish profits, and greatly reduce wages. The Prussian minister for commerce and trade maintained that the Government coal mines must occupy a special position apart, so as to be able to influence the coal market for the benefit of the public. He said that the Prussian Diet had voted the large appropriations to extend the Government mines with this end in view, and also argued that the State must be free to supply its own needs directly from its own mines without regard to the Syndicate. (The coal demand of the State railroads alone is a great factor.) The question has finally been settled by the State mines entering the Syndicate, the argument being that the influence for the public good may be even 26 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. geany if Government officers have a voice in the deliberations of the oal Syndicate Co. Relations to other business interests in Germany.—As has been noted under the Steel Works Union, the three products which are the foundation of the entire industry of the country—coal, iron, and steel—are closely united by interlocking directorates. In every combine pertaining to these three fundamental branches of the industry the same great firms constantly appear and exercise their influence. This is due to the fact that so many firms have gradually concentrated all the steps of production from ore to finished product under one roof, so to speak. Therefore a man like Thyssen, as an owner of coal mines, is in the Coal Syndicate; as an owner of smelters, is in the Iron Syndicate; as a manufacturer of steel ingots and rails, is in the Steel Works Union; and as a manufacturer of woven wire, is in the Woven Wire Syndicate, and so on. As mentioned above, the Steel Verband controls about half of the coal products of the Ruhr district, partly for its own use and partly for the Syndicate. The Pig Iron Syndicate is connected with the Coal Syndicate through the many so-called “furnace mines,” coal mines which operate smelters. These unions, however, are constantly being broken up and remodeled to meet the difficulties arising in the various branches of the German heavy industries. . The results attained by combination.—The result of the Coal Syndicate has apparently been beneficial. It has abolished cutthroat competition without at any time striving for unduly high profits. It has taken up the varying demands of the open market made upon an industry, hi ie’ by its very nature has an inelastic rate of production. In the years when the demand of the home market exceeded the supply it has itself supplied the demand byebuying coal from abroad and thus prevented foreign competition from getting control of the home market. It has marketed surplus abroad in years of slack demand at home, thus keeping the mines working at an efficient rate of production. By regulating prices for an entire year at a time it has practically abolished speculation and steadied the market. It has made it possible to greatly increase the wages of its members’ employees. It has accomplished a great economic saving by simplifying the marketing of coal to the consumer and by concentrating and organizing transportation routes. It has brought back to the iron, coal, and steel industries the profits necessary to their healthful growth. Prices have increased in the 20 years from 1893 to 1912 about 60 per cent for bituminous coal, 50 per cent for smelter coke, 20 per cent for’ gas coal; yet dividends have not increased to any marked extent, the additional price being due to higher wages and the law of increasing prices, or, as some put it, to the decline in the purchasing power of mgney, Concerns outside the Syndicate—In the first 10 years of the Syndicate, from 1893 to 1903, it had a monopoly of the coal production of Germany, except for a few south German mines of small production. From 1893 to 1900 the outsiders increased from 12.55 per cent to 14.37 per cent. The outsiders used the economic depression following 1900 to cut into the Syndicate at a rapid rate, and increased their participation in the entire coal production from 14.87 per cent to 17.75 per cent. In 1903 the Coal Syndicate Co. was reorganized and included all the smelter mines or furnace mines, except Freie Vogel und SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 27 Unverhofft, so that after 1903 only 1.72 per cent of the entire Ruhr coal production was outside the combine. In 1906 the outsiders had grown to 2.05 per cent and in 1907 to 2.55 per cent, but in 1911 had decreased to 2.18 per cent. Large deposits of coal were discovered to the north of the old Ruhr fields and these have been put in operation by a number of strong independent firms, so that in 1912 and 1913 the following mines were opened or under way: Ickern, 750,000 tons annual production; Arenberg, 750,000 tons; Dergardt and Friedrich Heinrich, with 150,000 tons each ; Westfalen, Fiirst Leopold, Lohberg, and Rhein, with 200,000 tons each. The outsiders gradually increased their participation in the entire production to 12 per cent. The Government-owned mines were also active, having increased their output of 808,000 tons in 1903 to 3,300,000 tons in 1912. This rapid growth and activity on the part of the State mines was due to a false policy on the part of the Syndicate, which endeavored to fight the independent State-owned mine Hibernia, which only aggravated the Government and caused them to sink new shafts and increase their activity. renew outsiders are all profiting from the technical progress made in the mining industry, due in great measure to the new processes developed in the deep potash mines of Stassfurth, such as freezing of wet slopes, the use of the diamond drill, electric traction underground, higher speeds of shaft cages, etc. The discovery of new fields lying in a large crescent to the north of the Ruhr district as far as the Dutch frontier caused an inrush of independent companies. This inroad of strongly financed and thoroughly efficient companies threatened the very life of the Syndicate. The most important, the International Boring Co., with 275 tracts, caused the Syndicate in 1905 to form the Rheinisch-Westfillische Bergwerksgesellschaft (the Rhenish-Westphalian Mining Co.) and buy up the International Boring Co. at a cost of $6,780,000 marks ($8,758,640). The fields thus acquired are being held back for the future. In addition to the old companies outside the Syndicate, the new companies to the north of the Ruhr district were the Trier and Hermann mines (Gewerkschaften) ; the Auguste Victoria mine, bought by the dye trust; the Victoria Liinen mine, owned by the Harpener Bergbau Co.; and the extensive fields of Thyssen, which along with the Deutsche Kaiser mine were not included 1n the Syndicate. A price war against these new competitors was hopeless because of their technical efficiency. The independents also had the enormous advantage that they were able to guarantee a uniform quality of coal to smelters, which the Syndicate can not do, because the Syndicate can not guarantee to deliver coal from exactly the same mine all the time. Any variation in the coal used in charging furnaces is insupportable in a large smelter guaranteeing a uniform product. In the upper Rhine district the Syndicate also is compelled to meet competition from Belgian coal, about 2,700,000 tons of which are sold here per year, and from the Aachener-Eschweiler coal, which is practically anthracite, and has a market of its own for household use and for anthracite briquets, which are widely used, especially in Switzerland. The new iron and steel Plaats of the Saar district under Thyssen and Stinnes have developed their own coking plants in this district and have founded the Saar-Mosel Bergwerksgesellschaft, which produced 11,000,000 tons in 1910. 28 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. In middle and south Germany, in the entire Elbe River Valley, English coal predominates owing to the cheap transportation afforded by the highly developed Elbe waterway. On the Hamburg coal market in 1910 the total English coal import was 4,881,000 tons, 3,200,000 tons of which belonged to the Syndicate. English coal secured a foothold in south Germany in 1906-7, when the sudden demand of the German industry wo not be supplied with Ruhr coal and the Syndicate was obliged to furnish English coal. Many industries changed their grates to burn English coal, and never went back to the Coal Syndicate. The English coal also passes directly through the Ruhr istrict on the Rhine to Mannheim and is rehandled there for Bavaria. The movement of English coal on the Rhine upstream at Emmerich was, in 1904, 125,121 tons; in 1906, 525,000 tons; in 1907, 1,658,000 tons; in 1910, 676,000 tons. The dyestuff trust has purchased a coal mine, not for the coal-tar prods but for fuel in order to assure a uniform quality and to e independent of the Syndicate. If this idea spreads, it might break up the Syndicate. The Braunkohlensyndikat.—The most important competition aside from those mentioned in connection with the Ruhr district itself is to be found in the Brown Coal Syndicate. Calculating the calories of brown coal at only one-third of those of the bituminous coal of the Ruhr district, the brown-coal production has reached 5 per cent of the entire Ruhr-coal production. The production has increased as follows: 1885, 860,000 tons; 1890, 662,000 tons; 1895, 1,682,000 tons; 1900, 5,167,000 tons; 1905, 6,181,000 tons; 1910, 13,086,000 tons. The members of the Braunkohlensyndikat are Braunkohlen & Brikettwerke Roddergrube, quota 1,100,000 tons; Rheinsche A.-G. fiir Braunkohlen-Bergbau und Brikettfabrikation, quota 1,600,000 tons. These two firms represent 63 per cent of the entire brown-coal production. The other 17 plants divide the remaining 37 per cent. There are 9 small outsiders who produce brown coal, but 6 of these sell their coal to the Syndicate. The sales organization of the Brown Coal Syndicate is called the Braunkohlen-Brikettverkaufsverein in Cologne. This selling office carries on an active advertising campaign, the words “Ilse Briketts” or “ Kaiser Briketts” confronting the eye on street cars and subway. In addition the sales office maintains a large staff of engineers who are experts in the fuel problem, who study the burning of brown coal and the new uses to which it may be put. They not only advise customers as regards the proper mechanical arrangements for burning brown coal, but go into the plants of the customers and work with them, free of charge, until the proper results have been attained. The Braunkohlenverein has purchased about 2,000,000 marks worth of new brown-coal fields; in addition, it has acquired the shares of nominally independent collieries. The Upper Silesian Coal Convention (Die Oberschlesische Kohlenkonvention).—This organization, founded in 1890, is hardly to be regarded as a competitor of the Coal Syndicate, except perhaps in a certain neutral zone where the two separate fields of activity come together. The Silesian coal is used for the large Silesian industry and the district traversed by the River Oder, which affords the necessary cheap water transportation. The Upper Silesian Coal SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 29 Convention is organized on about the same lines as the Coal Syndicate. The coal exports to Poland, Russia, Roumania, and Austria-Hungary are of great importance. Full accounts of the Silesian Coal Convention are to be found in the “ Denkschrift iiber das Kartell wesen ”’ and “ Kontradiktorische Verhandlungen.” Export competition from outsiders.—Independent concerns have not, as a rule, exported to any large extent. The Briquet Syndicate is, however, gradually extending its sales abroad. The question of distance plays such a great part in coal export that the export business is not of great importance as a profitable business and is used primarily only for dumping a surplus. Governmental discriminations.—All companies, syndicated or independent, are the same before the Unfair Competition Law, etc.,and a]l receive exactly the same freight rates on the railroads. An attempt to strangle the competitor by destroying his local market will be promptly dealt with under the Unfair-Competition Law. Can Americans successfully competef—Coal prices in Germany are sufficiently high to entice American competition. The question of the possibility of putting coal down in Germany at a price that would meet the prices of the combination is one which ond require special study. Offhand, it does not seem feasible. The Transition Syndicate—In closing I wish to call attention again to the Transition Syndicate, mentioned above, which has consolidated practically all the outsiders which have been mentioned, even including the State mines, thus Swalyising with its 85 mining firms what amounts to an absolute monopoly of the entire bituminous coal production of Germany. The Brown Coal Syndicate is still an outsider. Tapre I.-—Quotas of the Transition Syndicate in German bituminous ooal which go into effect Jan. 1, 1916, for a period of 1} years. {The new firms which have joined the Syndicate are demlgnated with an asterisk (°), Quotas in 1,000 tons.] AOL crap LEE EC TR EERE Aplerbecker A. V. {. Bergban (Margaretha) c.ccceeveene. Arenberg’sth@ A, @ ....... -ciciiieeveanrascsennie ae Arenberg-Fortse zur . Auguste-Vietoria. .e 3lankenburg......... .. te seenann Boch. gee AcQ oe iiiiiiiiiisireiiii enna Boch. Verein fiir Bergbau u. Gussstahl fab. A.-G....... Borussia & Oespel..- Cre Jrassert....... « 3uderus... Caroline... ..... . Carolus Magnus ARERR Concordia. .... THR ev eae Consolidation,..... ver ae Constantin der Grosse.. teteonsoenea-Dahlbusch Bergw. A.-G _ cmecsscescssen Deutscher Kaiser. .oooveemvrriiciiaaeecenenrannonn: « Deutseh-Luxemburgische B.u. H. A. G.... » Djergardt. on Dorstfeld. we “6seh......... re nL v, REGIE sssener Steinkohlenbergwerk...ceesececeneecccecsconnns SHEL oi mewn pron iis semen sen. 9 Frerie Vogel & Un Coal. Coke. Briquettes. Allowed smelter mines. 875 350 2.243 700 22. 100 25( no reesesiy v3 23.4 50 “00 #0 ‘0 4 £00 951.8 762.8 210 650 + £35.5 750 up £50 200 395.9 [ouuen. .-2,449 Yh 45 ¢ 4 100 | wrangiy da RE i ae 710 2 031 we 008 811... 30 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TanLe I.—Quotas of the Transition Syndicate in German bituminous coal which go into effect Jan. 1, 1916, for a period of 1} years—Continued. 27. Friedr. Krupp, P-V ¢ SON re SR SEERA 28. Friedr. der Grosse...- feasseescesencasas 29, Friedr. Ernesting...c----ui-eeees tesisessemeennes #30, Friedr. Heinrich....cceccacacaarcccsss [F—— 21. Fréhl. Morgensonne. . - AR HO 22. First Loner 5 non TSR wea *, Gelsenk. Bergwerksges...oc.cccecceeaans — . Georgs-Marien-Bergw. u. Hilitenverien... crrvin (Gottessegen...- Sa Graf Beust..... ARERR raf Bismarck... + raf Schwerin.........-- suvsameenvme 1 utehoffnungshiitte.. EAT Sea. ‘er. Hammerthal.......... RE ‘arpener Bergbau A.-G .... ver einrich..c.cvevannens - slene und Amalie... vevesassesnsacansennar OrMANM. caceenss OR ibernia. ... J acobl...ieearceeirncarnas cresesensessssncioanaor 2hann Deimelsberg... mn shannessegen.. ... wan ‘Oln-Neuessen..- - .-_Onig Ludwig... sesaecasn ~0nig Wilhelm......- preeeewenwe Konigin Elisabeth....ceeecoceieanauaaenncin coaacennnn Konigl. Bergwerksdirektion Recklinghausen............ Konigsborn....e---- .-- rRNA RES Langenbrahm.... Fn >. Lohberg...... 1 , Lothringen..... sresmeeas , Aumetz-Friede........ mmm mm , Magdb, Bergw. AG. eoeoceerncoinnnsionaaaenocaasaane Mansfeld’sche Kupferschiefer bauende Gewerkschalt ... . Mathias Stinnes........- we Minister Achenbach Mont Cenis.......- 4 Miilh. B.-Verein.. vuecsesmsmemesearr Neumlhl...coceeeosessacossscns saneesemeasnns #R, Ver. Neu-Scholerpad & Hobeisen...... — ¢’. Phonix.......- ARE RRS SEAR Sh “, PheinI........ A, . rhein. Stahlwerke A.-u agus * Rheinpreussen. - [RE Sachsen.....- SRE Siebenplaneten......c..ccac... nS Schiirbank und Charlottenburg... ‘en TOULODUTER. cceesvacnarranssscsrescansssanssssscocanrse Ver. Trappe.. ERE ATR EARS AS Triofcocepoenss re ee Unser Fritz... -<rvcee p—-Victorif...oeevonnas Fne rye . Victoria-Lilnen....ece.--- seeransenas Mn, Viet. Mathias. ..ceeceeceaneene: po, “1, Ver. WelheiM..ceeeeroroasoorr--arncecsnsvocsasances our £2, de Wendel ....... re cesscesssececnsenens v3. Westfalen. ........cceec seven nar 4, Wilhelm. Mevissen...- .. . RS. Zollverein. - Total production. ......cocccoe:concaneenas Former production of the Coal Syndicate Co...ceves Coal. Cokes. Briquettes. Allowed smelter mines. M5 enn. 2,902 1,189.9 ee 173.5 £ a. 581.9 142 i Jo 2.99.7 | 1,826", 26 2,085 #00 1000... 470 uo lee... 85 eeenenans 596 » RO 2,326.6 evans 836.5 eee vnarenn 2,116.6 ae’, 1,638 7,788.8 HE eens BI weer sngyae mnnsorgars <eiwvaiEEe 1,015 37, wo 700 | 300 feeinnrnne coerennn 5.813 1,512 8 ens 200 errtane evans 31 [1 SS 180 30 _oilliiill 1,971.8 LL 1,434.3 Se. "138.1 rm mgmpsmenn ARETE 1300 2ié) 200 5,500 — 0124.8 726.7 700 214.8 1,655.3 380 167.2 1,729 £00 295 1,380 1,650 210 3,100 ER YT eo ee TTT 000 361 Jo 763 7, $173 id) Ty 400 705 |... TE 3. | ih wrennnenn 80 epsennanen 180°1..200000 rt ree riers Sas 25,171 &.419 | 21,243 19, 181 4,867 19,021 9 20 00 150 aR 00 | 138.6 700 300 | 850.2 108, 720.2 88. 683.2 THE COMBINES IN PIG IRON. Name, location, and preliminary remarks—The most important combination for pig iron is the Roheisenverband G. m. b. H. Essen a. d. Ruhr (The be Iron Union). This union of smelters controls most of the commercial pig iron of the great Rhenish Westphalian industrial district. There aré, however, the following combines which are more a completion or supplement to the pig-iron union than competition. These are: SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 31 Siegerlinder Eisenstein Syndikat, which syndicates the products of the mines of the Siegerlinder district, which, owing to their peculiar quality—high percentage of phosphorous—are in a class by themselves. ~The Siegerlinder Syndicate has a contract with the Vile Oberschlesischer Hiitten, which unites the syndicated mines of the upper Silesian industrial district. Schrottvereinigung: This is a scrap iron syndicate formed to prevent overbidding in the purchase of scrap iron. The members are Die Dortmunder Handelsgesellschaft fiir Bergwerks- und Hiittenprodukte; Hermann Tigler G. m. b. H., Oberhausen; M. Cosmann, W. Salomon in Essen ; Lob & Klucken, Duisburg ; Mackmann & Moll, Gelsenkirchen; Reinbard & Breuer, Gelsenkirchen. Ostdeutsches Roheisen Syndikat for the pig iron production of sast Germany. Rheinisch-Westfilische Schweisseisen Vereinigung for the syndication of malleable iron. ’ The history of the pig-iron combinations in Germany shows the same grouping and regrouping which has been noted in other branches. ‘The Roheisen Syndikat (Pig Iron Syndicate) Diisseldorf, which was founded in 1897 and broke up in 1908, was composed of the Rhenish- Westphalian Pig Iron Syndicate, founded in 1873 with about 20 furnaces; also the Union for the Sale of Siegerlinder Pig Iron, in Siegen, which was founded in 1882 for the syndication of the iron of that district; and, thirdly, the Lorraine-Luxemburg Office for the Sale of Pig Iron, in Luxemburg, called the Lothringisch-Luxemburgisches Kontor fiir den Verkauf von Roheisen, composed of nine works situated in Lorraine, Alsace, and the Saar district, was founded in 1879. The Diisseldorf Syndicate also intluded the Thomas-Roheisen verkaufsstelle in Diisseldorf, founded in 1891. As mentioned, all these united syndicates, which were known as the Roheisen Syndikat in Diisseldorf, dissolved in 1908. None of the combinations had ever succeeded in uniting all the iron smelters in Germany. Various strong outsiders, such as the Hasper Kraftwerk and Litbecker Hochéfen, controlled by Graf Henckel von Donnersmarck, and several strong outsiders of the Luxemburg district, such as Gebriider Stumm, remained outside and kept the various syndicates unstable. Out of 106 works, with 884 furnaces in Germany, 12 works, with 84 furnaces, were free Tances. The economic depression of 1908 brought a decrease in the annual output of 1,232,000 tons, or 9.4 per cent. All previous organizations went to pieces on the 31st of December of that year. In November, 1908, the prices for next year’s deliveries sank for hematite 75 to 56 marks ($17.85 to $13.33) ; for No. III, 69 to 53 marks ($16.42 to $12.61) ; for Luxemburg iron, 52 to 43 marks ($12.37 to $10.23). Six weeks after the dissolution of the old rings the present Roheisenverband-Essen was organized, which- leaves as outsiders only the Norddeutsche Hiitte, Bremen, Oberscheldener Hochofenwerke, Siegerlinder Hochofenwerke, and the group of the Luxemburger Hiittenwerke, except the Deutsch-Luxemburgische Hiitten A.-G. Even the large smelting interests of Graf Honokel von Donnersmarck joined the combine. Organization—The Pig Iron Union, Essen, is organized on ractically the same lines as the Steel Works Union and the Coal ie Co. The organization may be terminated by two-thirds vote of the members should a competition of crude iron arise amount. 32 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ting to 2} per cent of the entire production of the Pig Iron Union. This means that the syndicate might crumble to pieces, should an independent smelter arise having an annual production of 84,000 tons. Products —Products handled are pig iron, gray iron, malleable iron spiegel. Extent of monopoly of the home market—The Pig Iron Union controls about 97 per cent of its line in the German market. Extent of monopoly of exports—The Pig Iron Union controls about 97 per cent of all crude iron exports. Selling methods at home—Pig iron is marketed by the Pig Iron Union through dealers’ unions, of which there are five, dividing the Germany-Luxemburyg territory into five parts, almost exactly the same as we have seen in Bs case of steel and coal. Selling methods abroad.—The Pig Iron Union has fixed the quotas of the members for export, so as to prevent unnecessary dumping. The union follows the same lines as those set down by the Steel Works Union. Character of competition.~In iron as in coal the Duy dais of the various mines vary. Large foundries therefore are desirous always of having their pig and spiegel from the same smelters and mines in order to have as nearly as possible a uniform raw material. About 20 per cent: of the entire crude-iron production of Germany goes into castings. Selling methods therefore are not so much price or quality as the supplying of a uniform product to the customers of the union. Price, Swi) is an important factor and is influenced to a marked extent by foreign competition in connection with transportation facilities. For instance, the Graf Henckel von Donnersmarck smelters and steel plants in Stettin and Liibeck were located at those points with the express purpose of profiting by cheap water transportation for coal from England and ores from Swan The price abroad for coal and ore plus transportation is always a determining factor in the iron prices at home. Central selling organization.—Pig Iron Union, Essen, is itself a central selling company. Terms of sale and delivery —As is the case for coal and iron and potash and other bulk material, the terms of payment are cash before the 15th of the following month after delivery. Dumping. —Dumping is a factor as in the case of coal and steel. To compensate for dumping, the union pays a refund of 4.50 to 4.75 marks Yst.o7 to $1.13) per ton for all exports. This also applies to finished cast iron such as radiators, stoves, and hundreds of others for which the iron was purchased from the Pig Iron Union. Special relations to the home government.—The relations to the home government are friendly; the German Government tries to encourage big business, but at the same time protect workingmen, the public, and smaller firms from exploitation. Relations to other business interests at home.—These relations are close, inasmuch as the great mixed firms, who mine ore and coal and smelt them and make steel, are in all the syndicates controlling these various products. The link between the coal and the iron syndicate is formed by the so-called smelter mines (Hiittenzechen). This close interrelation has been explained under coal and steel, iron being only one step in the process. The Pig Iron Syndicate really has im- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 33 portance only in the distribution of crude iron to foundries and other industrial plants outside of the great syndicated steel mills. The results attained by combination.—A regulation of production to meet the demands in the market without exceeding it; reduction of the cost of selling; the maintenance of a price which enables the members to make a reasonable profit, the health of the entire economic life being dependent upon the healthful existence of many industrial plants, which is only possible when such plants receive an ample reward for their efforts and risk. Dutsiders—No smelters are excluded. Any furnace which is desirous to join the syndicate can do so at any time. Norddeutsche Hiitte, Bremen, Oberscheldener Hochofenwerke, Siegerlinder Hochofenwerke, and the group of the Luxemburger Hiittenwerke, except Deutsch-Luxemburgische Hiitten A.-G. are concerns that are not members of the syndicate. Export competition from the outsiders is of no importance. There are no governmental discriminations between members-of the syndicate and others. Tre Porasa INDUSTRY, Name and location of syndicate—The German potash industry is controlled absolutely by one organization, the Kali-Syndikat (Potash Syndicate), the main office of which is Tocated in Berlin, Dessauerstrasse 28. Organization.—The German Potash Syndicate is the ultimate development of a series of experiments in the organization of the potash industry, which began as early as 1865, when mining was declared free in Prussia in an effort to combat selling difficulties and overproduction which at that time obtained in the totally unorganized industry. From 1865 until 1879 the attempts at organization of the industry were only indifferently successful, but in this year, 1879, an agreement fixing the total amount of production, designating the participating mines and the amounts to be contracted for by each, regulating prices and terms of payment, was entered into by most of the then existing mines. This convention, although loosely formed, and in many respects one-sided, is easily recognized as the precursor of the present strongly centralized combination. i Again, in 1904, in an effort to make conditions still more favorable, a new treaty was concluded by the potash mines regulating production and sale until June 30, 1909. This treaty fulfilled its object during this period, but at its expiration another treaty was not immediately agreed upon on account of controversies which had arisen between the mines. Thereupon several potash works, notably the Aschersleben, Sollstedt, and Binigheit mines, took advantage of their freedom to conclude independent long-term contracts with potash importers of the United tari and upon the formation of a new syndicate, organized as a limited liability company by the potash mines of Germany, these three works combined to form an independent “ rump fndjuste, The resulting. competition brought danger to the entire German potash industry, and it was only through ear that a prohibitive export tariff would be placed on potash that the “ rump ” syndicate was brought to terms and agreed to combine with all of the German potash mines in forming an entirely new syndicate. Th is was brought about the organization of the Potash Syn-27941°—pr 2—18——p 34 REPORT ON COOPERATION IN AMERICAN ‘EXPORT TRADE. dicate in its present form by “ Das Reichskaligesetz” (the Imperial potash law) of May 25, 1910. In the fcrmation of this new syndicate the results aimed at were the fixing of the total amount of production, the limitation of the quantity and selling price of the export potash, the prevention of destructive competition and thus the protection of the workmen, and the imposition of conditions intended to discourage the founding of too many new works. By reason of its absolute ownership of some of the mines and its ownership of the majority of the stock of others the German Government is the principal stockholder in the present Potash Syndicate and is able to exercise almost absolute control. By the new law the potash mines were organized under German laws into a combination which took the legal form of “ Gesellschaft mit beschrinkter Haftung” (limited-liability company). This kind of company partakes of several of the essential features of a stock corporation and of a partnership. It is well adapted to cartel or syndicate purposes. There are no restrictions as to residence and nationality of the members of such a company, and they may be either natural or juristic persons. It is therefore possible for any number of undertakings existing in various forms to organize such a limited company. A company so formed can act as a central office for receiving and allotting orders to its members, receiving payment, regulating prices, and issuing dividends. Balance sheets do not have to be published, and the resolutions of members may be made either in general or in special meetings, or, if unanimous, may be made without any meeting at all by simply being put in writing and signed by all the members. The company is a juristic person and is represented by one or more managers. The shareholders’ liability is limited. Contributions to stock may be made either in kind or in securities. The construction of the company can be altered to suit almost any conceivable case. Under such an elastic legal form as the above, then, the present potash combination was organized. The most noticeable feature of the potash law is the great power given to the German Government, which will be seen from its provisions as summarized below. Measures were taken for the regulation of thé production of potash salts until December 81, 1925. For this purpose a Verteilungsstelle (distributing committee) consisting of seven members, the chairman and two members of which are appointed by the chancellor of the Empire, with the approval of the Bundesrat, and the rest of whom are elected by the mine owners, was instituted. This Verteilungsstelle has the authority to regulate every fifth year the total amount of production, the amount for inland sale, and the amount to be exported for a period of five years. It has also the power to decide how much potash each mine may produce, how much each mine may export, to designate the export mines, which are usually those near the seacoast, and to determine what quality of salts shall be produced by each mine. From the decisions of the Verteilungsstelle appeal may be taken to a Berufungskommission (commission of appeal), consisting of five members who are appointed by the’ chancellor of the Empire, with the approval of the Bundesrat. Adequate punishment, in the form of fines up to 10,000 marks, is provided by the law for infraction of its provisions. A maximum price is set for the inland sale, and the price at the mines for the foreign sale may SPECIAL REPORTS FOR FEDERAL TBADE COMMISSION, 35 not be lower than the price for the inland sale. Further, there are provisions concerning the amount of production by works which may subsequently be received into the syndicate. These provisions, however, intended to discourage the establishment of too many mines, did not prove entirely satisfactory, for the number of syndicated mines increased from 45 in 1910 to 75 in 1911, to 94 in 1912, and to 134 in 1913. In January, 1913, an amendment to the potash law, making the conditions attending the establishment of new works still more difficult, was passed by the influence of the Government, but this amendment, too, seems not to have completely fulfilled its object, as the number of potash mines in the syndicate at present is 200, which includes every potash mine in Germany. The apportionments by the Verteilungsstelle to the various mines of the amounts which they may produce, and the decisions in regard to interpretation of contracts, terms of delivery and sale, etc., by the Verteilungsstelle and the Berufungskommission, are executed by two general directors who constitute the central management of the syndicate. The present general directors of the Potash Syndicate are Dr. Schiiddekopf and Dr. Forthmann, who have their offices at the headquarters of the syndicate in Berlin. As previously stated, the Potash Syndicate at present comprises 200 mines. A complete list of these mines is not available. The last published list,' however, giving the names of the mines and the quota of production assigned to each on January 1, 1911, includes the 76 mines which were then existing and which are at present generally the most important mines of the syndicate. An exposition of the potash law in detail, such as can not be given in a report of this nature, will be found clearly set forth in the book “ Kartelle des Bergbaues,” pages 157-234.2 Further useful information is embodied in the annual report of the Berlin consulate general for 1911 and in the report of February 11, 1914, on “Potash shipments during 1914.” Two further reports from the Berlin consulate general, one of September 29, 1914, “Shipments of potash from Germany to the United States,” and one of March 10, 1915, “ Unfavorable outlook of the German potash industry for 1915,” contain more recent information showing the effect of the war upon some phases of the industry. Foreign markets.—The German potash industry, by reason of the fact that it is a natural as well as an economic monopoly, operates in practically all of the markets of the world. Not much attention was paid to the organization of a selling propaganda in foreign markets until the last decade of the nineteenth century. This was due, probably, to the fact that the industry had not before that time possessed a sufficiently centralized management. However, in 1893, an official representative was sent to New York, and in 1897 another to Paris. In the year 1907 the propaganda department of the syndicate consisted of 41 bureaus with 92 officials. Further attempts since that time have been made, both in Germany and in foreign countries, through advertising, expositions, and experimental stations to bring to public notice the products of the industry. - er ———————————— 1 Schoen ..aann, Josef, “ Die deutsche Kali-Industrie u. d. Kaligesetz,” Hannover: Hahn, 1911 (VIII, 1562 8). Passow, Richard, * Kartelle d. Berghaues.” Leipzig u. Berlin: B. G. Teubner, 1911. (VI, 328 8.) Materialien f. d. wirtschaftswissenschaftl. Studivm Bd. 1. 36 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. By far the most important foreign market is the United States, to which approximately one-half of the total exports go. The following table, obtained from the Potash Syndicate, shows the total production, in metric tons, of potash salts in Germany for the years 1910 to 1913, inclusive, and the total quantity of potash exported to the United States in these yvears.t Total production.........cse--Export to United States.. 1010 , 125,138 J 034.049 1911 *,876,837 1,072, 558 1912 | ne 1,721,551 815, 562 2,262, 042 1.147.623 Next to the United States in order of importance as foreign markets, Jortly because of their availability as reshipping centers, are the Netherlands, Austria-Hungary, Russia, France, and Sweden. Below are given the exports in metric tons from 1912 (the first year in which official export statistics are available for potash as now classified) to the first six months of 1914. TasLy I1.—Ezports of potash from an ny, 1912, 1918, and first siz months, [Tn metric tons.) Baie with at least 0 and not less than 12 per cent Ka0: 0 Ll ya Netherlands. Total eXpOortS...eceecemeeneeaansr Raw salts with 12 to 15 per cent KO: To— Belgium... - Jenmark.. France. ...ccoearr- sarressaavse- Ln sw —— Great Britain... Inepegveeevea Hay A sha Netherlands... - cameeser NOIWAY..ccvrarevmnee- FEvhirser Essense Austria-Hungary... Hevea eer. RUSSIB.eiacennasc cranes Finland.....cceeeeceee-- pre IWEdeN..c.ccneencsncasanece-- = nserreasenarssannsane Switzerland... seeencenans mn cemenans United States.. seessscssevenas Total @XPOrtS.cuecceesseasconescaasssacscasssnssesancccer Say; with more than 15 to 19.9 per cent K10: \o— United States..- . Total @XPOTES «eueurreranoennreszaceanerrocsusnsaneeecmans P+ ~tilizer salts, including potash fertilizer, with 38 per cent K20: Ta roo re. Sw Belgium.....---Denmark... France. ......casesssec-Great Britaln.eececeeceacaanres. Netherlands......----Aus UNEALYeeeonex RSI ns BT Sweden.....oe-----Switzerland....... United States....--Total exports. rod ssEsIwe. ‘seemrecsaccsacsscsscaconr —ab mae teen 1913 358 137 519 54,746 9,515 71,458 £8,427 8,070 171,462 17,842 84, 806 35,664 7,402 31,047 6,882 £,309 2541, 261 | 124’ 815 5,473 11,202 19.686 1,845 18,5697 | 312 2,818 31,9015 2,377 38, 761 17,448 fa’ 80] 6,41: 216, 820 460 £8 1912 539 2,120 6 852 43,363 4,707 48,322 | $7,299 7,169 135,140 11,864 19,321 30,261 3,647 2, 159 8,467 4,325 386, 231 R53) 117 3,398 29, 533 35. 529 5,193 8,550 3,431 12,736 34, 551 2,482 37,924 *= 952 2, 23¢ "14 £°,90¢ 73. 38/ 11014 11918 181 45 233 858 80 479 41,358 2,545 45,841 18,520 2,593 75,608 12,700 25,915 7,447 1,710 §,308 3,009 2,397 185, 848 476.914 10,033 3,384 42,223 6,687 2,805 75, 903 14,605 23, 7684 19,816 3,144 12,208 3,454 4,002 255,140 510,981 2,380 3,441 6.603 3,304 13,239 18’ 149 21 5 1,845 8,812 12,670 18, 860 2,124 24,678 28,517 13,404 4,820 73, 510 221° 833 8,663 20,595 2,605 28,462 29,498 | 250 499 65¢ 3.713 1 First 6 months. . Products.—The products of the potash mines are divided by the potash law of 1910 into three classes. The first class includes all the 1 For additional statistics of the potash industry see Production et Consommation des Engrais chimiques dans le Monde, Institut International d’Agricultnre, Rome, 1914, and the report of the Federal Trade Commission on the Fertilizer Industry. SPECIAL REPQRTS FOR FEDERAL TRADE COMMISSION. 317 minerals containing potash produced by the syndicated mines, and all of the raw potash salts containing various percentages of K,O. The second class comprises chloride of potash, sulphate of potash, sulphate of potassium magnesium, the so-called fertilizer salts, as well as all other potash-containing products which are produced directly from the raw potash salts, and the potash-containing residue of these products. Under class 8 are placed the mixtures of raw and elk salts, and their manufactures. All of these salts are required by the central committee to conform to certain standards as to purity and percentage of potassium oxide (K,0). The salts which are most important in the foreign trade can be seen from the above table of exports. A comparison of the potash produced in Germany with that produced in other countries is quite useless, since potash is found in appreciable quantities nowhere in the world, except in Germany, in a free mineral state, favorable to the easy production of salts. . Ewtent of monopoly.—The Potash Syndicate handles all the potash produced and sold in Germany, as well as all the export of potash from Germany. Selling methods at home.—The marketing of potash in Germany is managed through agents of the syndicate in various parts of the Empire on a commission basis. These agents have to do with the central management of the syndicate, not with individual potash firms, although each mine delivers direct to the purchaser the orders given to it by the Verteilungsstelle. Selling methods abroad.—In exporting its goods to foreign markets the syndicate uses resident agents, who are placed in the largest foreign cities and import centers. The American representative % the Potash Syndicate is Mr. A. Vogel, 43 Broadway, New York ity. Terms of sale and delivery.—For orders which are given before the 15th of the month, payment must be made by the 1st of the following month. For orders which are given after the 15th of the month, payment must be made by the 15th of the following month. One and a half per cent discount is allowed for orders f. 0, b. mine. Dumping.—What is known as “ dumping,” or selling at or below the cost in foreign markets, is forbidden by law to the Potash Syndicate. By reason of its natural monopoly, such underselling is, of course, not necessary. Special relations.—The principal stockholder of the Potash Syndicate is the German Government. The syndicate is, therefore, under close supervision and controlled by the Government. Such preferential treatment as the giving of export bounties, lower freight rates, or assistance in foreign markets 1s unnecessary on account of the natural monopoly in potash which Germany possesses. The results attained by combination.—The Potash Syndicate absolutely controls its domestic and foreign market. Through its almost unlimited power, overproduction is prevented and transportation and marketing difficulties are obviated. “The results which the-syndicate has accomplished, although in greatest part attributable to its natural monopoly, are in some part at least due to combination and central control. No exclusion of producers—The Potash Syndicate does not exclude any producers of potash in Germany. On the contrary, it seeks 38 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. to include them all, although, as stated before, it does not encourage the indiscriminate organization of new mines. A new factory is not compelled by law to join the syndicate, but the advantages of belonging to it are so evident that none remains long outside. All potash factories'in Germany are at present members of the syndicate. Tae CarTELS OF THE GERMAN PorTr.AND CEMENT INDUSTRY. Names, location, and preliminary remarks—The German cement manufacturers in various parts of Germany are organized in eight different groups as follows: Stettin, Silesia, Berlin, Middle German, Lower Elbe, Hanoverian, Rhenish-Westphalian, and South German groups. The location of the principal offices of the Stettin, Berlin, and Hanoverian groups are at the respective cities from which the group takes its name. The principal office of the Middle German ‘ement Works is at Halle. The Rhenish Westphalian Cement Syndicate has its principal office at Beckum. The location of the South German group is at Heidelberg, with agencies at Frankfort on the Main, Metz, Munich, Stuttgart, and Wirzburg. The names of the firms composing these groups will be found attached (p. 46). Organization.—The conditions in the German cement industry were particularly favorable for the formation of cartels. The number of factories in the various groups is not large and the production is largely centralized in the hands of the great Aktiengesellschaften. The first cartel in the German cement industry was only a loose price convention. It had all of the faults which such organizations generally possess, and consequently was of very little commercial value. It did not exist very long because it could not improve the unsatisfactory conditions existing in the industry. The Union of Silesian Portland Cement Manufacturers (Der Verband Schlesischer Zement-Fabriken), which was first organized in 1893 for a period of 10 years, and then was extended and still exists to-day, was the first higher developed cartel which had for its object the regulation of sale, prices, and production. It was organized with a central selling office, a general convention, a president and two confidential men, as well as assistants for the latter. The president was chosen from the number of companies belonging to.the syndicate. The general convention performed the te duties: It formulated instructions for the selling agency, especially as to standards and fixed selling prices, new improvements, and formed connection with other groups of manufacturers, considered ideas for lowering the cost of production, fixed the maximum credit to be given to purchasers, and attempted to improve and develop favorable export regulations. Each factory had a definite number of votes in directing the management. In case offenses were committed by particular members; their cases were decided before .a court composed of three members and one of the substitutes. The ‘confidential manager kept and revised the books and business negotiations of the association and the selling agency. The central selling agency sold products in the name of the various works. When an order was taken for a customer, the firm which was to furnish the goods approved and guaranteed the order. Payments were made direct to the manufacturer. Small purchases, up to 10 barrels, were permitted directly to consumers at prices fixed by the selling agents. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 39 The amount of participation of each factory was fixed when the company entered the union, so that the amount furnished would be in proportion to the capacity of the factory and the total sale. At the close of the year the average price of various manufacturers was considered together and from it.a total average price was reckned. The factories whose prices were above the average price fixed had to pay the difference to the cashier of the association. The Union of South German Portland Cement Manufacturers was organized soon after the Silesian association came into existence in the year 1893. It covered the following districts: Bavaria, Wiirttemberg, Baden, Hessen, Alsace-Lorraine, Hohenzollern, Luxemburg, Birkenfeld, and a part of the Prussian Government districts of Trier, Koblenz, Wiesbaden, and Kassel, which were south of the railroad ines Trier, Koblenz, Wetzlar, and Fulda, extending to the edge of the Bavarian border. This union had no such completed form of operation and management as the Silesian. The total production of various works was reckoned together annually, whereby the pro-Juction of a particular factory for the foregoing year was used as a oasis to reckon its production for the following year. The total of the amounts so reckoned formed a standard producing capacity, which at the general meeting was increased or decreased on a perrentage basis, for all works, having due regard, of course, for the existing condition of the market. Sales were made by the manufaeturers themselves, who were obliged to observe minimum prices and iefinite sales conditions. Sales were watched over by a controlling reckoning board, which monthly must reckon the total production of the district. It attempted then to equalize the excess of orders, which were then given to the werks which had a less demand upon them. If a natural equalization was not possible, then an equalization was made by money. If higher prices were charged than those fixed, the difference must be paid to the reckoning board. Besides the reckoning board the principal organ of the union was an advisory board, which audited the business books and negotiated trade agreements. There was also a general assembly or general meeting. For settlement of disputes or differences of opinion the same regulations existed as for the Silesian Association of Manufacturers. The South German association existed in this form up to the year 1903. At that time a crisis developed, which showed the form of organization to be weak in many particulars. Its weakness lay principally in the annual reckoning plan for the works participating and also in the fact that the sale of each factory was managed for itself and not by a central selling agency. For these and various other reasons a cartel of a better form was necessary. The South German Cement Selling Agency, Limited (Die Siiddeutsche Cement verkaufsstelle G. m. b. H.), a new organization with offices at Heidelberg, came into existence. It covered the same district as the former South German Union. Besides a general selling organization, the cartel purposes the buying up and esjahlishing of plants manufacturing hydraulic binder. The company bought the cement from the works and then sold it to the customers. No member could sell to any other organization besides the selling agents. It was managed by a principal agency, selling agencies, a board of directors, and a general meeting of 40 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. the members. The principal agency had charge of the general sales and purchases, and was conducted by two managers. Selling agencies were established in Blaubeuren, Heidelberg, with a branch at Frankfort on the Main, Metz, Munich, Stuttgart, and Wiirzburg. These agencies made sales, but always under the direction of the principal agency. The company managed its business on its own account and under its own name. It had to pay to the various works for cement furnished whatever it was able to pay. All works sold k o. b. the place of shipment and the price was fixed accordingly. or poor goods the works had to make good the company’s damage. A monthly price list was established. The company furnished weekly reports concerning market conditions and monthly information and accounts concerning total shipments. The total profits of the companies were distributed prearding to the works participating in the organization. Each member had for every 1,000 barrels whic it furnished to the total contingent of the company 100 marks of capital stock. Retail sales can be made by the factories themselves, yet they must give the total amount made in this way monthly to the association. A voluntary transfer of order to other members of the company can take place with the agreement of the board of directors. At the close of the year differences are equalized by money payments. The board of directors is composed of seven members, and is charged to watch over the general management of the business. The general meeting of the company decides upon the fixed prices, suggested by the board of directors, and decides upon agreements with other unions and the principal points concerning the establishment of branch selling agencies. In general the functions of the board of directors and the general meeting of members are regulated by the legal form of the union, which is a general liability company. If a factory goes into the hands of another person the new possesor must also be a member of the company. Damuges on account of punishments are to be paid to the cashier of the sompany. } . The Rhenish-Westphalian Cement Syndicate (Rheinisch-Westfilisches Cement Syndikat) was organized in 1904 on a similar basis to the South German Union. It also took the form of a limited liability company (G. m. b. H.). Its purposes were in general the same. The business was conducted through one or more managers, a board of directors, and the company’s meetings. The company purchased the products in its own name and paid for the cement a prearranged price, which was the same for all works. The profits of the company were divided according to the participation of the various works. To every 2,000 barrels of cement furnished to the total contingent, a company would receive 100 marks capital. Retail sales were regulated in the same way as in South Germany. The board of directors were composed of 9 to 15 members. Their powers and duties as well as those of the general meeting were approximately the same as in the case of the South German Company. The Hanoverian Selling Association, which was established in the Lg 1905, resembles the Silesian organization more than any other. t is also a free association, composed and managed by a selling agency, the president of the association, two aH members, each having an assistant, and a general meeting. The selling regulations are the same as those of AN Silesian Union with the exception SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 41 that questions’ of price can be settled directly by a factory, in case it has not yet sold 60 per cent of the product which it 1s fo furnish to the association. The participation figures are based on the domestic sales of the period from July 1, 1903, to June 30, 1904. If the sale of a factory is greater or smaller than the amount of the portion in the total contingent, the extra sales are apportioned to them on a plus or minus basis. Tf the demand is larger than the usual production of a factory, the factory can increase its production or can buy the product of another factory of the association. Money equalizations are made according to production at the close of the year. Works which show a higher average price than the total average price of the association have to pay the difference to those members of the company with prices less than the total average price. The regulations concerning the directors, confidential men, assistants, and cost of the union, are exactly the same as those of the Silesian organization, except that each factory has only one vote at the general meeting, and as a security each factory must deposit 10 bank drafts of 1,000 marks each. The Selling Union of the Middle German Cement Works, which was established at the close of the year 1904 in the form of 4 limited liability company, was a cartel of a higher order of the same kind as the Rhenish-Westphalian and South German Works. The North-West-Middle German Cement Syndicate, founded at Hanover at the end of 1900, was just as highly developed but in a totally different form. This organization was in the form of a stock company (Aktien-Gesellschaft). The factories united themselves into a Lobos owners’ union, which closed an agreement with the syndicate (probably Rhenish-Westphalian), The controlling elements of this organization were the president, the board of directors, the general meeting, the union of factory oprietors and advisory board, and a commission for the fixing Sl of participation figures. The board and commission last mentioned were chosen by the association of factory owners: The participation figures can be regulated by these on a percentage basis and can be changed after the estimates have been om by the commission. The sales are conducted by the organization in its own name and on its own account, and it must guarantee to sell the quota apportioned to each plant. The participation figures are not relative numbers, but are definite amounts. In other ways, this organization resembles the cartels previously described. Agreements between groups—After the cartels of the German cement industry have been considered, the agreements of combines belonging to particular German groups must be studied. The highest developed of these is the agreement between the Rhenish-Westphalian and the Hanoverian Syndicate of 1905. In this agreement it was provided that each organization could only furnish fixed amounts of the manufactured products tn the district of the other. These amounts are fixed by a sworn accountant. Certain amounts were equalized. The prices and selling conditions of each union in their districts were respected. In case of difficulty an arbitration tribunal decided the amount of the fine. 42 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The agreement between the Rhenish-Westphalian and the Middle-German Syndicate of 1904 was established on approximately the same lines as those above described, except that sales and prices were otherwise regulated. As a basis the sales of both contracting parties were regulated on the amount sold in the other’s district in the year 1903. The sales of the Middle-German in the Rhenish-Westphalian territory was subtracted from the sales of the Rhenish-Westphalian Syndicate in the Middle-German territory, and the remainder was taken as a total, according to which the syndicate could participate in sales made in the district of the Middle-German Selling Union, which also looked after the sales made in this territory. On the other hand, the Middle-German association could sell no cement in Rhenish-Westphalian territory. The average price for such sales as were permitted was the average price for the gear 1903 of the goods which the Rhenish-Westphalian Syndicate sold in middle Germany. A similar regulation of trade was reached between the Rhenish-Westphalian Syndicate and the South German Selling Agency. According to this agreement the Rhenish-Westphalian Syndicate accepted, on behalf of its companies, a definite participation figure, which was to cover the total shipments of the syndicates into this district. Beyond this neither union sold in the district of the other. The South German Selling Agency received a vote on the board of directors of the syndicate and a voting right in the general meeting, in proportion to its quotas. The president of the syndicate has also an advisory vote at the meetings of the board of directors of the selling agency. Approximately the same regulations we find in the agreement between the South German Selling Union and the Rhenish-Westphalian and the Belgian syndicates. Both German associations are given a definite selling figure to the Belgian syndicate, which must treat them exactly like its own members. For sales in Holland, which has no cement production of its own, the three syndicates established a trading company, called the United German-Belgian Cement Works, which looked after the sales in this district on a definite percentage basis. It is to be concluded from the above that the growth of the German cement industry and the development of the syndicates and cartels within that industry and the agreement between these organizations can not be separated, because as a whole the organized development of cement manufacturers has not only caused them to prosper at home but assisted in their sales abroad. Foreign markets—In recent years the German cement industry has not only been able to supply the local market, but has exported considerable quantities to foreign countries. The only years that the imports exceeded the exports were 1900 and 1901, when a crisis in the local industry occurred. The German industry first met cometition in the Fa lish products, but finally drove them from the Aan market. rein goods have found good selling districts in Russia, Austria-Hungary, Switzerland, Belgium, Holland, the Scandinavian countries, and in over-sea districts. | Products—The present products are very much of the same form and have become standardized. The standards were formulated by the Union of German Portland Cement Manufacturers (Verband der Portland Zement Fabrikanten) and have since been considerably SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 43 extended. The resources and the labor of the various districts, as far as raw materials are concerned, do not vary materially, consequently the manufactured products are very much the same. Large Portland cement manufacturers of Germany, and particularly the syndicates through their selling agencies, have always been interested in improving their standards and the manufacturing apparatus through scientific investigation and experiments. The Union of German Portland Cement Manufacturers at Berlin, to which nearly all the German factories belong, has established fixed standards and has carried on chemical investigations which have had an important and permanent result for the German industry. All factories belonging to this union are obliged to have their products come up to the minimum of these standards. Most of the works not only fulfill the minimum requirements, but also go much further. For this reason German Portland cement, as far as quality is concerned, has always been able to compare favorably with competitors, but does not compare in quality with the best American cement. Extent of monopoly of home market.—The cement cartels of Germany control between 50 and 60 per cent of the total German production. . Dr. Ernst Madelung, in his book on the development of the German Portland-cement industry,' estimates the total cement consumption controlled by the syndicates as being 57.4 per cent of the amount produced. The cement groups which are located around the German borders are less affected by inland competition and have more difficulties in their relations with groups in neighboring countries, where they sell a considerable portion of their product. A general German cartel for the cement industry is out of the question, and can not reasonably be considered because the relations and necessities of the various regions, in which the separate organizations work, are altogether different. It is also very difficult to bring so many different interests into one comprehensive and united organization. The great problems of a central organization for the whole empire are variety of interests, price differences of the various sections, and the difficulty of equalizing freight and transportation costs. As a matter of fact, the German cement industry will probably continue to be controlled by agreement between the cartel groups. These agreements, however, can be far better perfected than they are at present. Extent of monopoly of exports—The cement cartels handle about 80 or cent of the total exports of cement from Germany. haracter of competition and the results attained by combination.—Foreign tariffs have always been a great drawback to German sales abroad. Foreign interests in neighboring European countries were also centralized and. furnished severe competition. In Holland the South German, Rhenish-Westphalian, and Belgian syndicates worked together. These three syndieates formed a trading company under the title of the United German-Belgian Cement Works (Vereinigte Deutsch-Belgische Zementfabriken). The selling agency of this company took their cement products on a proportionate basis to sell on a percentage basis. Since Holland had 1 Madelung, E., “ Die Entwicklung der d 1 12 2 3 aE hn, By le g eutschen Portland Cement-Industrie. Leipzig 44 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. no factories of its own, business was easily developed. The United German Cement Works entered into an agreement with the English Cement Trust, the Société Anonyme des Ciments Francais at Paris, and the Portland Cement Works at Christiania. This is the first example of an international codel on the cement market. In Denmark, where formerly the Stettin works used to make cousiderable sales, a considerable domestic industry has now developed, and the German sales suffered accordingly. By the sales to Holland, Denmark, Russia, including Finland, Belgium, etc., the German market was not overcrowded, and in fact the production could properly be developed. The great period of German producing development was during the years 1904-1907. At the end of 1910 an agreement was made with the Austrian and Swiss manufacturers which was favorable to German sales, so that to-day Germany’s relations to neighboring countries on the cement trade are on the whole well regulated. In recent years the Belgian natural cement has been a strong competitor of the German Portland cement because it could be produced so cheaply. Persons unfamiliar with the Belgian product could not nse it satisfactorily, so that its reputation gradually fell. German factories carried on a systematic campaign against the use of natural cement and particularly against its being packed in old Portland cement sacks. The important fields in Europe in which German cement products have increased are Finland and Holland. Both of these manufacture no cement themselves and have no tariff. Although Germany once had a good selling field in the United States, South Africa, and Australia, sales in these countries have been falling off in recent years, either because of increased local production or more competition. On account of the enormous increase in the production in the United States the imports from abroad, and particularly from Germany, are more and more decreasing. As a matter of fact, the imports of cement to the United States in the period of 1900-1910 decreased about 93 per cent.! Several German companies, such as the Alsens American Portland Cement Works, of ae and the Portland Cement Works, Hemmoor-on-the-Oste, tried to enter the American market by operating in the United States. The factories were largely controlled by German capital. As a whole, they were not very successful, have not paid large dividends, nor have they made much impression as compared with the total American prodquetion. German sales in Mexico have decreased recently on account of the favorable railroad facilities, which make the American product easier to obtain. In Argentina and in Chile several great cement works have been built, so that the German export prospects in these countries are not very favorable. In Cuba American competition can not be met on account of the 25 per cent tariff. In Brazil the customs tariff preference of 20 per cent granted to cement from the United States is offset by the Fo shipping pool freight rates enjoyed by German. cement, and German exports to Brazil have increased. The export to the English colonies is largel out of the question, because of the preferential tariff rates, which are given by the colonies to the mother country. China and Japan, 1 Madelung, Dr. B., “ Die Entwicklung der deutschen Portland Cement-Industrie.” Leip sig: Duncker & Humblot, 1913. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 45 which for some time appeared to be good selling districts, are not now so regarded, because both countries have erected a number of cement works of their own. Dutch East India is a good selling district, and a large part of its demand is covered by Germany. In the German colonies the selling district, although not large, is steadily enlarging, and large amounts of German goods are purchased. The outlook for the Germar Portland cement industry on foreign markets is not especially Sood, Many sellin fields have been lost, the reason being either development of local industry or tariff discrimination. - Relatively speaking, the works composing the Silesian Association have succeeded less than those of other associations. This is probably because of the competition of the North-Western-Middle German Syndicate, and further because the increase in production in their territory has been small, and also their union did not include all producers. Terms of sale and delivery.—The usual sales conditions offered by German firms, syndicates, and combinations in the cement trade are 90 days’ credit, 2 per cent discount for cash within 30 days. These conditions naturally vary with the size of orders and the desire of the cartels to enter new selling fields. (See Commercial Agent Wolf’s book on Foreign Credits, particularly that part of the book treating of German sales snditjens) Dumping.—The great difficulty with the German cement industry in the past has been overproduction. In good years capital has gone into the industry, which in poor years could not be taken out. Con sequently the market has often been oversupplied. The various cartels between themselves naturally lessened the prices along their border districts. This was to prevent outsiders from developing rather than from fear of their neighboring group. Sales in foreign districts were always willingly made at prices lower than those of the home district. All the cartels are willing to dispose of their surplus production at low prices. The Rhenish-Westphalian Syndicate, as far as prices were concerned, came into competition with the Belpian Syndicate, resulting in an agreement which has previously been described. The Berlin factories also stand outside the syndicate. The market conditions in Berlin are peculiar, because this district can not be separated. All the other organizations have been in the habit of dumping their surplus products on the Berlin market at all times. On the Berlin market several price-cutting struggles have taken place, particularly that of 1901, in which the North-West-Middle German Syndicate had a sharp battle with the Silesian and Stettin factories. In general all groups meet in competition on the Berlin market, with the exception of the South German and Rhenish-Westphalian groups. As a result of this competition, Berlin prices for sement are generally low. Selling organizations.—Toward the end of the year 1911 an agreement was reached for the control of the cement industry in the city of Berlin, and a general cement selling agency was organized. According to this agreement the Berlin factories were permitted to supply two-thirds of the amount sold in the city, while the Hanoverian, Middle German, and Stettin groups together divided the other third +f the amount sold. 16 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Relations to other business interests at home.—Concentration of factories has been assisted in two ways. First by purchase and second by fusion. Both of these methods comprise the same results and assist in controlling competition. Many conventions and agreements exist between the cement organizations and manufacturers of cement goods, building societies, electrical works, barrel manufacturers, and coal mines. Nearly all cement manufacturers possess their own repair workshops, which are in many cases exceedingly well equipped. Relation to outsiders.—The policy of most of the cartels has been to take in new members under favorable conditions. This is particularly true of the Rhenish-Westphalian Cement Syndicate, although this syndicate has perhaps had more trouble from outside works in their own district than any other. The new factories did not show a disposition to come into the syndicate, preferring to sell their products where and how they pleased. Consequently hard battles have developed in this section. The two great groups of factories which do not belong to the syndicates are the Stettin factories and the Berlin factories. The production of the Stettin works has not been increased and they occupy a peculiar geographical position for sales in other parts of Germany. These works have never joined the North-West-Middle German Syndicate. Can Americans successfully compete f—As a whole, American Portland cements are higher priced than the usual German varieties. In neutral markets the American product is mostly sold on the basis of quality. Since transportation charges must be added to the already high priced American cement, it can not be expected that it could be seriously considered by German buyers. The German duty, as far as America is concerned, is not of great importance. Under tariff No. 280 of the customs tariff of the German tariff union, Portland cement, slag cement, magnesia cement, and similar products, with or without the addition of coloring or other materials, are entered under the conventional rate as free of duty, and under the general rate a duty of 50 pfennigs per 100 kilos is levied. Since the United States, according to tariff agreements with Germany, received the benefit of the conventional rate, American Portland cement products could enter free of duty. The three features which render American competition impossible are (1) a high price of the American product, (2) transportation charges, which only serve to increase the already high American prices, and (3) the ample supply of cement locally produced and the dominant position of the German manufacturers. Tare III, —Dividends of members of groups of German cement manufacturers, Silesian group: Schles. A.-G. Portl.-Zem.-Fabrik, Groschowitz____ oo _____ __ Oberschles. Portl.-Zem.-Fabrik, Oppeln_________ Oppelner Portl.-Zem.-Fabrik vorm. Grundmann, Oppeln_ mee Portl.-Zem.-Fabr. vorm. A. Giesel, Oppeln__________________________ Schimischower Portl.-Zem., Kalk & Ziegelwerke. ___________» ____ Oberschles, Portl.-Zem. & Kalk-Werke, A.-G., Gr.-Strehlitz_ oo _____ Gogolin-Gorasdzer Kalk- & Zem.-Werke, A.-G.,, Breslau oo eaee_ “ Silesia,” Neue Oppelner Portl.-Zem.-Fabr., A. G., Oppeln____.______ Portl-Zem.-Fabr. * Stadt Oppeln,” A.-G., Oppeln_.________________ Oppeln-Frauendorfer Portl.-Zem.-Fabrik, A.-G., Frauendorf, Krs. Oppeln erm ————— Niederschles. Portl.-Zem.-Fabrik. A. G.. Neukireh coe Dividends in 1910. Per cent. 1 2 4 0 0 n SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 47 Dividends in 1910. Stettin group: Per cent, Stettiner Portl.-Zem.-Fabrik, Stettin._.__________ premier WL ¢ Mercur ” Stettiner Portl.-Zem.- & Thonwaren-Febr., A.-G., Stettin__ 0 Stettin-Bredower Portl.-Zem.-Fabr., A, G., Stettin. ooo ome. Stettin-Giistrower Portl.-Zem. Fabr,, A. G., Stettin.o_oe_o__. Pommerscher Industrieverein auf Aktien, Stettin_ ome __ Preuss. Portl.-Zem.-Fabr., A. G., Neustadt, W.-Ph_ oo ______ “Adler ” Deutsche Portl.-Zem.-Fabrik, Berlin o_o Lower Elbe group: Alsen’sche Portl.-Zem.-Fabriken, Hamburg como ____ Breitenburger Portl.-Zem.-Fabrik, Ligerdorf__. om Portl.-Zem.-Fabrik, Hemmoor a. d. Osteo ______ Portl.-Zem.-Fabrik, vorm. Heyn, Gebr., A. G., in Liineburg ae... Portl.-Zem.-Fabrik “ Saturn,” Hamburg. ________ __ Hanover group: Hannoversche Portl.-Zem.-Fabrik, A. G., Hannover______o________ Vorwohler Portl.-Zem.-Fabrik, Planck & Co., Hannover_ ae eeeeo_.. Braunschweiger Portl.-Zem.-Werke, Salder_.___.___________ 0 ___.. “Teutonia ” Misburger Portl.-Zem.-Werk, Hannover____.___________ Misburger Portland-cementfabrik, Kronsberg Act.-Ges., Hanover__ Norddeutsche Portl.-Zem.-Fabrik, Misburg. o_o ____ _____ Port.-Zem.-Fabrik “ Germania,” A. G., Lehrte_ ____._._______________ Wunstorfer Portl.-Zem.-Werke, A, G., Wunstorf _____. ________ Portl.-Zem.-Fabrik “Alemannia,” A. G., HOVer_ oe Portl.-Zem.-Fabr. * Drachenberg,” A. G.,, WalbecK eo ooo ________ Middle German group: Stichs. Thiiring. Portl.-Zem.-Fabr., Priissing & Co., Komm.-Ges. a. A., GOschwitz_ oe Portl.-Zem.-Fabrik, Gissnitz S. A_________ Portl.-Zem.-Fabrik, Halle a. S._._.__._ ___ ee ee ———————— en Bernburger Portl.-Zem.-Fabr,, A. G,, Bernhurg____________________ Portl.-Zem.-Werk. “ Saxonia,” A. G., vorm, H. Laas Sthne, Glithe bei Calbe a. SS. ________ po ee 4 SR S#chs, Thiir. A.-G. fiir Kalksteinverwertung, A.-G., Bad Kosen___.___ Anhaltische Portl.-Zem.- u. Kalkwerke, A.-G., Nienburg a. S________ Mitteldeutsche Portl.-Zem.-Fabr., Priissing & Co., Komm.-Ges, a. A., Schonebeck si EE A. G. Portl.-Zem.-Werke, Berka a. Ilm_____________ Portl.-Zem.-Werk * Schwanebeck,” A. G., Schwanebeck_.______ Portl.-Zem.-Werke “ Saale,” A.-G., Granau ome ___ Rhenish-Westphalian group: * Westfalia,” A. G. f. Fabrikat. v. Portl.-Zem. & Wasserkalk, Boll, § WW, cima go aa iad nition og A. G. fiir Rhein.-Westf. Zem.- Industrie, Beckum i. W.______________ Portl.-Zem. & Wasserkalk-Werke * Mark,” Neubeckum i, Wooo Portl.-Zem. & Kalkwerke “Anna,” A.-G., Neubeckum {. W._________________ “ Finkenberg,” A.-G. f. Portl.-Zem.- & Wasserkalk-Fabrikation, Enni-Zer30h, Dol BOR ©. Wari amass wenimm isi iit i ie iermmse Portl.-Zem.-Werke ¢ Union,” A.-G. Ennigerloh i. Wee ooo Liidenscheider Portl.-Zem.-Fabr., in Briigge, 1. W._ ooo Wickingsche Portl.-Zem, & Wasserkalkwerke, in Recklinghausen... Lengericher Portl.-Zem.- & Kalkwerke, Miinster i. W.o___________ Biirener Portl.-Zem.-Werke, A.-Q., in Biren i. W____________________ * Meteor,” A.-G., Geseker Kalk- & Portl.-Zem,-Werke, Geseke 1. W._. Geseker Kalk- & Zem.-Werke * Monopol,” A.-G., Geseke i, Wooo ____ Vereinigte Bremer Portland-Zementwerke ¢ Porta-Union,” A.-G. Bremen. eee Portl.-Zem.-Fabr. “ Westerwald,” Halger_._______________ .________ toxter’sche Portl.-Zem.-Fabr. A.-G., vorm. J. H, Eichwald Sthne, HOxter oe eee Portl.-Zem.-Werke Hoxter-Godelheim, A. G., Hoxter 8. Woe _ Zem.- & Kalkwerk Bestwig, A. G., in Bestwig_ eee Weseler Portl.-Zem.- & Thonwerke, Wesel _________________________ Bnaen Gergwerks- & Hiitten-Vereln, Zem.-Fabr.,, bel Obercassel bei onn___. The 19 18 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, eis Rhenish-Westphalian group—Continued, Per cent. Ennigerloher Portl.-Zem.- & Kalkwerke, Grimberg & Rosenstein, A. G., in Ennigerloh oe 0 Rhein. Portl.-Zeni.-Werke, Koln a. Rh. oom meee 0 Portl.-Zem.-Werke “ Roland” A. G. Beckum mean uv “Anneliese,” Portl.-Zem. & Wasserkalkwerke, A.-G., Ennigerloh oo... 0 Neubeckumer Portl.-Zem. & Wasserkalkwerke “ Zollern,” A.-G., Neubeckum cee B5 South German group: Mannheimer Portl.-Zem.-Fabr.,, Mannheim___ (oes Portl.-Zem.-Werke Heidelberg & Mannheim, A.-G., Heidelberg __—..- 5 Portl.-Zem.-Fabr. “Ingelheim a. Rh.” A. G. vorm. C. Krebs Nieder-IOGOINAIIL Hy TR immo msm oss ons ick sie ts im mt mm AS Portl.-Zem.-Fabr. * Karlstadt,” vorm. L. Roth, Karlstadt a. M____.... Offenbach Portl.-Zem.-Fabr., A. G., Offenbach a. M________________ Portl.-Zem.-Werke Rombach, A. Goes Siiddeutsche Zementwerke, A.-G., Neunkirchen oo comme Heminger Portl.-Zem.-Werk, A. G., Saarburg._ «ee coeemeaeeeae Lothringer Portl.-Zem.-Werke, Diesdorf i. Lothr, acme Wiirttemberg, Portl-Zement-Werk, Lauffen a. Nooo mma Stiddeutsches Portl.-Zem.-Werk, Miinsingen i. Wilrttemberg_________ Portland-Zem.-Werk Diedesheim-Neckarelz, A. G., Diedesheim_____.. Portl.-Zem.-Fabr, Blaubeuren, Gebr. Spohn, A.-G., Blaubeuren.__... Portl.-Zem.-Fabr. “Elm,” A. G., Blm_ eee Portl.-Zem.-Werk * Berching,” A.-G., Berching___ ae Bayrisches Portl.-Zem.-Werk * Marienstein,” A. G., Miinchen Tar Errcrricanl INDUSTRY. Two principal companies.—In Germany there is no electrical trust. Two great companies have succeeded in concentrating about 80 per cent of the entire electrical business of Germany into their own hands. Yet these two large companies are in the sharpest competition. The Allgemeine Elektrizitatsgesellschaft, called A. E. G., and the Siemens-Schuckert concern, called Siemens, in the trade, control about 45 per cent and 35 per cent, respectively. In 1912 the Bergmann Electrical Co., which had been effectually competing with the A. E. G. and Siemens concerns, had expanded beyond its strength financially. As the Deutsche Bank was the bank for both Siemens and Bergmann, they succeeded in negotiating a fusion by which the Siemens concern took over the Bergmann interests. At. that time there was much talk of a monopoly in the electrical industry, but the Siemens group made a special point of the fact that the health of the entire electrical industry of Germany depends upon sharp competition among two or three large concerns, which encourages invention and develops technieal and commercial organization in the competing plants. The Bergmann Co. therefore has continued to exist as a separate company, so far as the market is concerned, although it belongs financially to the Siemens group. In the further remarks concerning the electrical industry, the Bergmann Co. may be considered as a part of the Siemens concern. The two electrical companies, A. E. G. and Siemens-Schuckert, are of such enormous importance in the electrical industry of the world that it may be worth while to consider at least one of them in order to see in what manner and to what extent they have divided the market between them. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 49 Organization—The A. E. G. is a stock company. The annual report, just come to hand November 9, 1915, shows a dividend of 11 per cent on a capital stock of 155,000,000 marks ($36,590,000), bank deposits of 103,000,000 marks ($24,514,000). There are 66,000 employees. Controlled by the A. E. G. are long lists of affiliated companies, mentioned elsewhere, representing a capital of more than 2,000,000,000 marks ($500,000,000). These companies are: Elektricitits-Lieferungsgesellschaft, with 27 branches in Germany and abroad. Allgemeine Lokal- und Strassenbahngesellschaft, which operates 12 street-car systems. Bank fiir elektrische Unternehmungen Ziirich, which with the Société Franco Suisse pour l'industrie électrique in Geneva operates and controls 50 large enterprises. A. E. G. Unternehmungen A.-G. in Frankfort. Elektro-Treuhand Aktien-Geselischaft, Hamburg. This is a type of organization which has recently come in favor. The one situated in Hamburg is composed of the State of Hamburg, Siemens, and A. E. G., with about 30,000,000 marks ($7,140,000) participation for cach. This company owns and operates the elevated and underground railroad in that city. A. E. G. Union in Vienna. Aktien-Gesellschaft fiir elektrischen Bedarf in Vienna. Union, Ungarische Elektricitits A.-G. (for Hungary). The Russian A. E. G. - A. E. G. Thomson Houston Societd Italiana di Elettricita (for Italy). Seta Elettrotecnica Commerciale Italiana (for Italy). Allgemeine Elektrizitits-Gesellschaft in Basel (for Switzerland). Société Francaise d’Electricité A. E. G. (for France). A. E. G. Union Electrique (for Belgium). A. E. G. Electric Co. (for England), also the Electric Co., England. A. E. G. Thomson-Houston Ibérica (Madrid and Lisbon). A. E. G. Societate Generale Romana de Electricitate (for Roumania). A. E. G. Bulgarian Electrical Co. A. E. G. Dansk Elektricitets Aktieselskabet (for Denmark). Elektriska Aktiebolaget A. E. G. or Sweden). Elektricitets Aktieselskabet A. E. G. (for Norway). A. E. G. Electrical Co. (for South Africa). A. E. G. Compafiia Sudamericana de Electricidad in Buenos Aires. A. E. G. Compafiia Sudamericana de Electricidad in Rio de Janeiro, A. E. G. Compaiiia Mexicana de Electricidad (for Mexico). Nationale Automobil-Gesellschaft, Berlin. poy Somobil-Betriebs- Alktiengesellschatt, Berlin (for electric taxicabs). Elektro-Chemische Werke in Bitterfeld. Capito & Klein, A. G. “ Beleuchtungskorper.” 27241 °—pT 2—16—ot 50 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, « Elektromotor,” Union-Schreibmaschinen-G. m. b. H. % Jgolierrohr,” G. m. b. H. Metallwerke Oberspree, G. m. b. H. Quarzlampen, G. m. b. H. Elektro-Stahlgrs. m. b. H. in Remscheid. Gesellsch. f. Elektrische Zugbeleuchtung, Luftfahrzeuggesellschaft, m. b. H. A. E. G. Electrical Clocks Co. A. E. G. Fast Train Co. (Schriellbahnaktiengesellschaft). Electro Nitrum Aktiengesellschaft. Electro Werke A.-G., il) Braunkohlenwerk Golpa-Jessnitz A. G. zu Halle, A. S. In connection with Siemens & Halske, of the Siemens concern, the A. E. G. is interested in the following factories: 'Accumulatoren Fabrik A.-G. in Hagen and Berlin, which is an absolute monopoly for the manufacture of storage batteries. Company for wireless telegraphy, also a monopoly for Germany, with the Deutsche Betriebsgesellschaft fiir drahtlose Telegraphie m. b. H. German Oversea Electrical Co. (Deutsch Ueberseeische Elektricititsgesellschaft). Ozongesellschaft in Berlin und Petersburg. Vereinigte Kabelwerke in Petexsburg. The A. E. G. maintains 38 installation offices, 12 engineer offices, and over 100 branches in other European countries, with 60 branch TBs 2 the rest of the world. The above remarks refer only to the The Siemens-Schuckert concern is about the same size and similarly organized. Foreign markets.—The A. E. G. has an agreement with the General Electric Co., of America, by which certain districts of the world are respected. The neutral countries and districts which are open to all electrical companies of Europe and America are Mexico, Central America, South America, and Japan. The A. E. G. and Siemens-Schuckert interests operate all over Europe, as well as in the districts just named, through their own branches, in sharp competition with one another. Products—The products made by both A. E. G. and Siemens cover everything in the electrical industry, from lamps and motors to the great electric street car systems and lighting systems for entire rural or urban districts. The A. E. G. has also gone into several lines not exactly connected with electricity, such as aeroplanes and automobiles, and the Siemens-Schuckert have built dirigibles. Extent of monopoly of home market.—The Siemens-Schuckert concern controls 35 per cent and the A. E. G. 45 per cent of the entire electrical industry of the home market. In certain lines there are occasionally absolute monopolies. For instance, the Vereinigung deutscher Starkstrom Kabelfabrikanten is a cartel for high-tension cables. The contract runs until 1917. This cartel is composed of Bergmann, Siemens-Schuckert, Felten & Guilleaume, A. E. G. and Siiddeutsche Kabelwerke, and is an absolute monopoly. Also Akkumulatorenfabrik Berlin u. Hagen is a monopoly of the storage- battery manufactories. Siemens, Halske, and A’ FE. G. have bought up about 30 different storage-battery manufac- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 51 tories, leaving only one outsider, the Accumulatoren und Elektricitits Werke A.-G., formerly W. A. Bose, which is not strong financially. The monopoly, on the other hand, pays 25 per cent dividends. The lamp business, which is of great importance, is the main field for sharp competition between the firms A. E. G., Siemens-Schuckert, Bergmann, and the Auer Gesellschaft (which makes only lamps, both gas and electric). However, patent conventions exist between these companies and between each one of them and the General Electric in America. Altogether, there are 11 competitors making metal filament lamps. Extent of monopoly of exports—The monopoly of exports is only possible in those lines of electrical construction in which there is a monopoly in the home market. Selling methods at home.—The entire market at home is minutely organized by means of branch offices with engineers and salesmen in all the principal cities. Wherever there is one of the hundred A. E. G. branches one is sure to find a Siemens branch also. These branches work through agents on commission, through dealers for lamps and small electrical appliances, and through fitters who buy their supplies. The last named buy outright. Large installations are managed through the branch offices and technical offices, although commissions are sometimes paid for assistance in procuring the order. Commission agents assist in finding the prospect, but immediately call in the assistance of a company engineer or salesman to make the sale. Selling methods abroad.—The German electrical concerns export enormous quantities of electrical material and appliances of every description, In European countries they have their own foreign company; in South America they have their own company in the principal citizs, but in some cases have agents to whom salaried engineers from the home office are accredited and paid by the home office. The A. E. G. alone has 100 offices in continental Europe outside of Germany and 60 offices outside of Europe. The A. E. G. has always made a special point of having attractive show rooms connected with branch offices, in order to exhibit standard products and novelties. The selling force is recruited from young graduated engineers, who, after leaving the technical schools with the degree of “ Diplom Ingenieur ” CG E. or E. E.)—many also with the degree of doctor of engineering (Dr. Ing.)—serve a certain number of years in various departments of the home plant and office. After having been thoroughly trained in the practical methods of the construction and operation of the various products of the company, those who also show ability and taste for salesmanship are sent to some branch office as salesmen. The foreign selling force is recruited from these salesmen who show talent for languages and a taste for foreign life. There are two great points which the German firms observe in selecting their sales force.” One is that they are trained men from the educated classes, and the second is that they speak the language of the country to which they are sent and show ability to become one of the people among whom they are working. The A. E. G. in the home market advertises extensively. A hand holding the tungsten lamp with the three letters A. E. a meets the eye at every turn; on street car, underground stations, omnibuses, 52 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. and the like. The extent of this advertising abroad we are unable to ascertain from here. } Character of. competition— Quality is an important feature in competition. However, when products have reached as high a state of perfection as those of the two companies, A. E. G. and Siemens, there is little choice, so that price plays an important part. It is generally understood that the A. E. & is inclined to cut prices a little lower than Siemens in order to capture the trade. A. E. G. is able to do this, because the firm is so widely interested in various undertakings that a momentary loss in one line is more easily supportable than such a loss would be, for instance, to the Auer Gesellschaft, which makes only lamps. Both companies have shown a tendency to undersell any competitor that may arise and, if possible, drive him from the market. This policy of eliminating a competitor must, however, be carried on very carefully because of the unfair-competition law in Germany, which is very strict. Central selling organization.—Each company maintains its own central sales department at the home office. It may be noted here that the late Dr. Rathenau, the creator of the A. E. G., who taught salesmanship to the electrical industry of Germany, received most of bis inspiration and his sales methods from his earlier affiliation in America with the Edison Electric Light Co., of New York, with the Thomson Houston Co., and in later years with the General Electric. Terms of sale and delivery—Terms of sale ‘in an industry with such widely different products as the allied electrical industry, vary from line to line and almost from sale to sale. In the face of competition terms are inclined to become very lenient. Dumping. —Dumping is not such an important factor in the electrical industry as it is in staple products, because much is manufactured on order, and the production of a series of articles such as lamps, motors, and electrical apparatus may be easily restricted, if necessary. Also it is as inadvisable to demoralize a well-organized foreign market as it would be to demoralize the home market b price cutting, except in the face of competition which it is desirable to drive from the field. Special relations.—The minister of commerce, Dr. Sydow, in March, 1914, became anxious fearing an absolute monopoly might be brought about in the electrical industry and introduced a bill into the Prussian Diet which would regulate franchise obligations, called: “ Konzessionspflicht.” The bill found little support. The situation which Dr. Sydow feared is the monopoly established in certain districts by companies supplying electrical current. The situation contains several points of interest. In recent years, since the introduction of high-tension transmission, made possible by the development of the alternating current, great stretches of country, including many towns and farms, have been served with electric light and power from one central power plant situated either at a coal mine or on an inland harbor with cheap water transportation and coal-handling facilities, or in some few cases at sources of water power. If either company—A. E. G. or Siemens or both together, through the institution of a holding company or Treuhandgesellschaft—received the franchise or concession to build such a plant, they also succeed thereby in establishing an absolute monopoly for all the lamps, SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 53 motors, and other electrical apparatus used in that district by refusing to allow any other than their own electrical appliances to be attached to their mains. As the number and size of such overland central stations have grown, the danger seems apparent that an absolute electrical monopoly would be established. The regulation of this danger on the part of the State met with immediate opposition from the municipalities, because in the cities, in which franchises for the construction of electrical public utilities were granted, a new form. of company called the mixed company (Gemischt-wirtschaftliche Unternehmungen) had arisen, in which the city and the electrical constructing company build and operate the particular plant jointly. The municipalities, which are very jealous of their local self-government, which they have enjoyed for more than a century, maintain that if the State should take over the right of granting franchises they would be losing one of their inalienable rights. So far, the mixed enterprise seems to be a fairly satisfactory solution of the public utility problem. Relations to other business interests at home.—The system of interlocking directorates has been highly developed by both the A. E. Gand the Siemens-Schuckert. The late Dr. Emil Rathenau was president or vice president or member of almost every board of directors connected in any way with the electrical industry, except the Siemens group. His son, Dr. Walter Rathenau, was also in practically every board of directors with his father and is carrying on his father’s connections since his death. Relations to foreign Governments. —It was impossible to ascertain to what extent either one of the German electrical companies have understandings or arrangements with foreign Governments; however, such arrangements occur seldom in European countries, except in the form of franchises. Even then the State or municipality usually retains entire or part ownership in the work. - Relations to foreign business interests.—The list of companies in which the A. E. G. is interested as given above shows many companies ebroad. The question, however, is not fully answered by this list. An example of how far the influence of the electrical companies extends abroad may be had by considering for a moment the institution called the Bank for Electrical Enterprises in Ziirich (Bank fiir elektrische Unternehmungen in Ziirich) controlled by the A. E. G., whose report for the twentieth year, ending June 80, 1915, was issued November 2, 1915. This company has a paid-up capital stock of 75,000,000 marks ($17,850,000), on which they have paid a dividend of 8 per cent for the past year in spite of the war and their international character. The president of the board of directors is the president of the Schweizer Kreditanstalt in Ziirich; the vice president, the owner of the Berliner Handelsgesellschaft in Berlin; the second vice president is director of the Deutsche Bank in Berlin, and the largest part of the 25 members are bank presidents or directors. The institution is a bank for financing electrical plants, and, of course, such plants are to be supplied with A. E. G. products. The companies which have been financed by this bank and which therefore, indirectly, are under the control of the A. E. G. are ‘with their capital to be found in the report of the “ Bank fiir elektrische Unternehmungen.” 54 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The results attained by concentration.—The concentration of the electrical industry in the hands of two or three firms is said to have had, as a result, improved quality and lower price. The advantages of such enterprises as compared to many small struggling undertakings do not require discussion. Outsiders—The two large concerns, A. E. G. and Siemens, do not deliberately exclude outsiders; either one is on the lookout for an available opportunity to absorb any troublesome competitor. There are several small concerns, such as Levy or Armin Tenner, who make lamps, motors, electrical supplies, and installations, and do a good business in spite of their great competitors. Export competition from outsiders—Smaller competitors also sell a certain amount of their products abroad. However, the smaller company is even at a greater disadvantage abroad than at home, because successful salesmanship in a foreign country is dependent upon the maintenance of a well-organized branch office or offices with the necessary engineering talent, warehouses, exhibition rooms, and the like. Such a foreign-sales organization entails a large general expense. Modern foreign trade methods have made the general agent obsolete, and no permanent success in a foreign market can be hoped for without a well-equipped office of the home company on the ground. It is therefore to be expected that the smaller companies in Germany will lose ground in their exports. No governmental discrimination—The Federal Government of the German Empire and also the State governments of the Federation treat all alike, so that the small firm has the same freight rates on the railroads and the same export rebates as the Government accords the A. E. G. or Siemens. The Government, both Federal and State, has been extremely friendly toward the electrical industries of Germany, in which they have taken great pride and in which they see an economic advantage to the country. Their appreciation has been shown principally in noninterference and in a generous distribution of titles and decorations to the leading men of the industry. Can Americans successfully compete?—The General Electric Co. has long since reached an understanding as regards patents with A. E.G., Siemens, Bergmann, and Auer, and a division of territory of the world. The relations to the A. E. G. are closer than to the others. The Westinghouse Electric Co. has gradually retired from the field or reached patent agreements with these companies. Nevertheless the electrical industry is so widely diversified that some independent American firm may bring out a patent or a discovery at any time which would be of such value that the firm could sell the products successfully in the German market. Successful competition along the general electrical lines of lamps, motors, and apparatus, in the face of the excellent quality and low price of the German products. is. however. hopeless. COMBINATIONS IN THE WALL-PAPER INDUSTRY. Names, location, and preliminary remarks.—The Verband deutscher Tapetenfabrikanten (The Association of German Wall-Paper Manufacturers), founded 1912, is a loose association, including about 31 wall-paper manufacturers, as against 24 outsiders (1913). SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 55 The other combinations in the wall-paper industry are the Verband deutscher Druckpapier Fabriken (Association of German Print-Paper Manufacturers) and the Verein deutscher Papier-Grosshindler (Association of German Wholesale Paper Dealers), which was founded by 85 of the leading wholesalers in the wall-paper trade. The history of combination in’ the wall-paper industry has shown no permanent organization. The present organization was founded on the ruins of three unsuccessful predecessors, namely, Der Verein deutscher Tapeten-Fabrikanten (The Union of German Wall-Paper Manufacturers); die Tapeten-Industrie A.-G. (The Wall-Paper stock Company), known as Tiag, which, perhaps, has been the most important of all; and Das Kartell deutscher Tapeten-Industrieller (The Cartel of German Wall-Paper Industrials). Organization.—The association may be classified as a cartel of the second class, inasmuch as it does not maintain a central organization for selling the products of the associated factories, though it maintains,a bureau of revision and arbitration inaugurated by its predezessor. The object of the association is to stabilize the market. In particular, it has assured the price protection of the dealers, which, however, is difficult for the association to maintain in the face of the large number of important outsiders. The dealers obligate themselves to buy only from the association, and the members of the assoaziation, on the other hand, obligate themselves to sell only to dealers. Foreign markets—There are no limitations as to sale in foreign markets. The predecessor of the present association, the Tiag, paid great attention to the English market and was successful for a time. The united effort of the German wall-paper exporters caused a counter attack by the British association, the Wall-Paper Manufacturers, Ltd., which bought the “ Hansa” factory in Hamburg, and finally entered into an agreement with the Tiag by which the Tiag must not cut prices in England in English widths and must not introduce more than 850 new designs or 3,000 color schemes per annum, and both parties agreed not to copy one another’s designs. The German factories continued to do a good business abroad in wall papers, but at small profits and without very much assistance from the association. Products—The wall-paper industry distinguishes high-class, middle-class, and cheap grades. Only the high grades are adaptable to cartelization, because in the high grades a larger margin of profit is obtainable by the dealers than in the cheap qualities, where success or failure in disposing of the article may depend on a fraction of a cent on the roll. An association is possible so long as the manufacturers of high grade wall papers are united and it breaks ap as soon as the factories manufacturing cheap grades enter the field with high-class products. Extent 7 monopoly of home market—The Association of German Wall-Paper Manufacturers includes 31 factories as against 24 outsiders, but these factories include the larger members of the trade and most of the higher quality products. There is, however, no approach to a monopoly and every effort on the part of the association to give the it a little firmness or backbone is immediately utilized by the outsiders. For instance, the efforts to exclude from the association factories which sell to those outside of H6 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. the dealers’ association only result in opening the door to the outsiders among manufacturers. Under the disorganization in the home market there is no attempt made to monopolize exports. Selling methods at home and terms of sale and delivery.—The association leaves the distribution of the products of each member free to the member. Each factory maintains its own selling force of traveling salesmen, who visit the trade, except in those products which are handled’ directly through the dealers’ union. By selling in this way, instead of through a central selling agency or office— as in the case of well organized industries, such as the Coal Syndicate Co. and the Steel Works Union—all those economies and advantages which are so apparent, are lost. The important point of the entire wall-paper trade at the present time is the seemingly acute depression (slump) which has overtaken the industry. This is due to the fact that the bottom dropped out of the building trade in 1912. The slump in the building trade followed a boom, covering perhaps 15 years, which ended in an overproduction of dwellings and undue speculation. In 1913 there were 76,000 unrented apartments in Berlin alone. When the reaction came hundreds of building speculators failed, some for several millions with heavy losses to all the allied industries, including wall paper. This market condition is of importance in considering the terms of delivery and payment. The wall-paper dealer buys from the manufacturer on a 90-day note, three months after delivery,—i. e., the dealer has an uncovered credit of three months, at the expiration of which time he gives his note for three months more, which amounts to six months’ credit for the factory. As the market became worse, the manufacturer found it more advantageous to prolong the dealer’s note rather than to embarrass him, so that often credit of nine months or a year resulted. Under the stress of competition and the efforts on the part of the factories to distribute their production over the year, the usual custom of deliveries in February for payment in March was gradually changed to earlier deliveries during the preceding winter or even preceding summer, with payment in August or later, so that the manufacturer did not realize on his product until nearly a year after delivery. The danger was not only in the loss of interest during this long period, but in the fact that the wall-paper dealer delivered his paper in the new building just about the time that the building went into the receiver’s hands, the small margin of construction capital having been used up during the earlier building stages. The wall-paper dealer was exposed to heavy losses in no proportion to the small margin of profit. The result has been an absolute demoralization of the wallpaper industry. elling methods abroad and dumping.—Wall-paper manufacturers, independent or united, have dumped wnt ST abroad whenever it seemed advisable, being satisfied if a price covering costs was realized. There being no central selling organization, each individual factory has sold abroad, usually through agents, sometimes Girectly. In view of the high quality and unique designs in German wall papers, together with the extremely low prices, the export has been considerable. The entire export problem, however, has little to do with concentration or combination in the industry. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 57 Character of competition.—In the home market, where the designs are fairly well distributed among all the factories, competition has been almost purely a matter of price. except in the very high rades. : Central selling organization.—The fault of the association is that there is no central selling organization. Special relations.—The relations of the association to the home Government, as is the case with all the German combinations, is iriendly ; in fact the Government would prefer a strong combination to the present disorganization for purely national economic reasons. The relation of the combination to other members of the trade is not so completely antagonistic as one might assume. On the other hand, all the factories manufacturing wall paper, whether in the association or not, stand each one by itself, with no friendly relation whatsoever toward the others. This is one fundamental reason for the instability of the wall-paper cartel. The Association of German Wall-Paper Manufacturers has no relations to foreign Governments or to foreign business interests as such. As mentioned above, a former cartel, the Tiag, had well-defined relations with the English wall-paper combination, which passed out of existence along with the Tiag. , The results attained by combination.—The results attained have been very modest. With so many outsiders, such a loose combination, and a falling market the association has at no time succeeded in stabilizing the market or raising the prices sufficiently to assure the trade reasonable prosperity. Manufacturers excluded.—The exclusion of manufacturers from selling to the dealers’.union because they refuse to deal exclusively with the union, and, on the other hand, the exclusion of dealers who deal with factories outside of the manufacturers’ association, has been the storm center of the entire manufacturers’ and dealers’ associations. Inasmuch as both the manufacturers’ association and the dealers’ union are too weak to enforce their will on the trade, the result has been much controversy with no results of value. The outsiders.—The outsiders amount to 24 firms, including some of the larger factories. The outsiders manufacture the cheaper grades, but occasionally enter the market with better grades whenever the association succeeds in raising the profits sufficiently to invite competition. Export competition from outsiders—The export competition from Jag ders amounts to almost as much as the exports of the association itself. Can Americans successfully compete?—In consideration of the state of the building market in Germany, which will require several years for recuperation, and in consideration of the long terms of payment in the industry, the German market for wall paper is most uninviting. In addition, a careful study of the market would be necessary in order to suit the taste of the public. Also the matter of width is of importance. The German paperhangers are accustomed to narrow widths, and experience the world over has demonstrated that afforts to change established customs is attempting to swim upstream against a rushing current. If the German market in wall papers should again become worth the trouble, success would only be possible to those firms who are willing to cater to the customs and taste of the 58 REPORT ON COOPERATION IN AMERICAN EXFORT TRADE. country and are able to meet the market price. At present the market does not seem to be worth any effort. Tae PriNT-Parer COMBINE. The Association of German Print-Paper Manufacturers was founded in Berlin in the year 1900 as a limited liability company (G.m.b. H.). According to the agreement under which the union was organized it was supposed to run to December 31, 1915, but negotiations have been in progress during the last few months to extend this time. The sales are entirely managed by the syndicate. The individual companies unconditionally give up selling on their own account. They also refuse to participate in any competitive undertaking either directly or indirectly outside of the syndicate. All print paper produced by the members of the syndicate the central organization is obliged to purchase. Each member can upon request specify the amount of his products which can be sold abroad, but in doing so such a member would take all risks of loss upon himself. The assembly or general meeting of the company’s members has power to decide, among other things, as to how the participation quotas shall be fixed ; also the amount to which production shall be limited in case of necessity, and, furthermore, to consider the advisability of taking in new members. The assembly has entire control over the goods produced, and fixes the prices which the companies shall receive for their products. The enlargement of the participation quota in particular cases can also be decided by this body. Enlargements of quotas do not take place automatically for all members, but are considered when the desire of the company wishing this enlargement has been previously announced. - The formation of the print-paper syndicate caused an extraordipary increase in the total German production in the first half year of its existence (1901). The production amounted to 154,790 metric tons. Of this amount the Print-Paper Union produced 106,710 tons, to the value of 25,790,000 marks ($6,138,000). The syndicate, therefore, produced not quite 70 per cent of the total German production. At the time when the Print-Paper Syndicate was organized (September 26, 1903), the membership was composed of about 75 printpaper factories. These factories were controlled by 30 firms, who were members of the union. In the year 1909 the print paper furnished by the union amounted to 234,000 tons, while that furnished by outsiders amounted to 52,000 tons. The exports amounted to 32,000 tons, so that for inland consumption 254,000 tons were manufactured. The average price obtained was about 19 pfennigs per kilogram (5 cents per 2.20 pounds). In 1909 the outsiders supplied a little more than one-sixth of the total demand. To-day there are about 50 print-paper factories, most of which belong to the syndicate, thereby producing an almost complete monopoly. The manufacture of print paper is the most important part of the German paper industry, and the prices obtained for print paper have a great influence on the entire paper market. CARTELS OF THE TEXTILE INDUSTRY. Name, location, and preliminary remarks.—The textile industry offers difficulties in the formation of cartels, yet recently some suc- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 59 cessful efforts have been made to regulate trade by means of combination, although the opinions of customers, commission houses, and political economists as to the desirability of combination in the textile branches are divided. The trade is still, to a great degree, without any definite plan of combination or uniform organization. Each mill owner tries to control his output according to his own individual judgment of the state of the market, and overproduction in the market often follows, with the usual result of falling prices and disaster. Cartels are obviously desirable to counteract this state of affairs and also to aid the export trade. The successful efforts in combination have been the cartelization of certain specific textile products, but unfortunately material to furnish specific information in regard to them is not obtainable at this time. However, an outline of some of those cartels can be given. The greater number of the silk cartels fall under the category of cartels of the second class, having no further centralization than a simple price agreement. Such a cartel is possible when the conditions of operation and sales are sufficiently simple, and the number of mills not too great. The formation of the second-class cartels, described below, demonstrates that an industry manufacturing goods of high quality, although of great variety and controlled Fs by fashion, is suited to combination. The cartels of the German silk-weaving industry up to the year 1911 were eight in number: - 1. The Association of Manufacturers of Velvet and Plush in Germany (Der Verband der Sammet- und Pliischfabrikanten Deutschlands), referred to as “ Velvet Manufacturers.” 2. The Confederation of Manufacturers of Velvet Ribbons of 1910 (Die Vereinigung der Sammetbandfabrikanten, 1910), referred to as “ Velvet Ribbon na . 3. The Association of Manufacturers of Silk Goods of Germany (Der Verband der Seidenstofffabrikanten Deutschlands), referred to as “ Silk Manufacturers.” 4. The Confederation of Hatband Manufacturers (Die Vereinigung der Damen- und Herrenhutbandfabrikanten), referred to as “ Hatband Manufacturers.” 5. The Confederation of German Manufacturers of Umbrella Coverings (Die Vereinigung deutscher Schirmstofffabrikanten). 6. The Association of Manufacturers of Cravat Materials (Der Verband der Krawattenstofffabrikanten). 7. The Agreement of German and Swiss Muffler Manufacturers {Der Konditionenverband der deutschen und schweizerischen Cachenezfabrikanten). 8. The Association of “Turquoise” Silk Manufacturers (Der Verband der Turquoisefabrikanten). In the yearbook, 1913, of the Elders of the Merchants of Berlin, pages 132, 133, 134, 56 various textile manufacturers and dealers’ Isspelzitons are enumerated as having given evidence of life during the year. Organization.—Legally these cartels are subject to so-called “ Kollektivvertrige,” collective agreements. Not — entered in the official registry of legally recognized associations, they occupy a judicially central position between “companies,” according to Ger- 60 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. man civil law and unincorporated “societies” (having no legal status). In general they are subject to the regulations for “companies” without actually being such, as they lack the limitations confining them to a definitely limited number of persons. The important decisions covering the cartel are decided by the general convention of all the members. In addition there is a permanent directorate or committee presided over by a chairman. whose duty it is to transact routine and urgent business. All measures of importance affecting individual members, such as changes in or canceling of agreements with customers or contracts with other organizations, must be passed upon by the general convention. Usually a simple majority of the votes of those present or represented by proxies—in case of very important decisions a qualified majority—is required. Some cartels allow a plurality of votes to the larger members, who thus enjoy a privileged position. The committee is elected by the general convention. It represents the cartel in all matters concerning relations with customers, members, matters of competition, and agreements, and its decisions are binding for the members. The committee, and in particular its presiding officer, represent the cartel in legal proceedings. The administration is carried on by a salaried manager or person of confidence who sees to it that the members of the cartel live up faithfully to their agreements and who aids and advises members in matters concerning their common interests. This manager is usually assisted by a special attorney to the cartel, who serves in the capacity of arbitrator, legal adviser, and advocate in the case of disputes with external parties. The manager may demand inspection of books and business methods of each member. Foreign markets—The Velvet and Plush Cartel operates in all foreign markets. With the exception of North America, Austria-Hungary, and England, this cartel, through an agreement of January 1, 1908, with the velvet and plush manufacturers of Lvons. France, has established a virtual monopoly. The Velvet Ribbon Manufacturers operate chiefly in Germany, Luxemburg, Italy, Spain, Scandinavia, Switzerland. Holland, Bal. gium, and the Balkan States. The Manufacturers of Cravat Materials, Crefeld, are not very successful in France and Italy, because of local competition, but have a good business in Scandinavia and Russia. The Muffler Association operates in Germany and Switzerland. Products.—The goods manufactured by these eight cartels comprise all varieties of staple, standard, and fancy articles of silk and velvet, compounds of silk and cotton, and trimmings, but laces and silk underwear are not included. These goods are usually of excellent quality. Extent of monopoly of home market and of en parsy Moy of these cartels of silk manufacturers have the control of the German market except for a few independent manufacturers in South Germany. The cravat material manufacturers are all in the cartel. The various cartels control even a higher percentage of the entire silk textile exports than of the production at home. i Selling methods at home.—Sales are made by each mill independently, there being no cartel selling office. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 61 The Cartel of Velvet Manufacturers prohibits direct sales from the factory to retailer. In 1909-10 this cartel was renewed until 1915, and an agreement was made concerning the quotas each member should carry. The sales of “ Velours du Nord” are not regulated, the members being permitted to sell to all customers without exclusions. The Cartel of Velvet Ribbon Manufacturers fixed uniform rates for cotton-back velvet ribbons. Satin-back ribbons were to be sold in pieces of 12 meters in all Jnlidies, By a carefully planned scale of prices covering all the grades and qualities, the prices were so fixed by this price scale that one manufacturer could not undersell another by offering alleged inferior qualities at only a few pfennigs cheaper. Among other agreements a were the forced acceptance and enforced delivery of all orders, and the prohibition of price reductions. All these regulations oblige the cartel members to serve their customers according to the existing cartel prices and conditions, without granting any special favors. The Hatband Cartel has an agreement by which the producers only sell to wholesalers who are members of the Wholesalers’ Confederation or who, at least, are not antagonistic to the confederation. All sales to retailers are forbidden. The Wholesalers’ Confederation promises to buy from the cartel alone, with the exception of the Swiss ribbon factory, whose outside competition could not be avoided. The Cravat Material Cartel grants a sale premium only to those customers who agree to deal exclusively with it. It has also arranged a price scale with wide divisions. The divisions are arranged in such a manner that goods calculated for one division can not be sold in the next lower division except at a material loss. Customers of the cartel are granted 10 per cent discount on these serial prices. Selling methods abroad.—In 1906 the velvet manufacturers of Lyons, France, and St. Etienne, Switzerland, had formed a successful cartel. In 1907 the German cartel underbid it in Paris by granting better conditions to the customers, whereupon the French cartel approached the Germans and finally in 1908 made an agreement with them by which the Germans were to sell in France at prices approximating their calculations for the German market plus duty, and the Font agreed not to undersell them. In 1907 a convention was held in Ziirich, in which the German Association of Silk Manufacturers and the Swiss, Italian, Austro-Hungarian, and French mills took part. It failed because the Swiss were not willing to bind themselves to observe price agreements. The Cartel of Cravat Material Manufacturers has been very successful in Russia and Scandinavia. It has been able to control these markets through price scales and cartel discounts much as at home. These methods could not be carried through in England, because of the Swiss competition, which would not cooperate. In France and Italy the cartel made agreements jointly with Austrian concerns also doing busines there. These agreements had to do with terms of payment and cash discounts, but are maintained with difficulty. Character of competition—Price and quality are the dominant characters of the competition of these cartels in their different important markets. Central i organization.—Each mill sells its own products. A good many of these cartels believe that if they undertake to con- 62 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. trol sales to the most remote ramifications of the trade, it would require such complicated supervisory machinery that the enormous costs of administration would be greater than the advantage gained by direct selling prices. Terms of sale and delivery—(1) The terms of sale of the Cartels of Velvet and Velvet Ribbon Manufacturers are: (a) For wholesale dealers: Cash, end of first month after delivery 6 per cent discount. Cash, end of six months, net. Five days of grace are allowed, and possiniy for anticipation a discount at the rate of 6 per cent per annum. If the six months’ limit is passed. interest is demanded at the rate of 6 per cent. (5) For retailers, 2 per cent discount for cash in 30 days; cash in 90 days, net. (2) The silk manufacturers give for cash: End of first month after the month of delivery, 6 per cent discount; end of second month after the month of delivery, 5 per cent discount; end of sixth month after the month of delivery, net. A more extended limit than six months is inadmissible. After six months the mill has the Tg to sue, and after seven months is obliged to do so. Five days of grace are allowed. Dumping —Sales abroad at sweeping price reductions have been avoided by the silk cartels. In some cases an international uniform price has been agreed upon. In other cases the domestic exporter receives his goods from the cartel mills at the price which is in proportion to the price he is to receive in the foreign market. Special relations—(1) None of these cartels enjoys special privileges except the customary reduction in freight rates from the interior to German ports on goods for export to enable them to compete with manufacturers at coast points. (8) Direct dealings between weaving mills and thrown-silk mills are quite exceptional, as are direct dealings with silk growers. All business is being done through nriddle men. Similarly the auxiliar industries, dyeing and finishing establishments, occupy an ay ent position toward the weaving industry. They usually have their own organizations and make agreements concerning wages and business relations. A combination of auxiliary industries and weavers ander one head occurs occasionally in the crape-weaving branch, but is not common in the other branches. (4) The Velvet and Plush Cartel has agreements with the Lyon manufacturers and the Lister Works in England. The Cravat Material Cartel has valuable relations abroad, particularly in Secandinavia and Russia. The results attained by combination and the effect on outsiders.— Most of the results desired have been attained. The cartel, it should be said, does not endeavor to exclude, but rather to include, all competitive concerns. The Cartel of Velvet Ribbon Manufacturers, to successfully combat outsiders, made an agreement with the Association of Wholesale Velvet and Silk Dealers. This agreement assures preteen] terms to the dealers and prevents the manufacturers om dealing with other groups of wholesalers. The dealers are not permitted to underbid the retail prices of the manufacturers. In the case of South German ribbon mills, which specialize in silk-back ribbons, an exception was made, and the wholesalers are permitted to deal with them, but only to a certain anmual ratio. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 63 The Association of Silk Manufacturers was opposed by outsiders and at first undertook to force them to join the cartel. An agreement was made with the Association of Velvet and Silk Wholesale Dealers by which both parties agreed not to sell to or buy from outsiders. The cartel gave the dealers’ association preferential treatment as against all other customers. It excluded department stores, with the exception of the three largest. In March, 1907 , the assos ciation sent a circular to its customers, according to which every customer, be he wholesaler, garment manufacturer, or retailer, who had bought goods from outsiders, should in future be required to pay an additional charge of 10 per cent upon all bills of the cartel. This scarcely affected the wholesalers because of their exclusive contracts with the cartel. The result was successful in forcing thig group of outsiders to join the combine. The Cartel of Umbrella Cover Manufacturers conducts the fight against outsiders by an agreement with factories which dye their material. These concerns, four in number, guarantee to dye exclusively for members of the cartel. The dyers informed all manufacturers that they proposed to raise their prices 33% per cent, but would grant 25 per cent rebate to members of the cartel. To avoid circumvention the members of the dyers’ concern are nnt permitted to sell to noncarteled concerns. Commission houses and wholesalers may obtain goods only on the guaranty not to deliver directly or indirectly to concerns which are not members of the cartel. Thus the Cartel of Umbrella Cover Manufacturers forced all but three outsiders to join it, and these three concerns are obliged to run their own dyeing factory. A number of South German independent concerns compete sucressfully in the export trade by reason of their specialized products. Can Americans successfully compete?—American producers will find it difficult to compete with these combinations owing to the tariff protection, low cost of production, and quality of the product. Tre Avrcouor, CARTEL. Name, location, and preliminary remarks—The alcohol industry of Germany is controlled by the Zentrale fiir Spiritusverwertung (Central Agency for Distribution of Alcohol), organized March 29, 1899, as a CG m. b. H. (limited liability company), with its headjuarters in Berlin. Organization.—The present form of the Alcohol Cartel is the result of a natural growth in the organization of the industry, beginning in the years between 1870 and 1880, when alcohol first began to assume a position of importance in Germany. The strenuous competition of those days between the individual distillers and the fights between the distillers and refiners led to continual uncertainties and ductuations in the market, which brought about in 1897, in an effort to overcome these conditions, the formation of two separate cartels, the one a distillers’ organization and the other a refiners’ syndicate. This arrangement proved, however, to have no better effect on the alcohol market than the old system of unlimited competition. The fact that these two strong combinations operated in at least closely related, if not exactly competitive, fields led to speculation on the Berlin Alcohol Exchange, which threatened at times almost com- 64 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. pletely to demoralize the entire industry. These conditions forced the distillers and refiners to put aside their differences and combine in their present form in March, 1899. In doing this they aimed particularly at three objects—to increase the profits from the rectification of alcohol, to effect a central control of sales, and to reorganize the alcohol exchange. Under the treaty of 1899 the members of the cartel were bound until September 80, 1908. A central selling organization was provided for, which absolutely controlled the prices of the various products, and could raise or lower them according to the demands of the market. This central selling agency had all of the powers cf the same agencies in other German syndicates. It alone could make contracts for the sale of alcohol, and it alone had the power to apportion orders to the individual factories. The quantity which was assigned for produetion to each distillery was also determined by the central agency, which, of course, took into consideration the size of the concern. The. refineries were subject to the same restrictions in the matter of prices and making of contracts as the distillers. All of the alcohol produced by the members of the cartel had to be handled by the refineries of the cartel. The quota assigned to each refinery was determined, just as in the case of the distilleries, by the central agency. The profit allowed to the refiners was calculated on a sliding scale, the premium of refining, which usually varied between 7 a 9 per cent, corresponding to the rise or fall in the price of alcohol. In 1908, at the expiration of the first treaty term, the distillers and refiners formed a new treaty, very similar in its provisions to the original one. This treaty is still in force; the only important change in the organization of the Alcohol Cartel which this treaty brought about was the strengthening of the position of the distillers. Under the first contract the refiners had occupied the dominant position, but by this time the distillers, having become financially independent, were able to force concessions from the refiners by threatening to shut off production. As a result of this victory of the distillers the proortion of profit which should in the future go to the refiners was Bxed at a somewhat lower and at a definite instead of a variable rate. Up to this time (1908), although the advantages of belonging to the syndicate were great, there remained outside about one-fifth of the distilleries and refineries of Germany, which in most part, howaver, were small, the only exceptions being the Ostdeutsche Spritfabrik and the Vereinigten Nord- und Siiddeutschen Spritwerke. These large distilleries, with the smaller ones still remaining outside, were forced into the syndicate by the Branntweinsteuerreform law of 1909. There are now in Germany about 140 distilleries, all belonging to the syndicate. Foreign markets—The principal foreign markets for German alcohol are the neighboring countries of Europe, especially France and Spain. In these countries the former strong competition of Austria and Russia have been driven out, so that Germany to-day occupies the most important position in Europe as an exporter of alcohol. Products.—The products controlled by the Alcohol Cartel are raw, denatured, and refined alcohol, alcohol in the form of spirituous liquors, for lighting, for motors, and other industrial uses. ~ - - Extent of monopoly of home market and of emports—Until 1908 the cartel handled 80 per cent of the production of German alcohol. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 65 To-day, owing to pressure on outsiders of the Branntweinsteuerreform law of 1909, it exercises a practical monopoly. The Alcohol Cartel handles practically all of the alcohol exported from Germany. Selling methods at home.—The Alcohol Cartel has established in Germany a very modern and very effective selling organization. Agencies have been established all over the Empire and public interest in new uses of alcohol for heating, lighting, cooking, etc., has been created by advertising and by exhibitions of the many uses to which alcohol can be put. These methods have increased the domestic sale from 88.2 million liters in 1903 to 159.3 million liters in 1908. The cartel provides uniform prices for alcohol in all parts of Ger many by bearing itself the differences in transportation charges. Commission houses are not permitted to increase arbitrarily the prices set by the cartel. An interesting feature of the selling methods is the fact that whenever, in consequence of a change in the condition of the potato market, a higher price for alcohol appears nécessary, this increase is placed as far as possible upon the spirituous liquors and not upon industrial alcohol. Selling methods abroad.—In its foreign sales the Alcohol Cartel uses ordinary import agents, who are placed in the principal foreign markets. Character of competition.—The success of the Alcohol Cartel in its foreign markets 1s attributable to the high standard of its products, and to its ability to undersell competitors. Terms of sale os delivery.—The terms of sale of the Alcohol Cartel are the usual terms of German syndicates. For orders placed before the 15th of the month payment must be made by the 1st of the succeeding month, and for orders placed after the 15th of the month payment must be made by the 15th of the succeeding month. Dumping.—The German control of the foreign markets is made possible by selling for export below cost. The cartel has never hesitated at dumping, and it is encouraged in this policy by the great agricultural interests of East Germany. Overproduction in the potato crop usually means a further invasion by the Alcohol Cartel of foreign markets. In this manner the Germans have driven the former Song export competition of Austria and Russia so completely out of the field that the industry in these two countries has suffered greatly. Russia has even become a large importer from Germany. Special relations.—The German Government aids the Alcohol Cartel with the high protective tariff, preferential freight rates, bounties, and by encouraging in every way the prosperity of those districts where most of the alcohol is produced, notably the eastern Provinces of Prussia. The cartel maintains close relations with the important industries which manufacture from or use alcohol. The producers of spirituous liquors are worse off than they were before the advent of the cartel, as the latter has raised the price for prime spirits from an average of 42 marks to 52 marks. The cartel allowed the manufacturers of fermented vinegar (Gérungsessig) a rebate, which was only given under strict and exacting conditions. The consumer was required to use all the alcchol pro-97941 °%°—pT 2—16———-5- 66 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. cured in his own establishment, and only those consumers received the rebate who promised to purchase all their requirements from the cartel. Three important German industries, the celluloid, the lacquer, and the perfumery, all of which use great quantities of alcohol, complained that the policy of the alcohol syndicate in selling for export much cheaper than in the domestic market has paralyzed their foreign sales, and in many cases has enabled foreign competitors to sell their products in Germany cheaper than the German factories, paying high prices for alcohol, could possibly do it. In consequence of these difficulties seven (German lacquer manufacturers established branch factories in Austria, Holland, Belgium, Sweden, and Switzerland. The industries which use alcohol for lighting, heating, and power purposes are much better treated. As the cartel is anxious to encourage the use of industrial alcohol these industries receive considerable price reductions. So far as kidown the Alcohol Cartel has no direct relations with foreign Governments or foreign business interests. The results attained by combination—The Alcohol Cartel is undoubtedly a success. This can be attributed to nothing else than organization, by which it has obtained complete control of the domestic market and has made Germany by far the most important export country. Attitude toward outsiders—The Alcohol Cartel does not exclude any distillers or refiners. On the contrary, it seeks to include.them all. In this object it has been successful, by reason of the evident advantages to a distiller or refiner in belonging to the syndicate. At present no important distillers or refiners of alcohol in Germany are not members of the cartel. The outsiders have never engaged to any extent in the export business. Owing to the ability of the cartel “to dump ” at its pleasure, putsifiars who attempted to compete in foreign markets could only ose. Independent distillers and refiners enjoy the same protection from the Government in the domestic market as does the cartel. Can Americans successfully compete?—In view of the extraordinarily strong position of the German Alcohol Cartel it does not seem that American producers of alcohol can at this time compete successfully with the cartel in Germany. The disadvantages under which competitors would labor can well be seen from the organization of the cartel, described in more detail in Dr. Goetz Briefs’ “ Das Spiritus-Kartell,”* and from the discussion of the alcohol industry, contained in pages 201 to 209 of the volume “ Das Land der Monopole: Amerika oder Deutschland?” by Dr. J Singer.? CoNCENTRATION MoveEMENTS IN OTHER GERMAN INDUSTRIES. In many lines of German industry companies have been formed which have succeeded in obtaining a more or less complete monopoly. Summaries of the concentration movements in many of these lines i Briefs. Goetz, * Das gL Karlsruhe §. B.: G. Braun, 1912 (IV, 252 8.). Volkswirtschaftl, Abh. d. bad. Hochschulen N. F. H. 7. 2 Singer. J., “Das Land der Monopole: Amerika oder Deutschland?’ Berlin. Frans Riemenroth. 1913 (365 S.). SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 67 immediately follow. These summaries are based upon information obtained from private sources, consular reports, and liberal translations from * The Land of Monopolies: America or Germany?” (“ Das Land der Monopole: Amerika oder Deutschland? ”), by J. Singer. The plate-glass monopoly.—The Union of German Plate Glass Manufacturers (Ltd.) eroin Deutscher Spiegelglas-Fabriken, G. m. b. H.) was founded on October 1, 1894, for a period of five years. The central place of business was located at Cologne. The original organization agreement was extended in 1899 and 1904, respectively. On the latter date no time of termination was fixed. The object of the union was to control the larger portion of polished plate glass and raw glass produced in Germany. ~The union has laid down special regulations for the various glass works which are its members, prescribing the manner in which goods can be delivered for inland consumption. If one of the works terminates its agreement with the association, the syndicate is dissolved. The cartel covers such a large part of German glass production that it is regarded as a virtual monopoly. The seven members of this association (which also produce other glass products) are as follows: Aktien-Gesellschaft der Spiegel-Manufakturen (St. Gobain, Chauny S. Cirey, Paris; owners of the plate-glass factories at Stolberg near Aachen and Waldhof near Mannheim) ; Deutsche Spiegelglas-Aktien-Gesellschaft, Klein-Freden (Hanover); Glas- und Spiegel-Manufaktur, Schalke, Westphalia; Schlesische Spiegelglas-Manufaktur Karl Tielsch, G. m. b. H., Ober-Salzbrunn; Herzogenrather Spiegelglasund Spiegelfabrik, Bischeroux, Lambotte & Co.; Rheinische Spiegelglas-Fabrik, Eckamp; Société Anonyme des Glaceries “ Cer. mania,” St. Roch, Province of Namur, France, and its branch factory, the. Spiegelglaswerke “ Germania,” A.-G., Porz-Urbach. Fince 1904 an international convention of plate-glass factories has existed which to date, with the exception of one factory in Belgium, includes all the producers in Belgium, Germany, Austria, France, and Italy. England and America do not enter into this agreement. The association regulates the production of plate glass by limiting the use of polishing machinery to a certain number of days. (See the discussion of business holidays under No. 13 of the List of International Cartels.) The international convention has no influence whatever on the management of the individual factories. The origial international agreement was to end in 1912, but at that time was extended to August 19, 1924. At the time the latter extension was made the Union Continentale Commerciale des Glaceries at Brussels was established as the central selling agency for those countries which did not have their own agencies. The agreement between the international convention and the German cartel was also extended until 1924. The annual sale of the seven factories comprising the (German union amounts to 1,000,000 square meters (10,764,262 square feet). The cost of production is $1.43 and the wholesale selling price Sor $4.52 per square meter (10.76 feet). These figures are those or 1912, The Association of Window Glass Producers.—Window glass is an important article of commerce, the use of which is an absolute necessity in nearly all countries. The German window-glass produc. 68 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. tion was organized into a virtual monopoly at Cassel by the formation of the Union of German Pane Glass Works (Ltd.) (Verein Deutscher Tafelglashiitten, G. m. b. H.). This association began its activity in 1908. It immediately monopolized about 95 per cent of the German production of window glass. The agreement which expired on July 81, 1912, could not be renewed because of the large number of outsiders which had sprung up. Among the companies which composed the Cassel association was the Wittener Syndicate, the Association of Glass Works of the Saar district (with the common selling agency, which was established in 1892), and the Union of Rhenish-Westphalian Pane Glass Works at Barmen. Finally an agreement was formed in November, 1911, which was to run to the end of 1918. The object of this agreement was to establish a general selling bureau for conducting the sales negotiated in Germany. Sales outside of the German customs district were left free to the individual companies. The concentration of the electrical glass industry.—The understanding concerning minimum prices agreed upon in 1905 between the Union of Silesian-Lausitz Pane Glass Works (Ltd.) and the Rhenish-Westphalian Union, on the one hand, and the Saxon manufacturers, on the other, was dissolved in the summer of 1912, after the Cassel association had ceased to exist. The United Lausitz Glass Works (Vereinigte Lausitzer Glaswerke) at Weisswasser, on whose board of directors the German General Electric Co. was represented, made efforts to obtain the control of several other companies. Finally, in the first part of 1913, the Lausitz Glass Works obtained possession of the Glass Works (Glashiittenwerke) Weisswasser and the Schweig’sche Glas & Porzellanwerke, at Weisswasser. Before this unification was effected a competitive struggle was carried on with these two companies which lasted three or four years. The Lausitz Works now controls a large part of the eleectrical glass goods produced in Germany. The Bottle Syndicate—The Association of German Bottle Factories (Verband der Flaschen-Fabriken) was formed in November, 1904, with its central place of business in Berlin. The first agreement was to last until the end of 1909, when it was immediately extended to December 81, 1919. The entire bottle industry was united in this organization with the exception of a few insignificant producers. In the articles of the organization the number of firms composing this association was given as 32. The object of the bottle association was to divide the total production into participation quotas and to regulate the prices at which members could offer and sell their goods in Germany. Selling prices could not be under those fixed by the association. The individual firms reserved to themselves the right to sell other products which they manufactured. The fixing of prices for sale In foreign countries is managed by a committee chosen by the head of the union. No member of the syndicate can assist a newly organized German bottle factory, either by money or advice, without the concurrence of the association. The violation of this and other regulations is punishable with a fine .of 250,000 marks ($59,500). If competition develops which is under 8 per cent of the total amount of bottles produced by the syndicate, the agreement can be set aside by a three-fourths majority of the members; but if competition over 8 per cent develops, only a simple majority Y - SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 69 vote is necessary. The principal executive body of the syndicate is the directorate, which is composed of nine members. Without voting power, the following companies belong to the directorate: Aktien-Gesellschaft der Gerresheimer Glashiittenwerke, vormals Ferdinand Heye; Aktien-Gesellschaft fiir Glasindustrie, vormals Friedrich Siemens, at Dresden; and H. Heye, Glasfabrik, at Schauenstein. The other six members are chosen by the members’ assembly, from which the three firms above mentioned are excluded. The Gerresheimer and Siemens companies, which took a prominent part in the formation of the syndicate, are in themselves monopolistic undertakings. Besides bottles, the Gerresheimer works has produced rough and wire glass since 1904, The Siemens factories also produce other glass goods besides bottles. The Siemens interests are affiliated with those of German and Austro-Hungarian manufacturers. The associations of Germany and Austria-Hungary reached an agreement (1907) concerning selling districts and prices. The aniline color combinations—1In the chemical industry the various (Ferman manufacturers have united themselves in a semimonopolistic manner by combinations of several important manufacturers. In the color industry three undertakings have reached considerable prominence, and by the formation of agreements between these companies their influence was further strengthened. The three great German companies are the Color Works, formerly Meister Lucius % Briining, Hochst; the Color Factories, formerly Friedrich Bayer & Co., Elberfeld; and the Badische Anilin- & Sodafabrik.” The two latter companies formed an agreement, beginning January 1, 1905, lasting for 50 years, with the Aktien-Gesellschaft fiir Anilin-Fabrikation, Berlin. According to this agreement the consolidated profits of the three institutions were to be divided as follows: The Elberfeld and Badische Aniline Factories to receive 43 per cent each, the Berlin Aniline Factory to receive 14 per cent. Beyond the scope of this agreement the three companies were to remain entirely independent. About the same time as these three companies came together (in the fall of 1904), the Hochst Color Works formed a community of interest with Leopold Cassella & Co., G. m. b. H., the duration of which was to be unlimited. This agreement was formed principally in order to obtain raw materials, to regulate the method of manufacture, and to assist in negotiating sales. Both undertakings arranged their affairs so that they would not operate in the producing district of the other. In 1908 the Kalle Co. (Aktien-Gesellschaft), Biebrich, was drawn into this agreement. The profits obtained by the agreements above mentioned are so large that the combinations are generally regarded as a monopoly of the most severe kind. The control of patents, organization, and capital have given these organizations much of their power. The meager contents of business reports furnish little material to judge the extent of concentration in this industry. From the report of the Badische Anilinfabrik for 1911 it was very difficult to tell even to what branch of industry this company belonged. Absolutely no material was published concerning the methods by which satisfactory relations were maintained with other companies. The huge profits of the color manufacturers speak for themselves. The dividends distributed in the last two decades by the companies above mentioned, and two others of the same nature (1892-1911) were over 250 per 70 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. cent.) The most remarkable fact in this industry is that these high dividends go parallel with liberal terms of purchase. Several companies raised their capital stock in 1908. The new stock, with the exception of 500,000 marks issued by the Berliner Anilinfabrik, was immediately quoted at 105. The Association of Linolewm Manufacturers—An association of German linoleum factories was formed in the year 1910, to terminate at the close of 1912. The object of this association (Verband der deutschen Linoleumfabriken) was to fix prices and to arrange sales in Germany. When the association was extended in 1913 its activit; was enlarged. The association is composed of seven factories, which together form an almost complete monopoly. The only outsider was the newly established Continental Linoleum Co. The (German Linoleum & Oilcloth Co. (Deutsche Linoleum- und Wachstuch- Compagnie) reports in April, 1912, that the competition of the Continental was so small that it could scarcely be felt and that, if it became larger, the association would include it. A price convention was arranged between the German association and the principal foreign manufacturers to exist for an indeterminate length of time. The Union of German Linoleum Dealers (Verband Deutscher Linoleumhindler) is affiliated with the association, and the two organizations together have established definite regulations by which outsiders are boycotted. The Soda Trust—The German Solvay Works Stock Co. (Deutsche Solvay-Werke, Aktien-Gesellschaft) at Bernburg is a powerful organization which controls the greater part of the German production of soda. This company produces soda according to the ammoniac and Solvay jrocess at the following places: Bernburg (Anhalt), Wyhlen (Baden), Saaralben (Lorraine), Rheinberg (Rhine Province). Potash, rock salt, high and low grade coal, and other chemieals are produced by this company besides soda. The German Solvay Works is the head of the Soda Syndicate, which regulates the sales of soda in Germany. The Syndicate of German Soda Factories has existed since 1900. It has been extended to the end of the years 1905, 1910, and 1915, respectively. At the end of 1912 the Solvay Works had a capital stock of 40,000,000 marks ($9,520,000), habilities amounting to 10,000,000 marks ($2,380,000), and reserves to the value of 33,280,000 marks ($7,920,600) as against $6,173,720 in 1910. The reports of the company give but very little idea of its success, since a comparison of the amount of dividends for the last 10 years is not available from the published statements. The aluminum and zine organizations.—Since the German aluminum and zinc companies were formed largely to arrange foreign sales and for international purposes, the concentration movements in these two industries will be discussed under international combinations. The German glue combinations.—The Scheidemandel Co. (A.-G. fiir chemische Produkte, vormals H. Scheidemandel, Berlin) operated on January 1, 1918, 17 factories, which control the major part of the production of glue and bone prodysis in Germany. The bone prodacts manufactured are used largely for fertilizing purposes. The fats form the basis for the stearin and soap industries. According to the prospectus published in June, 1910, the Scheidemandel Co., in 1 Singer. J.. “Das Land der Monopole: Amerika oder Deutschland?’ Berlin. F' Niemenroth, 1913 (365 8.). See table on p. 211. erlin. Xranz SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 71 its German business, consumed 6,000 German carloads of bones, or about 60 per cent of the total German bone production. In Austria-Hungary the company worked up 8,300 carloads (German). The importance of the Scheidemandel &o, is evident from the report of its general assembly of October 80, 1911. In this report the statement is made that the company worked up, in Germany and abroad, 35,000 carloads of bones. On July 1, 1911, the Scheidemandel corporation and its subsidiary companies negotiated an agreement, through its purchasing agency, the “ Concernos,” with the Bone Dealers’ Association “ Rohag” (Vereinigung der Rohprodukten-Hindler “Rohag”), Berlin. The “ Rohag ” has united the largest part of the rawbone trade and furnishes most of the bones used by Scheidemandel. Although Scheidemandel attempted to deny the monopolistic character of its organization in 1912, this denial is not generally credited. The company claimed only to have attempted to hold a prominent position on the German market. The Scheidemandel concern of Germany and Austria also operates in Belgium, France, Russia, and other countries. Its influence is even felt in Argentina and Brazil. In June, 1912, the Belgian company came under the control of Scheidemandel, the latter concern acting as a holding company. The vice president of the Belgian company was chosen as a representative of the Liebig Extract of Meat Co., which, apparently, has an agreement with Scheidemandel concerning the utilization of bones. The independent producers of glue in Germany have been absorbed to such a degree by the Scheidemandel concern that it now controls about 90 per cent of the trade. The dynamite agreement.—The Nobel Dynamite Trust Co. (Ltd.), which controls the Nobel company in Germany (Dynamit A.-G., vormals Alfred Nobel & Co., Hamburg) and a number of other German ammunition factories, has formed an agreement for monopolistic purposes with the United Cologne-Rottweiler Powder Factories inn Ko&ln-Rottweiler Pulverfabriken). The Rhenish-Westphalian Explosive Co. (Rheinisch-Westphilische Sprengstoff- A.-G.), with the two groups above mentioned, has formed a general cartel. This very complicated syndicate controls the greatest part of the German powder business (or rather did control the majority of this business, because it is understood that since the European war began the German companies have severed all ties with their English connections). Monopolistic tendencies in the German book trade—The house which publishes any particular book has, in a sense, a monopoly of the Pk in question. The publisher fixes the selling price and grants rebates to large buyers. Such buyers can, in turn, give their customers a rebate, the height of which is determined by the German Bookdealers’ Exchange (Borsenverein der Deutschen Buchhiindler). If the prices and rebates fixed by the Exchange are not observed by any member in making sales to customers, then the-union can prevent such a dealer from obtaining further books. The German Government divides its publications among the prominent publishing houses. Certain numbers of such publications must be furnished to the Government, but the remainder of these editions can be sold at reasonable prices. The rubber combination.—The Continental Caoutchouc & Guttapercha Co. (Continental-Caoutchoue- und Gutta-Percha-Co.) is one of 72 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. the most profitable of German enterprises. Its cumulative dividends for the decenniums ending 1901 and 1911, respectively, amounted to 142 per cent and 418% per cent. The capital stock, which was raised in 1912 to $3,000,000, was issued at 250. The enormous profits of this company were made principally in the manufacture of automobile tires. The Continental controls by far the larger percentage of the total production of tires in Germany. Before the formation of this company the competition was lively and there were but few evidences of a monopoly. The huge profits which the Continental has heen able to show are probably due to the extraordinary productivity and the popularity of the goods. German Gold and Silver Parting Works (Deutsche Gold- und Silber-Scheideanstalt).—The Parting Works, which is located at Frankfort on the Main, is a widely diversified undertaking, the profits of which have been extraordinarily large. In the literature describing this cartel it is designated as the central representative of several associations, such as the Potassium Cyanide Manufacturers. The Gold and Silver Parting Works is interested in precious metals, chemicals, and a number of other combinations. It acts as a holding company for the charcoal combination at Konstanz (Holzverkohlungs-Industrie, A.-G.), which is in itself principally a holding company. The quotation of capital stock of the Parting Works from 1908 to the end of 1910 rose from 445 to 613 per cent of the par value. In 1913 the capital stock was increased from 10,000,000 marks to 20,000,000 marks, but even after this increase, the stock was quoted at 528 per cent of the par value. During the years from 1911 to 1914 the dividends were 40 per cent, 50 per cent, 30 per cent, and 30 per cent, and in addition large sums were added to the surplus. Concentration in the incandescent-light industry—The German Incandescent Gas Light Stock Co. (Deutsche Gasgliihlicht Aktien-Gesellschaft, or otherwise known as the Auergesellschaft) holds in the incandescent-light business a dominating position. In the company’s statement for 1910-11 it was shown that this company manufactures in its works about 50,000,000 incandescent mantles annually. In order to overcome competition in the purchase of raw materials, the control of the English Auer company, which owns most of the capital stock of the Austrian Auer company, was effected. According to the statements made by the Association of Independent Incandescent Mantle Manufacturers (Verband unabhingiger Gliihkorperfabrikanten) at the beginning of 1913, the Auer company produced for sale in Germany and. abroad from 90,000,000 to 100,000,000 mantles, as compared with 70,000,000 on the part of other German manufacturers. In the incandescent-light business, excluding mantles, the Allgemeine Elektrizitats-Gesellschaft and Siemens & Halske, with the Auer company, occupy a prominent position. The proportionate production of other factories has considerably diminished. The semimonopolistic position of the Auer company-in the mantle business and its prominence in the manufacture of incandescent lights is shown by the great profits of this company. In 1911 and 1912 the common stock of the Auer company paid a dividend of 6,600,000 marks ($1,570,800), or 25 per cent, in cash, and 50 per cent in stock; in the preceding three years, on the same capital, a cash dividend of 50 per cent was paid annually. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 78 Artificial Silk Trust.—The United Artificial Silk Factories (Vereinigte Glanzstoff-Fabriken -A.-G.), Elberfeld, is by far the greatest company of the German artificial-silk industry. Although it nas existed scarcely 15 years, it already exercises an international monopoly. The Artificial Silk Factories paid in the 10-year period preceding 1913 a cumulative dividend of 343 per cent. puring the same period the capital stock was raised from 2,500,000 marks to 3,000,000 marks ($595,000 to $1,190,000), and the new stock was quoted at par. The great profits in this industry rest principally upon patents which cover the best methods of production (according to the copper-oxide ammoniac, process). In May, 1913, the issuance of 2,500,000 marks of gratis stock was announced. The stoneware combination.—The Association of German Stoneware Factories (Ltd.) (Vereinigung Deutscher Steingut-Fabriken, G. m. b. H.), which was promulgated in October, 1911, to regulate sales conditions and prices, formed in 1911 and 1912 a trust composed of 27 factories, which represent about 95 per cent of the total German production. The unsuccessful German rice monopoly.—The rice-trading company (Reis & Handels A.-G.) was established at Bremen in the year 1901 by a combination of German rice mills. The expectations of the founders were not realized. The capital stock had to be reduced from 80,000,000 marks to 15,000,000 marks ($7,140,000 to $3,570,000). In the division of profits (according to participation quotas) at the end of the year 1911 the names of 12 rice mills were mentioned, among which 10 were in Germany. The concentration movement in the storage-battery industry.—A prominent manufacturer of storage batteries (Akkumulatoren-Fabrik, A.-G.), located at Berlin-Hagen in Westphalia, has succeeded in affecting a relatively complete monopoly by absorbing several independent concerns. Largely on account of the competition of the Berlin-Hagen combination the firm of Boese & Co. was dissolved. The profits of the Berlin-Hagen company are unusually large. For the seven years immediately preceding 1910 its dividends amounted to 123 per cent annually. In 1910 they were increased to 15 per cent, and in 1911 they were again raised to 25 per cent. The capital stock was raised from 8,000,000 marks ($1,904,000) to 12,000,000 marks ($2,856,000) in October, 1912, and the new stock was offered at par. The board of directors of the Berlin-Hagen combination is composed of the following organizations: The Berliner Handelsgesellschaft, the Deutsche Bank, the Pester Kommerzial-Bank, the General Electric Co., of Germany (A. E. G.), and Siemens & Halske. Many complaints have been heard concerning the lack of publicit on the part of the Berlin-Hagen combination. The increase of oy which was officially announced in September, 1912, was known in certain circles before the announcement was made. The combination in 1912 made the statement that it employed in the manufacture of electrotechnical specialties at least 8,000 laborers and employees. Since only one or two outsiders are known to exist, the Berlin-Hagen company is regarded as a virtual monopoly. The Jute Syndicate—An, association of German jute manufac turers (Verband Deutscher Juteindustrieller, G. m. b. H.) was founded at Brunswick in 1901 for an indeterminate period. The association can be dissolved by the withdrawal of any single com- 74 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, pany if a year’s notice is given (but such a notice can not be given before the business year 1910 has been completed, and later, in extending the organization, not before 1915). Only in case unusual competition develops can the syndicate be dissolved in 1915. The association is composed of 26 firms. In 1918 there were only two small factories outside of the syndicate, namely, Max Bahr, Landsberg (a. W.), and the Westfiilische Jute-Spinnerei & Weberei, Ahaus. The statistical yearbook for the German Empire, 1912, mentions 30 large jute companies. This number includes only such firms as work exclusively in jute and excludes those which he flax and other spinning material. According to the official tables, the 30 mills above mentioned operated 167,393 spindles in 1910, from which jute yarn and thread to the value of 64,960,000 marks ($15,460,480) was roduced. P The object of the Jute Syndicate is to regulate the terms of production and the sale of jute products as far as possible. The syndicate exercises a far-reaching control over the business operations of its members. It can limit the extension of any of its members, force them to observe maximum working hours, restrict prices, and standardize rules for sale. The operations of jobbers are drastically restricted by the syndicate. The Association of German Wholesale Jute Dealers has an agreement with the syndicate by which dealers’ commissions are regulated. New spindles and looms can not be introduced without the advice and consent of the syndicate. The amount of jute imported is largely dependent upon the price policies of the cartel. The proposed nitrate monopoly. —The most recent attempt to form a monopoly in Germany was made in the Reichstag on March 8, 1915, when it was proposed to create a nitrogen trade monopoly {Stickstoff-Handels-Monopol). This attempt is regarded as being a war development and was necessitated in order to preserve nitrate for ammunition purposes. As a result of the strenuous opposition which developed from many quarters, no national law was passed. The subject is still being discussed. The objections to the proposed nitrate monopoly were many. 1t was stated that such a monopoly would severely injure many other important German industries and have a depressing effect on the foreign trade. The temporary necessity for preserving the nitrate supply may only last a short time, and in such a case the proposed legislation would only be detrimental in disturbing existing conditions. The proposal to create a nitrate monopoly did ‘not reach a sufficiently advanced stage so that the details of organization were all worked out. It would probably have taken the form of most German syndicates, i. e., it would have been organized as a limited liability company (G. m. b. H.) with absolute power of control of production. The practical problems of marketing would presumably have been managed by a central selling organization. List of German cartels showing signs of activity during 1913.— Since nearly all literature upon cartels ceased with the outbreak of the European war in August, 1914, the'reports of prominent German commercial organizations for the year 1913 furnish the best up-to-date information. The report of the Association of Elder Merchants, Berlin, 1918 (Aeltesten der Kaufmannschaft), contains SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 75 a list? (admittedly incomplete) covering the annual developments in 274 German combinations. Tae GerMAN War CompaniEs. : Because of the war the German Government has attempted, by establishing companies for the purchase, collection, and conservation of manufactures and raw materials, to supply any needs which become manifest. These companies are prescribed by law. Their duties are also more or less outlined in enactments establishing the companies. The companies are purely war companies of a semiofficial character. The directors of some of these organizations are professors and prominent industrial leaders, who either offer their services or are appointed in an honorary capacity. These companies are almost entirely organized in the form of limited-liability companies (G. m. b. H.). Some are for purchasing purposes, others buy raw materials, and still others control the available supplies. Special companies have been established to conserve grain, wool, cotton, chemicals, metals including copper, leather, tobacco, jute, rubber, and many other articles of commerce. The work of the War Grain Co. (Kriegs-Getreide-Gesellschaft) is far more interesting than that of any of the other special companies. The purpose of this company was originally to make the available supply of grain meet the needs of the nation until a new crop could be harvested. With the advent of the new crop, other duties have been added to the work of the company. Most of the companies keep careful statistical records of supplies which are reported upon by iy They suggest means by which conditions can be improved and enforce the fines prescribed by law. COMBINATIONS OF FOREIGN MANUFACTURERS. Operations of foreign combinations limited by international agreements.—The high development of German industry in nearly all lines of manufacture naturally limits the success of foreign combinations on the German market. Many foreign cartels which in former years made sales in Germany have now either voluntarily retired from the local field or restricted and confined their operations to certain geographical districts by international agreement. As the rominent international combinations operating in Germany are i later in this report their German operations have been only mentioned here. A few illustrations of the effects of international agreements on the German business of foreign combinations are the following: (a) The steel corporations of England and America, which formerly operated considerably in Germany, have reached an understanding with the German producers by which selling districts are regulated. According to the rail agreement, the American producers agreed not to interfere with German trade nor with European conditions. (See the discussion of steel under “ International combinations,” and the references to international agreements under the study of the steel combination.) (8) The International Plate Glass Syndicate in Brussels is also composed of foreign combinations which formerly worked in Germany, and which now have reached an understanding for the cont Vol. 1. pp. 119—138. 76 BREPORT ON COOPERATION IN AMERICAN EXPORT TRADE, trol of their domestic and foreign business. (See the plate-glass study above.) (¢) The international shipping agreements also regulate a part of German trade, which was formerly participated in by foreign combinations. (See under “International combinations,” below.) (d) The Nobel Dynamité Trust, which is of English origin, formerly competed on the German market with the local producers. Before the outbreak of the European war, the German and English producers had reached an understanding which satisfactorily disposed of the German trade. (See under “Other German cartels,” above. The combinations above mentioned are only a few of the foreign cartels whose operations in Germany have been curtailed by international agreements and contracts. Many ‘others are known to exist, but literature concerning their operations and methods is rarely published. The German control of goods imported from the colonies—Another movement which restricts the operation of foreign syndicates and combinations in Germany is the tendency of local associations of manufacturers (such as cocoa, rubber, etc.) to control the importation and consumption of the products which they use. Since goods of this character are imported from abroad and from colonial possessions, their German sale can be controlled by either buying up properties in other parts of the world, or by establishing business acilities abroad. It is generally understood that efforts have been made along both of these lines by German associations. Although these efforts may not have succeeded in eliminating foreign competition in raw products, yet it is safe to say that they have retarded and restricted such competition. The German efforts in foreign rubber districts is a sample of what has been done outside of Germany to assist its internal manufactures. The lack of organization by sellers of colonial goods has assisted this movement. For instance, the lack of concerted opposition in Brazil has made Hamburg a great distributing point of coffee, which distribution might take place in Brazil itself if the producers were sufficiently organized. All of these tendencies have enabled German manufacturers to procure raw material cheaply and to exclude and overcome imperfectly organized combinations from the producing regions. Operations of American trusts and cartels.—The best examples of combinations of foreign manufacturers operating in Germany are the large American institutions, such as the Standard Oil Co., the American Tobacco Co., the International Harvester Co., the American Radiator Co., ete. These institutions are not exactly foreign, since they emanate from the United States itself. The success of their German enterprises has been generally commented upon by the American press and is well known to the companies themselves. Consequently, thorough investigations will not be made of the German management of American enterprises, but brief summaries of results are respectfully submitted. The operations of the Standard Oil Co. have long been a subject of discussion in Germany. In fact, the Standard &il Co. has presented a problem which has occupied the minds of German legislators. Even as early as 1902 a book was published by Dr. Rudolf SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 77 Schneider on the petroleum trade! which discussed the methods of the Standard Oil-Co. It may generally be stated that the outcome of the legal proceedings and business negotiations between the Standard Oil Co. and the German concerns was the formation of a German petroleum trading company which was organized to settle the difficulties which had arisen. The operations of the American and English tobacco companies have been the subject of absorbing interest to the German press during the last few years. A consistent campaign was carried on by the local associations of manufacturers by means of advertising propaganda and court suits to prevent the operation of these companies from increasing. This campaign is supposed to have culminated in the well-known Jasmatzi suit at Dresden (several consular reports upon the American Tobacco Co. and the Jasmatzi suit were submitted by the consul general at Dresden and other consular officers in Germany within the last two years). The International Harvester Co. has succeeded in gaining the larger part of the German market for the following reasous: (a) The McCormick, Deering, and Osborne machines were the first known in Germany, and their interests are consolidated in the [nternational Harvester Co. (5) The complicated nature of binders and reapers makes it difficult for a new firm to successfully enter the market; the secret of success is in the construction of one approved model in a series of several hundred thousand. The International Harvester Co. has had less success with mowers than with binders. In selling the former the German competition is exceedingly active. In binders the Germar firms have never been able to compete successfully with the International Harvester Co. The Farmers’ Association (Bund der Landwirte) purchased two German firms (the Wery and the Richter-Brandenburg) for the express purpose of competing with the International Harvester Co. They finally succeeded in making a very good binder at about $5 to $10 under the price usually obtained by the International Harvester Co. (640 marks wholesale). This undertaking was started at such a late date and the quality of the International Harvester products was so good that the farmers preferred to buy the American-made machines. The competition in mowers, steel rakes, tedders, disk harrows, etc., was so keen that the International Harvester Co. had to build a large factory at Neuss on the Rhine. In this way duty and freight charges were saved, so that the Harvester Co. was ok to meet the German prices. The principal foreign competitors on the German market are the Massey-Harris Co. (Canadian), Walter Wood (American), Adriance, Platt (American), and the Johnston Harvester Co. (owned by Massey-Harris). The ¥ pternational Harvester Co. maintains seven offices in Germany, all of which have warehouses connected with them. These offices are located at Hamburg, Neuss, Berlin, Mannheim, Breslau, Konigsberg, and Munich. Each office is under the direction of a manager and assistant manager, one of which is an American and the other a German. Each of these offices is responsible to a central 1 Schneider, Dr. Rudolf, “ Der Petroleumhandel,” Tiibingen: H. Laupp, 1902 (94 B.). Zeitschrift fiir die gesamte Staatswissenschaft., Trg.-H. 3. 8 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. European manager, who has his office at Hamburg. He has under his jurisdiction the Russian district, with eight branches and a factory at Moscow, and also the Scandinavian district with a factory at Neukopping. All Europe is managed from the office of the general European director at Brussels (now Copenhagen), who generally directs about 40 branches and 4 or 5 factories. The American Radiator Co. conducts its business through the central office located in Berlin and operates several German factories, the most important of which is that at Schoenebeck. It is organized in Germany as the “ National-Radiator-G. m. b. H.” German competition has Deen overcome to a large degree by the new and practical patterns introduced, the up-to-date selling methods, and the efficient radiators and heating appliances produced. The selling end of the business is well directed by efficient American managers. The factory is well equipped and can turn out goods at reasonably low prices. Although the competition is strong, the American Radiator Co. has made enough money in (Germany to build factories in other European countries. There are many other American combinations working in the German field besides those enumerated above. No other prominent foreign combinations operating in Germany. —Foreign combinations come into competition with German enterprises far more in foreign fields than in Germany itself. A few foreign cartels have been able to operate in Germany for a few years when their products were protected by patents. When the patents expire, however, the goods are easily copied by the German manufacturers. The dominant position of local industry and a high and carefully prepared tariff have been sufficient reasons to deter foreign combinations from attempting to operate in Germany. It is interesting to note in this connection that no one of the many authors who have written recently upon trusts and combinations in Germany mentions other foreign cartels except those of American origin or of an international nature. INTERNATIONAL CARTELS, SYNDICATES, AND COMBINATIONS, General remarks on the formation of international combinations.— The economic depression of the year 1908 caused the German cartels to regard the formation of international cartels more favorably. During the years 1909 and 1910 the same tendency was also noticeable in other countries. It was thought that the internal economic deficiencies could be strengthened by regulating foreign exports. The existing combinations in the iron industry, the steel rail agreement and the beam convention, as well as the international glass syndicate, still remained in existence, and efforts were made in other lines. Strong international movements in iron, zinc, and lead were noticeable between the years 1908 and 1910. In spite of the tendency to promote international cartels the number of those actually existing remained relatively small. The Rail Trust and the North Atlantic Shipping Pool are examples of international combinations which were made to regulate sales conditions in foreign fields. Attempts were made to form combinations in the electric, chemical, and textile industries. SPECIAL REVORTS FOR FEDERAL TRADE COMMISSION. 79 Limitations of international cartels—The cosmopolitan nature of the international cartels is a great drawback to their formation. The relations and conditions in various parts of the world are all different and can not be unified unless it can be shown that great profit would result from such a union. The international combinations, therefore, can not be developed along the same lines as national cartels. For instance, central selling agencies, fixed production figures, and well regulated processes can not exist. The international cartels which are Formed, are regulated by incomplete agreements and understandings. The very fact that such agreements and understandings exist causes outsiders to spring up. This fact was to be noticed in the experiences of the Rail Syndicate. Since the Association of Belgian Steel Works was outside of the combination, it was given orders for railroad material from all parts of the world. Buyers were glad to favor any organization which would defeat the object of the international combination. The same condition of affairs was noticed in Russia, and, to a certain extent, in England, in the iron and steel industries. The development of industries in new states always offers competition to international agreements. The competition of Japan and Italy, where the iron industries are new, has affected the success of such international agreements as have been formed. Prominent international cartels—The international agreements in the shipping, steel, zinc, aluminum, and textile industries will be taken up individually in the following pages. It has not been possible to make separate studies of the international movements in the lead, wire, chromo postcard, pipe, silk dye, linoleum, and other industries. Nearly all of these are mentioned in the list of international cartels which showed evidences of activity in 1913 (given as a conclusion to this section of the report). North Atlantic Shipping Pool.—The North Atlantic Shipping Pool was formed in the year 1908 by the following 17 companies : Hamburg American Line, Sloman Union Line, North German Lloyd, Allan Line, Anchor Line, America Line, Atlantic Transport Line, Canadian Pacific Co., Compagnie Générale Transatlantique, Cunard Line, Red Star Line, Scandinavian American Line, Russian Steamship Co. for Eastern Asia, White Star Line, Dominion Line, Leyland Line, Holland American Line. The formation of the pool was preceded by an agreement between the Hamburg American Line and the North German Lloyd for the regulation of emigration traffic. The international shipping conference, which resulted in the forming of the pool, met at Cologne J anuary 17 and 18, 1908. All of the great continental lines were represented.” The object of the meeting was to settle the rate difficulties which had arisen between the White Star and Cunard Line, and to discuss the complications which had broken out with the Canadian Pacific Railway Co. An agreement was reached which went into effect February 7, 1908, By this agreement the emigration business was regulated for three years, and prices were fixed for first and second cabin traffic on the trans-Atlantic steamers. In 1912 difficulties broke out within the pool. The principal cause of the disturbances was the fact that the Canadian Pacific Railway Co. was granted a concession by the Austro-Hungarian Government to enter the emigration traffic.” By the granting of this 80 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. concession, the interests of the Canadian company were brought inte the sphere of those of the German companies and the Austro-Americana (which was allied with the two German companies). The Austrian Goyernment assisted the Canadian Pacific Railway Co. in entering the emigration business at the port of Trieste, because in this way it was thought that the dependence of Austria upon foreign steamship companies could be reduced. In order to attain this object, Austria began a movement which caused difficulties in the shipping pool. The pool, in beginning its struggle with the Canadian Pacific Co., believed that not only reductions of rates should be instituted, but that the fight should be carried into the province of the Canadian company where it obtained its principal receipts. The shipping pool, therefore, decided to no longer operate its lines to St. John and Halifax, where trans-Atlantic travelers generally met the railroad lines. The pool further decided to establish railroad connections at Portland, where the Canadian Pacific Co. was in sharp competition with the Grand Trunk Railroad Co. By this maneuver the Canadian Pacific Co. was deprived of a portion of its income. Furthermore, the Austro-Americana endeavored to open a directly competitive line between Trieste and Canada on behalf of the pool and to make use of ships furnished by the other lines in the North Atlantic combination. In May, 1913, 1t was announced that an understanding between the pool and the Canadian Pacific Railroad Co. was reached on the following basis: The new line between Trieste and Canada should be operated by the Canadian Pacific Co. and the Austro-Americana working together as the “Pool Line.” An exact understanding was reached concerning the division of profits. The quota of Trieste in the emigration traffic remained at 4 per cent, as it had been, but persons emigrating from Trieste to Canada were not included in this gquota, so that in reality the emigration traffic to Canada was increased. The Austrian Government, in accepting this proposition, endeavored to include the idea that passenger tariffs and LH rates should not be higher than those of other North Atlantic or Mediterranean ports. Furthermore, the Austrian Government endeavored to have more ships put into the emigration service. The terms of this agreement were prevented from being successfully carried out by a newer and more awkward conflict inside of the pool The new conflict resulted from the differences of opinion between the Hamburg American Line and the North German Lloyd concerning the emigration business. The Hamburg American Line claimed that its participation quota in the German emigration traffic should be increased from 43 per cent to 47 per cent, and the quota of the Lloyd be decreased from 57 per cent to 53 per cent. This demand was based on the building of the Imperator and an increase of tonnage on the part of the Hasibiey company. Lloyd replied to this demand with the contention that the existing quota ought to be maintained as long as the proportion of the total tonnage of the Lloyd to the tonnage of the Hamburg American Line was not materially changed. This conflict was a menace to the stability of the pool, because these matters were regarded as having been settled when the pool was organized. Other competitive measures were instituted both by the Hamburg American Line and the North German Lloyd, such as the increase In capital stock, the Yoworing of rates, and the entering into traffic fields which had previously been regulated. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 81 Finally, the Hamburg American Line and North German Lloyd conflict was settled by a compromise, and the pool continued to exist. [t is thought that both of the large German companies have not always been satisfied with the pool arrangement, and that when an opportunity offered they would demand a change of relations. It has often yo stated that the present offers such an opportunity, and that now many of the entangling shipping alliances which hamper the movements of the North German Lloyd and Hamburg American Line can be thrown overboard. - Upon the conclusion of peace many changes will likely take place in the pool arrangements and many new and satisfactory combinations be formed. The international steel combinations.—Previous to the year 1911 it was remarked that there was a growing tendency toward international combinations. This tendency was regarded as being a result of the internationalization of capital. In this international movement the German Association of Steel Works was always interested and willing to agree to proposals coming from other countries. Immediately after the German Association of Steel Works had been formed it sought to form some kind of an agreement with the Belgian Steel Association, the United States Steel Corporation, and the English and French steel combinations. As a result of these endeavors, as early as November, 1904, an international steel-rail agreement was established by the German, Belgian, French, English, and American producers. According to this agreement, the North American rail market south of the Great Lakes was left free to the United States Steel Corporation, while Canada and the South American market were given over collectively to Germany, England, France, Belgium, and the United States. In all other markets the European combing. tions were free from American competition. In this form the Rail Trust was extended in December, 1906. The outstanding combinations of Austria-Hungary and Spain entered the combination in 1908, while in Russia three factories joined immediately, and in the year 1910 two more works became affiliated. Besides the Rail Trust, an international understanding exists in products “A,” as well as in beams and half-finished material. A beam agreement was arranged in November, 1904, with the Belgian Steel Works and a certain number of French works. In this agreement the English organization was absent. An international pipe cartel was also decided upon. This combination went into effect January 17, 1908. Tt was In the form of an agreement between syndicates. It was disrupted in July, 1908, by the American participants because prices were lowered by some of their competitors. Shortly -afterwards a new agreement was reached between the German and American firms, but this understanding was dissolved because the German local organizations went to pieces on June 80, 1910. In the wire-nail and screw industry an international agreement also was reached. The German Screw Syndicate agreed with the leading English works that.after October 1, 1905, a German work could not accept an English order and no English work could accept a German order. In the smaller articles of the iron and steel industries international agreements are formed and easily disrupted. Consequently it is very difficult from the meager information which has been published to discuss all of the lesser combinations, 927941°—p1 2—16——6 B2 REPORT ON COOPERATION IN AMERICAN EXPORT TIRADE. The International Zinc Syndicate—As early as 1908 efforts were made to form an international zinc syndicate. On July 15, 1908, the American works, with a production of 226,000 metric tons, reached an understanding with the German-Belgian combination, having a production of 209,000 tons and 115,000 tons, respectively, and the English and French (including Spanish) works, with each a production of 56,000 tons. The German firm of Giesche’s Erben did not enter the German Union, but declared to the international combination that it was prepared to limit its production and to observe the agreed prices of the combination. Difficulties occurred: between the German firms, particularly with the Frankfort Metal Co. (Metall-Gesellschaft, Frankfort). The German firms succeeded in Sing thar difficulties in 1909, and since the only important outsider, Von Giesche’s Erben, was conciliated an international cartel was formed which was to last until April 30, 1914. The producers in Belgium, France, and other European countries entered this agreement. The German Union was more or less dependent upon the international combination; i. e., if the international combination dissolved it was thought that the German Union would also be dissolved. An effort was made in 1909 by the American interests to form a copper combination, but an international agreement in copper never materialized. An international tin-plate union was also spoken of between American and English interests. It is not known exactly how thoroughly this combination was organized before the outbreak of the European war. I'he International Aluminum Syndicate—In October, 1912, an international aluminum syndicate was formed, in which all the prominent producers in Europe were members (especially those in France, Switzerland, and England). This combination is regarded as being a well-organized monopoly. The international combination effected an arrangement with the Canadian producers. Several years before an international zinc syndicate was attempted, but was destroyed because so many outsiders developed who flourished upon the high prices fixed by the combination. The report is current in Germany (based upon an official investigation at Washington in January, 1913) to the effect that the Aluminum Co. of America controls the Canadian company, which has agreements with six or seven foreign aluminum companies. The agreements with the foreign companies were not contrary to law because the actual operations were in other countries than the United States. Efforts to form an international combination in the textile industry.—Since the pricey of cotton and other raw materials were high in 1909, and the selling prices of finished products could not be raised in proportion, an effort was made throughout the whole year to reach an international understanding. Previous to this time international agreements had been established successfully in other special lines, such as the Handkerchief Union between Germany and Switzerland, and the understanding between the German and French velvet and plush manufacturers. An International Union of Silk Dyers had also been previously arranged. During the progress of the efforts toward an international agreement in the textile industry the International Union of Cotton Spinners and Weavers sought, with a degree of success, to limit the production of textile materials. In England. France, Austria, Italy, Belgium, and Germany, during SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 83 the first part of the year 1909, a systematic limitation of production was generally agreed upon in many conventions. The Rhenish-Westphalian Cotton Spinners’ Association and the English combination at Manchester both decided to limit their business; in October, 1909, the American spinners decided to ally themselves with the English-German agitation which had been going on. In spite of all of these efforts the English and Westphalian groups continued to produce large quantities of materials. Indeed, it was claimed by many that the limitation of production was more the result of an industrial standstill than a movement toward an international combination. At any rate, in the year 1909 the seed was planted for an international agreement among cotton mills which might have developed into a practical combination if the European war had not broken out. The European Bottle Union.—In the latter part of the year 1907 a bottle organization was formed which covered nearly the whole of Europe. In order to organize this combination a number of bottle manufacturers met in Berlin in October S300y ), forming the German Union of Bottle Manufacturers (Ltd.) (G. m. b. H.), which, together with similar organizations in other European countries, formed the European Bottle Union. The purpose of the European combination was to limit the production of bottle-making machinery manufactured according to the Owens patents. These patents were finally obtained for all countries of the world except the United States, Canada, and Mexico (this field was reserved for the United States). The purchase price of the patents was 12,000,000 marks ($2,856,000). From the field stipulated at the time the patents were purchased China and Japan were excluded. The payment of the price agreed upon must take place within 10 years, with the addition of 4 per cent interest. The purchasing price was only theoretical, because the receipts for the sale of patent rights in those countries which did not belong to the European Unjon could be deducted. In the summer of 1912 a patent license was sold to a company in Bragil. The cost of buying the patents was distributed among the factories belonging to the European Union proportionately to the amount of bottles which each produced. The total annual production of the European Union was limited to about 1,428,000,000 bottles, to the value of 140,000,000 marks ($33,320,000). Of the total number above stated, (Germany was credited with 530,000,000, England with 305,000,000, France with 295,000,000, and Austria with 160,600,000. The remainder was divided between Holland, Sweden, Denmark, and Belgium. The great importance of the “Gerresheimer” and “ Siemens” bottle works in the German industry can be estimated from the fact that these two companies were supposed to pay 2,000,000 marks ($47 6,000) pach, with interest of the total amount paid for the Owens patents, or, in other words, these two companies were to pay one-third of the otal purchasing price, guaranteed by the European Bottle Union. INTERNATIONAL CARTELS. LIST OF INTERNATIONAL TRUSTS WHICH EXHIBITED INDICATIONS OF ACTIVITY DURING 1913, AS REGISTERED BY THE ELDERS OF THE MERCHANTS OF BERLIN. (1) Agreement between the German and Italian steel works (unions) for the furnishing of 40,000 metric tons of imported German T and U steel. The agreement runs until J anuary 1, 1915. 84 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. (2) International Beam Syndicate. The German, Belgian, and French producers organized a syndicate, with a view to lowering their export prices on malleable iron (in shapes) so as to meet American competition (August). (3) A fusion of the Belgian construction works “La Brugeoise” and the French-Belgian construction works Necaise & Delcuve was effected on April 23. A connection with the English car construction works, the Amalgamated Carriage, Limited, was intended. 4) International Zinc Syndicate, Paris. Decided that prices should no longer be made public. Was extended to March 31, 1916. Produced, in 1912, 580,000 metric tons (world production, 975,000 tons). (5) International Aluminum Syndicate. It is understood that the American aluminum organization controls the Canadian company, which in turn has entered into an agreement with other foreign companies. Will be further extended from January 1. The sales for the year 1914 will continue at the same prices. Since Germany had the smallest proportionate demand, its prices were fixed at 200 francs ($38.60) per 100 kilograms (220.46 pounds) instead of 160 marks wan (6) Union of European Enamel Works. Was extended from June 29, to December 381, 1916. Established a selling depot for the Chinese export trade. (7) International Syndicate of Ammunition Factories. An agreement concerning selling districts was reached between the German arms and ammunition factories and several foreign organizations. Exchange of experiences, general propaganda. etc., were also agreed upon. (8) A price convention was concluded between the United “ Mirkische ” Cloth Manufacturers and the English manufacturers of woolen goods, formerly Oldroyd and Blackeley. (9) A mutual interest was established between the Swiss woolen printing works and the Alsatian works. (10) A price convention was concluded between the unions of the German silk ribbon industry, including the lower German silk ribbon manufactprers, and the Basel manufacturers belonging to the Rhenish Union. (11) International Linoleum Union. The union of the German and English manufacturers had a disagreement with the Austrian manufacturers. (12) An International Caoutchouc Syndicate was planned. The capital under consideration was from 50,000,000 to 100,000,000 francs ($9,650,000 to $19,300,000). The Belgian and the Brazilian Governments were named as the promoters of the syndicate. (18) International Plate Glass Syndicate, Brussels. A special selling organization was planned in connection with the syndicate (Union Commerciale et Eontinentale des Glaceries). During the second quarter of the year the business holidays were changed from 33 to 30. The business holidays of the third quarter were raised from 7 to 37, later to 41 & uly), and then to 43 SR (14) The Union of German Granite Works commissioned its president to negotiate concerning a renewal of the contract about to terminate with the Scandinavian Union, and likewise to conclude a contract with domestic and foreign producers. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 85 (15) Negotiations were being conducted between the Belgian, German, and English manufacturers of artificial Portland cement with a view to an arrangement concerning export prices (June). (16) International Film Convention. Was dissolved on account of the withdrawal of the German manufacturers (January 17). The German manufacturers desired permission to grant to film borrowers a special rebate of 5 per cent besides the rebate mutually agreed upon for their products. (17) An arrangement was considered between the European quinine manufacturers and the producers in Java, according to which the manufacturers would accept 500,000 kilograms (500 metric tons) of sulphate annually for a period of five years at 0.05 florin (2.01 cents) per unit. (18) North Atlantic Shipping Pool. = (19) East Asian Steamship Sons. An increase of freight rates was decided upon for April 1, but which would not go into affect unless an agreement was reached with the outsiders. The freight rates were raised to 2} shillings (61 cents), effective September 1, from Europe to Japan. (20) An agreement was considered between the Hamburg- American Line and the Hamburg South American Steamship Co., on the one hand, and the Booth Steamship Co. (Ltd.), of Liverpool, on the other, relative to the trade with northern Brazil. The agreement went into force September 1. (21) Syndicate of the consolidated shipping lines of Antwerp for the La Plata trade. Permits the forwarding firms of Antwerp to forward goods by steamer of outsiders without the loss of rebates. Lowering of freight rates (December 22). (22) South African Pool. An understanding between the Enslish and the German steamship lines relative to their South and East African business was attempted (February). The South African Pool raised the freight rates on September 1. COMBINATIONS OF BUYERS oF AMERICAN (GOODS. . There are many associations of dealers and retailers in Germany, but few, if any, of these are organized and designed for the express purpose of controlling the sales of American goods. Bonikowsky, in his book on “The Influence of Industrial Cartels in Germany” (see pp. 212 et seq.), carefully explains the object and nature of the usual combinations of dealers. He states that buyers’ associations have been largely organized as a protection against the great manufacturing cartels. By buying in Ro quantities through a central agency such associations believe that they can obtain cheaper prices. Buyers of raw products are often organized so that they can demand equitable prices from the producers. During the present European war an association of cotton importers, with headquarters at Bremen, has been organized in order to obtain American cotton at as low a price as possible. The real difficulty with buying associations is that they are organized after the great cartels, and consequently can be easily disrupted. Another diffeulty has been that these associations can not include all the buyers in their fopaofive lines, since many buyers prefer to buy directly or through foreign connections 86 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. established many years ago. Such associations of buyers as may exist in various lines of raw products are not organized to buy American goods alone, but goods of the same kind produced in other parts of the world. When associations of dealers have difficulties with large German manufacturing cartels they are in the market for foreign goods. Such opportunities occasionally appear and are regularly reported by consular officers as trade opportunities. Naturally it is impossible to tell when difficulties between German cartels and the local buyers will develop. At present no difficulties of this nature have been reported in the German trade publications or by American firms interested in such commodities. The following two illustrations will show something of the nature and methods of German buying combinations which have come to notice in the actual marketing of American goods: (1) A prominent American manufacturer of low and medium priced watches discovered that if he attempted to sell his goods wherever he could find a market the German buying combinations of watchmakers would refuse to handle his goods. After seriously considering this problem the American firm decided that the buying combination was not strong enough to do much damage and that larger sales could be made by selling to department stores and such dealers as would be willing to buy. The German Watch Makers’ Association conducted a vigorous campaign in their trade journals and elsewhere, but did not succeed in driving out the American firm. Year by year more watch dealers bought the American product, so that before the war broke out a very lucrative business had been established in spite of the efforts of the German Watch Makers’ Association. This association would have acted in the same way toward any other foreign firm which used the same kind of selling policy. (2) A prominent American firm manufacturing heating apparatus reports that occasionally combinations of a half a dozen or more buyers are formed to procure lower prices. It is a policy of the American firm in such case either not to sell to such an association at all or to break it up by offering special rebates and attractive prices to a prominent member, so that the wholesale buyers’ organization would go to pieces. The same tactics are also used by the German competitors in this line, and consequently the associations of buyers have not been firmly established. Most of the associations of buyers described above are detrimental to the importation of American goods, particularly those organized for the control of raw products, such as cotton and copper, but beneficial, associations of importers of American goods could be formed for their mutual protection. So far as is known no such associations exist at present in Germany. American goods are generally sold by branches, many of which operate their own factories; agents, who operate general distribution depots; and wholesalers, dealers, and jobbers, who buy directly on their own account. In Germany these buyers are well disseminated throughout the entire country. Groups could be gathered together in Hamburg, Bremen, Berlin, and a few larger places for protective purposes. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 87 CoMPETITIVE CONDITIONS IN GERMANY AFFECTING AMERICAN (GOODS. The investment of foreign capital and the employment of foreign managers do not mly affect the sale of American goods in Germany. In fact, little, if any, attention is paid to these features. Occasionally it comes to notice that some firm refuses to buy because of its foreign connection, but this condition of affairs is extremely infrequent, as the large commercial figures in the local industry are all German. It may also be said that on account of the high development of German manufacturing and the general policy of the Government to assist local enterprises no concessions or contracts of prominence are let abroad. Such subjects as foreign investments and concessions apply to South American and other new countries and do not affect the competition against American industry in Germany. A competitive condition which is particularly applicable to German conditions is .he facility of local manufacturers and producers in copying the best American models, fashions, designs, and factory methods. This condreion prevails in the textile industry, where styles play such an important part in making sales. Duplications of American collars, shirts, suits, overcoats, etc., can be easily made, thereby saving the high rate of duty which American importers have to pay. Likewise, many machine specialties which have not been patented san be reproduced by a careful German manufacturer, who notes in detail the advantages of the American product and has the raw materials, factory, and labor at hand ready for immediate use. Germany has great natural resources, which place its manufactures in a position to reproduce most articles which can be manufactured in nther parts of the world. The German general and conventional tariff is so constructed that high rates of duty are placed upon foreign-manufactured articles. I'he rates are fixed by a permanent body of experts, which tries to immediately correct any injustices which may be done to German industry by the German tariff. The very form of the German tariff makes it amenable to sudden change and the correction of injustices. The American Treasury Department frequently has cases brought to its attention which have existed for a long term of years. Under the present provisions of the American tariff countervailing duties can be levied, but owing to the varied methods by which bounties and discriminations are given it is often impossible to establish their existence until a period of years has elapsed. Preferential railroad rates to the seaboard for exported goods and low steamship rates on domestic goods have long been a topic of complaint with American firms in competitive lines. The ownership of railways by the State affords opportunities for the careful working over of tariffs, so that they will assist the local industry where it should be assisted. Railroad preferences is such a complicated and technical subject that it alone would furnish a topic for an American commission to spend months of study in Germany. It is also another example of what the German Government has been able to do to assist domestic industry. The activities of ir high schools, industrial institutes, and chambers of commerce are exceedingly beneficial along technical lines. American firms frequently speak of the sale of one of their A} BS REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. articles being injured by a new invention, a new method, or a new suggestion which emanated from one of these educational institutes. Economical methods of production are a source of constant study. During the present war these bodies have again demonstrated their practical value. Substitutes for imported articles have been discovered and practically utilized. The energies of these schools upon the conclusion of peace will be again directed along commercial lines, and their influence as a competitive factor of importance will be again felt. Activities oF THE GERMAN GOVERNMENT IN FOSTERING THE GERMAN TRADE. The activities of the German Government through its various agents can be better reported from South America, South Africa, the Far East, and other countries where attempts have been made to extend German trade, than in Germany itself, where these matters are regarded as of a confidential character. It is generally known that the German Government has been a pioneer in the placing of commercial attachés who are experts in agricultural, shipping, or mining questions in various parts of the world where their knowledge of these subjects can be of most advantage. The activities of these experts are quite generally known. The dln Government, in recent years, has been particularly keen upon obtaining concessions for the building of railroads in the Near East, the Far East, and other parts of the Orient. The governmental assistance to these enterprises has largely been rendered through its diplomatic and consular agents. Many of these enterprises have not attained all of the objects for which they were intended, but it is now reported by papers interested in the foreign trade that the projects in Turkey, Asia Minor, and the near East are progressing favorably. Favorable shipping laws, subsidies, and similar measures have long been means by which the German Government sought to extend its merchant marine and indirectly assist its foreign commerce. These efforts of the Government are well known, and the present standing of the Hamburg America Line and the North German Lloyd Line in the shipping of the world are substantial evidences of the favorable legislation and paternal attitude of the Government. The Government through its agents and semiofficial bodies, such as chambers of commerce, advisory boards, ete., has always assisted the great banking interests of Germany, or combinations of exporters, to establish satisfactory financial agencies abroad, so that drafts can be cashed and credits be collected to the ultimate benefit of the German exporters. These and other activities of the Government and semiofficial bodies need only be mentioned, as they are well known. The sending of students or other investigators, either by semiofficial bodies or by associations of manufacturers, has been a common method of trade extension which has been encouraged by the German Government, by practically showing how such travelers would be of value. These travelers study the models, designs, and customs of foreign countries, and become proficient in all features of the trade with their country which would increase its sales abroad. By such SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 89 means as these the German Government has been able to practically and scientifically assist its local enterprises in entering and holding their places in foreign markets. Special report of Consul Harry G. Seltzer, Breslau, Germany, February 24, 1916. INncreasep Prices or Upper SiLEsiAN Pic Iron, Rorrep IRON, AND " RiveTs. The Pig Iron Union, to which most of the Upper Silesian manufacturers belong, has increased prices for quality pig iron from 2 to 73 marks ($0.476 to $1.785) per metric ton for the period from March I to June 30, 1916. The wholesale prices in Breslau of Upper Silesian rolling-mill products were increased on February 10, and the following quotations have been announced: Soft rod iron, $52.36 per ton; malleable rod iron, $57.12 per ton; fine sheet iron, $70.21 per ton; coarse sheet iron, $55.93 per ton: and band iron, $66.64 per ton, all f. 0. b. Breslau warehouse. The Union of German Rivet Manufacturers in their recent session increased prices on boiler, bridge, and ship rivets of 12mm. diameter and upward by 20 marks ($4.76) per metric ton. All other iron rivets have been increased by 30 marks ($7.14) per ton. A rebate of 5 per cent is allowed on assorted rivets and on door-hinge rivets. The assembly further decided upon an extension of the present union until September 30, 1916. Special report of Vice Consul in Charge Frederick J. Schussel, Munich, Kingdom of Bavaria, November 4, 1915. The territory covered by this report offers at all times but limited, if any, opportunity for gathering information upon the subject of the present instruction, as practically all the German cartels; syndicates, and combinations have their seats beyond the borders of the Kingdom of Bavaria. The momentous problems presented by the war, to the practical exclusion -of all subjects not directly related thereto, render it particularly difficult at this stage to obtain from administrative bodiés any information concerning the subjects in question. In endeavoring to secure information from private sources, it became evident at the outset that the present is a most inopportune time for the undertaking. The attitude of the Royal Bavarian Government toward cartels, syndicates, rings, and other forms of combination, as opposed to outsiders (independent concerns), is that of the strictest neutrality. The individual and national benefits derived from constructive cooperation, as opposed to destructive competition, are not underrated by the governmental authorities. It would appear that German commercial interests, as a whole, have been most willing to cooperate with governmental authorities, with the view of arriving at a mutually satisfactory solution of the “combination ? problem. The exercise of the control thus obtained by the Government appears to prevent conflicts with pane interest to a remarkable degree, and this notwithstanding the fact that some German combinations have an apparently monopolistic character. 90 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The production controlled by German cartels, etc., varies from 40 to ew per cent of the entire mol foo of the country in their respective es. Numberless broad decisions in favor of cartels or combinations and against a plaintiff member thereof have been rendered by the courts in cases Where the combinations’ extreme aggressiveness led to breach of the combination agreement on the theory that it offended good morals. Actions brought against cartels, etc., by outsiders on similar grounds are rarely successfully concluded, unless it is proven beyond a reasonable doubt that the extreme measures adopted by a combination with the view of getting rid of an independent legitimate-competitor are such as to seriously threaten his existence and to grievously offend public interest. No special Enh of any sort, such as export bounties, preferential freight rates, etc., are. granted to combinations to the detriment of independent concerns, and the success of such combinations ‘in Bavaria is largely regulated by the laws of supply and demand and primarily due to the high efficiency resulting from cooperation, as expressed in both quality and price. Dumping in home territory is avoided on general principles, and, as this method of unloading a surplus production in foreign markets would, if it became general, cause the immediate and rigorous interference of governmental authorities interested in home markets. this practice is comparatively seldom resorted to. Reserves for the special purpose of combating unfair competition are known and permitted to exist. The object of these reserves in Bavaria, however, appears to be instructive rather than destructive. The general tendency is to endeavor to include in cartels and combinations all the important concerns in their respective lines, particularly those whose previous competitive activities gave rise to the formation of the cartel or combination. It frequently occurs, howpver, that the fittest, strongest (financially), and best-known concerns decline to pool their interests with others less favored. Inability to induce strong outside interests to join cartels occasionally results in the dissolution of the cartel. Not a single instance of a dissolved cartel appears to be the direct result of the war. No cartels of any sort created for the purpose of purchasing American goods exist in the Kingdom of Bavaria. ENGLAND. Special report of Consul General Robert P. Skinner, London, England, December 20, 1915. The trust movement.—The trust movement in British industry is very fully treated in H. W. Macrosty’s work on the subject (Longmans, Green & Co., 1907), and since that date it has i progressed in many directions. It is very frequently suggested that if industrial and trading combinations, commonly denominated trusts, exist less strikingly in what until the last few weeks was a free-trade country than ‘elsewhere, their comparative rarity must be attributed to that system but the fact is that if free trade has limited the power of domestic trusts to control trade prices beyond a point which would admit foreign competition, it has not prevented them from coming into SPECIAL BEPORTS FOR FEDERAL TRADE COMMISSION. 91 being very numerously in every form, and particularly in the form of international agreements, which become increasingly popular. If capitalistic combinations were slower in securing a foothold in Great Britain than in the United States and Germany, the cause probably must be sought in habits of greater conservatism, which apply to business undertakings in general. Macrosty remarks that something like a general movement to control competition first began to be felt in the eighties. “After numerous experiments with all kinds of terminable associations,” he states, “ manufacturers, sick of warfare, turned to amalgamation of their interests, and followed in the same course as their brethren in the United States, only a little later. The first stimulus was given by the success of Messrs. J. & P. Coates in 1896, and the great development of 1899-1900 was distinctly imitative of the parallel development in America, just as the subsequent disfavor was to some extent due to the temporary financial failure of some of the great trans-Atlantic trusts.” Existing combinations.—Existing combinations in Great Britain are found in the iron and steel industries as amalgamations and associations; in the extractive industries; in the textile industries; in the chemical industries; in grain milling; in the tobacco and liquor trades; in the transport industries; and in a variety of miscellaneous industries. - Unaided by tariffs of an oppressive character, unhampered by special legislation, they depend for their success in the United Kingdom upon their efficiency as means of production and distribution. Among the well-known British combinations are— Messrs. J. & P. Coats ($hread), as a type of complete control of output by the actual purchase of subsidiary companies. The Chilean Nitrate Association, as a type of regulation of output. Dunderland Iron Co., as a type of companies united to obtain a common and cheap supply of raw materials for its members. Lever & Co. (soap), as a type of almost complete control of output through the purchase of rival companies, yet nevertheless using no methods to prevent competition. International trusts—Macrosty, in his work, gives all the available details respecting the above and a great many other combinations and it would be futile in a special report to repeat the many facts which he has set forth so elaborately and accurately. He has not, however, dwelt at any great length upon the international trust, a form of organization recently come into favor and more or less known in every great commercial country. The extremely ingenious methods by which the international trusts are formed and so manipulated that a very limited amount of capital enables the trust builders to keep them in hand is fully explained in a translation supplied by the present writer under the title of “International control of the metal trade,” forwarded to the Department of State from Hamburg in 1918. The facts in this report were assembled and studied by a wellknown German university professor and merit careful reading. Quite recently the metal trade trust came before the British prize court, the trust people claiming that certain seized goods were owned by Messrs. Henry R. Merton & Co. (Litd.), a British firm. The president of the court in his judgment held that Messrs. Henry R. Merton & Co. (Ltd.), of London; the Australian Metal Co. (Ltd.), of London: the Metall Gesellschaft, of Frankfurt: Messrs. Vivian 92 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Younger & Bond, of London; the Compagnie des Minerais, of Liege (he might have mentioned other companies in every part of the globe, banks and financial associations), were bound together in a very intimate and complicated interrelationship to the point “that the hand of the Metall Gesellschaft was to be seen and its powerful influence exhibited at all times and places.” The whole center of activity and operations of this business was at Frankfurt, at the offices of the Metall Gesellschaft. He felt no doubt in deciding that this business had its house -of trade in Frankfurt. It is interesting to note, in connection with international trusts, that Parliament 1s at this moment considering how far and in what manner a British corporation, wholly or partly under foreign control, is entitled to trade as a British enterprise, and the disposition is, without any doubt, to go behind the corporate form and seek the nationality of the stock ownership or control as fixing the true nationality of the enterprise itself. Conditions following the war—Under existing circumstances American houses, as everybody knows, are doing an enormous business in the United Kingdom. Much of this business naturally will revert to British houses on the reestablishment of peace, when manufacturers now making munitions and military supplies can turn once again to their usual lines of production; but whether, when that time comes, competitive conditions in this country will be what they are to-day, belongs to the domain of speculation. Many observers and writers are already urging the desirability of adopting a complicated set of tariffs which, first of all, will tend to assist the sale of products of various parts of the British Empire, and of the present allies of Great Britain. The development and practical application of ideas along the above lines is a matter to be watched with keener and keener interest as the war draws to a close. NOTES FROM COMMERCIAL ATTACHE A. H. BALDWIN. Commercial Attaché A. H. Baldwin has kindly supplied the consulate general with the following further notes on the subject of combinations in the British possessions: Informal combination in South American meat trade.—There exists in the United Kingdom a recognized combination or system of agreement with respect to imports among those several companies which are engaged in selling South American chilled meat (beef) in the markets of Great Britain. While no written agreement between these companies is established, it is known that at intervals representatives of each company importing meat from the Argentine sit in conference and decide upon the percentage of shipments that shall be made by each party to the agreement. This action is evidently not regarded by the British Government as contrary to the on interest; in fact, since the beginning of the war, when the ritish authorities commandeered much of the shipping engaged in the meat trade with South America (and even took over one of the refrigerating plants on the La Plata River), the suggestion has been made by the Hones that it should itself become a party to this understanding between the meat companies operating in this trade in these islands (a plan not carried out). SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 93 A representative of one of these companies, a British concern, advises that the purposes of the agreement are to stabilize the industry to distribute the meat shipments as the markets can absorb them} to maintain prices evenly—not, however, at a level adverse to the public interest, but in such a way as to avoid the violent fluctuations caused by ill-timed and unorganized placing of excessive amounts of meat on the market at certain periods (creating extremely low prices), followed by periods when deficient supplies would tend to increase prices unduly. No allotment of selling territory in Great Britain is made, apparently; and it is also stated that no price agreements are made. Apportionment of the trade, in volume, is agreed upon orally, a certain percentage of the total shipments from the Argentine being allotted to each company. Business in meat from South America is entirely dependent upon the sea tonnage available for its transportation, and it is by allotting this tonnage that the percentages agreed upon are made effective. The shipping records naturally afford a check upon the close observance of the agreement by the companies concerned. The market for meat products in Great Britain is such that no advertising effort seems required, the business of the individual companies here being developed by agents sent to provincial centers. The domestic meat supply is so inadequate—constituting less than 30 per cent of the consumption—that South America and Australia are essential sources for chilled meats (beef). The United States have practically ceased to send chilled-beef products in large anrounts to the United Kingdom. Argentine meat is sold in competition with the domestic product and is said, in general, to be placed on the market at a price about 2 cents a pound below that of domestic meats. It is stated that the companies in this combination depend for the maintenance of profits upon increasing the volume of business, multiplying the turnover and improving the organization, transportation, and handling of shipments, and that price agreements and price increases are not a part of the understanding between these firms. Meat is sold f. o. b. Argentina to the British company whose representative was interviewed. Contracts for the transportation of this meat are mostly made with independent shipping firms, and schedules and deliveries (in normal times at Liverpool, Southampton, and London) are arranged to suit the demands of the market, as far as practicable. The shipments of this member of the combination are said to have increased some 500 per cent in the past five years, At present the port of Southampton is under Government control, as are also many of the ships engaged in this traffic, and the handling of the customary business is therefore much disturbed. Cargoes, upon reaching England, are promptly distributed to the markets or held in refrigerating warehouses at the London docks, or in other depositories in provincial cities. The size of these islands permits of the development of a highly organized and very prompt system of distribution from central points like London, Liverpool, and Southampton. Trainloads of meat leaving London at noon are on sale in Glasgow retail shops the following morning. Refrigerating cars are used, and, while each car as a unit is probably one-third the size of 94 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, an American car, such smaller units fit the demands of the market here admirably. When, by chance, excessive amounts of meat products reach English ports at a given time, the representatives of the companies meet and discuss the distribution of cargoes in such a way as to prevent the flooding of local markets. i of Consul Howard D. Van Sant, Dunfermline, Ycotland, February Cooperative societies in Scotland.—Notwithstanding the present war, marked progress has been made by the various wholesale and retail cooperative societies in the east of Scotland during the past year, and, according to the annual report recently issued by the Scottish Cooperative Conference Association, a considerable increase in the sales in all branches of the cooperative store trade has been noted. The total sales of the Scottish Cooperative Wholesale Society (Ltd.) for 1915 amounted to $56,812,450, an increase of $9,720,620, as compared with the previous year. The conference reports an increased membership of 2,947 as compared with 1914. The Dunfermline Cooperative Society (Ltd.) reports an increase in total sales of $209,330 as compared with 1914. A dividend of 81 cents in the pound ($4.86) was paid in 1915, and according to the secretary of the society this sum is considered above the average owing to the trade conditions at present in this district. There have been 360 new members enrolled, while 142 have withdrawn, leaving an increase of 218. The total membership of the society is 9,568. A large majority of the membership is composed of working-class people, the cooperative moventent not being very largely supported by the middle and rich classes. After the war is settled and conditions have again resumed their normal state, it is confidently expected by experts in the movement here that cooperative societies in Scotland will make even greater progress than has been accomplished during the past two years, as shown by the increased membership. FRANCE. Special JSpert of Consul General Alexander M. Thackara, Paris, November There is a great difficulty in obtaining information regarding cartels, etc., in France, for these trade combinations do not exist to the same extent as in other countries—Germany, for instance. In this country public sentiment is particularly hostile to financial combines and understandings the object of which is to more or less corner merchandise or food products, and therefore such combines are in many instances merely understandings, or what might be called gentlemen’s agreements, between the heads of houses engaged in a particular line of business, and are sometimes even unknown to the stockholders. Then again there is comparatively little information to be obtained from the French works bearing on trade combinations, especially as to statistics, as the French writers confine themselves more particularly to the study of German and American cartels, trusts, and combines, regarding which more complete statistical and other data are available. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 95 Another and very important reason why it is difficult to study the French combinations of trade resembling the trusts, cartels, etc., of the United States and Germany is on account of the abnormal conditions prevailing since the outbreak of the war. Legislation for the regulation of combinations.—Legislation for the regulation of industrial and other combinations in France, such ns cartels, syndicates, etc., is based principally upon the provisions of articles 419 and 420 of the French Penal Code, which, in translation, read as follows: ArTICLE 419. All those who by designedly spreading false and calumnious statements among the public, by overbidding prices asked by the sellers themselves, by combinations or coalitions between the principal holders of a particular merchandise or food product, with the object of holding the merchandise or food product for a certain price, or who by fraudulent means shall have caused the rise or fall of prices of food products or merchandise or of public stocks or shares above or below the prices which the natural and free course of commerce would have established, shall be punished by imprisonment of not less than one month nor more than one year and by a fine of from 500 francs ‘0 10,000 francs ($96.50 to $1,930). The offenders may besides, by decree or judgment, be placed under police surveillance during a period of not less than {wo years nor more than five years. ARTICLE 420. The penalty shall bean imprisonment of not less than two months nor more than two years and a fine from 1,000 francs to 20,000 francs ($193 to $3,860) if such manipulations relate to cereals, beans, flour, farinaceous foods, bread, wine or other beverages. The police surveillance which may be decreed shall not be less than 5 years nor more than 10 years, : The law of February 3, 1893, extended the application of the penalties prescribed in the above article to manipulations which would tend to injure the credit of the Government. It would appear from the wording of the above articles that the formation of industrial combinations in France without an infraction of the laws would be impossible. In general, however, the french courts have refrained from giving unfavorable decisions against syndicates and other trade combinations formed for the regulation of prices and production, for combating foreign competition, etc., when the combinations have not been found subversive of the public welfare, but the law can prevent or suppress all combinations whose activities would tend to upset market prices, to create corners or monopolies or to unduly restrain commercial liberty. Each syndicate, cartel, or combination is judged upon the merits of its own case, and until it becomes harmful to the interests of the people is permitted to continue its existence or, in other words, is tolerated Fioléré). The following are notable decisions which have been made by the French courts in interpretation of the provisions of the above-mentioned articles of the Penal Code: 1. The fact that consumers agree not to use a certain product ( gas in this instance) until the price is lowered does not constitute, when there is no fraudulent manipulation, either an offense or a quasi offense. 2. Cornering (accaparement) is not a special and distinct offense, nor is the accumulation of the same merchandise or commodity in the hands of a single person or of several persons, even if such concentration is the result of a concerted plan, illegal. The offense implies an illegal rise or fall in the prices; that is to say, fraudulent manipulations which influence the market and are the cause of fictitious 96 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. prices. In order that cornering, which is a legal act in itself even If it concerns large quantities, should constitute an offense it is necessary that the market prices shall have been influenced by fraudulent methods. 3. An agreement entered into by several manufacturers to hold in common a stock of their products, to be sold by each at the same price, is not necessarily in itself illegal or contrary to public order, if the object of the contracting parties was not to bring about a fictitious rise in the prices of the products by making a corner or monopoly, but merely to protect the prices of the products against a sudden decline or slump owing to local competition and to maintain them at a.level which would be in harmony with the natural variations of supply and demand. 4. There is no coalition between holders of the same merchandise punishable under the provisions of article 419 when a syndicate of ublishers, in agreement with the retail booksellers, fixes a price befo which the retailer, under penalty of having his account closed, must not sell books to the public. 5. A mere attempt to commit an offense provided against in article 419 is not punishable. The means employed, whatever they may be, to upset the market prices, do not fall, notwithstanding their fraudulent character, under the application of the penal law unless they have attained their object. As to international combinations, article 12 of the law of July 1, 1901, regarding associations provides for the dissolution by decree of associations composed for the greater part of foreigners and having foreign administrators or their principal offices in foreign countries which are of a nature to unduly disturb the normal conditions of the markets of France. DESCRIPTION OF PRINCIPAL COMBINATIONS. While in France there are many industrial and commercial organizations in the various branches of the industries (formed primarily for obtaining useful trade and industrial information, as statistics, or for securing legislation favorable for their members), yet there are comparatively few which partake of the nature of a trust or cartel for the control of the production or for the regulation of prices, selling zones, and methods of sale of the commodities manufactured or handled by its members. The principal industrial and commercial combinations of the latter type are those which have been established in the metallurgical industries under the name of “ Comptoirs,” or central selling organizations. The most important are the Comptoir Métallurgique de Longwy, Comptoir d’Exportation des Fontes de Meurthe-et-Moselle, Comptoir des Poutrelles, Gerpinte des Essieux, and the Comptoir d’Exportation des Produits Métallurgiques. There are also similar organizations in other industries, as, for example, the Syndicat des Pétroles for handling the petroleum trade of France or the Comptoir des Salines de I’Est, founded in Nancy about 30 years ago for the regulation of the production and sale of salt. There are also many more or less formal agreements among the chemical SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 97 manufacturers to restrict production, such as the agreement between Le Blanc and Solvay, manufacturers of soda; the agreement between the manufacturers of carbide of calcium; the agreement between the manufacturers of chemical fertilizers; the agreement between the sugar refiners, etc. In other industries there are agreements some of which were purely temporary, or which, not having met with success, were abolished after a more or less long period. A cartel for the sale of wine failed completely in France. It was intended to raise the low prices of wine, but the efforts of the wine growers were unsuccessful, mainly because in one Department alone the production of certain vineyards was from between 150 to 200 hectoliters (8,968 to 5,283 gallons) per hectare (2.47 acres), while other vineyards a few miles distant only produced 40 hectoliters (1,057 gallons). Comptoir Métallurgique de Longwy (Longwy Metallurgical Comptoir).—The Comptoir Métallurgique de Longwy* was entered into by 12 of the more important iron and steel producing firms of the Department of Meurthe-et-Moselle for the purchase of pig iron manuactured by the partners except that used in their own plants or exported to foreign countries and its resale in France, in the French colonies, and in the French protectorates. The comptoir can also puy and sell pig iron not produced by its members. The paid-up capital of the comptoir is 120,000 francs ($23,160), each partner contributing 10,000 franes ($1,930). The number of partners has since been increased to 18, but the capital remained the same. Its head offices in normal times are at Longwy-Bas (Meurthe-et-Moselle), but at present they are located at 7 Rue de Madrid, Paris. The partnership was formed for 20 years, from January 1, 1909, to December 31, 1928, but under certain conditions the partners may withdraw. Si 51.) The legal form, the general plan of its organization, the ifferent kinds of pig iron which are handled, etc., are fully set forth in the statutes. The following are the names and addresses of the present members of the comptoir: Officers and board of directors, Comte F. de Saintignon at Longwy-Bas (president). Planche, 4 Rue de Clichy, Paris (vice president). M. Raty, at Saulnes, near Longwy (vice president). P. Labbé, at Gorey, near Longwy. A, Dondelinger, at Longwy-Bas, Haller, at Villerupt, near Longwy. Bertin, at Aubrives (Ardennes). 3. Ferry, at Villers-la-Montagne (Meurthe-et-Moselle), . Morard, at Herserange, near Longwy. « Mayard, at Laval-Dieu (Ardennes). . F. Lacanne, at Marchienne-au-Pont (Belgium), €on Lévy, T Rue Logelbach, Paris. . Marcellot, at Eurville (Haute-Marne). Cavallier, at Pont-2-Mousson. , Résimont, at Valenciennes. . Dreux, at Mont-Saint-Martin. i, Denis, at Longwy-Bas (manager). * Consul General Thackara is here referring to the agreement under which the comptolr ig at present governed. ~ For an account of the original organization, which has been in existence since its formation by four ironmasters in 1876, see Pt. i, Pp. 233.—FRDERAL TraDE COMMISSION, 279241°—pr 2—16—7 28 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Members. Société des Hauts-Fourneaux de Maxeville, Société Métallurgique de Gorey. Marc Raty & Cie. Société Métallurgique de Senelle-Maubeuge . F. de Saintignon & Cie. ‘ Société Métallurgique d’Aubrives et Villerupt., Société Lorraine-Industrielle. Société des Hauts-Fourneaux de La Chiers,. Société des Hauts-Fourneaux et Forges de Villerupt-Laval-Dieu. Compagnie des Forges de Chatillon, Commentry et Neuves-Maisons, Société des Torges et Fonderies de Montataire. Société des Hauts-Fourneaux et Fonderies de Pont-3-Mousson, Société des Acieries de Micheville. Société des Acieries de Longwy. Compagnie Marine-Homécourt.: Société de la Providence. Société des Acieries du Nord et de I'Est. Wendel et Cie. Société des Acieries de Pompey. Of the first 12 companies which were the original partners, the Société Villerupt-Laval-Dieu has been absorbed by the Société Senelle-Maubeuge, thus making the present membership 18, as stated above. The comptoir is a selling agency for its members, with customers consisting principally of the smaller French consumers of pig iron who do not possess blast furnaces. Through their contracts with the selling agency they are protected against the competition of their more powerful rivals who produce their iron from their own blast furnaces. The customers are chiefly puddlers in the north of France, in the Ardennes, in the region of the River Loire, and in the center of France, and molders whose foundries are scattered generally throughout the country, but located principally in the Departments of the Ardennes, Nord, Aisne, Haute-Marne, Meuse, Cher, Sarthe, Haute-Savoie, and the two Charentes. The comptoir also sells pig iron for transformation into Martin steel to producers not having their own blast furnaces. In 1910 the sales of the comptoir reached 355,675 metric tons, divided as follows: 264,962 tons for casting, 63,885 tons for refining, and 26,828 tons of Thomas iron. Qut of a total annual production of about 5,000,000 tons of pig iron in France, the comptoir’s members produce about 3,500,000 tons. The comptoir does not regulate the production of pig iron, for the members are at liberty to produce all they wish; it merely requires each partner to place at its disposal a certain quantity each year from which the i received can be filled. The revenue of the comptoir is derived from contributions from the members, .the amount of which is fixed by the board of directors. Usually from each invoice the members deduct 2 per cent for the comptoir and one-half per cent for the reserve fund. If the running expenses at the end of the semester are less than the amount received from the 2 per cent payments, the balance is returned to the members pro rata. When the reserve fund reaches 300,000 francs ($57,900) the one-half per cent is still collected, but returned at the end of each six months. Article 88 of the statutes defines the 14 different kinds of iron handled by the comptoir and their relative values based upon the 1 Les Syndicats Industriels de Producteurs 1912 editio ‘Paul de Rousi Arman Colin, publishers, 5 Rue de Mézidres, Paris. ’ , ors. d BPECTIAL RERORTS FOR FEDERAL TRADE COMMISSION, 99 price of white iron. All the iron handled by the comptoir is supposedly of equal quality so that, when an order is received for 500 tons of casting iron No. 3, for instance, it makes no difference to the purchaser from which furnace the order is filled. Article 41 of the statutes, however, provides that in order to encourage the members of the comptoir to improve the quality of their iron, if a customer asks for a certain brand and is willing to pay a higher price than that fixed for other iron in the same c assifiontion, the difference in the price will be credited to the member making the special mark less the amount usually deducted for general expenses and for the reserve fund provided for in article 40. If, on the contrary, the iron furnished by a member is not up to the quality of the classification and can not be sold at the price fixed, the difference is charged against the member producer. According to the provisions of article 42, the members whose plants are in the region of Nancy, owing to their geographical position, are allowed an increase of 2 francs (38.6 cents) per ton in the price paid for their pig iron. Article 85 of the statutes provides that special varieties of iron such as casting iron of great tensile strength, ferromanganese, spiegel iron, etc., having a greater value than ordinary pig iron, shall not be included in the quotas of the partners. These varieties, however, may be sold by the comptoir for the account and risk .f the producer. The terms of sale of the comptoir are net at 30 days, the month in which the shipment is made not being counted. Thus, iron shipped on November 12 is payable at the end of December. Extensions of credit to customers having sound financial reputation are made at the current rate of interest. Organization for the comptoir’s foreign trade—The Comptoir d’Exportation des Fontes de Meurthe-et-Moselle is an organization having the same offices, membership, personnel, and management as the Comptoir Métallurgique de Longwy. It was formed for the purpose of handling the foreign trade of its members. According to the provisions of article 1 of the statutes, the comptoir may have warehouses at Antwerp and other foreign ports, where its iron may be warranted like English and Scotch iron, but up to the present the project has not been carried out. Comptoir des Poutrelles (Steel Girder Comptoir).—The comptoir des Poutrelles is a société anonyme which was formed in 1896 for a period of 15 years with a capital of 149,500 francs ($28,854), which in 1902 was increased to 159,500 frances ($30,784). At a general meeting held in December, 1910, the life of the organization was extended for 20 years from March 7, 1911, unless sooner dissolved by the general assembly. The head offices of the company are located at 80 Rue Taitbout, Paris. The following is a list of the officers and members: Officers and board of directors. [.. Pralon (president). : Résimont, E. Paraf (vice president), Spalart. Y. Cavallier. Taragonet. i. Dondelinger, Magnin. A. Dreux. Longueval, 80 Rue Taitbout, Paris d. Fayol. (manager). A. Ducloux. {00 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Members. Compagnie des Mines, Fonderies et Forges d’Alais, & Bességes (Gard) et a Tamaris (Gard). - : Société anonyme des Usines Métallurgiques de la Basse-Loire, & Trignac (Loire-Inférieure). Oompagnie des Forges de Chatillon-Commentry et Neuves-Maisons, & Neuves-Maisons (Meurthe-et-Moselle). Nociété anonyme des Hauts-Fourneaux de la Chiers, a Longwy-Bas (Meurtheet-Moselle). Société anonyme de Commentry-Fourchambault et Decazeville, & Decazeville (Aveyron). : Société anonyme des Hauts-Fourneaux, Forges et Acieries de Denain et D’Anzin, a Denain (Nord). . Société anonyme des Usines de I'Espérance 4 Louvroil (Nord). Société anonyme des Aciéries de France, 83 Quai de Javel, Paris, et 4 Isbergues (Pas-de-Calais). . Société anonyme des Forges de Franche-Comté, 3 Besancon (Doubs). Société anonyme des Aciéries de Longwy, 4 Mont-Saint-Martin (Meurthe-et-Moselle). Compagnie des Forges et Aciéries de la Marine et d’Homécourt, 4 Homécourt (Meurthe-et-Moselle) ; au Boucau (Basses-Pyrénées) et 3 Hautmont (Nord). Société anonyme des Aciéries de Micheville, & Micheville, par Villerupt (Meurtheet-Moselle). , Société anonyme des Forges et Fonderies de Montataire, 2 Montataire (Oise), et a Frouard (Meurthe-et-Moselle). Société anonyme des Forges et Aciéries du Nord et de I'Est, & Valenciennes (Nord). Société anonyme des Hauts-Fourneaux, Forges et Aciéries de Pompey, & Pompey (Meurthe-et-Moselle). Société anonyme des Forges de la Providence, a Hautmont (Nord), et a Rehon (Meurthe-et-Moselle). Société anonyme des Hauts-Fourneaux et Laminoirs de la Sambre 4 Hautmont (Nord). MM. Schneider & Cie., au Creusot (Sadne-et-Loire). Société Métallurgique de Senelle-Maubeuge, & Maubeuge. (Nord), et a Longwy-Bas (Meurthe-et-Moselle). Société anonyme des Forges de Vireux-Molhain, & Vireux-Molhain (Ardennes). MM. Doremieux Fils et Cie., Saint Amand-les-Eaux (Nord). } Jlmo fils et Cie., 3 Rimancourt (Haute-Marne). While several of the large producers have remained outside the comptoir, yet it virtually controls the steel and iron beam and girder industry of France. According to article 1 of the statutes, the comptoir is a selling agency for France, its colonies and protectorates, of steel and iron shapes, beams, ordinary and wide-flanged joints and channels manufactured by its members. Its sales in normal times amount to about 400,000 tons yearly. Each member company has its quota fixed by the board of directors in accordance with the producing capacity of its plant, but subject to proportionate increase or decrease in accordance with the requirements of the comptoir. All the members are free to manufacture larger quantities of their products than are actually required by the comptoir, but at their own risk. The members can not sell to the home or colonial trade except through the comptoir. Co } Sales are conducted on a commission basis, the collections being made by the comptoir and the amounts handed oyer subsequently to the firm from which the goods were obtained with the commission deducted. If, however, the amount of commissions collected is more than enough to defray the general expenses of the comptoir, the balance is returned to the members pro rata. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 101 The terms of sale are 30 days net. No discount is ever given. In exceptional cases when the customer is financially sound, an extension of credit may be granted at the current rate of interest. At the present time, owing to a large number of the member plants being in the invaded zone, purchases are made by the comptoir from c, fond to supply the Government and private customers in France, but such purchases are guaranteed by the credit of the whole membership and not by the limited resources of the comptoir itself. The comptoir has a technical bureau which, after an exhaustive series of tests, has succeeded to a great extent in standardizing the form of beams, etc., and reducing the number of shapes. Comptoir d’exportation des produits métallurgiques (Comptoir for the Exportation of Metallurgical Products).—The Comptoir d’Exportation des Produits Métallurgiques is a société anonyme with a variable capital, with head offices at 7 Rue Pillet-Will, Paris, which was founded December 17, 1904, with the stated object of buying and selling all metallurgical products. Its trade, in which it has a virtual monopoly, is purely with foreign countries. As a matter of fact, the only articles in which it deals are rails and their accessories, metal ties, joists, girders, and channels. The following 1s a list of the officers of the comptoir, together with the names of the members. It will be noted that many of the officers are the heads of or leading men in the firms affiliated with the organization. Officers and board of directors. C. Magnin, 98 Rue de la Victoire, Paris (president d’honneur). ] A. Dreux, administrateur-directeur de la société des Aciéries de Longwy, Mont-Saint-Martin (president). L. Pralon, administrateur délégué de la Société des Acléries de Denain et Anzin, 12 Rue d’Athénes, Paris (vice president). F. de Wendel, Maitre de Forges, 10 Rue Clichy, Paris (vice president). . P. Nicou, administrateur de 1a Société des Aciéries de Micheville, 10 Rue de la Pépinidre, Paris, Co. Th. Laurent, directeur général de la Compagnie des Forges et Aciéries de la Marine et d’Homécourt, 98 Rue de la Victorie, Paris.’ R. Fould. E. Paraf. A. Résimont. = F. Spalart. A. Dondelinger, M. Morard. BE. Taragonnet. R. de Labriolle (manager), Members. Société anonyme des Aciéries de Longwy. Société anonyme des Hauts-Fourneaux. Forges et Aciéries de Denain et d’Anzin. De Wendel et Cie. Société anonyme de Aciéries de Micheville. Compagnie des Forges et Aciéries de 1a Marine et d’Homécourt. Société anonyme des Hauts-Fourneaux, Forges et Aciéries de Pompey. Société anonyme des Forges et Aciéries du Nord et de I'Est Société Métallurgique de Senelle-Maubeuge. Société anonyme des Aciéries de France, Compagnie des Forges de Chatillan-Commentry et Neuves-Maisons. Société anonyme des Forges de la Providence. Société anonyme des Hauts-Fourneaux de la Chiers. “ The affairs of the comptoir are in charge of a council of administration, composed of not less than 8 and not more than 12 members, selected by the stockholders at their annual meeting. At present 102 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. there are no traveling salesmen representing this comptoir abroad, but all business is secured by means of established agencies in various cities, such as an importing and exporting house in Buenos Aires, an importer in Rio de Janeiro, etc. Each agency is placed in charge of a large exhibit of samples, consisting of cross-section cuttings of various sizes of rails, beams, and channels mounted on a wooden frame, and each agency has various advertising matter for distribution, all at the expense of the comptoir. The sales are made by the comptoir outright to the agency, which finds the customers and carries the accounts in the district allotted to it. “The work for each year is based on reports from the several stockholders at the beginning of the year as to their probable allotment of their products to this particular comptoir for the ensuing 12 months. The promised allotment from each stockholder may be increased or diminished, within reason. The comptoir carries no stock on hand, but as orders are received they are referred, in proper proportions, to member stockholders, according to their promised allotments for the year. Member stockholders sell independently, or through other comptoirs, those of their products that are offered in France, or that are not included in the classes of products named above.” ? As in the case of the Comptoir des Poutrelles, its business is conducted on a purely commission basis. It takes all the export output of its members for sale abroad and reimburses them when payment has been made by the customer. The terms usually offered are £. 0. b. a French or Belgian port, net cash against documents, but occasionally a discount of one-half per cent is allowed. Since the war the comptoir has not been engaged in the export trade but has confined its activities to obtaining supplies for the Government and private consumers from abroad. In these transactions the comptoir simply endeavors to put the inquiries of French customers before steel makers capable of submitting prices while, as stated before, the Comptoir des Poutrelles acts as purchaser for its clients, charging them a commission sufficiently large to cover the cost of operations. ~ Tn normal times the comptoir’s foreign sales are made to all forsign countries. In six years, principally through its efforts, the exports of the products in which it is interested increased from 40,000 to 200,000 tons, and it has opened the markets of Brazil, Argentine Confederation, and China to the French producers. Comptoir des Essieux (Axle Comptoir).—The Comptoir des Essieux was founded in 1892 for the sale in France and for the export to French colonies and protectorates and foreign countries of the axles manufactured by its members. The comptoir terminated its existence on December 81, 1915. No statutes of the organization could be obtained, as the edition is exhausted, but if the comptoir is renewed, which is doubtful until present conditions have returned to the normal, it will be reconstructed on a different basis and consequently new statutes will be enacted.’ Tts offices are located at 13 Rue Saint Lazare, Paris. The usual sales terms are 90 days net, or 30 days with a discount of 1 per cent. The business of the comptoir is run on the same lines | Report of secretary to American commercial attaché at Paris. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 103 as the Comptoir des Poutrelles and the Comptoir d’Exportation des Produits Métallurgiques mentioned above. In the metallurgical industry of France there are other comptoirs or selling agencies of secondary importance formed for the urpose of selling the products of their members in the home and TE markets. They centralize the orders received from their clients and divide them up among the members so that the goods will be shipped from the plant nearest the consumer, thus reducing to a minimum the expenses of distribution. The methods of operation are similar to those of the comptoirs described above. The following is an example of the comptoirs of this class: Comptoir des Ressorts de Carrosserie (Vehicle Springs Comptoir).—Société anonyme with variable capital. Head offices, 80 Rue Taitbout., Paris. Officers and board of directors, Henri Fayol, Paris (president). Marcel Dumuis, at Firminy (Loire) (vice president). Georges Claudinon, at Chambon-Feugerolles (Loire). Clausel de Coussergues, at Allevard (Isére). Pierre Planet, at Saint Etienne (Loire). Emile Potron, Paris. louis Reclue, Paris. Ch. Vermot, at Chatenois, Territoire de Belfort. M. Willemin, 80 Rue Taitbout. Paris (manager). Members. Société anonyme de Commentry, Fourchambault et Decazeville, Société anonyme des Aciéries et Forges de Firminy. Société Charles Vermot, Valére, Mabille et R. Pelgrims, Emile Potron (Forges de Persan). Société Planet et Cie. [Tsines Claudinon et Cie. 2 Société Métallurgique de 1™Aridge. Rocibté des Forces d’Allevard. Union des Teinturiers et Appréteurs (Dyers and Sizers’ Union).— The Union des Teinturiers et Appréteurs is a powerful organization with offices at 5 Faubourg Poissonniére, Paris, which was formed for the regulation of the dyeing and sizing industry in France. The statutes and regulations and other details as to the working of the union are kept secret. It includes over 90 per cent of the dyeing and sizing plants of France and apportions to each member his share of the year’s business in accordance with the relative importance of the plant. A uniform cost of production is carefully calculated, which must be used by each member in making prices and in submitting returns of work performed during the year. A certain quota of orders is apportioned to each member for the year, which must not be exceeded. If the member, for instance, has been assigned one million francs’ worth of work and has been found to have executed one million and a quarter, the rules of the union force him to refund to the union, for the benefit of all the members, the profit obtained on the quarter million of francs’ worth of work done in excess of his quota. The union does not publish lists of its members, but by far the most important company belonging to the union and one which has 104 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. great influence in shaping the policies of the organization is the Blanchisserie et Teinturerie de Thaon. This is a société anonyme with its head offices at Thaon-les- Vosges, which was formed in the year 1891, with a capital of 4,000,000 francs ($772,000), divided into 1,600 shares of 2,500 francs ($482.50) each. The officers, according to a report from a commercial agency, are Mr. Juillard Hartmann, president, with a board of directors consisting of M. Lederlin, sr., Paul Lederlin, J. Bonnet, E. Pinot, M. Pollechu, and A. Marchal. The principal director and manager is Mr. Paul Lederlin. “This organization controls a large part of the bleaching, dyeing, and sizing trade of France. Its establishments are scattered over the country and even include plants for the manufacture of cotton prints. It has progressively purchased many otherwise independent factories, closed those not well situated, absorbed others, giving their former proprietors fixed sums of money annually, and in some cases making them managing directors of their acquired plants. The company Bas also important plants in Iiyon, Villefranche (Rhone), Gisors (Eure), and at Notre Dame de Bondeville (Eure). The spinners and weavers are those immediately affected by the operations of the company as the prices for bleaching, dyeing, and sizing their products are determined by the company and have a very decided bearing on the cost of production and sales prices of yarns and tissues.”? Syndicat des Pétroles Frangais (French Petroleum Syndicate).— The French petroleum syndicate was established in 1885 by the three great refining establishments of Fenaille & Despaux, of Bordeaux; Desmarais fréres, of Havre; and Deutsch et ses fils, Paris. The syndicate was formed to regulate the petroleum trade of France, to steady prices, to control the exportation of American refined petroleum to this country, and, in general, to protect the interests of its members. By contract it obtained the exclusive sale in France of the products of the Standard Oil Co. The syndicate was extended so as to include a number of the other French refiners. An agreement was entered into by which uniform prices were fixed, a limit placed on the output of each factory based upon the latest returns of production, term contracts were forbidden, and arrangements were made not to sell under the price fixed and only in accordance with the conditions stipulated. The syndicate has divided France into selling zones, the prices being established for each variety, so as to render competition of independent concerns difficult. The syndicate holds about 85 per cent of the trade, which includes imports not only from the United States, but also from other producing countries like Russia, Roumania, and Galicia, and in late years From Persia and the Dutch Indies. In addition to the above-mentioned firms, other members of the syndicate are Société Lille-Bonniéres & Colombes, Paris; Georges Lesieur et ses fils, of Dunkirk; Compagnie Générale des Pétroles, Marseille; and Société anonyme de E Raffinerie de Pétroles du Nord, Paris. The syndicate handles only gasoline and refined petroleum. As to the lubricating oil situation, the market is quite open to competition, there being no ‘powerful syndicate controlling a large per-1 Report from the American consul at Rouen, France. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 105 centage of the business. There is, however, an international group which handles practically all of the Russian production. Comptoir Général de Vente pour la France et les Colonies—M anufactures de @laces (General Selling Comptoir for France and the Colonies—Glass Manufacturers) .—This comptoir was formed in 1903 for the purpose of selling the various kinds of glass produced by its members. Its membership consists of the powerful Société anonyme des Glaces de Saint Gobain, which has 22 plants in France and others in foreign countries; la Compagnie des Glaces et Verres de Jeumont ; la Société des Verreries et Glaces d’Aniche; and la Companic des Glaces et Verres spéciaux de Frain & Boussois sur Sambre Nord). { The comptoir sells for the account of each member. Its general expenses are paid by the members pro rata in proportion to the quotas allotted to them of sales and production. Torms of sale vary according to circumstances and no hard and fast conditions are required. The comptoir owns extensive warehouses in Paris in which are carried, in normal times, large stocks of glass for the account of its members. Each company preserves its individuality. A customer may choose the establishment from which he wishes to buy his goods, but the orders must be placed through the comptoir. The Saint Gobain company is a vast industrial enterprise, with a capital of 60,000,000 francs ($11,580,000). It is not only the largest producer of glass in France, but is also engaged in the manufacture of chemical fertilizers, soda, chlorides, hyperchloride of lime, and hydrochloric, nitric, and sulphuric acids. The comptoir regulates the prices and production of glass in France and constitutes a virtual monopoly as the only independent concern works in perfect harmony with the combination and benefits by the profitable prices which are obtained. Société Générale des Papeterics du Limousin (General Society of Limousin Paper Mills).—The manufacturers of straw paper in the Departments of Haute-Vienne and Charente have formed a society which is affiliated with the modern plants in the Departments of Dordogne and Corréze. The society is called the “ Société Générale des Papeteries du Limousin.” Its capital is 5,074,000 francs $979,282). Its head offices and central selling agency are at St. Junien, in the Department of the Haute-Vienne. The corporation was organized in 1898 for a period of 75 years under the provisions of the laws of July 24, 1867, and August 1, 1898. According to article 1 of the statutes, the purposes of this society are as follows: 1. The purchase, sale, and manufacture of paper and cardboard of all kinds. 2. The operation of establishments for the sale and manufacture of paper, cardboard, and of all commercial varieties of these products, whether unfinished or manufactured. 3. The acquisition by purchase, renting, or leasing or the sale of all movable property or real estate necessary for the uses of the society. % Beore the outbreak of the war about 80 per cent of its products were sold in France, the balance being exported to Spain, South American countries, and the Orient. The society produces between 106 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 50 and 60 per cent of the straw paper manufactured in France. It receives no export bounties from the Government nor rebates on freight. The following are the names of the several plants that are included in the membership of the organization: Usine de Grandmont, St. Junien (Haute-Vienne). Usine Notre Dame du Pont, St. Junien (Haute-Vienne), Usine du Moulin Pelgros, St. Junien (Haute-Vienne). Papeterie de Saint Brice, St. Junien (Haute-Vienne), Usine du Dérot, St. Junien (Haute-Vienne). Usine du Moulin Neuf, Exideuil (Charente). Usine Blanchas-Chambas, Exideuil (Charente), Moulin de Puygrénier, Confolens (Charente). Usine Fraisseix, St. Léonard (Haute-Vienne). Usinec du Val d’Evirand, Feytiat (Haute-Vienne).”* Syndicat de la Meunerie Francaise (French Flour Milling Syndicate).—* The Syndicat de la Meunerie Francaise, in the Bourse du Commerce, Paris, is an organization which has among its members practically all of the millers and flour brokers of France. But this syndicate makes no attempt to distribute work or divide territory, or to regulate production, or to influence prices. I am told that the idea of the syndicate is to promote the general welfare of its members as a body. ~If, for example, some projected law, national or district, would operate to the disadvantage of the flour industry, this syndicate exerts all its influence to defeat the passage of the law. If tariff changes are contemplated by the Government and these changes would adversely affect the members of the syndicate, then every influence is exerted to prevent the changes being made. If some newly patented process of manufacture is brought to the attention of one member of the syndicate, and if he does not care to experiment therewith on his sole account, he can have the syndicate undertake a complete investigation for the benefit of all the members. Also, the bad debts of each member are reported to the syndicate for the benefit of all other members; and the names and descriptions of all dishonest salesmen are kept on file for all members. At times also the syndicate has used its influence to protect its members from what were considered unreasonable prices demanded by the farmers for their grain. ; “This organization is not a cartel, or a trust, in the general meaning of those terms. The members are entirely free to make their prices and to operate in whatever territories they can sell. In fact, wheat and flour prices are regulated by the operations of the Bourse; as determined on Wednesday afternoon of each week, and the prices of the Bourse are themselves regulated by the arrivals of wheat and flour in the harbors of the country and from the farms of France. “The war has interrupted much of the work of the syndicate as an entity, and probably at present the millers and brokers are guided in many things by the Grands Moulins de Corbeil. One prominent broker here in Paris says that it has been impossible for this Syndicat de la Meunerie Francaise to attempt to regulate prices or divide territories because of the intense rivalry and jealousy among the business men in this industry.” Société des Nouvelles Galeries (Society of New Stores).—* The Société des Nouvelles Galeries, 20 Boulevard Bonne Nouvelle, Paris. 1 Report from American consul! at Limoges. t Report of secretary to American commercial attaché at Paris. ~, p [D SPECIAL REPORTS FOR FEDERAL TRADE CoMMISSILER | Sun Le is an organization which does the buying of all supp i, for its members, about 400 in number, scattered over all parts ee 4 in kitchen and household hardware lines and in dry goo i [i# is a buying agency solely. At the beginning of each year each = ber reports in a general way what his requirements will be in each main line that he carries, and the société then proceeds to get prices, terms, etc., on the basis of thé large quantities needed by the membership as a whole. In this method of cooperative buying the lowest possible prices are secured, because of the large quantities ordered, and furthermore the buying is in charge of experts whose sole business it is to examine catalogs, samples, contracts offered, etc., with the result that only goods of best value are received by the individual members. Salesmen and others who want to reach 400 dealers in the lines named merely call at the Paris office of the société with their samples and their propositions, for it would be unnecessary and, in fact, futile for them to visit the members individually. In all but the buying of stock the members are entirely independent of each other and of the société, which, as stated above, is exclusively for buying, and n.akes no attempt to regulate sale prices or divide territories.” t vo Prixcrear OesTacLes To AMERICAN TRADE IN FRANCE, While the comptoirs and other trade combinations now existing in France have more or less influence upon the competition which dealors in foreign-made goods have to meet in this country, yet they are not the greatest obstacle in the way of extending the sale of American products in France. Apart from high transportation charges, due to the great distances over which goods must frequently be hauled in America to the shipping point and the long sea voyage, the principal obstacle to the introduction of American goods into France has been, and still is, the fact that only on a restricted number of articles our imports obtain the benefit of the minimum tariff rate which is accorded to all our competitors in Europe. On this account American goods generally have to pay an extra duty rate which ranges all the way from 25 per cent to 700 per cent more than on European-made articles. fn a great many cases this extra duty factor absolutely prohibits the importation of the American product. To the above obstacles can also be added the difficulty of obtaining quick delivery from the United States, and the failure of American business men, despite the constantly reiterated advice of American consular officers and chambers of commerce abroad, to conform to local conditions and terms of sale and delivery. For a description of the activities of the Government of France which are designed to foster the foreign trade of its manufacturers, reference is made to the Department of Commerce’s Special Agents Series No. 98, Commercial organizations in France, pages 57 et seq. ’ Special report of Consul General A. Gaulin, Marseille district, France, November 15, 1915. The existing conditions are extremely unfavorable for exhaustive inquiries on this subject. The information supplied herewith is Report of scer— ~»y “0 American commercial attaché at Pa 108 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. therefore less complete than could be obtained under normal circumstances. Lt is notable that, so far as this district is concerned, the number of important trade combinations has decreased in recent years. Moreover, this is not a result of legal restraint. It appears, in fact, that certain combinations were not as harmonious or-successful as had been anticipated, and freedom of action was found more profitable. For instance, several years ago there existed an understandin petween the Marseille and Paris sugar refineries, whereby iy sugar was sold at uniform prices throughout the country. This understanding had resulted in rendering the refineries independent within certain territories. At the present time there is, so far as sould be ascertained, no agreement in limitation of competition in the refined-sugar trade. Sulphur refiners.—In 1909 the majority of the sulphur refiners in France entered into an agreement, whereby they undertook to limit their output as follows: Names of refiners: ~ A Boude & Fils, Marseille naam mom eee Louis Esmieu, Marseille. , Adolphe Gouin & Cie., Marseille_______. _ en La Société des Produits Chimiques de Marseille-I.’Estaque ea. Les Usines Vézian & Chambon, Marseille. oom La Compagnie Bordelaise, Frontignan________ _ meee. Les Usines Cros, Narbonne mem M., LOMATOSUIIEE, (IBLE mimi mir mi imme se eS iS mop pint La Société Marty Parozol, Narbonne_____________ oo L. Julien Pare et Fils, Cette mmm oe eee eee eee eam Limit of annual output (metric tons). 7, 850 4, 450 4, 500 2,110 11, 900 6, 400 12, 000 2, 500 7, 300 7 100 Total eee mine mmee 68,110 This arrangement was based upon the average production of these refineries during a number of years. The refiners also undertook to buy the crude sulphur for their respective requirements from an importing company of which they were the only stockholders. If they chose to purchase sulphur directly, they had to pay into the treasury of the importing company a sum of 5 francs (96 cents) for each ton of sulphur thus purchased. This sum of 5 francs was divided at the end of each year among the members of the syndicate in proportion to the amount of sulphur refined, sold, and delivered during the year. Whenever a refiner bought a quantity of sulphur in excess of that which had been fixed under a agreement, he had to pay to the importing company a sum of 15 francs ($2.895) for every ton, instead of 5 francs. This compelled him indirectly to raise the price of his refined product at least 1 franc (19.3 cents) per 100 kilos (220.46 aii), Another indirect consequence of the agreement in question was that the refiners were compelled to sell their product at about the same price; at any rate they could not profitably sell it at lower prices than the others. The agreement was so framed that the parties thereto were theoretically free to act as they pleased, but in practice they found it to their advantage to follow the lead of the majority. This y ningtion came to an end in December, 1912, but most of the above-mentioned concerns have still an understanding, the exact nature of which is not known. The following firms have combined as the Raffinéries de Soufres Réunies, capital stock 2,200,000 francs SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 109 ($424,600), principal offices at 1, Place de la Bourse, Marseille: Les Usines Vézian & Chambon, Marseille; La Compagnie Bordélaise, Frontignan; and Les Usines Cros, of Narbonne. The annual aggregate output of these refineries averages 40,000 metric tons, the total ~onsumption of the country amounting to about 95,000 tons. The principal competitor of the Raffinéries de Soufre Réunies is the Raffinéries Internationales de Soufre, of Marseille and Cette, a branch of the Union Sulphur Co., of New Jersey, whose output averages 30,000 metric tons annually, and which refines almost exclusively Louisiana sulphur, while the other concerns treat only Sicilian sulphur. The competition of the French refiners and the American company has always been very keen, but pyctinilarty since the outbreak of the war, owing partly to the fact that the former manager of the Raffinéries Internationales de Soufre was a German subject. The export business of the French sulphur refineries is unimportant, and there is no dumping in this trade. Roof and floor tile and brick factories—The manufacture of bricks and roof and floor tiles is one of the Jouling Industries of the district. The Société Générale des Tuileries de Marseille & Compagnie is the sales corporation of the majority of the local manufaecturers of these products. The total annual output of these manufacturers averages 285,000,000 pieces, or approximately 80 per cent of the production of the district. The principal offices of the Société Générale des Tuileries de Marseille & Compagnie are located at No. 4, Place St. Ferréol, Marseille. The firms whose products are sold through this company are the following, all of Marseille and immediate vicinity: Guichard, Carvin et Cie., Martin Fréres; Pradel Fréres; Rey Fréres; Arnaud Etienne & Cie., J. Daudé; Roux Freres; Saumati Fréres; Antoine Sacoman; Guichard & Cie.,, Pierre Sacoman; Guichard Freres; Tuileries de la Méditerranée; Pierre Amédée; Les Fils de Jules Bonnet; Pierre Lancon; Barthélémy Fenouil; J. B. Martin Roux; Pierre Maurel; Mathieu Pichon; Ferdinand Maurel; Lazare Maurel. The Marseille exports of bricks and tiles have averaged as follows during the last 5 years prior to the war: Roof tiles, 165,000 metric tons; floor tiles, 40,000 metric tons; bricks, 24,000 metric tons. The principal countries of destination of these products were: For roof tiles, Brazil, Egypt, Mexico, and Russia; for floor tiles, Argentina, Algeria, Morocco, and Turkey; for bricks, Morocco, Senegal, and French colonies in western Africa. No dumping appears to have been done in this trade. Candle industry.—The most important candle-manufacturing establishment in France is that of L. Félix Fournier & Cie., St. Mauront, Marseille. The capital stock of this company, which also owns the old De Milly Works, at Paris, is 10,000,000 francs ($1,930.-000). Messrs. Fournier & Cie. manufacture about 70 per cent of the total quantity of candles produced in France, and practically control the market. The total Marseille exports of candles have averaged in recent years about 4,300 metric tons, principally to Algeria, Egypt, Turkey, Tunis, and Madagascar. No dumping is resorted to in this line of goods. Rice mills.—The rice-milling industry in the district is controlled by the Rizeries de la Méditerranée, Marseille-Modane, a corporation 110 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, with a capital stock of 1,600,000 francs ($308,300), established at 18 Place Marceau, Marseille. This company is affiliated with an Italian concern at Modane, but no definite information could be obtained concerning this trade combination. The Marseille rice exports averaged about 21,000 metric tons in recent years, chiefly to Senegal and Algeria. There is no evidence of dumping in this trade. Foreign combinations—Prior to the war there were several combinations of German manufacturers doing business in this district, but this business has completely ceased since the outbreak of hostilities between France and Germany. The Russian petroleum interests have also been unable to transact business for over a year for the game reason. Among the other important trade combinations may be mentioned the Italian Sulphur is, of Sicily, which is under Government control, and sells the greater part of the crude sulphur consnmed in France. The Union Sulphur Co., of New Jersey, which owng the Louisiana sulphur mines, is, however, a strong competitor of the Consorzio, and shipped to this market last year approximately 25,000 tons of sulphur, or about one-fourth of the French con. sumption. There are no combinations of buyers of American goods in this district. The only important handicap of American exporters, so far as this district is concerned, is the discrimination against their products in the French customs tariff, the majority of which are subject to the maximum rates of duty. Special report of Consul Kenneth Stuart Patton, La Rochelle district, France, November 5-6, 1915. The Association Centrale des Laiteries Coopératives des Charentes et du Poitou (Central Association of the Cooperative Creameries of Charentes and Poitou) and its selling office, the Union des Caséineries (Casein Producers’ Union).—This organization, founded in 1893, is composed of 130 dairies and 78,000 stockholders. Its president is Senator Th. Girard, Melle, Deux-Sévres. The head offices are at No. 1 Bis, Rue du Musée, Niort, Deux-Sévres. Dairies of the following departments are admitted to membership in the Association: Charente, Charente-Inférieure, Deux-Sévres, Vendée, Vienne, Indre-et-Loire, Indre, Loire-Inférieure, and Maine-et-Loire. The duration of the association is fixed at 99 years, formed of successive periods of 20 years. Any affiliated dairy may withdraw from membership on giving notice a year before the expiration of the current period. The objects of the association are: The defense of the general and special interests of the affiliated concerns. The creation and extension of central services which may contribute to their prosperity and economic betterment. The study and perfecting of processes of manufacture, the utilization, exploitation, and sale of the products of the milk industry. The creation and operation of institutions for the protection and mutual insurance of the personnel and of the associated dairies. The association maintains an office which arranges for the rapid transportation of milk, cream, butter, and cheese in refrigerated cars 1n summer, and in heated cars, if necessary, in winter. The SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 111 administrative council has full power.to arrange special rates with the railway companies. The association, in order to facilitate the refrigeration of cars, has constructed an ice plant. Any excess of ice production is sold to private parties. The ‘purchase of coal and other materials needed by the various associated dairies is made by the association. An affiliated dairy may, however, be authorized to make direct purchases provided it pays to the association 4 per cent of the purchase order. The association respects the autonomy of each of the affiliated companies and does not interfere with their plants, management, administration, or selling operations. However, in 1912, casein having become an important product of some of the concerns, the association established a central selling office. This office was called the “Union des Caséineries.” The head office of the union is also at No. 1 Bis, Rue du Musée, N iort, Deux-Sevres. Up to this time, the leading products of. the association had been milk, cream, butter, and cheese. Inasmuch as the market for these products was lpcal, each dairy having a small field to itself, a central selling agency offered no material advantages. Casein, on the other hand, is a product having no local market and is almost wholly an export article. A central selling office, therefore, offered considerable advantages to those dairies which had become largely interested in this product. The office was opened on January 1, 1918. The administration of the affairs of the Union des Caséineries was intrusted to the administrative council of the Association Centrale des Laiteries Coopératives, with the close collaboration of a delegation of five members or delegates designated by the presidents of the affiliated casein plants. These presidents also appoint 2 board of control of three members. A majority vote of the presidents of the casein factories is required in all decisions involving direct financial engagements. The Union des Caséineries is consti tuted for a period of 30 years beginning January 1, 1913. The nine original members of the organization were the following “ Caséinsries Coopératives ”: Aigrefeuille - d’Aunis, Sainte - Soulle, Saint-Varent, Saint-Loupsur-Thouet, Maillezais, Le Mazeau, Uzelet, Le Gué de Velluire, and Bléré. The Union des Caseineries is charged with the sale of the casein manufactured by the affiliated companies., It also endeavors to obtain uniformity in the quality of the product. At the time of its formation it arranged a definite plan for the construction of a central manufacturing plant. To this end, stock at 500 francs a share, yielding 4 per cent, was issued. Each affiliated company was required to purchase a certain (not stated) number of shares of this stock. This central plant was located at Surgéres, Deux Sévres. Each affiliated casein plant obligates itself to sell its entire production through the agency of the union. In return the union must do everything in its power ‘to force the sale of the casein of the various members. To this end, it is authorized to appoint a special agent, or to have one or several commissioners as intermediaries, who are responsible to the union for the sales made by them. The total sum of the sales, minus a small fixed percentage for the running expenses of the administrative council, is distributed among the affiliated companies. This distribution takes place on the fifth of every second month and is based on the factory accounts of the 112 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. various concerns.. The union fixes the price at which the casein is sold, and endeavors to secure uniformity in quality so that the entire production will be of the best grade. One grade and one price is the aim of the organization. If, however, it is found necessary to grade, sort, or mix the casein’ the administrative council must provide the necessary installations and arrange for such grading, sorting, or mixing in such a way that the best results will be obtained. It is impossible to state just what proportion of the dairies of the region are members of the Association Centrale des Laiteries Coopsratives des Charentes et du Poitou. In the Charente-Inférieure and the Deux Sévres the proportion is very great. In the other Departments it is inconsiderable. The association produces annually some 10,000 to 12,000 tons of butter. The wholesale price of milk varies according to season and place from 12 francs ($2.36) to 18 francs ($3.47) a hectoliter (26.417 gallons). . There is a dairy school at Surgéres, Deux-Sévres, which is run by the association, but which receives Government assistance and is under the control of the ministry of the interior. In normal times this school has 10 or 12 students. . } The production of casein by the Union des Caséineries is placed at 1,000 tons annually. The total production for the region is unobtainable, but the production of all France is estimated at from 4,500 tons to 5,000 tons. Practically all the casein made in this section is exported. Some 600 tons goes to the United States each year and the rest to England. Sixteen casein plants are now members of the Union des Caséineries. There are competing plants in the region, but it is impossible to state how many or to give their names. The Compagnie Internationale des Caséines, 63 Boulevard Malesherbes, Paris, has a large plant at Taillebourg, Charente-Inférieure, which is evidently a competing concern, although no definite information sould be secured to this effect. _ . The wholesale price of casein varies from 100 francs ($19.30) a metric quintal (220 pounds) for industrial casein to 150 francs ($28.95) a metric quintal for the alimentary kind. Industrial casein is used in the manufacture of a product closely resembling celluloid. The alimentary product is used in preparation of dietary foods. Officers of Association Centrale des fajeries Coopéraiives des Charentes et du tou. M. Th. Girard, Sénateur, Melle. Vice presidents: M. Chauvineau, Soignon. M. David, société de Saint-Michel-en-1'Herm, M. Massé, Saint-Jean-de-Liversay. General secretary: M. Landriau, société de Saint-Soulle. Legal counsel: M. Paul Mercier, rue Vieille-Rose, 13, & Niort. Administrative council: »* Dornic, inspecteur régional des Laiteries Coopératives. , Fonteneau, société de BIléré. Du Mesnil, société de Mareuil-sur-Lay. . Lamoureux, société de Saint-Martin-de-la-Coudre. Dr. Porchaire, société le Souterrain. Roy Francois, société de Chauvigny, . Simonneau, société de Surgdres. .. Tapon, société de Nalliers, ¥. Tardy, société de Saint-Hilaire-1a-Palud. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 113 Board of control of Association-Centrale des Laiteries Coopératives des Charentes et du Poitou. M. Barit, société de Matha. “. Cail, société d'Echiré. "I, Gerbidon, société de Ligueil. \ Jollivet, société de Vouhé. . . Parenteau, société de Sainte-Hermine, . Primault, société de Saint-Varent. Board of control of Union des Caséineries., M. Caillas, société d’Irleau. M. Morisset, société de Bois-Hardi. M. Primault, société de Saint-Varent. Delegates to the administrative council of the Association Centrale des Laiteries Coopératives des Charentes et du Poitou. UM. Landriau, managing director. , Bonnin, société d’Aigrefeuille, Lavois, société d’Uzelet. Micou, société de Maillezais. Moreau, société de Mazeau. Pérault, société de Saint-Loup. wr Société Saliniére de UOuest (Western Salt Society).—This syndicate came into being in 1901 under the name of the Association Syndicale des Salines de I’Ouest. Its duration was fixed by the statutes at 10 years. Its organization was the direct result of the decreasing price of salt in the region. The salt marshes at that time were in the hands of small producers, with no capital, whose only labor was furnished by the various members of the family. The result was strong competition in the selling market, and the price of salt had fallen to 5 francs (97 cents) a ton. The whole ol in the business went into the hands of the salt merchants, who acted as intermediaries between the producers and the retailers. At 5 francs 2 ton a full day’s labor netted each working member of the family 7 or 8 cents. The Association Syndicale des Salines de 1’Quest orought together about nine-tenths of the salt producers of western France. Its capital was fixed at 90,000 francs ($17,370) and stock was issued at 25 francs ($4.83) a share. Each adherent to the organization bound himself to sell his entire production to the syndicate, which in turn was to provide him with an adequate market. The statutory minimum price was fixed at 15 francs (52.90) a ton. The delivery of the salt was to be made according to the demands of the trade. Notwithstanding the fact that deliveries were made in small installments, scattered throughout 12 months, it frequently occurred that the syndicate advanced to needy producers a sum of money approximating their annual production. In order that the sonsumer would not be affected by the increase in price paid to the producer, the syndicate agreed to regulate its selling price so that the retail price would not exceed 20 centimes (3.86 cents) a kilogram (2.20 pounds). It must be remembered that the retail price includes an internal tax at the rate of 100 francs S150) a ton. At the same time, the Association Syndicale de 1’Ouest made an agreement with the three other salt syndicates in France (Association des Salins de I’Est, Association des Salins du Midi, and the Comptoir des Sels de Bayonne) for the division of France into zones, within which each syndicate would find an exclusive market for its output. The zone accorded the Association Syndicales des 97941°—pr 2—16——8 114 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Salines de Ouest was the west of France from Brittany to the south of the Ile d’Oléron, with the country lying back of this coast. The Association des Salins de I’Est, which fad greatly encouraged and aided the formation of the Association Syndicale des Salines de I’Ouest, demanded that it be permitted to hold a part of the stock of the new company. This was agreed to, with the single proviso that the western organization should always control two-thirds of the stock. This concession permitted the eastern syndicate to take part in the administration of the new concern. During the first four years the production of salt in the west of France was normal and averaged some 130,000 tons, and the new syndicate flourished. In 1905 and 1906, however, the production of salt in this zone was enormous, prices fell below 15 francs ($2.90), and the non-syndicated producers as a result of the superproduction had sufficient stock to offer serious competition to the Association Byndicale, which by its contracts was bound to pay the statutory minimum of 15 francs ($2.90) for the total production of the syndicated producers. The small capital of the Association Syndicale (90,000 fon) was insufficient to meet the demands put upon it. The result of this was that in April, 1907, the Association des Salins de I’Est.came to its aid, and a new syndicate, known as the Société Salinidre de 1’Ouest, with a capital of 2,198,000 francs ($442,140) was substituted for the original organization. The new company undertook all the obligations of its predecessor, and in addition declared itself ready to purchase the total production of the nonsyndicated producers as well as that of the syndicated producers. The reason for the interest of the allied Association des Salins de 1'Est was the fact that cheap salt in this region would necessitate a falling off in price throughout the entire country. The offer of the rehabilitated western syndicate to purchase salt from both syndicated and nonsyndicated producers at the fixed minimum of 15 francs ($2.90) a ton was based on the same principle of maintenance of price. In 1911 the statutory term of the organization came to an end, and inasmuch as the production of salt in this region, owing to unfavorable weather conditions, had dropped to some 70,000 tons, the price of salt in consequence rose to 23 francs ($4.44) a ton, and the syndicated members no longer needing, for the time being, the protection of the Société Saliniére, the contracts between the syndicate and the producers were not renewed. From that date the Société Saliniére de I’Ouest and its affiliated producers have continued to work together on the same basis as that stipulated in the former agreement. But this working agreement is only tacit and has no legal sanction. The actual price of salt, as paid to the producer, is at 60 francs ($11.58) a ton. . Co The head office of the Société Saliniére de 1’Quest is at 7 Rue Gresset, Nantes. The president is M. Jacquemin, of the Association des Salins de Est, Nancy. The commercial director is M. Patient, 7 Rue Gresset, Nantes. The selling director at La Rochelle is M. Victor Pajot. The syndicate has offices in nearly all of the cities of the west coast of France. BPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 115 Special Soros of Vice Consul John J. Ernster, Lyon district, France, October Combination of velvet manufacturers of Lyon, France—It appears that some 8 or 10 years ago certain French velvet manufacturers endeavored to gain a footing in Germany, while a few German manufacturers made the same effort in French territory. The mutual difficulties caused by these attempts resulted in amicable agreement between the manufacturers of the two countries, as well as a few others, which led finally to the establishment of a syndicate of velvet manufacturers. While there is at present a French and also a German syndicate, both are so closely allied as to form practically a single concern. This association determines not only the prices at which it sells to the middleman, but also the prices which he in turn may ask of his customers. Thus far the system has proved profitable to the members, because the syndicate has been strong enough to maintain prices, while at the same time the demand for velvets has been regular and strong. It is interesting to observe that among the few concerns from which members are allowed to buy outside of the syndicate are the mills still employing the old-fashioned looms (hand). While the hand looms have been superseded for the most part by the power loom, there are still hand. looms in Lyon, and the beautiful fabrics manufactured by them remain unsurpassed. (The above is taken from a report written by Consul Carl Bailey Hurst on March 16, 1913, and shows conditions as they existed during the year 1912. The syndicate of velvet manufacturers still con: linues the same methods as far as the French market is concerned.) [Supplementing report on Cartels, Syndicates, and Combinations. Mr. ERNsTER. What you have often heard mentioned as the “ Syndicate of Velvet Manufacturers” is in reality no syndicate, but only a sort of mutual anderstanding between the leading manufacturers; the character thereof is guarded with much discretion. Mr. George Cabot is charged with the management of the syndicaters’ affairs in France as well as abroad, and he handles ¢hem in a highly autocratic and draconic manner, which, however, has produced amazingly successful results. For example, I may state that the members of this society give a check in blank in order to guarantee payment of fines which might be imposed upon them. There are no printed statutes whatsoever. It is my impression that this sort of a trust can not be classified as a syndicate, in regard to which you have been requested to report. In Lyon there are two syndicates of silk manufacturers comprising those manufacturing velvets. We are associated with the syndicate entitled the *“ Chambre Syndicale je la Soierie Lyonnaise,” 19 rue Puits Gaillot. Should the statutes of these two syndicates be of interest to you I would take pleasure in letting you have the same. Always at your service here, believe me, Very respectfully, yours, G. MoTTIN, Manager of the Salt’s Textile Manufacturing Co., An Independent American Concern. COPY OF AN AGREEMENT SENT OUT BY THE SYNDICAT DES FABRICANTS DE VELOURS (VELVET MANUFACTURERS’ SYNDICATE). DATED DECEMBER 6. 1912. In accordance with our agreement of to-day, we take note of the following propositions which vou have made us in your quality of proxy for the veivet manufacturers whose names are inscribed in the list given below: This list which you communicate to us can be modified each year by the two groups of manufacturers, or in other words certain names may be added to it or taken therefrom. Advice will be given by registered letter and we will keep the list constantly up to (ate. We note that the French manufacturers on the 116 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. aforesaid list will no longer allow us port and packing free, but will give us in 1913 under the form of a quarterly credit the following supplementary allowances, said allowances being port and packing for Paris: 0.04 per meter for goods up to 50 Cm. in width 0.08 per meter for goods from 51 to 81 Cm. in width. 0.16 per meter for goods over 81 Cm. in width. The discount allowance on stocks will not be granted after the 1st of April, 1918, on “any plain velvets or plushes, but faconné velvets and plushes will be sold with this allowanee during the entire year 1913. At the end of the years 1913, 1914, and 1915 the successive rebates due, based solely on the net total of the business done during each one of these years with all the velvet manufacturers taken together whose names are carried on the list will be paid at the following rate: 4 per cent on business over 20,001 francs. 5 per cent on business over 50,001 francs. 5 per cent on business over 100,001 francs. This progressive rebate at the end of the year will not be due us unless we have made delivery of all the orders placed, respectively, by all the manufac--urers aforesaid in 1913, 1914, and 1915, before the 31st of December, and inless we have filled all our engagements relative to the disposition and de-‘ivery of stocks ordered before the 1st of February. This rebate will not be paid to us unless we have fulfilled the conditions to which we bind ourselves as given below: A. We agree not to pay back this rebate, either in part or in whole, to our business connections or to other clients. This rebate being in the nature of a personal advantage we further agree not to group ourselves with other houses in order to make our purchases together so as to profit in this manner by a rebate greater than that to which we would be directly entitled. B. We bind ourselves further to keep to ourselves at least as a minimum profit the sum total of this rebate, whatever it may be. , C. We agree equally to recognize the prices of resale which you have fixed for us on certain special articles. Outside of the two groups of manufacturers certain velvet and cotton goods classed as velvets may be bought, as also the velvets and plushes faconnég, plush for furniture, and collar velvets. F. Once a year at least book experts (expert accountants) will make an inspection to verify the accounts. In case of a refusal to allow them every privilege the advantages of the contract will be lost either for the current year or for the years following. These argeements are entered into for 8 years from the 1st of January to: the 31st of December, 1915, between— 1. The two groups of manufacturers represented by Mr. Caboud; and 2. The group defending the interests of Parisian commerce in silks, ribbons, and velvets represented by its agents. ‘ 3. The manufacturers who sell without rebates velvets and plushes to a part of their clientele have demanded of all their buyers not to sell to this same clientele at a price below the ane at which they themselves sell to them. 4. The purchase price less cash discount and the 4 per cent allowance will be the lowest price at which the goods can be resold. 5. The Parisian merchants and manufacturers have named overseers whose duty it is to verify their operations. Each buyer must hold his books at the disposition of the overseer (inspector). - 6. Penalties: The arbitral tribunal. 7. The court deciding the cases will be composed of two umpires, one of which * will be chosen by the buyer. One will be designated either by the manufacturers or by the members of the group, E. Bouton or M. Brach or E. Giron or M. Millet. In case of a disagreement a third judge will be either Mr. Ducreux, notary and member of the court of appeal, 1 Rue de Céerisiles, or M. Mayer, 56 bis, Rue de Chareaudun. 8. Duration of the contract of the 1st of January, 1913. In case that the nnderstanding between the members of the group and the two groups of manupacturers should come to an end before the proper date, or the contract should be rightfully done away with for any reason, nevertheless, the members should be informed before the 1st of December of each year by registered letter. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 117 r Spesial, report of Vice Consul A. Hutt, Nantes district, France, November 10, 1915. Syndicates in the Nantes district do not engage in business either openly or secretly and ‘are in reality merely advisory bodies or organizations instituted for the purpose of bringing together merchants engaged in the same lines to discuss trade conditions, their members being in no way bound to adhere to any of their decisions or rulings. There are not any properly organized or avowed: cartels or combinations in this district for two reasons: Firstly, because they are prohibited by law; secondly, because they are contrary to this district’s mentality. Indeed, the keenest competition exists among manufacturers and merchants generally here, and combinations may be said to come into being only in the face of exceptional circumstances or difficulties or before the menace of foreign competition. In view of the above, it has not been possible to obtain any precise information regarding any combinations that may have existed from time to time or that may still secretly exist, and information of a general character can be obtained only from sources in which entire trust can not be placed. The only combination which appears to be at all organized along business lines is the “consortium” of coal importers. This word “ consortium ” has been used for the purpose of placing the deal outside the pale of the law. This “consortium,” which came into being about 20 years since, was put out of business at the end of the first few years by foreign competitors, principally British and German. It was restored again about six years since, and there is no doubt that it is still in force. It would appear that the Nantes “consortium ” of coal importers is only a branch of a vast coal trust having its center at Paris, instituted for the purpose of controlling the importations of coal from abroad, principally from Great Britain. The most superficial examination of this “consortium’s” raison d’étre and operations reveals the fact that it is based on sentiment, the force of which is such in this district that consumers will rather purchase from local concerns than from foreign importers offering better goods at an infinitely lower price. Indeed, it is only outside of this “consortium’s” sphere of action that French and foreign competitors can hope to transact business. It seems that around certain important centers or easily accessible seaports circles are drawn, and within the bounds of these circles the ‘different “consortiums” have the coal trade in their own hands. The town of Nantes and the ports of La Rochelle, St. Malo, and Bordeaux are the centers of as many circles. The Nantes consortium ” includes the following firms: : Compagnie des Charbons et Briquettes de Blanzy et de 1'Ouest, 8, Place de la Petite Hollande, Nantes. } Société d'Importation de Charbons, 1, Quai Jean Bart, Nantes. Société des Houilles et Agglomérés, 10, Quai de la Fosse, Nantes. Maison Terret & De Closmadeuc, 6, Rue Jean J: acques Rousseau, Nantes. It is a well-known fact that none of the above concerns pays a large dividend. The “consortium’s” mode of operation in regard to competitors is the following: If a particularly agoressive competitor starts business 118 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. within one of the above-described circles the controlling “consortium” immediately drops all its prices with a view to putting him out of business and simultaneously brings to bear upon him pressure and influence of various other kinds of a nature to hinder him in the reception of his consignments and render his operations abortive. If this system of elimination does not operate sufficiently rapidly, negotiations are opened with a view to buying him out. The first scheme has generally succeeded, however, and there are only a few coal importers in this district who are independent of the “consortium” and who are able to thrive. One of these, a branch of the Paris firm of Charles Le Borgne & Cie., appears to be making considerable headway and conditions resulting from the present war have doubtless wr it very much. It is said that the heavy cost of continual strife has impoverished the “consortium?” considerably and may ultimately put it out of business again. NETHERLANDS. Engels] tenors of Consul General S. Listoe, Rotterdam, Netherlands, November 1, . Cartels, syndicates, or combinations of the sort included in the present inquiry do mot exist in the Netherlands. There are, however, groups of manufacturers, such as salt, soap, cocoa manufacturers, rice and oil millers, which are believed to have a mutual understanding as to selling price of their products, etc. But nobody outside of such special groups knows anything about the agreements in question, nor is it possible to find out how many manufacturers of a certain article have made such an agreement. The above manufacturers are not known to be organized; every one of them apparently works for his own account, and is not responsible for his actions to anybody, the agreement regarding prices or production not seeming to be a binding one, but merely a friendly understanding. The following commissions have been appointed and institutions established by the Netherlands Government to foster the foreign trade of the Dutch manufacturers and exporters: (¢) Commissie voor de handelspolitiek (commission for trade politics), to give advice whenever trade conventions or treaties are to be made, and in every other instance when trade or industry interests are concerned. (5) Commissie voor den Nederlandsch-Zuid-Afrikaanschen handel (commission for the Netherlands South African trade), appointed to foster the trade between the Netherlands and South Africa. (¢) In every municipality, where the authorities think it desirable in the interest of commerce and industry, the Queen can establish a chamber of commerce and industries. At present there are 92 such chambers in the 11 Provinces of the Netherlands. (d) Stattscommissie voor den handeldryvenden en industrieelen middenstand (Government commission for the commercial and industrial middle class), appointed to advise the Government in every instance when it is thought desirable for the Government to tale measures to protect the interests of the commercial and industrial middle class. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 119 SPAIN. . Spstia) Sobant of Consul General Carl Bailey Hurst, Barcelona, Spain, October , 1915, The Kingdom of Spain, covered by this report, with the Balearic [slands and Canary Islands and the Spanish possessions in North Africa, has an area of nearly 200,000 square miles, and a population of about 20,000,000. Works bearing especially on the subject of cartels, syndicates, or combinations are exceedingly scanty and the information secured has been largely gathered from current periodicals containing published references to the organizations in question. The chief authorities for this report are— Gaceta de Madrid, No. 218, 1915. El Trabajo Nacional, No. 1217, 1915. Catalunya, No. 324, 1914. Revista de Economia y Hacienda, Nos. 28, 41, 42, 43, 1915. Bspafia Econ6mica y Financiera, Nos. 1178, 1179. 1180. 1915. Fostering of syndicates by the Government.—The Spanish Government fosters and at the same time imposes restrictions upon commercial, industrial, and agricultural syndicates. The association of the interests of each class of business is regarded as advantageous to the promotion of business activity, provided the operations of the combination are limited by Government control. In the Spanish Civil Code there is a paragraph which reads, “Pueden existir sociedades civiles” (civilian associations may exist), and a paragraph of the Penal Code provides that no association may be formed to increase abusively the prices of merchandise. Accordingly Spanish producers and manufacturers may syndicate themselves, stating at the outset that they never increase excessively the prices of their products. Such syndicates or associations do not come under any paragraph of the Spanish tax laws, not being considered as mercantile bodies and, as an entity, they can not be regarded as manufacturers. In their syndicated form they have no legal obligations. They are largely cooperative and their particular object is to avoid competition and regulate work. Trusts are not well known in Spain. Current literature in regard to them is generally antagonistic. References are seen in local periodicals as to the operations of trusts in other countries, explaining their methods and calling attention to their advantages and disadvantages, but Spanish manufacturers seem more generally inclined to associate their interests in a cooperative way. Such combinations frequently have a central bureau which receives orders that are eventually distributed among the different associated producers and sales are sometimes made through the central bureau as well. Early in the year 1915 the Spanish Government took up the question of the establishment of industrial or mercantile syndicates. The minister of finance stated that private initiative was apparently remiss in discovering a remedy for abuses in connection with the accumulation of wealth and that in order to provide for the general welfare of the country, its production, commerce. and credit, the Government perceived it to be its duty to intervene. The idea of the Government was to stimulate by certain aids the formation of industrial and mercantile syndicates, with strict regulations. for agricul- 120 BRBEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. tural syndicates, to control the regulation of prices, and .to find a medium for more general credit by which manufacture and commerce might develop with a consequent benefit to the national treasury. Accordingly, a royal decree was issued on July 31, 1915, providing in 17 articles for the establishment of industrial or mercantile syndicates in Spain. The industrial or mercantile syndicates affected by this decree are associations formed by Spanish manufacturers or merchants, residing in a certain locality or province of Spain, established for cooperative ends with mutual responsibility. These syndicates have the commercial form of anonymous companies, determining the limited responsibility of each associate by a specified amount of money, bonds, shares, or other effects which constitute the capital of the society. The capital of the society is represented by shares which can only be transferred between the members, provided the general board of the syndicate consents. The statutes of each syndicate define the class of commerce or industry to which it devotes itself, and a copy of its constitution must accompany any application for Government aid. By assisting these syndicates with subventions, the Government acquires some control over their operations. The Association of Bankers of Barcelona.—The syndicate of the Association of Bankers of Barcelona finds its principal object in facilitating the issue of stocks and bonds to firms, corporations, and the State. It aids in such negotiations and operations as require too great risks for any one of its associates, but which collectively become possible working cooperatively. It also issues and distributes foreign securities. The names of the officers of this syndicate are: President, José Garriga Nogués y Roig; vice president, José Marsans y Rof; secretary, Juan Tusquets y Pallés. It was organized in 1910, with a capital of $180,000 divided into 800 shares of $225 each. In the year 1914 this syndicate participated in the bond issue of the General Tramecar Co. of Barcelona to the extent of 20,000 bonds at 5 per cent and the Catalana Gas & Electricity for 22,000 bonds. Tt also made a loan to the Andalusian Railroad Co. In 1911 the Association of Bankers of Barcelona, with the subtitle group of Bankers of Catalonia and the Balearic Islands, was founded, whose primary purpose is the defense of the interests of its members. This association, constituted in Barcelona, may have its members in any of the four Provinces of Catalonia or the Balearic Islands. Its headquarters are for the present the bank of the president of the association. Each member pays monthly dues of $1.80, but the board of directors may raise the amount to $4.50. The initiation fee must not be less than $18 and not over $90. The officers of the association are: President, José Garriga Nogués y Roig; first vice president, Luis Sendra y Nen; second vice president, Pedro Llasas J Badia; treasurer, José Marsans y Rof; and general secretary, nan Tusquets y Pallés. In February, 1915, the Association of Barcelona Bankers petitioned the Government to promote under certain conditions a general union of Spanish bankers throughout the country, who would form an anonymous society with a capital of $4,500,000. This union proposes to make loans to agricultural, industrial, and commercial organizations upon satisfactory security and facilitate the sale and distribution. through its banks, of stocks and bonds. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, . 121 Sugar combination—The Sociedad General Azucarera de Espafia has its principal office at Alarcon 7, Madrid. It is an anonymous company, whose object is the exploitation of sugar mills, refineries, and distilleries brought into the company by its founders, as well as the purchase, rent, and exploitation of all other sugar-producing mills, exploiting them on its own account or on commission or ceding them to a third person. It may purchase, rent, and exploit any other industries which are related to the sugar industry; build mills, warehouses, and stores; buy, rent, and exploit land for the cultivation of raw material; adjust, administer, collect, or lease to the State, Provinces, or municipalities all classes of taxes or imports related to the sugar industry and grant or make such contracts as this object may require. It may also issue bonds, sell, or give as guaranty its property, and perform all mercantile, industrial, and financial operations that may be necessary. The company was organized with a capital of 143,000,000 pesetas ($25,740,000), represented by 286,000 shares, consisting of 200,000 shares of preferred stock and 86,000 common stock. The vice president of this sociedad is Javier Gil y Becerril; director general, José Guillén Sol; and secretary, Luis de Valle y Aldabalde. On its board of directors are Antonio Garcia Gil, Julio Otero, Conde de Sert, Marqués de Canillejas, Domingo Juliana, Antonio Rayo Villanova, Marcelino Lirio, Conde de Agiiero, Antonio Basagoiti, Tomés Castellano y Echenique, Basilio Parafso, Marqués de Santa Maria de Carrizo, Eusebio Bertrand, and Tirso Rodrigafiez. There are 50 beet and cane sugar mills associated in this company, outside of which 29 beet and cane sugar mills are operated independently. The domestic consumption of sugar is practically covered by the sugar mills of Spain, and, as it does not even keep pace with the production, the mills have been closed during a part of the year. The potential production of sugar in Spain has caused an agreement between most of the sugar mills of the Kingdom to limit their production to prevent a drop in prices. Recently, owing to the fact that more sugar could be disposed of for export, it was agreed that each mill should increase its output by 30 per cent. The State collects a tax on all sugar produced in Spain. Thirteen thousand two hundred and twenty-six metric tons of sugar were exported during 1914, and the total production during that year was 147,770 metric tons. During August, 1914, owing to the European war, the exportation of sugar from Spain became more active than formerly. The first shipments and the most important were sent to England and continued to be sent there until that country prohibited the importation of this product. Sugar was EE sent to the Canary Islands and &panish and French possessions in North Africa. Later on exports were made to Portugal. The sugar exported by the Sociedad General Azucarera de Espafia during the Sugar campaign 1914-15 amounted to 4,960 tons. he Spanish customs duty on imported sugar is 60 pesetas gold ($11.58) per 220.4 pounds, or about 5 cents a pound net weight, which would at the present moment militate against successful cometition by American sugar producers. Sugar-beet seed is required here to replace shipments from Germany, where its export is now 122 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. prohibited. The price of sugar-beet seed has risen in Spain from 18 to 29 cents. - Among the independent sugar mills, with which the Sociedad General Azucarera de Espafia has to compete, may be mentioned Morat6 y Sampera Ribas, Compaiiia de Industrias Agricolas, and La Azucarera del Segre. Alcohol combination—~The Unién Alcoholera Espafiola has its principal office at Calle del Prado 20, Madrid. The general plan of its organization is that of a stock company, and the le of its “ consejo,” or board of directors, is Tirso Rodrigafiez y Sagasta, the subdirector Sabino L. de Giococchea, and the counselors are Antonio Rayo Villanova, Javier Gil Becerril, and Domingo Juliana. This union buys all the residue of the beet and cane sugar manufactured by the Sociedad General Azucarera de Espafia, and by this arrangement the Sociedad General Azucarera de Espafia names a member of the “ consejo ” of the Unién Alcoholera Espafiola, who is now Tomés Castellano. At the formation of this union the different alcohol manufacturers sold their plants to the union, taking in return stock in the union. They operate entirely in Spain, handling all kinds of alcohol, such as pure alcohol, denatured alcohol, industrial alcohol, and the like. It 1s estimated that this union handles about 70 per cent of the total output of such products inv Spain. It does not export. Its selling methods are usually on 90 days’ credit or by special contract. Both the quality and price of the products of this union have been favorable to its standing in Spanish markets. This company maintains a central bureau in Madrid, where all important orders are received and distributed to various factories of the union. When formed, in 1905, an attempt was made to create a trust including all alcohol factories, but some manufacturers refused to unite. With the object of forcing the trust upon outstanding manufacturers, “dumping?” was resorted to, but consumers refused to patronize these products, feeling sure that the low selling price would only be temporary. In this manner the independent concerns were protected. Through a combination of interests all the tefuse of sugar manufacture has been secured, reducing the cost of raw material and avoiding competition. For the fiscal year July 1, 1914, to June 30, 1915, the union declared a dividend of over 5 per cent. The union does not seek to exclude outside manufacturers of its line of goods in Spain, but, on the contrary, endeavors to include all. Among independent alcohol producing concerns not members of this combination may be mentioned the Compafiia de Alcoholes, Messrs. Folch y Albifiana, and the Compaifiia Comercial Aleoholera, all of which bear the same relation to the Government as the Union Alcoholera Espaiiola. The Spanish duty on alcohol amounts to $30.88 per hectoliter, which makes the import of alcohol practically impossible. During the year 1918 only 4,726 liters (4,998 quarts) of alcohol and spirits were imported. Paper combination.—La Papelera Espafiola is an anonymous comany, having its principal office in Bilbao, with an office at Bailén 6, Barwlona. Sts legal organization is that of a stock company, having a capital of 20,000,000 pesetas ($3,600,000), divided into 40,000 shares. Its object is the exploitation of paper factories and industries directly or indirectly connected with paper and the raw material used EPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 123 in its manufacture. The director general of La Papelera Espafiola is Nicholas Maria de Urgaiti; secretary, Gonzales Heredia; and among the directors are Messrs. Gosilvez, Huici, Castafier, Urgoiti, and Urquijo.” This company was organized in 1902, acquiring 10 of the principal paper factories of the Kingdom, but apparently it has amicable relations with other independent factories, because when the orders received by this organization surpassed its own production they were filled by paper factories not belonging to the company. In this way 921 metric tons of the paper La Papelera Espaiiola handled in 1914 was produced by independent factories. It is estimated that this company handles about "20 per cent of the output of paper in Spain. American producers can compete with this organization along many lines, for the reason that although there is a high protective tariff in Spain on manufactured. paper, ranging from about $4 to $10 per 100 pounds, Spain, nevertheless, imports approximately a million dollars’ worth of paper annually, exporting something over that amount. Glass combination.—The Union Vidriera de Espafia is an anonymous society, organized in Barcelona in January, 1908. Its principal office is situated at Calle de Barbieri 1, Madrid, and another office at Muntaner 18, Barcelona. Its president is Antonio Rodriguez de Beraza; the vice president, Arturo Farrés; secretary, P. Ramén Saez. The directors are Valentin de Céspedes y Céspedes, Enrique de Pefialver y Zamora, Esteban Menguez Moreno, Leopoldo Juncosa Juve, Mariano Tarrida y Casas, Enrique Camas y Mora, Juan Clavell y Planas, Juan Jover y Alcober, Juan Giralt Laporta, Antonio Alsina y Alsina, Wenceslao Torres y Xarlant, and Teresa Mensa y Mestre. This union manufactures and sells articles of crystal and glass and all goods related thereto. It acquires all classes of factories, stores, and warehouses that it may require, and it seeks the fusion or syndication of all enterprises or associations engaged in the manufacture of glass in Spain. It controls the price of its products and handles goods for the domestic market and export. It controls from 88 to 90 per cent of all this class of goods in Spain, there being only one independent concern of importance to compete with it. Thus latter concern is the factory of Juan ‘Vilella, of Paseo San Juan, Barcelona. In competing with this combination American exporters will have to consider the duty on glass, according to paragraph 30 of the Spanish customs tariff referring to “colored glass, uncut, bottles, flasks, ground, and syphons for aerated waters”; duty $5.79 per 100 kilograms (220.4 pounds); and paragraph 81, “glass, crystal and half-crystal, without coloring, engraving, cutting or ornamentation of any kind, in articles of all kinds not specially mentioned in other numbers”; duty $7.72 per 100 kilograms. Other paragraphs refer to many different kinds of glass, but the two cited refer to the classes most likely to be demanded here although the import of these articles is not extensive, Sheet-iron and tin-plate syndicate—The Central A) rrp has its principal office at Calle Serrano 25, Madrid, to which all orders are sent and whence they are forwarded to the various factories associated in the combination. This organization does not appar- 124 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ently Jpegate in foreign markets. Tt handles sheet iron and tin plate and all important Spanish manufacturers of these products are associated in the syndicate. As its prices are comparatively low. foreign goods of the kinds handled cannot be successfully imported. The terms of sale are usually three months’ credit, varying according to the size of the order and the standing of the purchaser. This syndicate having no particular competition to contend with has not resorted to “ dumping.” It has not especial relation to the Government as a body and considers its statutes and reports as confidential. . Syndicate of bleaching, dyeing, and finishing works.—The Asociacion de Blanqueadores, Aprestos y Tintoreos 1s a syndicate having no central office, its board meeting being held at the office of any of the principal members. It is composed of all the owners of bleaching, dyeing, and finishing works who- are associated by having signed certain articles before a notary. Each signer agreed, among other things, to accept no orders from customers of any other member of the syndicate. Each factory works separately on its own account, while prices are regulated by the syndicate. This organization does not operate in any foreign market. It handles about 90% of the dyeing, finishing, and bleaching work of Catalonia, which is the greatest textile-producing district of Spain and comprises the Provinces of Barcelona, Lerida, Gerona, and Tarragona. Each of the syndicated works has its individual terms of payment, many of them working on contracts with the textile factories. As they control nearly all the business in this line they have very little competition. In order to force into the syndicate the one competitor of importance an attempt was made at working below cost, but it roved unsuccessful. The results accomplished by this syndicate Rave been satisfactory. It does not exclude any works of this class and the only important concern, not a member of the syndicate, is Bargall6 Mercader y Compaiia, Calle Roméns 1, Barcelona. This firm handles about 10% of the bleaching, dyeing, and finishing of Catalonia. The work of the Asociacién de Blanqueadores, Aprestos y Tintoreos and Bargallé6 Mercader y Compaiiia is of such a nature that does not permit of export and neither organization operates in foreign countries. Other syndicates.—The Sindicato Agricola “Alella Vinicola” has its central office in Alella, with Barén de Ribelles as president; José M. Barnadas, secretary; Domingo Molas, administrator. Its objects are (1) the promotion of the most rational and economical methods for turning grapes into wine, which may be carried on at any of the syndicated wine presses, but under the inspection and direction of oe syndicate; (2) the sale of this wine either directly or indirectly to the consumer; (8) the sale of all the by-products of wine making; (4) the purchase of machinery used in the wine trade; and (5) for the construction of buildings when deemed advisable. Sefior Aurelio Ras mentions in his “ Consideraciones sobre los Sindicatos Capitalistas” that in recent years the Spanish industry in screws has not been able to develop, as a consequence of a European syndicate manufacturing this line of goods, whose members practiced “ dumping ” on this market on a vast scale. The metallurgical industries have also been much hampered by the systematic sale of foreign products below cost. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 125 Fostering of foreign trade by Spanish Government.—In giving a brief outline of the general activities of the Government of Spain designed to foster the foreign trade of its manufacturers, reference is made to a report from this consulate general dated August 12, 1915, entitled “ Protection of industries,” describing the most recent effort of the Spanish Government in this direction. The Spanish Government maintains a Centro de Informacién Comercial del Ministerio de Estado en Madrid. This bureau publishes Memorias Comerciales, a journal which appears in about 60 issues annually. It also publishes the Boletin del Centro de Informacién Comercial, which appears on the 10th and 25th of each month, containing commercial information of interest to Spanish exporters and a monthly review entitled La Producién Espafiola, which is devoted to mercantile propaganda and information for consuls concerning Spanish commerce and its needs. The Centro de Informacién Comercial del Ministerio de Estado was founded by the Spanish Government in 1898, with the object of cooperating with Spanish producers for the development of foreign commerce. It was authorized by a royal order issued in 1918 to accept subventions and contributions from the chambers of commerce and industry, agricultural syndicates, corporations, societies, and private persons contributing to the enlargement and prosperity of the bureau, which disseminates information gratuitously. The bureau likewise procures confidential information‘about foreign merchants situated in places where there are Spanish consuls, but where no commercial information agency exists; it furnishes data as to the customs duties of other countries and statistics regarding the importation of Spanish products abroad, their relation to native products, competing prices and the like, such as can be secured by resident consuls. It translates into Spanish, letters in foreign languages, charging for this service, per 100 words or less, 18 cents for French letters, 22 cents for English letters, and 27 cents for German letters. It maintains a commercial museum, with samples of the principal articles that could be Rogues by Spanish industries for use in Morocco and forsign markets. It issues identification papers to commercial travelers who desire to be put into touch with the Spanish consuls in foreign countries in order to avail themselves of their advice and protection. It also publishes from time to time pamphlets concerning all phases of domestic and foreign production and export, such as may be of assistance to the Spanish manufacturer in export business. FINLAND. Special report of American Vice Consul In Charge Felix Cole, Petrograd, Russia, May 16, 1916. Information has been obtained regarding the six leading syndicates operating in the Grand Duchy of Finland, which is under the suzerainty of the Emperor of Russia, but which in its economic life is not a part of the Russian Empire, either legally or actually. The Finnish Window Glass Office.—The Finnish Window Glass Office, Mikaelsgatan 5, Helsingfors, founded in 1905, is maintained by a voluntary partnership composed of the following six firms, to sell window glass in the domestic Finnish market: Rokkala Glasindustri A/B, Suomen Lasiteollisuus O/Y, Skinnarviks Glasbruks 126 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A/B, Notsjoe Glasbruk A/B, Karhula O/Y, and Haniman Lasitehdas O/Y. The selling office handles practically the entire output of the industry in Finland and markets the goods of the constituent firms under a general trade-mark. The selling office sells as an ordinary wholesaler to the various retail hardwaremen and glaziers. The central selling office is managed by men chosen by the directors of the individual firms. Its expenses are paid by the retention of a certain per cent of the sales. The constituent members do not sell independently of the central office. American concerns can compete with this organization if they can lay down the same class of goods in Finland at a lower price. The Finland Metal Industry Office. The Finland Metal Industry Office, Fabiansgatan 27, Helsingfors, founded in 1909, is a voluntary association®of 17 large foundries, machine manufacturers, tool producers, and steel factories, which maintains a central selling office. The following concerns are members of the organization: Sandvickens Skeppsdocka och Mekaniska Verkstad A/B, Maskinoch Brobyggnads A/B, John Stenbergs Maskinfabriks A/B, Helsingfors Skeppsvarf och Mekaniska Verkstad, A/B Robert Huber, A/B Gottfried Stromberg, Bjoerkboda Fabriks A/B, Vesijohtoliike 0/Y, Tammerfors Linne- och Jaern Manufaktur A/B, Tammerfors Maskinfabrik, Abo Vaggonfabrik C. Wrede & Co., A/B, Abo Jaernmanufaktur A/B, Tehtaat Lehtoniemi & Taipale Fabriker, Fiskars A/B, A/B Jakobstads Mekaniska Verkstad, Hoegfors Bruk A/B, and Wattola Traesliperi. The central office sells most of its goods in Finland but exports some to Russia. All goods are sold with the trade-mark of the individual producer on them. The central office controls more than half of the total output of its kind in Finland, but its share in the export of metal ‘manufactures.out of Finland 1s less than its thare of the domestic trade. The central office sells as an ordinary wholesaler, merely asking that its retailers specialize more or less in the goods of its constituent members. {ts sales methods in Russia have nothing in particular to distinguish them from the methods of any other exporter. The sales are made in the open wholesale market to individuals and to. permanent or temporary agents who are often appointed for single large transactions. The management of the central selling office is chosen by the directors of the association who are, in turn, elected annually by the members of the association. There are many large concerns in the same line, notably the very targe Kotka Jaern Aktiebolag, which are not in the association and work compete both in the Finnish and in the Russian, or export, market. American firms are in no way hindered from entering the Finnish market by the existence of this association, and, in fact, can do a business with the association itself in lines that the association does not handle. The Finnish Pulp Mill Union—The Finnish Pulp Mill Union, Vaktornsgatan 10, Wiborg, founded in 1893, has a legal organization as a selling office for most of the pulp mills in Finland and controls the entire output of the 15 members, who are: Enso Traesliperi SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 127 A/B, Haemekoski A/B, Ingerois Traesliperi, Tammerfors Linne och Jaernmanufaktur A/B, Kannuskoski Aktiebolag, Kaltimon Puuhiomo O/Y, Laeskelae Bruks A/B, G. A. Loenquist, Myllykoski Traesliperi A/B, Aktiebolaget Pankkakoski, A/B Hoegfors Bruk & Wattola Traesliperi, A/B Werla Traesliperi & Papptabrik, Aeaenekoski Aktiebolag, and O/Y Kovorinkoski Aktiebolag. This union operates very extensively in Russia, maintaining permanent agents In many Russian cities and working in close cooperation with the Russian houses. It also maintains agents in Germany, Holland, Belgium, Denmark, France, Spain, and England. Although no figures are at hand giving this company’s exports by countries of destination, its total annual export is around 20,000 tons of wood pulp and 50,000 tons of mill boards. All goods are sold with a double trade-mark—that of the individual producer and that of the union, which is a single, standing pine tree. The organization not only controls the entire output of all of its members but also an enormous proportion of the output of Finland, as a whole, in the lines of mechanical and sulphite pulpboard, both white and brown, glazed and unglazed, mechanical pulp, and duplex and triplex pulpboard, natural color and in colors. The union is incorporated, with a capital of 14,000,000 Finnmarks (about $2,800,000), but is not a stock company. Every director of every constituent mill is a member of the managing committee, and the closer management of the union is under an elected member of the committee, who, however, can not be one of the members of the committee and is thus quite impartial. The expenses are divided annually, pro rata, among the mills. As this industry is one of the basic industries of Finland, without which Finland’s general commercial life would have a very different complexion, 1t is safe to say that no foreign organization can dream of competing with it in its own market. The majority of Finnish laborers are employed in the paper, pulp, and sawmiil industries, and the industry is so well organized and managed and the natural conditions, with the exception of sulphur, are so favorable that the Finnish mills compete on more than even terms with the Russian mills in Russia, despite the tariff barrier. The Finnish Match Union Company. —The Finnish Match Union Company, Helsingfors, Alexandersgatan 13, founded in 1914, is based on a mutual agreement or contract and includes six separate factories. The bulk of the union’s goods are sold in Finland, but some have been exported to Servia and England and extremely small quantities to Russia. The union sells matches with the trade-mark of the individual factories on each box. The union controls the entire output of each factory in its domestic trade, and in the export trade each factory contributes an equal share of merchandise. The proportion of the domestic production controlled is set at about eleven-fourteenths of Finland’s entire product. The managers of the union are chosen annually at the annual meeting of the constituent firms or their representatives. ' The Finnish Paper Union—The Finnish Paper Union, Fabiansgatan 16, Helsingfors, founded in 1892, is a central selling office, selling for the account of each constituent member, and is a legally organized stock company for the sale in Finland and Europe of 128 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. natural color, brown wrapping paper, with the following membership: A/B Tornator, G. A. Serlachius A/B, Hammaren & Co. A/B, Aeaenekoski Aktiebolag, Laeskelae Bruks A/B, Lepaekoski Fabrikers A/B, Kauttua Papperbruk, A. Ahlstroem, Alkticbolag Simpele, Enso Traesliperi A/B, Myllykoski Traesliperi A/B, Takfilt Jo Pappersbruks A/B, Kymmene Aktiebolag, and Nokia Aktieolag. In addition to these 13 Finnish factories there are 8 large Russian paper mills which are also members of the union for selling perpen in Russia; namely, Koscheli Co.,- Count Ribeaupierre’s aper Mills, and Promsino & Bielokliutch. The union operates in Finland and in Russia, mainly, but also maintains agents in England, Germany, Turkey, and Australia. It was founded in view of the excellent development of the industry and mainly in order to unify the export policy of the various Finnish mills in the then rapidly developing Russian market, but the union also sells exclusively for its members in the Finnish market, controlling about 98 per cent of the entire output of Finland. From the point of view of the individual factories, Finland is as foreign a country as Russia, all inquiries being referred to the central office as sole agent for Finland. Both in Finland as well as abroad the two trade marks, of the factory and of the union, are used. In its export activities the union works through sole agents having each a well defined region. The competition of the union with native Russian mills in Russia is largely on the basis of quality, as the Finnish paper is the only good moderate priced wrapping paper on the market. The union controls the entire output of its constituent members in brown wrapping paper. Some of the factories maintain separate selling offices abroad and in Finland for the sale of their other products, such as printing paper. The management consists of two managing directors, with two substitutes, chosen by the directors of the union, and it is understood that the stock of the union is owned by the constituent factories, pro rata, according to their capital and output. It is a matter of extreme doubt if American firms can compete with this union in the home market. In Russia and other foreign markets there is no especial reason, other than freight rates and tariffs and general acquaintance with the market, its needs and the necessary selling methods, which should prevent American firms from competing. The Finnish Sawmill Selling Union.—The Finnish Sawmill Selling Union, Unionsgatan 28, Helsingfors, is a union of 15 large sawmills, for export only, founded in 1915. The union sells largely in England and France, and controls the entire stock of its members which they assign for export. In the home market each mill sells quite independently. } The goods are sold abroad with each factory’s own trade-mark. The union controls about two-thirds of the entire export of sawn goods from Finland, but on account of the war has been unable, so far, to fully develop its activities. The management of the union’s affairs is. in the hands of three delegates, with substitutes, chosen by special delegates from the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 129 members of the union, and its expenses are paid, pro rata, by the members, Buying combinations.—In Finland there are two large buying combinations, the Finland Metal Industry Office, described above as a selling organization, and the Finnish Paper Industry Office, Helsingfors, consisting of 85 wood pulp, paper and cellulose factories, for the purpose of greater economy and efficiency in buying all sorts of a This office works in cooperation with the Finland Metal Industry Office, and a number of the members of the management are, unofficially, common to both. It is only of recent foundation, and so far no statistics are available as to its capital. Both the above buying organizations, far from being a hindrance to American trade in Finland, can be of the greatest assistance and are, in fact, anxious to buy in America. PORTUGAL. Bpselsl Leport of Consul General W. L. Lowrie, Lisbon, Portugal, November , 1 Y Portugal is an agricultural rather than an industrial country, and the comparatively few manufacturing establishments which do exist do not unite in cartels, syndicates, or combinations for the promotion of trade. Each individual or corporation operating a factory acts separately. Modern methods have not yet made any great impress upon either manufacturing or agriculture. Only two concerns which may be called international syndicates are engaged in business in this market: The Vacuum Oil Co., of New x) and International Mercantile Co. The latter is engaged in promoting the importation and exportation of foodstuffs and colonial goods in a small way. The Vacuum Oil Co. has a monopoly practically on the sale of petroleum and gasoline throughout the country. It supplies western Africa and Gibraltar from the storage plant at Lisbon. The company operates two small tank steamers under the Portuguese flag. It does not have any special concession from the Government. There are no combinations of buyers of different lines of American goods. The importers act as individual purchasers and are not associated. The usual requirement of opening credit in the United States prior to the shipment of merchandise makes the extension of this vos ll most difficult, as the credit in most instances must be effected through London. Almost none of the industries of Portugal depends on foreign capital, and the investments are not such as would affect the import trade. One large English firm, Graham & Co., own paper and cloth factories and are, of course, large buyers of raw materials. This is a private corporation and operates independent of any other. One of the presidents of the Lisbon a Association, who is active in promoting trade with America, states that he believes “foreign capital will find here a vast field for investment in manufacturing, agricultural, and commercial enterprises, not only in a direct, simple way, but also in the form of cartels, syndicates, or trusts. : The Portuguese Government has shown some activity in an endeavor to increase its oversea trade. It has created in the foreign 27941°— pr 2—16—89 130 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. office a commission to recommend measures to promote exportation. Investigations and reports have been made by the country’s consuls in the United States, Brazil, Morocco, England, and Italy. A commercial commission was sent to England early this year and visited some of the large industrial centers. Thus far there have not been any results noted. The Government sent several official commercial agents to Brazil. These representatives have been able to assist the export trade materially. This work will be continued and enlarged. GREECE. Special report of Consul General Alexander W. Weddell, Athens, Greece, November 27, 1915. Greece is an agricultural country. Industries are as yet in their infancy. These facts, combined with the character of the people, conspire to prevent the growth of combinations of manufacturers and others looking to obtain the benefits resulting from organizations such as cartels, syndicates, and combinations. There is no specific legislation yet on the statute books which would tend to limit or supervise such organizations, which, so far as they exist, may be said to have unusual powers. There are but two organizations worthy of mention in the Hellenic Kingdom which possess any of the characteristics of combinations. These are La Société Privilégide pour favoriser la Production et le Commerce du Raisin de Corinthe, popularly known as the “ Privileged Company,” and an organization of wine and alcohol distillers, the Greek title of which is Anonymou Etairias Oinopneumatopoias. The “ Privileged Company” igo combination) —The Privileged Company has its general offices at Athens, with some 25 branch offices in various parts of Greece, and is clothed with power to establish foreign agencies should this become necessary. This organization derives its life from the law of July 17/30, 1905, which provided for the organization of a joint-stock company to take, in general, measures looking to the protection of commerce in currants. With regard to the general activities of the company, its methods, etc., reference is made to a comprehensive report submitted by Consul Cooke at Patras and published in Daily Consular and Trade Reports of November 23, 1910. From this it will be seen that the object of the company is to prevent overproduction of this natural monopoly of Greece, to limit the acreage, to assist the growers with loans, to collect the tax in kind imposed by the Government, to make purchases of the surplus quantity of currants under certain conditions, and generally to do all things necessary for the production and protection of this great industry as contemplated by its act of incorporation. All currants received by the company and not resold under eight restrictions imposed must be retained within the country, their pxportation in their natural state being prohibited under severe penalties. To effect the conversion of the currants thus retained into other products a subsidiary company was formed in 1906 under the title of “La Société Hellenique des Vins & Spiritueux (The Greek Wine & Spirits Co.). Recognizing that its success must depend largely upon increasing the consumption of currants in foreign countries, the company has SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 131 exerted itself from the beginning to advertise currants as an article of food, and these efforts are understood to have been particularly rctive in the United States and Great Britain. Some four years after its organization the company was called on to face a trying situation brought about by successive large crops. While an increase of plantations had been provided against, it was found that this was insufficient and that it would be well to take steps for the rooting up of the less profitable vineyards. Accordingly arrangements were made by the company to borrow ap to $2,500,000, to be expended in compensating vine growers who might consent to root up their vines, the title in the land remaining in them; up to 1913 some 6,000 acres had been thus withdrawn from the cultivation of currants. It will be seen that the company is essentially domestic in its activities, and is intended to be a balance wheel and regulator of a natural monopoly of the country. It makes no purchases save from growers and no sales except to the same class. ~ As previously suggested, the currant is a natural monopoly of Greece and no competition worthy of the name is encountered. Beyond the buying up of currants, the price of the commodity is regulated by the usual law of supply and demand. The company in its work performs semigovernmental functions, receiving the fruit, collecting the land and export taxes, and generally regulating the internal working of the industry. The results thus far achieved have been on the whole satisfactory to the general trade, even if the investors in the shares of the company have not been as richly rewarded as they had anticipated. La Société Hellénique des Vins & Spiritueun (The Greek Wine d& Spirits Co.), with main offices at Athens, was founded in 1906, with the purpose of utilizing the surplus stocks of currants received by the Privileged Company. This organization has paid its stockholders well since its formation. It has an authorized capital stock of 10,000,000 drachmas ($1,930,000), divided into 100,000 shares. These shares are made out to “bearer” and the title therein passes by delivery merely. This company is in active competition with all other wine and alcohol producers in Greece. A large market for its products is in france, but considerable quantities of its productions are sent to the United States. This company is formed, as are all other stock companies in Greece, under the special provisions of “Les Lois Commerciales” of the Kingdom, ratified by royal decree. As this organization is in large measure a creature of the Privileged Company. further discussion of its work seems unnecessary. Wine and alcohol distillers’ company.—This company, to which reference is made on the first page of this report, has its principal office in Piraeus, Greece. It has a charter from the Greek Chamber of Deputies, ratified by royal decree of August 8/16, 1911, and published by the Government Gazette of August 11/24, 1911, The charter is for 30 years; the capital as originally fixed was 8,000,000 drachmas, which has since been increased to 4,000,000 drachmas; the authorized capital is now 5,000,000 drachmas ($965,000). This capital is divided into 40,000 shares of 100 drachmas value each. 132 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The original composition of the company consisted of the following wine and alcohol distillers (the number of shares taken in each instance is also given) : N. EF. KotSones....co ceesenceencnnei & Lyberopoulos..... Batistas, Esaias & Samaras... zachou Bros. ......... &. Philopoulos & CO..c-eveceeenee-. D. Poures........- [RN Andrea Kabas...cc...caea John E. Phinopoules...-E. Charllos & Co....-Barbareseu Bros. ........ce--.. Wine and Agriculture Company . Total. ... Nama. Number of shares. | Value ‘drachmas). 289, 000 289,000 289,000 289,000 289,000 289,000 237,000 240, 000 275, 000 289,000 225,000 30,000 | 3,000,000 An appraisement of the various plants of the contributing members was made, and on the basis of this appraisement subscriptions of stock were made. Within the past 18 months one of the members of the original syndicate has sold his shares to the others of this group and withdrawn therefrom. He is now in competition with his former associates. The object of the company is stated to be the manufacture of wines and spirits and any other products obtained from grapes and raisins, the buying and selling of raw material entering into the business of the combination, and, finally, any other activities related in any way to the business of the company. Because of the lack of statistics available, it is not possible to state what proportion of the wine made is controlled by this organization, though the percentage must be very high. Active fields for the sale of the products of the various distilleries are found in the Levant, France, the United States, etc. Definite data relative to the actual sales made in these countries is not available, as the association guards its activities with some care. A fact of extreme interest in connection with the company is that it has brought about the shutting down of a large number of distilleries owned by its members. The home market is well covered by the various theretofore existing sales offices and agents of the members of the combination. In the foreign trade the method of sale is somewhat different, the field being supplied, as in the past, almost entirely through commission houses. No information is obtainable as to the selling policy pursued by the company or concerning its terms of sale. The company bears no special relation to the Greek or any other Government, nor does it benefit by any special legislation. Its membership is composed of prominent business men who are in close relations with the various banking circles. So far as can be ascertained, the company has taken no marked steps looking to the advancement of prices, its profits being obtained it 1s thought, in the economies effected through the closing down of certain plants, in the purchase of materials, etc. Shares in the company, though not listed on local exchanges, can be bought in small quantities, but the majority interest is firmly held by the original incorporators. SPEQIAL REPORTS FOR FEDERAL TRADE COMMISSION. 188 Standard Oil Co.—The Standard Oil Co. of New York is the cororate name of the principal foreign organization operating here. A for illuminating purposes being a monopoly of the Government, its activities in that grade of oil are limited, though it is in competition of greater or less severity with the Roumanian and Russian. companies. The company has its head office at Athens-Piraeus, with branches or direct representation at all principal points.” At Piraeus a large plant for the storage of bulk oil and the manufacture of cases and tins is now approaching completion. In addition to illuminating oil sold to the Government, an active trade in other grades is carried on through sales agents who cover the entire field thoroughly. In general its policy is to demand cash against delivery of goods. Because of the general situation at this time it is without competition, and there is a tendency to seize on this and to force up prices at gvery possible point. A far as can be learned there has been no dumping in this market, but competition in normal times is met by offering a superior product with prompt delivery. The Standard Oil Co. has no official relations with any department of the Government, so far as can be learned, nor is it thought to be in close or friendly relations with any banking or other group. As stated above, there is at the present time, practically speaking, no competition encountered by this company, although the Texas Oil Co. has been trying to enter the field. The former, however, is so strongly entrenched that it would be a difficult matter for any rival to dislodge it. No international cartels or buying combinations.—There are no international cartels, syndicates, or combinations directly engaged in business in Greece so far as can be ascertained, nor are there any combinations of buyers of American goods in the Hellenic Kingdom which have a concrete organization. American goods at a disadvantage.—Prior to the outbreak of the war, (Greece was well canvassed by representatives of European houses and because of this direct representation American goods were at a disadvantage. Further, the presence of missions of various continental power in the country engaged in instructing the army, navy, police, and forest service rendered the sale of American supplies to the Government rather more difficult, the members of the various missions naturally favoring their own countrymen. Many of the engineers, chemists, and others found here were educated im various continental countries, and this has the natural result of predisposing them in favor of the goods and methods of such lands. Little governmental aid for Grecian products—The ministry of national economy, established in 1910, endeavors to aid Grecian foreign commerce. Owing to lack of adequate financial support, however, but little has been done thus far. Grecian products have won their way on their own merits without Government aid or subvention. TURKEY. Special report of Consul General Gabriel Bie Ravndal, Constantinople, Turkey, December 2, 1915. Industrial and commercial organization being in an embryonic state in this country, one can not properly speak of manufacturing and producing efficency in Turkey nor of any special merchandising methods. 134 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Syndicates and cartels, such as those existing in Germany, or other systems under which combinations of capital can be fostered rnd successfully operated, are totally lacking in the purely Ottoman business world. The spirit of cooperation is not conspicuous in the Near East. One, therefore, fails to discover strictly Ottoman concerns of any magnitude. Even State and municipal monopolies are usually owned and managed by foreigners in Turkish form. The Oriental Carpet Manufacturers (Ltd.).—The Ottoman Cloth Co. in Smyrna produced cotton cloth almost exclusively for the army. As a competing factor in gray goods, it became an element of opposition to American “Cabot.” This concern, along with two or three subsidiary companies, was ultimately absorbed by the Oriental Carpet Manufacturers (Ltd.), a British corporation with headquarters at Smyrna, which is the nearest approach in Turkey to modern trusts. It started its operations by combining into one. association a number of important brokers dealing in Turkish rugs and carpets. The corporation had in mind monopolizing the manufacture and sale of Turkish rugs. In order to carry out this scheme, it was found necessary to enter the Persian field, and to establish looms and agencies in that country. Offices were located in Cairo, New York, London, Paris, and Hamburg for the sale of oriental carpets. The Turkish Government soon became a valuable customer, buying its supply of wool from the Oriental Carpet Manufacturers (Ltd). The latter, having thus become a purveyor to the Government, took over the cotton mills in Smyrna in order to furnish army cloth. Without having other Government encouragement than the assurance of a remunerative market for wool and gray cloth, the Oriental Carpet Manufacturers (Ltd.) promised to become a rather powerful institution; more particularly as a rug trust, when the present war broke out, which crippled its business because of its belligerent nationality. Producing, buying, aud selling Turkish and Persian rugs, the concern, it is estimated, exported about 30 per cent of such rugs and carpets as were exported from Turkey, thus leaving a large field to the independent traders, who were mostly merchants or commission agents established in Constantinople. In the beginning the ats Carpet Manufacturers (Litd.) attempted to re.ail its products, but later abandoned the plan in favor of wholesale operations exclusively. The branch houses abroad are equipped with luxurious exhibits. However, the organization is not a model one, it is claimed, being but loosely knit together, and its future is deemed problematical. Other combinations.—Similar tactics have been pursued in other lines of manufactures and produce, but as yet without success. The Smyrna Fig Packers (Ltd was intended as a fig trust, but did not prove profitable, as the producers organized against the operations of the trust and in this struggle secured the cooperation of the Turkish Government through the Banque Agricole. A drug trust (Droguerie Centrale d’Orient) was organized in Constantinople some two years ago. It has not interfered much with the freedom of trade nor impressed the public with any superiority of organization. While thus there are no syndicates in Turkey under Ottoman or foreign protection of any special interest, it is deemed worth while to describe more fully certain trade methods practiced by combinations of manufacturers organized abroad and operating in Turkey. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 135 TurkisE Trappe or THE NATIONS. Great Britain—One does not discover, in studying modern British trade methods in the Levant, any mone evidence of modern tendencies toward combination. British commercial supremacy here dates back to the days of the Levant Co. which obtained its exclusive charter from Queen Elizabeth and ultimately outdistanced Venice, Holland, and other rivals. Great Britain has maintained its position in the Levant largely on account of its shipping and banking facilities and because of the inherent aversion of the natives to change. British manufacturers, furthermore, gained a reputation in early days for quality of goods and for fair dealing which they consistently have endeavored to maintain. Of late years, however, the United Kingdom’s trade with Turkey has not, in general, kept pace with that of other nations. Just before the present war broke out it seemed as if the British leaders of finance and commerce had determined that the “laissez faire” policy, hitherto pursued, did not properly meet modern conditions. A bank was established in Constantinople with British capital (National Bank of Turkey), and public concessions were sought. British concerns succeeded in obtaining concessions for the construction of harbors at Trebizond and Samsoun and for certain irrigation projects in Mesopotamia. They also secured important arsenal and dock concessions. British manufacturers of allied trades, machinery for instance, have been in the habit of appointing a joint representative on a salary and commission basis to reside in Constantinople. Attached to the agency there would be usually two or three young engineers or other experts sent out and paid by thé home concern to assist its representative and to gain experience. In other lines, as, for example, linoleum, the Scotch manufacturers formed a syndicate and selected a representative to operate in Turkey on a commission basis. By eliminating competition between themselves, these manufacturers practically succeeded in driving out their Belgian and German rivals. At times competition caused the syndicate to resort to temporary dumping. However, the success of the enterprise is attested by the largely increased sales of British linoleum at higher prices. France—France’s trade ly Turkey shows a record which must not be gratifying to that country’s economists. A brief study of the Turkish markets suffices to reveal the unquestionable fact that France’s loss is due to the lack of a comprehensive organization of its export trade. However, the French reign supreme in the Turkish financial world. Aside from the German and Austrian banks, French capital is interested in practically all other impertant banking institutions as well as public works and enterprises in general. But for this financial hegemony, which commands a large amount of trade, France might recede to a much lower position in the list of Turkey’s purveyors. The commercial language in Turkey’s principal centers is French, which is the case also in diplomatic and society circles. Turkey’s modern tendencies have been largely inspired by French literature. Up to the beginning of the present war, French schools in the Levant were more numerous than those of anv other nationality. 136 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. France has furnished numerous experts to assist in the adminis tration of the Government of Turkey. French money has been employed in Turkish loans and public utilities to the extent of some B0 per cent. Several railroad systems, especially in Syria and Palestine, prior to the war were owned and operated by Frenchmen. The harbors of Constantinople and Beirut were largely under French control. French contractors were building several hundred miles of highways throughout the Ottoman dominions. The Imerial Ottoman Bank, through whose channels the Government col-Ba its taxes and paid its bills, was a French institution. French steamers plied bod between Marseille and Turkish ports. In spite of this highly favorable position, French trade with Turkey has not increased in the same proportion as that of other nations. In fact, it has barely held its own, and this virtual decline must be ascribed to the absence of properly organized efforts at home as much as to the nature of its manufacturing industries which appeal particularly to more advanced markets. Italy—Since the conclusion of the treaty of Lausanne, which terminated the Tripoli War, Italian interests have been very eager to obtain a foothhold in Turkey. Up to the beginning of the European war, capitalists in the x ennine Peninsula, vigorously supported by their Government and its diplomatic and consular agents, untiringly strove to obtain a railroad concession in the hinterland of Adalia and a “sphere of influence” in the coast regions between Smyrna and Mersina. The Italians are pushing their language propaganda through numerous educational and charitable institutions in Turkey. Along commercial lines, for instance in the matter of cotton goods, Italian manufacturers display energy and determination. The textile manufacturers of Milan seem to be well organized. However, aside from a persistent campaign in favor of new steamship lines, the Italian financial and commercial interests do not appear to follow any particularly striking foreign trade policy in the Near East. Belgium.— Although a small nation, the Belgians have managed to secure a good share of Turkey’s orders for machinery and other manufactures of iron and steel. This has been achieved in combination with investment of capital. Turkey’s electric tramways have been largely financed and constructed by Belgians. They naturally have bought the necessary rolling stock, rails, and other material in their own country, and thus afforded a fair example of how trade follows investments. Awustria.—Austria has heen more successful than any of the abovementioned countries in extending its trade with Turkey. Next to the technical progress made by that country during the last decade, this result must be ascribed to a rational organization of trade methods. The Austrian Chamber of Commerce at Constantinople works in conjunction with the Austrian and Hungarian commercial museums, which contain samples of numerous articles of export manufactured in the dual monarchy, and keeps all kinds of practical information at the disposal of inquirers. The individual manufacturers who exhibit their products in these museums have their agents in Turkey, either separately or by groups. The management of the chamber of commerce and that of the museums work in harmonious cooperation with the Wiener Bank Verein and the Hungarian Bank, both at SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 137 Constantinople. They exchange financial references more thorough and intimate than the usual bank ratings and assist well-deserving importers in the Levant of Austrian or Hungarian products in obtaining credit. Germany.—The greatest results from systematic organization have, however, been achieved by Germany. The steady increase of German commerce with Turkey, effected at a time when Germany’s competitors were more popular than the Germans with the native masses, can not but be ascribed to that model organization which starts at the home bank furnishing to the small manufacturer capital against his Turkish customer’s notes, facilitates the shipment of the goods exported by land as well as by sea, and supplies through its exterritorial banks to the Turkish importer the funds necessary for releasing the merchandise and selling it, thus enabling the latter to honor the initial notes. The success of the “made in Germany ” goods is thus due, rather than to excellence of goods or to salesmanship, to this scientific handling of the financial problem. In Germany’s commercial dealings with Turkey prominent mention must be made of the Deutsche Levante Linie, the stock of which is held by all important banks in the German Empire. These freighters, reputed for efficient service, call at many ports along the Dutch, Belgian, and Mediterranean coasts and obtain a full cargo on nearly every voyage. Thus lower freight rates are possible for German wares. On the State-owned railroads in Germany goods intended for export enjoy an especially favorable treatment. A system of through bills of lading has been devised by virtue of which, even at an interior town in Saxony, one may ascertain the price c. i. f. port of destination of any quanity of merchandise and ship same at reduced rates through the combined facilities of the State railroads and the Deutsche Levante Linie. German goods enjoy preferential rights, and American shipments via Hamburg to Constantinople are known often to have been obliged to wait for weeks in the Hamburg warehouses on that account. In a very special way the German Government affords help to the export trade by the application of “combined uniform rates” on the railways in combination with the Deutsche Levante Linie. Thus, a manufacturer of wire in Kénigsberg and a manufacturer of wire in Hanover will pay the same freight for the transportation of their goods provided they are destined to be exported to the Levant via. Hamburg. This boon is a valuable incentive for manufacturers even in the remotest part of Silesia to look for export customers, as it puts these manufacturers on an equal footing with their colleagues in the western section of the Empire. Another important feature of the system is the organization of the transportation facilities provided. In everysmall manufacturing town in Germany, the Deutsche Levante Linie has an agent who at the same time is insurance agent and “ Spediteur,” i. e., forwarding agent. He takes the goods from the factory and attends to the formalities required by all the carriers, whose authorized representative he is, himself. Only a very small portion of the exports, some of those from the Rhineland, are sometimes advantageously diverted to Antwerp when the Belgian steamers offer an especially sharp competition. This, however, is only incidental and temporary. 138 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. In Germany the railroads are owned by the Government and considered by the latter not as a money-making institution but as a public-service institution. Therefore when accounts show a profit on freight, a reduction of rates is immediately effected, so that the more goods carried the cheaper the rates. Another facility afforded by the present railroad administration is the matter of sidetracks und switches to satisfy the requirements of manufacturers who are off the main lines so that they may be in position freely to develop their business. The freight rates remain unchanged; only a small annual charge, corresponding to the extent of the advantages obtained, is made by the Government. Large financial institutions, like the Deutsche Bank, the Disconto-(resellschaft, the Dresdner Bank, the Schaaffhausenscher Bankverein, own the Deutsche Orient Bank, with main offices in Berlin and a branch in Constantinople, and the Banque d’Orient in Smyrna. These and other German banking houses in Turkey, such as the Deutsche Paliistina Bank, finance all transactions with Germany on an extensive credit plan. The dividends these banks pay are proof of the success of the system. The German chain of banks, which extends from the smaller towns in the interior of Germany to Berlin, from Berlin to Constantinople, and from Constantinople to the smaller cities of Asia Minor, Syria, and Egypt, is not only invaluable in financing German commerce in Turkey but also serves as the medium for German investments in Ottoman public works. Thus, the Deutsche Bank in Constantinople is intimately connected with German railroad construction and German irrigation and reclamation undertakings in Anatolia and Mesopotamia. It is not considered practicable for the so-called Bagdad Railway (German) to discriminate in favor of German goods. Its contract with the Turkish Government would seem to entirely exclude such a possibility. However, the public works in Turkey undertaken by the German banks are of the highest importance in the interest of German trade and render competition infinitely more difficult. Among other enterprises closely allied with the general German campaign in Turkey are the electric light and tramway concerns in Constantinople and Krupp’s agency. The former, although a part of an international syndicate, the ® Sofina,” with main offices in Brussels, are managed entirely by Germans. They have absorbed the Galata-Pera Tunnel Co., the Bayazid-Chichli Subway Co., and the Stamboul Gas Works. German material is used almost exclusively. To assist in this campaign of peaceful penetration, news and trade papers have been established, such as the Deutsche Levante Zeitung in Hamburg, a monthly commercial journal, managed by the Deutsche Levante Linie, and the Osmanischer Lloyd in Constantinople, a daily newspaper, publishing also an edition in the French language. It is reported that the Osmanischer Lloyd was started at the suggestion of the German Emperor himself. Perhaps the largest syndicate in Germany is the Eisen und Stahl Verband, including most German producers of iron and steel, the backbone of German economic life. This organization was at first represented in Turkey by the numerous agents of the individual members of the syndicate. Gradually, however, these agents were eliminated, and the representation limited to two houses in Constan- BPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 139 tinople—Walter Berghaus and the Etablissements Jost. The Gutehoffnungshiitte, one of the largest foundries in the world, does practically all its business in Turkey through the Etablissements Jost in Constantinople. Along other lines we find the Orenstein-Koppel Aktien-Gesellschaft, representing a syndicate of producers of Decauville (narrow gauge) railway material. This combination has practically stamped out the French and Belgian competition which formerly controlled the supply to Turkey. Another German syndicate operating in Turkey is the firm of Philipp Holzmann, contractors of all kinds of construction work. At present they have in hand the building of naval Jards, fortresses, railroad lines, and highways. They are a powerful concern combining various interests in Germany. An idea of their efficiency may be gained from the fact that the French road-building company in the exploitation of its concession from the Turkish Government awarded them several important contracts before the war. Such concerns apparently do not enjoy nor seek any special favors at the hands of the German or the Turkish Governments, but they invariably manage to interest, in their projects in Turkey, the German banks and railroads in ‘Lurkey, and at home influential associations {such as the union of locomotive works, car builders, steel-rail manufacturers) which are so characteristic of German industrial and commercial life and which, although they work in unison, apparently enjoy individual freedom and deprecate the idea of a controlling combination. The Fluegel Pumpen Kartell, operating in Turkey, has been very successful. All German makers of such pumps exporting to the Ottoman dominions belong to the cartel. As a result these pumps sell at a higher price than before. The formation of a cartel is dictated by the necessities of the particular market to be supplied and includes only manufacturers supplying that market, so that there may be another Fluegel Pumpen Kartell formed, for instance, by exporters to the Argentine Republic whose interests are identical. The German pick manufacturers exporting to Turkey are syndicated ; they have a central office in Germany which approves or rejects orders. So, also, German exporters of radiators. The German pick cartel has grown so strong in Turkey, i. e., it has outdistanced all competition to such an extent that it no longer attempts to conceal its existence. Another important German concern, the Mannesmann Werke, makers of all kinds of pipes and tubes, is syndicated, but not to the point of being able to exclude competition on the part of other German Tt of similar articles, such as the Phenix Werke. In the electric field, also, we find that the attempted amalgamation has only partially succeeded. In Turkey the Siemens-Schuckert Werke, the Allgemeine Elektricititsgesellschaft, and the Ganz Elektricitéits Werke apparently operate in competition with each other. Each, however, seems to be specializing in a different line. It is generally believed in this market that various German cartels have been formed for Turkey, especially in the metal-goods trades, and are actively at work." They do not necessarily have any central offices in Germany or elsewhere, but act independently through numerous agents representing the individual manufacturers and operat. 140 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ing on a combined salary and commission basis or on the commission basis alone, and who are limited in their initiative and enterprise only by a fixed uniform rule regarding prices and credits which, whether known or unknown to the agents, applies to all transactions in Turkey of the manufacturers belonging to the cartel, and enables the latter successfully to meet foreign competition. While “ Verbands” and syndicates operate in the open, the cartels are more in the nature of secret organizations, They are less an organization than a systematization of prices and efforts in special markets from which, without such methods, the German manufacturers might be driven out by foreign competition or at least suffer loss of business and reduced profits. This system is considered superior to dumping or other coercive practices, which not only arouse the hostility of competitors but also that of the trade and of the consumers. On the other hand, by preserving their individuality, the manufacturers, members of the cartel, benefit from the zeal and rivalry of their respective agents in the foreign field. Germans seldom resort to dumping in Turkey. However, they claim that Turkey is their cheapest market. When cartels are planned all manufacturers in the given line of articles operating in the given foreign field are invited to join. If the a formed, those remaining outside will not as a rule attempt independent action in that foreign field. The solidarity among German enterprises must be attributed not only to the spirit of union and organization inherent in modern German character but also to a well-considered foreign trade policy, in pursuance of which the stock of numerous concerns is interowned. It is not believed, however, that the system of German cartels alone can successfully keep American goods out of the Turkish markets. The German pick cartel, for instance, is successful not only because all the German manufacturers of picks have joined but because the latter kmow how to utilize waste in the iron industry better than foreign pick manufacturers, and because of the superior German organization of problems of transport and finance. Cartels usually enjoy a more or less limited existence. They are difficult to hold together in the long run and often are dissolved. International combinations.—International combinations, as such, are not officially operating in Turkey except in the financial domain in which they reign supreme.” Most banks in Constantinople are composed of groups whose members are large banking institutions in various European countries. The same conditions apply to certain railroads in Co in which German, French, Austrian, British, and Swiss interests are combined; so, also, as already noted, in the matter of the street and subway railways in Constantinople. While the capital invested, in the cases recited, comes from different countries, the management is national; i. e., German or French, etc. Purely merchandising combinations of an international character can not properly be said to exist in Turkey. America— American goods in Turkey are mostly imported through the instrumentality of individual commission agents, and there are no combinations of buyers of such goods. However, in London, Hamburg, and other European centers one finds large jobbing firms buying American manufactures for distribution’ to other parts, including Turkey. This practice is detrimental to both the American seller and the Turkish buyer. Among such articles may be mentioned flour (via Marseille), cotton goods (via Manchester), leather (via Lon- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 141 don), oleo oil and cotton oil (via Rotterdam), and hardware (Via Hamburg). The large buyers as found in continental Europe and in America do not as yet exist in Turkey, because investments of capital are limited. It has already been suggested how European competitors enhance their chances in Turkey by loans to the Government, investment of capital in public utilities, obtaining national or municipal concessions, loaning to Turkey officers or experts as councilors and advisers, organizing special banking and transport facilities, forming chambers of commerce in Turkey in conjunction with home institutions of a similar character, arranging commercial excursions to and trom Turkey, providing facilities for Turkish students going abroad, itishing newspapers in Turkey, and maintaining in Turkey educational and charitable institutions. European nations enjoy many advantages which count heavily in their favor in the matter of foreign trade, as, for instance, nationals residing and doing business abroad. What is primarily needed in the interest of American commerce in the Levant may be briefly summarized as follows: 1. Adequate direct and regular steamship connections, preferably under the American flag. 2. American banks of both discount and investment in the prinripal Near Eastern centers, thereby helping to solve the question of credits. 8. Through bills of lading between interior railroad points in the United States to the markets out here and favorable railroad rates for American exports. With such improvements, American goods would stand an excellent chance in the Levant, notwithstanding the European competition and especially the German system of combination which appears to thrive so well under a paternalistic form of Government. In Turkey, as stated in the early part of the present report, manufacturing is still in the primitive stage of development. The country is largely agricultural and pastoral. In a tariff bill now before Parliament, the Government is endeavoring by protective rates to foster home industries. It will take years before much is accomplished in this direction. NORTH AMERICA. CANADA. Rpesiel overt ‘of Consul General John G. Foster, Ottawa, Canada, October 12, 4 The merger movement.—In Canada there do not appear to be any industrial amalgamations in the nature of cartels, such as operate ander Government sanction in Germany, for example; but within the past six or seven years there has been a pronounced tendency toward the formation of industrial combinations or mergers along practically the same lines as those in the United States. Prior to 1909 the movement had not assumed very large proportions, but in that year and in the years immediately following there was a pronounced wave of “mergeritis,” as the movement has been termed by some observers. The growth of the country, its rapidly increasing population, the changed market conditions, and other developments are in part accountable for the consummation of many industrial amalgamations. The tendency at that time might also be 142 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ascribed to a class of professional “merger makers” which sprung up, and many consolidations were completed where the primary promoters had little real interest in the companies concerned. This professional merger making has been regarded as one of the unfavorable features of the Canadian merger movement, and the promoter’s greed has been considered, on more than one occasion, a more important factor than the desire on the part of the manufacturer to pay larger dividends through reduced expenses, or even by enchanced prices through control of the market. The amount of water injected into the capitalization of Canadian companies has been very great. Professional promoters have gone through Canada for the past few years and have left a train of mergers in their wake. and practically all have been overcapitalized. Prior to the year 1909 there were reported to be some 12 or 14 industrial amalgamations or combinations in Canada. This number, at the end of 1911, had increased to 41; in 1912, to 56; and at the end of the year 1913 the total number of industrial amalgamations in Canada, as ascertained from the Monetary Times—a recognized authority on financial affairs in the Dominion—and from other sources, was 82. Since the year 1913, with the falling off in business and industry which characterized the early part of the year, and with the commencement of the war in Europe, there has been very little in the way of new industrial amalgamations, and the list which is given below may be taken to fairly represent the number of trade combinations now actually in existence in Canada. There is no doubt that in connection with the large contracts for munitions of war and army supplies which have been given out in Canada by the Canadian, British, French, and Russian Governments, a number of establishments have joined together under some arrangement or agreement in order to tender on large orders and maintain prices, but particulars of these arrangements have not been given much publicity. Outside, however, of arrangements of this kind the merger movement in Canada may be considered to have practically ceased at the close of the year 1913. The following is a list of industrial amalgamations or mergers which had been consummated in Canada up to the end of 1913, and of the different establishments absorbed. Information is also given as to stock and bond issues and in regard to other particulars. Amaloamated Asbestos Corporation (Litd.), Montreal. Common stock, $8,125,000; preferred, $1,875,000; bonds, $15,000,000; total, $25,000,000. Issued: Common, $8,125,000; preferred, $1.875,000; bonds, $8.000.-000; total, $18,000,000. Corapanies absorbed: ’ King’s Asbestos Mines, capital, including bonds. eemeaaaea Beaver Asbestos Co. (Ltd.), capital, including bonds___—_.._ British Canadian Asbestos Co. (Ltd.), capital, including bonds_ Standard Asbestos Co. (Ltd.), capital, including bonds____.._ Dominion Asbestos Co. (Ltd.), capital, including bonds. caaaea $1, 000, 000 300, 000 1, 000, 000 150, 000 500. 000 Total cme 2950000 (The Amalgamated Asbestos Corporation (Ltd.) was reorganized in 1912, and assets, etc., acquired by the Asbestos Corporation of Canada (Ltd.). See Ashestos Corporation of Canada (Ltd.).) SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 143 Amalgamated Land & Mortgage Co. of Winnipeg (Ltd.). Common stock, $2,500,000; preferred, $2,500,000; total, $5,000,000. Issued: Common, $1,000,000; preferred, $500,000; total, $1,500,000, Dompanies absorbed: Royal Land Co. (Ltd.), capital, including bonds______________ Manitoba Investments (Ltd.), capital, including bonds____._. Sovereign Investment Corporation, eapital, including bonds__. Transcontinental Realty Co. (Ltd.), capital, including bonds_. Travellers Investments (Ltd.), capital, including bonds______ $175, 000 60, 000 40, 000 40, 000 500, 000 Total cme mem ea—n— —-me —— 815, 000 American Sales Book Co. Common stock, $5,000,000; preferred, $5,000,000; bonds, $1,000,000; total, $11,000,000. Issued: Common, $3,073,300; preferred, $3,073,300; bonds, $500,000 ; total, $6,646,000. "lompanies absorbed : American Sales Book Co., capital, including bonds___________ Eastern Sales Book Co., appraised value of buildings and equipment __ i ——————— Carter Crume Co., capital, etc_ao.-TOtA]l eee ee eee 3, 440, 002 Ames-Holden, McCready (Ltd.), Montreal. Common stock, $5,000,000; preferred, $5,000,000; bonds, $1,500,000; total, $11,500,000. Issued: Common, $3,500,000; preferred, $2.500,000; bonds, $1,000,000; total, $7,000,000. Companies absorbed: Ames-Holden Co. (Ltd.), capital, including bonds______.______ $2, 500, 000 The James McCready Co. (Ltd.), capital, including bonds___. 1, 000, 000 Total _. Asbestos Corporation of Canada (Litd.). eee 8,500,000 Common stock, $3,000,000; preferred, $4,000,000; total, $7,000,000. Issued: Common, $3,000,000; preferred, $4,000,000; total, $7,000,000. (See Amalgamated Asbestos Corporation -(Ltd.) for companies absorbed.) Asepto Soap (Ltd.), St. John, New Brunswick. Common stock, $125,500; preferred, $24,500; bonds, $50,000; total, $200,000. [ssued : Common, $92,000; preferred, $24,500; bonds, $50,000; total, $166,500. Companies absorbed : Colls Soaps (Ltd.), capital, including bonds_ cee eemacen $10, 000 Welcome Soap Co., capital, including bonds_ oo _.________._ 5, 000 Aseptos Manufacturing Co., capital, including bonds__—_____. 49, 000 TORY conan esreensme mms mem msm ms i is ie rem 134, 000 Belding Paul, Corticelli (Ltd.), Montreal. Common stock, $1,250,000; preferred, $1,250,000; bonds, $1,000,000: total $3,500,000. Issued: Common, $750,000; preferred, $850,000; bonds, $750,000; total, $2,350.000. Companies absorbed: Belding Paul & Co. (Ltd.), capital, including bonds meee $670. 000 Corticelli Silk Co. (Ltd.), capital, including bonds___———a—u___ 200.000 Cascade Narrow Fabric Co., capital, including bonds. o——ee—oo 25, 000 Total meee, “—— py — 895.000 144 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Black Lake Consolidated Asbestos Co., Montreal. Common stock, $3,000,000; preferred, $1,000,000; bonds, $1,500,000; total, $5,500,000. Issued: Common, $3,000,000; preferred, $1,000.000; bonds, $1.230,-500; total, $5.230,500. Companies absorbed : Union Asbestos Mines, capital, including bonds__comomone came Southwark or Bells Mines, capital, including bonds cvoee cee Imperial Asbestos Co., capital, including bonds________.______ $1, 000, 000 Black Lake Chrome & Asbestos Co.. capital, including bonds___ 350, 000 . emmmmmmm————— 1,350, 000 (The Black Lake Consolidated Asbestos Co. was reorganized in 1912 and assets, etc., acquired by the Black Lake Asbestos & Chrome Co. (Ltd.).) Black Lake Asbestos & Chrome Co. (Ltd.). Common stock, $3,000,000; preferred, $1,000,000; total, $4,000,000. Issued: Common, $3,000,000; preferred, $1,000,000; total, $4,000,000. (See Black Lake Consolidated Asbestos Co. for companies absorbed.) ’ British Columbia Breweries (Lid.). Common stock, $5,000,000; bonds, $5,000,000; total, $10,000,000. Issued: Common, $3,000,000; bonds, $2,750,000; total, $5,750,000. Companies absorbed: Vancouver Breweries (Ltd.), capital, including bonds_ ceo $200, 000 Canadian Brewing & Malting Co., capital, including bonds.--.- 400, 000 Union Brewing Co., capital, including bonds cco eee 100, 000 Total oem Be i ei 700, 000 Canada Bolt & Nut Co., Toronto, Ontario. : Common stock, $1,250,000; preferred, $1,250,000; bonds, $1,000,000; total, $3,500,000. Issued: Common, $900,000; preferred, $900.000: bonds, $650,000; total, $2,450,000. Companies absorbed : Toronto Bolt & Forging Co., capital, including bonds ac ceeeex Gananoque Bolt Co., capital, including bonds... cco Brantford Screw Co., capital, including bonds. cocoa Belleville Iron & Horseshoe Co., capital, including bonds_____. Belleville Iron & Horseshoe Co. (special capital) oem $500, 000 125, 000 150, 000 10, 000 150. 000 TaN een 935, 000 (Later absorbed by Steel Co. of Canada (Ltd.).) ‘Canada Bread Co. (Lid.). Common stock, $2,500,000; preferred, $1,250,000; bonds, $1,250,000; total, $5,000,000. Issued: Common, $2,500,000; preferred. $1.250.000; bonds, $1,250, 000; total, $5.000,000. Companies absorbed: Bredin Bread Co., capital, including bonds oe George Weston & Co., capital, including bonds. H. C. Tomlin, capital, including bonds moc Stuarts (Ltd.), capital, including bonds W. J. Boyd, capital, including bonds oem amm eee orem ————r——— 575, 000 (The assets taken over by the Canada Bread Co. are noted in the case of George Weston & Co., H. C. Tomlin, and W. J. Boyd, the other figures being capitalization. Other smaller concerns were taken over after original amalramation, bit none were limited companies.) SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 145 Canada Carbide Co. (Lid.), Montreal. Common stock, $2,000,000; preferred, $150,000; bonds, $4,150,000. Issued: Common, $800,000; preferred, $150,000; total, $2,230,000. Companies absorbed : Wilson Carbide Co. (Ltd.), capital, including bonds... Ottawa Carbide Co., capital, including bonds_____________ Shawinigan Carbide Co., capital, including bonds .eacaceueae Total emma. ee 2.300, 000 Canade Cement Co. (Lid.), Montreal. Common stock, $19,000,000; preferred, $11,000,000; bonds, $8,000,000; total, $38,000,000. Issued: Common, $13,500,000; preferred, $10,500,000; bonds, $6,256,966; total, $30,256,966. Companies absorbed : Lakefield Portland Cement Co., Montreal, capital, including PVOTVAR cee ee mie esi ir fg Se ed Lakefield Portland Cement Co., Lakefield, capital, including bonds —______. _ ee mee mem Owen Sound Portland Cement Co., capital, including bonds___ Alberta Portland Cement Co. (Ltd.), capital, including bonds_.. Belleville Portland Cement Co. (Ltd.), capital, including bonds_ [nternational Portland Cement Co. (Ltd.), capital, including bonds _._.._. - ea mt mmm Vulcan Portland Cement Co. (Ltd.), capital, including bonds. Lehigh Portland Cement Co. (Ltd.), capital, including bonds_ Canada Portland Cement Co. (Ltd.). (two mills.) capital, including bonds ——_—__.——- .. . hy Western Canada Cement & Coal Co. (Ltd.), capital, including bONAS ee Bastern Canada Portland Cement Co. (Ltd.). capital. includ-Ing bonds eeememeee— $2, 000, 000 1, 000, 000 500, 000 1, 000, 000 2 500. 000 1, 250, 000 2, 500, 000 1, 500, 000 1, 500, 000 1, 250, 000 2, 750, 000 eee 17, 750, 000 Total eee Canada Consolidated Clay Co. (Lid.) Common stock, $2,000; issued, common, $400,000. Nompanies absorbed : Logan Red Clay CO. ocmmmeaeee Pictou Brick & Tile COwmmmmeme Morrison White Fire & China Clay Co———___. Other 1€85eS (1,218 CreS) mmo eee een TTT TTT TTT TTT 15. 000 RR Rami 15, 0600 Canada Foundries & Forgings (Ltd.). Common stock, $2,000,000; preferred stock, $2,000,000; bonds, $750,000; total, $4,750,000. Issued: Common, $960,000; preferred, $960,000: bonds, $67,000; lotal, $1,087.000. Companies absorbed: Canadian Billings & Spencer (Ltd.), capital, including bonds__ $200, 000 James Smart Manufacturing Co. (Ltd.), capital, including DONAS cee eee mem meee 200, 000 Canada Forge (Ltd.), capital, including bonds eee. 100, 000 TOBA mmo i wi An mt a i FR 500, 000 57941°—pT 2—16—10 146 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. * Oanada Machinery Corporation (Lid.), Galt, Ontario. Common stock, $1,500,000; preferred, $1,500,000; bonds, $1,000,000; total, $4,000,000. Issued: Common, $653,400; preferred, $908,000; bonds, $400,000; fotal, $1,962,200. Companies absorbed : MacGregor, Gourlay & Co. (Ltd.), capital, including bonds_._.. John Ballantine & Co. (Ltd.), capital, including bonds. een Hespeler Machinery Co. (Ltd.), capital, including bonds______ Goldie & McCulloch Co. (Ltd.), woodworking machinery department, capital, including bonds .cc meee ___ BuSSOX MER, C0. (Li, Ymmmmmmmminmmmmmstmmms sims om mia imesiins Total om. $600,000 80, 000 100, 000 700, 000 150, 000 i Bs A —————— 1.710. 000 Canada Machinery Corporation (Lid.). Common stock, $1,500,000; bonds, $1,000,000; total $2,500,000. Issued: Common, $1,177,500; bonds, $595,500; total, $1,773,000. Companies absorbed: London Machine Tool Co. (Ltd.). (The capital of this company was reorganized in 1912, certain interests acquiring large holdings of the original issue of common stock at moderate figures. The stock was turned into the company at cost price, all holders of preferred shares agreeing to have same retired and converted into common. This plan enabled the company to reduce its share capital to $1,177,500, all of one class, common stock, the bond issue remaining as before, $595,500.) . Canada Steamship Limes (Lid.). Common stock, $12,500,000; preferred, $12,500,000; bonds, $8,000,000;? total, $33,000,000. (See Richelieu & Ontario Navigation Co.) Companies absorbed: Richelieu & Ontario Navigation Co., capital, including bonds_. Inland Lines (TAQ. ) oe Northern Navigation Co. (Titd.) eee. Niagara Navigation Co. (Ltd) oo _ St. Lawrence River Steamboat Co. (Lt@.) ceo Thousand Island Steamboat Coo mee oe __ Quebec Steamship Co. (Ltd) eee Canada Interlake Line (Ltd.) capital, including bonds______ Dntario & Quebec Navigation Co. (Ltd.) capital, including DODAS ci imiiny imines iss imino Merchants-Montreal Line _____. S. 8. Haddington ______________ ._. ._. [ Richelieu & Ontario Navigation Co. (Litd.) of United States of America______. ""8.900..000 1. 000. 000 Canadian Car & Foundry Co., Montreal. Common stock, $5,000,000; preferred, $7,500,000; bonds, $7,500,000; total, $20,000,000. , Outstanding: Common, $3,975,000; preferred, $6,100,000; bonds, 84,000,000 ;* total, $14,675,000. Companies absorbed : Rhodes, Curry Co. (Ltd.), capital, including bonds__________ Dominion Car & Foundry Co. (Ltd.), capital, including bonds_ Janada Car Co. (Ltd.), capital, including bond. _____ Pratt & Letchworth Co. (Ltd.), capital, including bonds_____ $3, 000, 000 5, 000, 000 3, 000, 000 200. 000 tal - Total ee ee ee eee 11. 200. 000 1 This amount is first-mortgage debenture stock, bearing interest at the rate of 5 per cent. The company has power to increase this from time to time, provided the proceeds are used to purchase new boats or other property necessary for the company to acquire. 2 Less redeemed £66.693. SPECIAL REPORTS FOR FEDERAL TBADE COMMISSION, ~ 147 Canadian Cereal & Milling Co., Lumsden Building, Toronto. Common stock, $2,000,000; preferred, $2,000,000; bonds, $1,000,000; total, $5,000,000. Issued: Common, $1,250,000; preferred, $1,250,000; bonds, $750,000. Companies absorbed : The Tillson Co., capital, including bonds__._____________. $200, 000 Flavelle Milling Co., capital, including bondS_cccaamcae—aa 150, 000 P,. TOTNLOBIL. 8 C0 reve emission se a ib em ims A Sr 5 WV. Thompson & Son, capital, Including bonds____-_________ 49, 000 James Wilson & Co., capital, including bonds______________ 100, 000 D.R.Ross & Son__ oo. .. em ——— rr rea min Woodstock Cereal Co., capital, including bondS_ ooo 130, 000 Goldie Milling Co., capital, including bonds come eee 180, 000 Total oti aia ro ie SiS 809, 000 (The Canadian Cereal & Milling Co. was reorganized in 1912 and taken over hy the Canadian Cereal & Flour Mills (Ltd.).) Canadian Cereal & Flour Mills (Ltd.). Common stock, $2,000,000; preferred, $2,000,000; total, $4,000,000. Issued: Common, $750,000; preferred, $750,000; total, $1,500,000. Companies absorbed. (See Canadian Cereal & Milling Co.) Canadian Coal & Coke Co., Montreal. Common stock, $15,000,000; preferred, $6,506,600; total, $21,506,600. Issued: Common, $12,244,000; bonds, $6,506,580; total, $18,750,580. (Of this total there were to be issued to the trustees against exchange of the bonds and stock of the subsidiary companies $4,106,580 of bonds and $9,844,000 of stock.) Companies absorbed: Western Coal & Coke Co., capital, including bonds____.__.___ Lethbridge Colliers (Ltd.), capital, including bonds... Pacific Pass Coal Fields (Ltd.), capital, including bonds__._. St. Albert Collieries (Ltd.), capital including bonds________. Kootenay & Alberta Railway, capital, including bonds__.oa—_ $3, 431, 580 3, 625, 000 5, 250, 000 1, 250, 000 1, 194, 000 Total memeeeee 15. 750, 580 (Six per cent bonds of holders of above companies were converted on basis of par of exchange into 7 per cent, cumulative, participating, preference stock of the Canadian Coal & Coke Co. (Ltd.). (See Canadian Coal & Coke Co. (Ltd.).) Canadian Coal & Coke Co. (Ltd.) (holding company). Common stock, $11,000,000; preferred, $4,000,000; bonds, $3,000,000; total $17,000,000. Issued: Common, $9,556,000; preferred, $3,821,600; bonds, $2,000, D00 ; total, $15,377,600. Lo. Company absorbed: Canadian Coal & Coke Co. (Ltd.). Canadian Consolidated Felt Oo. (Ltd.), Montreal. Common stock, $1,500,000; preferred, $500,000; bonds, $500,000; total, $2,500, 000. Issued: Common, $1,500,000; preferred, $500,000; bonds, $500,000; total, $2,500,000. Companies absorbed: Berlin Felt Boot Co., capital, including bonds meme Kimmel Co., capital, including bonds... eee Elmira Felt Co., capital, including bonds ee ee easemn OEY eee eee eee + $340,000 (Cire) hl this company later acquired by Canadian Consolidated Rubber No. (Ltd.). ]48 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE Canadian Consolidated Rubber Co. (Ltd.), Monireal. Authorized capital, $5,000,000. Companies absorbed: Canadian Rubber Co. of Montreal (Ltd.). Granby Rubber Co. (Ltd.). Berlin Rubber Co. (Ltd.). Maple Leaf Rubber Co. (Ltd.). Dominion Rubber Co. (Ltd.). Merchants Rubber Co. (Ltd.). Also controls Canadian Consolidated Felt Co. (Ltd.). Also in touch with the United States Rubber Co. Canadian Converters Co. (Ltd.), Monireal, Authorized capital, $3,000,000. Companies absorbed: Standard Shirt Manufacturing Co. (Ltd.). John P. Black & Co., (Ltd.). A. Haig Sims Co. (Ltd.). Geo. H. Harrowner Co.” (Ltd.). All manufacturers of shirts, blouses, whitewear, ete, Canadian Explosives (Lid). Formerly the Hamilton Powder Co. (Ltd.), and reorganized in 1910 as Canadian Explosives (Ltd.), with an authorized capital of $15,000,000 as a merger of the Hamilton Powder Co. (Ltd.), Standard Explosives (Ltd.), Western Explosives (Ltd.), the Ontario Powder Co., and the Acadia Powder Co. They also control the Dominion Cartridge Co. (Ltd.), and are said to be associated with European and United States companies. Canadian Fairbanks Morse Co. (Ltd.), Montreal. Common stock, $1,600,000; preferred, $1,500,000; total, $3,100,000. Issued: Common, $1,595,200; preferred, $1.500.000; total, $3.095,200. Companies absorbed: Canadian Fairbanks Co. (Ltd.), capital, including bonds___.__ $900, 000 Fairbanks Morse Canadian Manufacturing Co.. capital, includ-HE BOBAR (ovis i ies 5 ism RN 500, 000 TAL. iim SN meee 1,400, 000 Canadian Jewelers (Lid.), Monireal. Common stock, $2,500,000; preferred, $2,500,000; total, $5,000,000 Companies absorbed: J. BE. Brown & Co. (Ltd.) caeeeeee william Bramley. ___________________ em Hemming Manufacturing Co. (Ltd.). capital. including bonds... Hemslev Manufacturing Co_____ "$145. 000 Canadian North Pacific Fisheries (Ltd.), Victoria, British Columbia. Common stock, $4,000,000; bonds, $1,946,666; total, $5.946,666. Issued: Bonds, $1,946.666. Companies absorbed : Pacific Whaling Co. (Ltd.), capital, including bonds___eeeeo Queen Charlotte Whaling Co., capital, including bonds. —o_. Prince Rupert Whaling Co., capital, including bonds_._.__.__ Canadian Arctic Whaling Co., capital, including bonds. ._.__ Total oe SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 149 Canadian Pacific Lumber Co. (Ltd.), Vancouver. Common stock, $3,000,000; bonds, $2,000,000; total $5,000,000. Issued: Common, $2,000,000; bonds, $1,750,000; total, $3,750,000. Companies absorbed : Canadian Pacific Lumber Co. (Ltd.), capital, including bonds. * $40, 000 Anglo-American Lumber Co. (Ltd.), capital, including bonds_. 500, 000 Gibbons Lumber Co. (Ltd.), capital, including bonds__ ao 250, 000 Barclay Sound Cedar Co. (Ltd.), capital, including bonds_.._.. 50, 000 Rivers Inlet Timber Syndicate, capital, including bonds eu a=TOEAL.. mmm im mm —————— EE 840, 000 Canadian Rogers Co. Common stock, $500,000; preferred, $500,000; total, $1,000,000. Issued: Com. mon, $250,000; preferred, $500,000; total, $750,000. Companies absorbed: Toronto Silver Plate Co., capital, including bonds ae eaea— ——— $100, 000 Canadian Steel Foundries (Lid.), Montreal. Common stock, $3,000,000; preferred, $2,000,000; bonds, $5,000,000; total, $10,000,000. ' Issued: Common, $3,000,000; preferred, $1,400,000; bonds, $3,650,000. Companies absorbed : Montreal Steel Co. (Ltd.), capital, including bonds_.__..__._ $1, 300, 000 Ontario Iron & Steel Co., capital, including bondS. meee eceeeee 500, 000 mmm 13 300,000 (This company was later acquired by the Canadian Car & Foundry Co. Of the bonds issued, $2,900,000 were taken by the public and $750,000 held in escrow to take up a bond issue of the Montreal Steel Works (Ltd.).) Canadian Soaps (Lid.). Common stock, $1,200,000; preferred, $800,000; total, $2,000,000. Issued: Common, $800.000; preferred, $525,000; total, $1,325,000. Companies absorbed: . St. Croix Soap Manufacturing Co., capital, including bonds... $20, 000 John Taylor & Co. (Ltd.), capital, including bonds___ eee 250, 000 Total eee ee 270, 000 Canadian Western Natural Gas, Light, Heat & Power Co., Calgary. Common stock, $8,000,000; bonds, * $4,500,000 ; total, $12,500,000. Issued: Common, $7,430,000; first mortgage debentures, $3,950,000; total, $11,380,000. Companies absorbed: : Prairie Fuel Gas Co. (Ltd.), capital, including bonds________ $8, 000, 000 Calgary Natural Gas Co. (Ltd.), capital, including bonds..._- 500, 000 Calgary Gas Co. (Ltd.), capital, including bonds__ cca 100, 000 : Pili Carriage Factories (Lid.), Montreal. Common stock, $2,000,000; préferred, $2,000,000; bonds, $1,000,000; total, $5,000,000. Issued: Common, $1,200,000; preferred, $1,200,800; bonds, $500,000 ; total, $2,900,800. um represents the original capital, and was gradually increased until the amalgamation. 8 First-mortgage debentures, 150 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Companies absorbed: The Canadian Carriage Co., capital, including bonds_ o_o acena-BE. N. Heney Co. (Ltd.), capital, including bonds... The Tudhope Carriage Co. (Ltd.), capital, including bonds___. The Munro & McIntosh Carriage Co. (Ltd.), capital, including bonds $200, 000 150, 000 300, 000 250, 000 900, 000 Total... ome Cassidy's (Litd.), Montreal. Common stock, $2,500,000; preferred, $7,500,000; total, $10,000,000. Issued: common, $1,600,000; preferred, $1,600,000; total, $3,200,000. Companies absorbed: John L. Cassidy (Ltd.), capital, including bonds cme ———————— $500, 000 City Dairy Co. (Lid.), Toronto. Common stock, $565,000; preferred, $700,000; total, $1,265,000. Issued: Common, $565,000 ; preferred, $700,000; total, $1,265,000. Companies absorbed: S. Price & Sons__ E— $175, 000 (The basis of purchase was on appraisal, with a moderate allowance for good will.) Conger Lehigh Coal Co.—Sterling Coal Co., Toronto. Common stock (Conger), $500,000; common stock (Sterling), bonds (Sterling), $2,500,000; total, $6,500,000. Issued: Common, bonds, $1,750,000: total, $4,250,000. $3,500,000; $2,500,000: Companies absorbed : Conger Lehigh Coal Co. (Ltd.), capital, including bonds_.._.___ $500, 000 Conger Coal Co. of Toronto (Iitd.), capital, including bonds__.. $50, 000 Total eee oc mmm 550, 000 (The Conger Lehigh Coal Co. (Ltd.), was incorporated with a Dominion charter on Mar. 11, 1913, to take over as a going concern, the Conger Coal Co. of Toronto (Ltd.), and, “with a view thereto, to adopt an agreement dated Mar. 6, 1913, made between the Sterling Coal Co. (Ltd),” and a trustee bo re Fomges Lehigh Coal Co. (Ltd.), for the acquisition of the Conger oal Co. Consolidated Ice Co., Montreal. Companies absorbed : City Ice Co., Montreal, capital, including bonds. oer. Napoleon Archambault, capital, including bonds __ Crystal Ice Co., capital, including bonds_ oom Napoleon Masson, capital, including bongs eee Total eee $50, 000 100, 000 100, 000 100, 000 350. 000 Dominion Boz & Package Co. (Ltd.), Montreal. Total authorized capital, $700,000. {Companies absorbed : = Wm. Rutherford & Sons Co., capital, including bonds_.__.____ $150, 000 The Montreal Wire Bound Box Co., capital, including bonds___ 100, 000 Total ees ee remem e— ema. 250, 000 SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 151 Dominion Bridge Co. Common stock, $2,000,000; bonds, $5,500,000; total, $7,500,000. Issued: Common, $2,000,000; bonds, $1,245,000. Companies absorbed: Dominion Bridge Co., capital, including bonds. eee National Bridge Co., capital, including bonds ____ N11; | (This company purchased 94 per cent of the common stock of the National Bridge Co.) Dominion Ezplosives (Lid.), Montreal. Authorized capital, $3,370,000. Companies absorbed: Standard Explosives Co., capital, including bonds meen Hamilton Powder Co., capital, including bonds ccmemeeeaa Ontario Powder Co., Kingston moe mem 7. 500, 000 $230, 000 1, 000. 000 100. 000 Total mmm eee 1,330,000 Dominion Glass Co. (Litd.). Common stock, $5,000,000; preferred, $3,000,000; bonds, $3.000.000; total, $11,000,000. Issued: Common, $4,250,000; preferred, $2,600,000; bonds, $2,000,000; total, $8,850,000. Companies absorbed: Diamond Glass Co., capital, including bonds oem Sydenham Glass Co., capital, including bonds cameo Canadian Glass Co., capital, including bonds Lota eee ee eee 1,400,000 Dominion Manufacturers (Lid.). Common stock, $2,000,000; preferred, $1,000,000; bonds. $550,000; total, $3,550,000. Issued: Common, $2,000,000; preferred, $1,000,000; bonds, $550,000. Companies absorbed: Winnipeg Casket Co., capital, including bongs mc meeeeeeeo $25, 000 Globe Casket CO omen ———————— Jemmens & Evel Casket Co. (Ltd.), capital, including bonds_. 250, 000 Elliott & Son (I.td.), capital, including bONAS cece 100, 000 Girard & Godino ee me ——— ———— mem mn Christie Bros. & Co. (Litd.) coo 100, 000 National Casket Co., capital, including bonds cme eeeereee. 1, 000, 000 Total mmmmemae mm eeea————————ae mn mmme—————e $1. 475, 000 Dominion Canners (Lid.), Hamilton, Ontario. Common stock, $5,000,000; preferred, $5,000,000; bonds, $2,500,000; total, $12,500,000. Issued: Common, $2,148,600; preferred, $2,170,000; bonds, $1,500,000; total, $5.818,600. Companies absorbed: Aylmer Canning Co., capital, including bonds aaa Brighton Canning Coo mm meme Kent Canning Co., capital, including bonds. mean 49, 000 Delhi Canning Co., capital, including bonds. eee eee 100, 000 Dresden Canning Co., capital, including bonds__ ee cacmmaaaea 10, 000 PF. R. Lalor Canning Co., capital, including bondS_—cecaccees 35, 000 Grimsby Canning Coc amma cae ncaa—— 152 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Companies absorbed—Continued. Simcoe Canning CO ow Imperial Canning CO_wee oo Lakeport Preserving COommme Warehouse __ ee A. C. Miller W. Boulter & Sons_._ Port Hope Preserving & Canning CO Ontario Pure Food COmwmc eee ooo $25, 000 Kent Canning CO ooo Strathroy Canning Coo ____________ 40, 000 Lowery Bros.omeeee— ooo. ee em Miller & Coo ee Bowlby Bros. __ oo __. Smmrm——, io i —— Belle River Canning Comme [. N. Schenck & Coe ______________ A. B. Taylor Canning COwemem Wellington Packing Co _________ mim 40, 000 West Lorne Canning Co __ >. ____ Leamington Canning Comme _______________ 40, 000 Amherst Canning CO—eee________________________ Aylmer Condensed Milk Co. (Ltd) _______________ 150, 000 Belleville Canning CO—emeeomoeeo o_o Bloomfield Packing CO—mem momo ____ 40, 000 Farmers’ Canning CO_ comme 40, 000 Burlington Canning COmmeeeoeeeeee 40, 000 Hillier Preserving Coe _________ ____ oo 40, 000 Jordon Station Canning & Preserving CO— eevee 45, 000 Napanee Caaning Co. _______._________________________ 100, 000 Niagara Falls Canning CO eee 60. 000 Old Homestead Canning COmmmeoee J. H. Wethey (Ltd.) meee eee St. Thomas Canning CO ee _______ Tilbury Canning Co. (Ltd.)__ Lakeside Canning Co. (Ltd.) eee Total eee mr mmecmcc came em————— 1, 324, 000 Dominion Steel Corporation (Ltd.), Montreal (holding company). Common stock, $50,000,000; bonds, $2,500,000; total, $52,500,000. Issued: Common, $37,097,700; preferred, $7.000,000; debentures, $1.500,000: total. $45,597,700. Companies absorbed : Dominion Iron & Steel Co. (Litd.)— Authorized— COMIN ommend 5 we ——————————— Preferred — ee First mortgage § per cent bonds____________________ Consolidated mortgage 5 per cent bonds_______.______ B per cent income bonds__ $25, 000, 000 5, 000, 000 8, 000, 000 20, 000, 000 3’ 500. 000 i 0 i ns Sn tr 61. 500. 000 [ssued— COMMON eee eee eee eee PLOTBITON criss mms ios sa sos mse First mortgage bonGS mamma Consolidated fives ______ B per cent income bODAS moomoo 20, 800, 000 5, 000, 000 6, 997, 000 7,785, 208 3. 500. 000 = (82 206 t These bonds were issued in February, 1912, to the Dominion Steel Corporation in axchange for $£3.500.000 preferred stock of that corvoration SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 153 Companies absorbed—Continued, Dominion Coal Co. (Ltd.)— Authorized— COMMON cee GE Bonds ..__. $15, 000, 000 3, 000, 000 7, 000, 000 25, 000, 000 Issued— Common _o_.________ oo PPOLOPPOL. «core vic ein iniiiiseeos eee sm me me mere me mses First mortgage bonds —_.______________________ 8 per cent income bond® ee _______________________ 15, 000, 000 3, 000, 000 8, 680, 500 8, 500, 000 28, 180, 500 (In addition to the £1,200,000 issue, of Dominion Iron & Steel consolidated 5 per cent bonds, £1,027,500 consolidated fives were issued in security for purchase money of Dominion Coal Co.s stock. Of the authorized issue of $20,000,000 consolidated mortgage 5 per cent bonds, $7,492,000 is set aside to replace the amount of first mortgage bonds outstanding at date of the issue of the consolidated bonds.) Dominion Steel Foundry Co. (Ltd.). Common stock, $1,000,000; preferred stock, $1,000,000; total, $2,000,000. Companies absorbed: Dominion Steel Castings Co., capital, including bonds________ $350, 000 Hamilton Malleable Iron Co. (Ltd.), capital, including bonds__ 700, 000 Total ee eee 1,050, 000 Dominion Textile Oo. (Lid.), Authorized capital, $10,000,000, Companies absorbed: } Dominion Cotton Co. (Ltd.). Merchants Cotton Co. (Ltd.). Colonial Bleaching & Cotton Co. (Litd.). Montmoreney Cotton Co. (Ltd.). Also controls by lease the recently erected plant of the Mount Royal Spinning Co. (Ltd.). : International Milling Co. of Canada, Moosejaw, Saskatchewan. Common stock, $2,500,000; preferred, $3,500,000; bonds, $2,000,000; total, $8,000,000. Issued: Common, $2,500,000; preferred, $1,500,000; bonds, $1,500,000; total, $5,500,000. Companies absorbed : Canadian Cereal & Mining Co.,! capital, including bonds______ $5, 000, 000 International Milling Co., capital, including bon@S_aeeee—.. 3, 500, 000 Total ____ 8, 500, 000 A. Macdonald Co. (Ltd.). Common stock, $4,000,000; preferred, $3,000,000; total $7,000,000. Issued: Common, $3,000,000; preferred, $2,100,000; total, $5,100,000. Companies absorbed: A. Macdonald Co. (Ltd.), capital, including bondS.——meeee—o Riley, Ramsay Co. (Ltd.), capital, including bonds. cee meee Total ooo 2.040, 000 ‘About 80 per cent of the shares of this company were acquired, 154 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Maple Leaf Milling Co., Toronto. Common stock, $2,500,000; preferred, $2,500,000; no bonds; total, $5,000,000. Issued : Common, $2,500,000; preferred, $2,500.000: total, $5,000,000. Companies absorbed: Maple Leaf Flour Mills Co. (Ltd.), capital, including bonds__- $1, 000, 000 Hedley, Shaw Milling Co. (Ltd.), capital, including bonds... 150, 000 Total come " 17150.000 (The assets of the old companies taken over by the Maple Leaf Milling Co. as above stand in excess of all liabilities and without any allowance for value of good will, trade-marks, etc., at $3,770,524; this amount being ascertained on the basis of an appraisal by the Canadian-American Appraisal Co. (Ltd.), as of March 17, 1910, of capital assets taken over, and the certificate of Messrs, Price, Waterhouse & Co., as to current assets and current liabilities as of February 28, 1910, with a liberal allowance for all contingencies. There has also been placed in the treasury $1,000,000 of additional cash, which, besides permitting of the completion of a 6,000-barre! mill and a million-bushel elevator and storage warehouse at Port Colborne and of 15 additional elevators in the west, will provide the new company with further working capital.) Maritime Fish Corporation, Montreal. Common stock, $500,000; preferred, $500,000; bonds, $250,000; total, $1,250,-000. Issued: Common, $300,000; preferred. $110,000: bonds, $125,000; total, $535,000. Companies absorbed: Consolidated Cold Storage Co. (Ltd.), capital, including bonds- $100, 000 Short & Ellis, capital, including bonds ro 20, 000 Howard Anderson, capital. including bongs eee eommmem oem 20, 000 POLE] eee 140,000 Matthews. Laing (Lid). Toronto. Common stock, $1,500,000; preferred, $2,500,000; bonds, $2,000,000; total, $7,000,000. Issued: Common, $1,500,000; preferred, $2,000.000: bonds, $1,200, 000; total], $4,700,000. Companies absorbed: George Matthews Co. (Ltd.), capital, including bonds... $1, 000, 000 Park, Blackwell Co. (Ltd.), capital, including bonds 500, 000 Laing Packing & Provision Co. (Ltd.), capital, including bonds cee - 500, 000 Total eee eam —_— ecm mmm meee 24 000, 000 Metal Sheeting & Siding Co. Common stock. $1,000,000; preferred, $500,000; total, $1,500,000. Companies absorbed: n Metal Shingle & Siding Co., capital, including bonds... $200, 000 A. B. Ormsby Co., capital, including bonds eon 500, 000 ——————— 700, 000 Mooney Biscuit & Candy Co. (Lid.). Common stock, $500,000; preferred, $500,000; bonds, $545,000; total, $1,545,-000. Issued: Common, $250,000; preferred, $320.600; bonds. $515.000; total, $1,085,600. Companies absorbed: Foley Bros., Larson & Co., Winnipeg, capital, including bonds. $400, 000 H. Smith Biscuit Co., Vancouver, capital, including bonds...__ 150, 000 Lang Manufacturing Co. Montreal. capital. including bonds__ 450.000 Total] ce eee — 1,000, 000 SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 155 Montreal Light, Heat & Power Co. (Lid.), Authorized capital, $17,000,000. Companies absorbed : The Royal Electric Co. (Ltd.). Montreal Gas Co. Chambly Manufacturing Co. (Ltd.). Lachine Rapids Hydraulic & Land Co. (Ltd.). Imperial Electrie Co. (Ltd.). Citizens Light & Power Co. (Ltd.). Standard Light & Power Co. (Ltd.). Central Electric Co. (Ltd.). Consumers Gas Co. (Ltd.). Montreal Public Service Corporation (Inec.). Authorized capital, $5,000,000. Companies absorbed: Saraguay Electric & Water Co. (Ltd.). Dominion Light, Heat & Power Co. (Ltd.). St. Paul Electric Light and Power Co. (Ltd.). Canadian Light & Power Co. (Ltd.) (retail department}, Montreal Abattoirs (Ltd.). Authorized capital, $1,500,000. Companies absorbed : West End Abattoir (Ltd.). Montreal Union Abattoir Co. (Ltd.). Montreal Packing Co. (Ltd.). Bast End Dressed Beef Co. (Ltd.). Dominion Hide and Tallow Co. (Ltd.). D. D. Martin Co. (Ltd.). Murray-Kay (Litd.). Toronto. Common stock, $1,500,000; preferred, $2,500,000; no bonds; total, $4,000,000. [ssued : Common, $1,500,000 ; preferred, $1,468,500; total, $2.968.500. Companies absorbed: W. A. Murray Co. (Ltd.), capital, including bonds________..__ $600, 000 John Kay Co. (Ltd.), capital, including bonds ___.____.. 1,000, 000 TOIL comms ——————————————neere. 3 B00, 000 National Breweries (Litd.), Montreal. Common stock, $6,000,000; preferred, $4,000,000; bonds, $2,500,000; total, $12,500,000. Issued: Common, $2,254,300; preferred, $2,775,000; bonds, $2,-000,000; total, $7,029,300. Companies absorbed : Wm. Dow & Co., capital, including bonds_ ooo Dawes & Co. (Ltd.), capital, including bonds oe Canadian Breweries (Ltd.), capital, including bonds. ——._. Union Brewery, capital, including bonds_—_______________ [mperial Breweries (Ltd.), capital, including bondS———————__. Montreal Brewing Co., capital, including bondS_ emcee een G. Reinhardt & Sons, capital, including bonds_ eee Boswell & Bros, (Ltd.), capital, including bonds. ae eeeeee——oo G. BE. Amyot Brewing Co., capital, including bondS. oe ceeeeae M, Chauvin & Co., capital, including bonds____ eee Douglass & Co. (Ltd.), capital, including bonds eee on Proteau & Carrigan. Beauport Brewing Co. (Ltd.). $1. 250, 000 600, 000 600, 000 300, 000 400, 000 150, 000 150, 000 600, 000 300, 000 75, 000 50. 000 Total comes 4.475.000 156 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Northern Ontario Light & Power Co. (Ltd.). Common stock, $3,000,000; preferred, $2,500,000; bonds, $15,000,000; total, $22,500,000. Issued: Common, $3,000,000; preferred, $1,800,000; bonds, $2,500,-000; total, $7,300,000. Companies absorbed: Cobalt Hydraulic Power Co., capital, including bonds coo Cobalt Power Co., capital, including bondS_ como Haileybury Electric Light Co., capital, including bouds_______ New Liskeard Light, Heat & Power Co., capital, including bonds British Canadian Power Co. (Ltd.), capital, including bonds__ $2, 500, 000 1, 500, 000 130, 000 200, 000 8, 000, 000 LOLA] mmm 10. 830. 000 Nova Scotia Clay Works (Ltd.). Common stock, $1,000,000; preferred, $1,000,000; total, $2,000,000. Issued: Common, $300,000; preferred, $300,000; total, $600,000. Companies absorbed : Maritime Clay Works, capital, including bonds. cmceeee Elmsdale Brick & Tile Co., capital, including bondS_.ee—. Buckler Brick Co., capital, including bonds_— commen Valley Brick & Tile Co., capital, including bonds oe_oo._ James Miller & Sons, capital, including bonds_ oo ____. {Also a number of other clay properties throughout Nova Scotia.) $50, 000 50, 000 30, 000 30, 000 15, 000 ToLa] cmos wimiminimios Ontario Steel Products Co. (Lid.). 175, 000 Common stock, $750,000 ; preferred, $750,000 ; bonds, $600,000 ; total, $2,100,000. Issued : Common, $750,000; preferred, $750,000; bonds, $600,000; total, 2,100,000. Companies absorbed : Gananoque Spring & Axle Co. (Ltd.), capital, including bonds... $300, 000 Dowsby Spring & Axle Co. (Ltd.), capital, including bonds_. 200, 000 D. F. Jones Manufacturing Co. (Ltd.), capital, including bonds. 100, 000 Total oe. Ottawa & St. Lawrence Electric Railway Co. Common stock, $5,000,000; bonds, $5,000 per mile. Companies absorbed: Ottawa & St. Lawrence Electric Railway, capital, including 2 EDUC mmm si rd i i North Lanark Railway Co., capital, including bondS_omceee—-Ota] oe ee ee ce cm tn em mm mr — — Provincial Paper Mills. Common stock, $2,600,000; preferred, $2,400,000; total, $5,000,000. Companies absorbed : St. Lawrence Paper Mills Co. (Ltd.), capital, including bonds__ Barber Paper & Coating Mills Co. (Ltd.), capital, including ION INTI ci mim iii es rt im es ea a Montrose Paper Co., capital, including bonds o_o ___ Canada Coating Mills, capital, including bonds_ occa - Total on: cee. 600, 000 $1, 000, 000 450, 000 1, 450, 000 $200, 000 150, 000 125, 000 100. 000 575. 000 BPECIAL REPORTS FOB FEDERAL TRADE COMMISSION. 15% Quebec Railwey Light, Heat & Power Co. (Lid.). Common stock, $10,000,000 ; no preferred ; bonds, $14,600,000 ; total, $24,600,000. Issued: Common, 9,999,500; bonds authorized, $10,000,000; first French issue, $2,600,000; second French issue, $2,100,000; total, $14,600,000. Less in escrow to redeem bonds of subsidiary compaeS eee $3, 659, 000 Less canceled ee. 144, 000 $3, 803, 000 DI TEE IIIA IMT. ccs ssi mm mm rsa me SR Bonds in treasury aaa em comme. 10, 797, 000 eee 1, T42, 725 12, 539, 725 Companies absorbed: Quebec Railway Light & Power Co., capital, including bonds. _ Quebec, Jacques Cartier Electric Co., capital, including bonds. Canadian Electric Light Co., capital, including bonds________ Quebec Gas Co., capital, including bonds__________________ Frontenac Gas Co., capital, including bonds__.______________ Quebec County Railway Co., capital, including bonds_——______ Quebec & Saguenay Railway CO moeeeee Total me 5, 750, 000 1, 489, 000 541, 500 600, 000 400, 000 100, 000 2, 500, 000 1, 380, 500 Renfrew Flour Mills (Ltd.). Common stock, $300.000; preferred. $200,000; total, $500,000. Issued: Common, $150,000; preferred $100,000; total, $250,000. Companies absorbed: Renfrew Roller Mills (Ltd.). Milling Co., Pakenham, Richelieu & Ontario Navigation Co. (see Canada Steamship Lines (Ltd.). Common stock, $10,000,000; bonds, $2,000,000; total, $12,000,000. Companies absorbed : Niagara Navigation Co., capital, including bondS_ meee ___ Northern Navigation Co. of Ontario ________________________ Inland Lines._______. Turbine Steamship CO Thousand Island 8. R. Co. St. Lawrence River Steamboat CO. ee. $3, 227, 000 1, 500. 000 eee 4,727, 000 Riordon Pulp & Paper Co. (Ltd.), Montreal. Common . stock, $4,500,000; preferred, $1,500,000; bonds, $2,500,000; total, #8,500,000. Issued: Common, $4,500,000; preferred, $1,000,000; bonds, $1,500,000; total, $7,000,000. Companies absorbed : Riordon Paper Co., capital, including bonds cee eee $2, 000, 000 G. H. Perley & COummmmeeeee —————— memes Robin, Jones & Whitman (Lid.), Halifaz. Common stock, $830,000; preferred, $900,000; bonds, $250,000; total, $2,000,000. Issued: Common, $537,800; preferred, $823,000; bonds, $216,853 ; total, $1.577.653. Companies absorbed: . C. Robin Collas (Ltd.), capital, including bonds. Atlantic Fish Co. (Ltd.), capital, including bonds____——______ A, G. JONES & CO meee $818, 746 175, 000 2100. 000 Total 993.746 1 Net cash value. 158 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Sherbrooke Railway & Power Co., Montreal. Common stock, $1,500,000; bonds, $1,500,000; total, $3,000,000. Issued: Common, $1,000,000; bonds, $1,048,500; total, $2,048,500. Companies absorbed’: Sherbrooke Railway & Power Co., capital, including bonds___. Eastern Townships Electric Co., capital, including bonds... Lennoxville Light & Power Co., capital, including bonds__._.__ Stanstead Electric Co., capital, including bonds eee meeaaeo i 10) +: 1 I — tmeeceeewee—r 1, 870, 000 Sherwin Williams Co. of Canada (Ltd.), Montreal. Common stock, $4,000,000; preferred, $4,000,000; bonds, $4,000,000; total, $12,000,000. Issued: Common, $4,000,000; preferred, $8,000,000; bonds, $2,450,-DOO ; total, $9,450,000. Companies absorbed : Sherwin Williams Co., capital, including bonds_ eee Lewis Berger & Sons, eapital, including bonds. qe Canada Paint Co., capital, including bonds emma JX] ¢; | F——— ee eee 2, 500, 000 Siemon Co. (Ltd.), Toronto. Common stock, $500,000; preferred, $500,000; no bonds; total, $1,000,000. [ssued : Common. $500,000; preferred, $200,000; total, $700,000. Companies absorbed : Siemon Bros. (Ltd.), capital, including bonds cece $100, 000 The George Niebergall & Son Co., capital, including bonds... 39, 000 The Lillicrap Tate Lumber Co., capital, including bonds_.__. 20, 000 Total comme 159.000 Smart-Woods (Lid.). Common stock, $2500,000; preferred, $2,500,000; total, $5,000,000. Issued: Jommon; $1,500,000; preferred, $1,500,000; total, $3,000,000. Companies absorbed: The Smart Bag Co. (Ltd.), capital, including bonds. —aa_— Woods (Ltd.), capital, including bonds ae $2, 500, 000 450, 000 mmee——— 2,950, 000 (This company has since absorbed the Empire Cotton Mills (Ltd.), at Welland, Ontario, and the Renfrew Knitting Co., Renfrew, Ontario.) Spanish River Pulp & Paper Co. (Ltd.), (1912). Total Common stock, $4,000,000; preferred, $3,000,000; bonds, $4,000,000; total, $11,000,000. Issued: Common, $3,000,000; preferred, $2,250,000; honds, $4,000,000; total. $9.250.000. Companies absorbed : Spanish River Pulp & Paper Co. (Ltd.), capital, including DONAS_ mmo m mm eeeo—foe——ee— §8, 500, 000 Dntario Pulp & Paper Co. (Ltd.), capital, including bonds._... 3, 000, 000 Total meen ee emeeemaaa 11, 500, 000 (Amalgamated with Lake Superior Paper Co., in 1913.) SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 159 Spanish River Pulp & Paper Co. (1913). : Common stock, Faomon0; preferred, $10,000,000; bonds, $9,000,000; toal, $29,000,000. Issued: Common, $8,000,000; preferred, $6,700,000; bonds, $8,925,000; total, $23,625,000. ’ + 36, ’ Bonds : Authorized— BDADIEIE RIV OH cen i mm mmm ssi ties ss aig 5m ies RI OHATIO Pull cw mmm ammo ni ies stim issn sn smiling ib mbm Lake Superior—o—eea.... si ep em 9, 000, 000 Dutstanding— BDANITN IVR. vc mmr iim simi ai mim mimi mins mii Ontario Pulp emem Lake Superiofee——. eo _ eee 2, 425, 000 1, 500, 000 5, 000, 000 8, 925, 000 Standard Chemical, Iron & Lumber Co. of Canada (Ltd.), Toronto. Common stock, $2,250,000; preferred, $750,000; bonds, $1,000,000; total, $7,000,000. Issued: Common, $11,500,000; preferred, $6,496,300; bonds, $8,000,000; total. $25,996,300. Companies absorbed : Standard Chemical Co., capital, including bonds_.______._____ Canada Chemical Co., capital, including bonds. _______ Standard Lumber Co., capital, including bonds eee Roma Transport & Timber Com oo oem $2, 000, 000 300, 000 100, 000 POEL eee eee eee eee 2, A00, 000 Steel Co. of Canada (Ltd.), Hamilton. Common stock, $15,000,000; preferred, $10,000,000; bonds, $10,000,000; total, $35,000,000. Issued: Common, $11,500,000; preferred, $6,496,300; bonds, $8,000,000; total, $25,996,300. Companies absorbed : . Hamilton Steel & Iron Co. (common stock). _o___ Canada Screw Co. (common and preferred) moomoo ceceaee Canndn Bolt IM] NUL C0 mum ms mm mmm issn sis mim soi isso miro itis Montreal Rolling Mills (common stock and bonds) oo. Dominion Wire Manufacturing Co. (stock held privately) ____ TOI] crimes mmm ea ise gems mionems te miniiors 9 300,500 Steel & Radiation (Ltd.), Toronto. Common stock, $3,000,000; preferred, $2,000,000; bonds, $1,500,000; total, $6.500,000. Issued: Common, $1,068,900; preferred, $279.600; bonds, $300,000; total, $1,648,500. Companies absorbed : King Radiator Co. (Ltd.), capital, including bonds_ ceo _ $250, 000 Expanded Metal & Fireproofing Co. (Ltd.), capital, including bonds om mee 185, 500 DIE weenie mmm media ina 435, 500 Tuckett Tobacco Co. (Lid.). Common stock, $2,500,000; preferred stock, $2,000,000; total, $4,500,000, [ssued : Common, $2,500,000 ; preferred, $2,000,000: total, $4,500,000. 160 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Companies absorbed: George E. Tuckett & Son Co. (Ltd.), capital, including bonds... Tuckett Cigar Co. (Ltd.), capital, including bondS.—e—ececeeee Tucketts (Ltd.), capital, including bonds. meee $500, 000 - 500, 000 200, 000 eee 1,200, 000 ORL cc mio io Union Natural Gas Co. of Canada (Litd.). Common stock, $3,000,000; bonds, $1,000,000; total, $4,000,000. Issued: Common, $3,000,000; bonds, $1,000,000; total, $4,000,000, Companies absorbed: Voleanic Oil & Gas Co. (Ltd.), capital, including bondS_————————. $650, 000 United Fuel Supply Co. (Ltd.), capital, including bonds... 950, 000 Ridgetown Fuel Supply Co. (Ltd.), capital, including bonds... 500, 000 ee 2.100, 000 Total _ Other amalgamations.—In addition to the foregoing list, compiled chiefly from information appearing in the Monetary Times, there may, perhaps, be mentioned a number of other amalgamations which have received some notice in the press at various times as being in the nature of trusts or monopolies. The Canadian North Atlantic Westbound Freight Conference has been said to constitute a combine. The Allan Line, Canadian Pacific Atlantic steamers, Dominion Line, Donaldson Line, Manchester Line, and Thompson Line are all said to issue freight rates under heading of above conference, and all are supposed to abide rigidly by the rates specified. Boards of trade in Toronto, Quebec, and Montreal complained some years ago to the Canadian Government that this conference constituted a combination in restraint of trade. In this connection it may be of interest to note that the Allan Line recently was absorbed by the Canadian Pacific with the latter’s steamship service, all the Canadian Pacific Co.’s steamship services being now under “ The Canadian Pacific Ocean Services (Litd.),” with a capital of $20,000,000. The International Nickel Co., of the United States, which, with the Mond Nickel Co. (an English concern), is said to control the nickel supply of the world, has been the subject of considerable discussion and criticism by the press. It has been stated that this company controls the market by holding contracts for years ahead, and that this company and the British company have an understanding which practically makes the two one company, so far as the consumer is concerned. The statement was made before a committee of the House of Commons in February, 1910, that the Nickel Steel Co., of Hamilton, after trying to float its proposition in the face of American competition, had been obliged to sell out its properties to the American nickel interests. At that time the Government was being pressed to put an export duty on nickel matte and thus compel the refining of nickel in Canada. Subsequent to the war this matter received a good deal of attention in Canadian newspapers, to such an extent that the Government issued a statement to the effect that it had received assurances from the International Nickel Co. and was satisfied that no nickel was being exported to countries at war with Great Britain. The Nickel Co. submits, it is said, certified statements in regard to the production and export of nickel. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 161 Recently it has been alleged that there is a “bathtub trust?” in Canada, through the association of the Amherst Foundry Co., Amherst, Nova Scotia; the Standard Ideal Co., of Port Hope, Ontario; and the Standard Sanitary Manufacturing Co., Toronto. These companies are said to have signed an agreement by which they undertake to pay an additional 24 per cent to jobbers buying only goods of these companies and additional premium of 8 per cent to jobbers who do not offer for sale any of these companies’ goods at less than manufacturers’ established prices. Government attitude in regard to trade combinations.—In Canada, as in the United States, the er gor or trust, so called, has been largely regarded by the general public as something to be “busted,” and since 1888 the question of fegislation and regulations to safeguard the public from the possible evil effects of monopolistic combinations has been given considerable attention by the Parliament of Canada. Canadian legislation, however, has not been framed with the idea that the trust or industrial combination is inherently wrong. The positing that an industrial amalgamation may exist for perfectly legitimate purposes has been recognized, and a trade ry in Canada may use every legitimate means to advance the interests of its members. It must not, however, undermine the public welfare or encroach upon the rights of others, and in order to prevent anything of the kind the Dominion has passed certain legislation. In 1888 a committee of the House of Commons was appointed to examine into and report on the nature, extent, and effect of certain trade combinations. The committee made a full investigation and found there were at the time combinations among coal dealers, coffin manufacturers, watchcase manufacturers, binder-twine, cordage, and stove manufacturers, and that a powerful association for the purpose of raising and maintaining the rates of insurance, which included nearly all the stock companies—British, American, and Canadian— existed in Canada. The committee found that “the evils produced by combinations had not been fully developed in the country, but that sufficient evidence of their injurious tendencies and effects had been given to justify legislative action for suppressing evils arising from these and similar combinations and monopolies.” Following the report of this committee, legislation was introduced into Parlia. ment and passed and now appears in an amended form in the Re-5 Statutes of Canada as sections 496. 497, and 498 of the Criminal ode. In 1897 the minister of finance introduced a section into the tariff act empowering the governor in council to remove or reduce customs duties on any article of commerce, in respect of which any combination might have been formed to unduly enhance prices or otherwise unduly promote advantage of manufacturers and dealers at the expense of consumers, and where such disadvantage to consumers was facilitated by customs duties. This section with some amendments is now contained as the law in clause 12 of the customs tariff of 1907. In 1904, following investigations made by Government commissions into an alleged combine among Canadian paper manufacturers and into an alleged exclusive contract system enforced by the American Tobacco Co. and the Empire Tobacco Co., in both of which cases 27241 °— pT 2—16—11 162 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. the commissions reported that illegal combinations existed, an act was passed providing for the cancellation of inland revenue licenses where manufacturers holding the same sold goods under a monopolistic form of contract designed to prevent purchasers buying from any other manufacturer or dealer. n 1905 sensational disclosures were made in Toronto and elsewhere in regard to the existence of combines among manufacturers, dealers, and workmen for the purpose of restricting trade and enhancing prices. These disclosures came as the result of prosecutions onder the Criminal Code in the courts at Toronto and Hamilton and as the result of evidence taken before the Dominion tariff commission. Following these prosecutions a number of convictions were obtained and heavy penalties were inflicted. In 1906, probably as the result of these disclosures and prosecutions, the customs tariff was amended so as to provide for the reduction or removal of duties whenever the existence of a combine facilitated by customs duties had been established by proceedings before any court under the Criminal Code. The law had previously provided for this reduction or removal only after special judicial inquiry. tn 10 the combines investigation act was passed. This act provides that where there is reasonable ground for believing that a combination exists, unduly enhancing prices or unfairly restricting trade, the consumers, represented by a group of their number, may make out a case before a judge, and if a prima facie case is thus made, the judge may order an investigation, which investigation is conducted at the expense of the Government. A board is established, both parties being represented thereon, and these representatives to choose the chairman, who is appointed by the Government in the event of the other members failing to agree on his selection. Ag the time of introducing the measure the Hon. Mackenzie King, then minister of labor, made a lengthy explanation of the legislation and went fully into the reasons prompting its enactment. The only case under the act up to the present time was that of the United Shoe Machinery Co., full particulars in regard to which are given in the reports of the department of labor. The foregoing will illustrate the relations of the Government with industrial amalgamations or trade combinations so far as legislation is concerned; there remain to be considered any relations which might be in the nature of benefit or assistance. So far as I am able to ascertain, no action has been taken by the Government lookin to assistance of industrial combinations, outside, of course, of tarif arrangements, in regard to which large industrial combinations are no doubt consulted. The present po icy of the Government is to encourage home industries and the “Made-in-Canada ” idea. In the case of a number of manufacturing concerns, raw material is admitted free or a drawback allowed. There is nothing to indicate, however, that industrial combinations are singled out for any special treatment or receive any governmental assistance which would not be equally forthcoming to individuals or independent establishments. While, however, no direct Government aid can be said to-have been furnished trade combinations, these amalgamations have used, SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 163 in some instances, existing governmental machinery to further their purposes. In British Columbia the salmon canners took advantage of a regulation of the fisheries department permitting the issue of salmon canning licenses only to those I in the industry, the object of the regulation being not to exhaust the supply of fish. The result has been that the salmon canners have combined, and not only included all the Canadian firms, but also the canners of adjoining arts of the United States. The Canadian firms in the combine were Further protected by a government regulation which forbids Canadian fishermen to export fish. Independent establishments—While the merging of industrial combinations has in many lines eliminated.some unnecessary competition and competition generally has been considerably reduced, except in a very few instances, there would appear to be no single consolidation absolutely controlling the market in its particular line. And in some instances it is considered that some of the recent mergers in Canada have invited competition rather than dispelled it. In the case of Canadian Consolidated Felts (Ltd.), some of the largest shareholders of the different companies amalgamated were not in favor of the merger, but no heed was paid to their protests and the amalgamation was completed. These shareholders decided upon competition and established independent factories close to the plants of the merger. The same thing happened in the case of Amalgamated Asbestos. With the publicity incident to a public issue of stocks and bonds and the advertising of the industry in the most attractive terms new competition was encouraged, and another association—Black Lake Asbestos—was promoted. In some instances, however, independent companies constitute a very small proportion of those engaged in the industry. The Canada Leather Co. is said to control 75 per cent of the total output of the leather used in the Canadian boot, shoe, bag, and trunk trades. The Canada Car & Foundry Co.’s capacity was reported in 1912 to be 70 cars per day, the combined capacity of all other car companies in Canada at that time probably not being over 10 freight cars per day. In another field the percentage of market control is i great. The Dominion Canners. (Ltd.) control more than 90 per cent of the output of canned fruit and vegetables in Ontario. This fact is significant when it is remembered that of the total quantity consumed in Canada, Ontario produces 95 per cent. However, as- previously mentioned, there are many lines in which industrial combinations have been formed, but in which many independent concerns continue to operate. Foreign and international combinations.—There are represented in Canada a number of combinations of an international character. Any tendency toward the international amalgamation of industries has been chiefly toward combination between American and Canadian interests, and there has been very little in the way of alliances with British or European establishments. There has not been much, either, in the way of operation in Canada by large British or European combinations. The International Cotton Mills Corporation, of New York State, is believed to have acquired or proposes to acquire two or more Canadian cotton mills. Friendly relations also are thought to exist 164 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. between the largest Canadian and United States asbestos corporations. Another international deal is typified by the consolidation in 1911 of the Michigan-Pacific Lumber Cos. with the Michigan-Puget Sound Lumber Co., with large interests in British Columbia, brought about at a meeting of the timber interests on the Pacific coast. Deere & Co., implement manufacturers, some years ago took in a Canadian company at Welland, Ontario. The International Milling Co., Moosejaw, Saskatchewan, has affiliations in the United States and is also connected with the Canadian Cereal & Milling Co. The Sherwin-Williams Paint Co. is also an international amalgamation which combines Canadian, British, and -American concerns. Canadian Explosives (Ltd.) 1. a merger which includes, it is said, not only different Canadian plants, hut 1s affiliated with the Dupont Powder Co., of Delaware. and the Nobel Corporation, which owns several mills in Europe. In connection with the international aspect of trade combinations, it has been pointed out that any lowering of the tariff to invite foreign competition with a combine that has been inflating its prices becomes of no effect, if the combine is an international one and if the firms which could readily compete are bound by agreement not to do so. As one writer has said, with reference to these international mergers, “ if carried to their full length they might in the end render superfluous any national commercial policy.” In considering the question of international trade combinations it may be useful to note the opinion expressed in regard to the amalgamation of industrial interests in Canada and the United States by the Monetary Times: While it may be long hefore large international companies are arranged, the trend of interested opinion does not seem to be antagonistic to such consolidations, Growth in this sentiment will have an important effect upon the commercial relations of the Dominion and the neighboring Republic. The fact that companies here are interested in the sale of particular goods, and are at the same time enjoying reciprocal relations with similar companies across the international boundary, will create or enlarge a market which it will repay those concerned to maintain. Easily might a tremendous trade factor thus be constituted, and one which would operate to some extent against the growth of trade with Great Britain, France, Germany, and other countries. Combinations of buyers or consumers.—The combination of buyers does not appear to have reached any great extent in Canada. Jat. side of the Retail Merchants’ Association—a fairly strong organization, with branches throughout the country—and a number of small cooperative enterprises. The movement is not regarded as important. There are grain growers’ associations and farmers’ associations which are becoming of considerable strength in Manitoba and the prairie Provinces, but their purpose is more to secure better prices and markets for farm products, though no doubt these associations also exercise considerable influence in connection with the purchase of farm implements and some other commodities by their members. Competitive conditions.—Outside of certain industries advantageously situated in regard to raw materials, water power, and easy shipping facilities there would not appear to be any special conditions in Canada which would make competition by similar industries in the United States difficult or impossible—excepting, of course, the tariff. There might, perhaps, in some districts be an advantage in favor of Canada in the way of cheaper labor, notably in the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 165 Province of Quebec, but as a general thing wages for factory workers will be found almost on a par with those in the United States. In regard to the investment of foreign capital in Canadian industries it will be found that while a large amount of British capital is invested in Canadian industries much American capital is also invested, and that the tendency in recent years is toward the investment of an reversing amount of American capital. In recent years, also, the number of American firms establishing branches in Canada has become considerable; an impartial survey of the field would go to show that American capital and American industrial establishments not only have a big stake in Canada’s industrial life, but that this tendency is increasing year by year. In a great many instances, and particularly in the mining industry, American engineers and managers are being employed to a very noticeable extent, one reason for this being the advantage which Americans possess in a better knowledge of the conditions and requirements of the country over men from Great Britain and Europe. The large railways in Canada number among their high executive officers many Americans. Where British or European experts are employed they are usually men with technical knowledge in chemical or process work, but there is little or no tendency in Canada to bring in men from Great Britain or the Continent for duties involving business and executive ability. Activities of Government in fostering foreign trade.—Canada maintains trade agents in the principal countries of the world, and where not represented by agents from Canada secures the assistance of British consuls and trade agents. In addition to these agents, at various times, where the conditions warrant it, special agents are sent out in an endeavor to open up new markets op stimulate old ones. Members of the administration, also, have made trips to various countries in efforts to spread the commerce of the country, and at the present time the Canadian Government has a special representative in New Zealand and Australia who will also visit other 3 rts of the world in the interests of Canada’s export lumber trade. his action was taken largely on representations from the Province of British Columbia in which Province the lumbering industry has been recently much depressed. A number of large orders were reported to have been received as the result of this special work. In connection with the lumbering industry in British Columbia, also, the provincial government removed some time ago the export duty on logs, with the result that large quantities of logs, mostly cedar, were shipped to mills in Washington. The British Columbia government has also issued recently a booklet for foreign distribution, setting forth British Columbia’s resources in timber. Recently both the Federal Government ahd the British Columbia government have taken steps to aid the refining of zinc in Canada, and already a number of companies have been incorporated for the purpose of carrying on this industry. The Federal 2 indi has nade an arrangement whereby refiners of zinc will be paid a bounty and secured against loss in the event of the price of zinc falling to a low level after the war. The British Columbia government has extended financial assistance to the French Complex Ore Reduction Co. (Ltd.), of Victoria, British Columbia, which company has secured the patent rights of the French process for the electrolytic 166 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. deposition of zinc and has made successful experiments with small plants. The provincial government will also lease to the company on favorable terms a government plant at Nelson. In conclusion it may be said that the chief purpose of industrial combinations in Canada has been to take advantage of the Canadian market, and not for the purpose of invading foreign markets, in which thay are usually not represented, except in so far as they mav be affiliated with international or foreign corporations Special report of Consul General Robert E. Mansfield, Vancouver, British Columbia, transmitted December 15, 1915. The Vancouver Board of T'rade.—The Vancouver Board of Trade, 543 Hastings Street, Vancouver, British Columbia, is a private organization operating under a Federal charter. The board interests itself in the government of the city of Vancouver and the Province of British Columbia, and in improving commercial and trade relations in Canada as well as in foreign countries. The following are the principal foreign markets in which it operates: Japan, China, Australia, New Zealand, India, Russia, France, United Kingdom, and the United States—until recently in Germany. The principal products sold are lumber, fish, fruit, potatoes, shingles, and minerals. The board of trade handles about 80 per cent of the total trade of British Columbia. The board handles fully 90 per cent of the total export trade of British Columbia. . The methods of exporting are generally through commission ouses. . It is stated that the only competition encountered is that of price, but never of quality. A selling organization is not generally maintained. Terms of sale are cash against documents in all cases. No dumping or price policy is maintained. There are no export bounties except on lead. There is a preferential tariff with India, New Zealand, and the West Indies. The combination assists in market extension, advertising, and general mutual help, but the products generally have to stand and sell on their merits. . , No manufacturers are excluded. All important concerns are included as members. As to the activities of this Government which are designed to foster foreign trade, the Canadian department of trade and commerce has trade commissioners in nearly every country, whose duty is to collect reliable information in respect to consumption and requirements for Canadian manufactured goods in their respective location and report changes in tariffs, shipping or freight rates, or any other matters affecting business relation. The British Columbia Lumber & Shingle Manufacturers (Ltd.) — The British Columbia Lumber & Shingle Manufacturers (Ltd.), with office at 441 Seymour Street, Vancouver, British Columbia, was organized under the Sanpinies act, chapter 39, page 301, Revised Statutes of British Columbia, and amending acts; was formed originally by a few of the leading lumber concerns for the promotion of SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 167 their joint interests, and afterwards developed into a strong organization through the inclusion as members “3 virtually all the lumber interests of British Columbia. } It operates in no foreign markets and only interests itself in giving advice and any help it can to its individual members who may sngage in forelen business. It handles all lumber products, all of which have been standardized. I am informed that it classes about the same as like American organizations. : It handles 90 per cent of the coast manufactures, which include about all of the Province, It handles all of the foreign water-borne trade. The organization does not sell. It advises and assists in securing markets, prices, etc. All exports are made by the individual members in their own way. The claim for its dominant character lies in the quality of timber, which is generally cut from virgin forests, and the standardization of all products. No actual selling organization or cartel bank is maintained and the organization contents itself with advising as to likely markets, prices, rates, such as Jrpping and insurance. It has to meet market conditions as it finds them and sells at market prices and maintains no dumping policy. The organization has no connection with the Government save the usual obligation. It is composed of the important lumber and shingle interests of British Columbia and has no relation with either foreign Governments or foreign business interests. It has accomplished the standardization of all its timber products and a more or less uniform price among its constituency, which is claimed to have resulted in materially increasing both domestic and foreign sales. All manufacturers in its line are urged to join the association, and all important concerns interested in timber products are members of the association. The few concerns which do not belong to the association are too small to compete to any extent. High freight rates, and more especially a high tariff of 25 per cent plus war tax of 71 per cent on certain classes of dressed fe and a war tax of 7} per cent on undressed lumber, would seem to operate more or less as a deterrent to any very successful competition by American firms. The Government gives no financial aid, but does assist by advice of experts, by exhibits, and in foreign market extensions. Members. Lumber Manufacturers: Abbotsford Timber & Trading Co., Abbotsford, British Columbia. Abernethy & Lougheed, Port Haney, British Columbia. B. C. Mills Timber & Trading Co., Vancouver, British Columbia. Brunette Saw Mills Co.,, New Westminster, British Columbia, British Canadian Lumber Co., Vancouver, British Columbia. Bulman Lumber Co., Victoria, British Columbia. Burrard Lumber Co., Vancouver, British Columbia. Cameron Lumber Co., Victoria, British Columbia. 168 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Lumber manufacturers—Continued. Canadian Western Lumber Co., Vancouver, British Columbia. Canadian Western Lumber Co., Fraser Mills, British Columbia. False Creek Lumber Co., Vancouver, British Columbia. Genoa Bay Lumber Co., Cowichan Bay, British Columbia. J. Hanbury & Co., Vaneouver, British Columbia. James Leigh & Son, Victoria, British Columbia. Lemon Gonnason & Co., Victoria, British Columbia. Moore Whittington Lumber Co., Victoria, British Columbia. New Ladysmith Lumber Co., Nanaimo, British Columbia. North Burnaby Lumber Co., Vancouver, British Columbia. North Pacific Lumber Co., Barnet, British Columbia. Rat Portage Lumber Co., Vancouver, British Columbia. Robertson & Hackett, Vancouver, British Columbia. Shawnigan Lake Lumber Co., Victoria, British Columbia. Small & Bucklin Lumber Co., New Westminster, British Columbia, South Shore Lumber Co., Vancouver, British Columbia. Thurston-Flavelle Lumber Co., Port Moody, British Columbia. Timberland Lumber Co., New Westminster, British Columbia. Vancouver Lumber Co., Vancouver, British Columbia. Victoria Lumber & Manufacturing Co., Chemainus, British Columbia, Shingle manufacturers: J. Chew Lumber & Shingle Co., Vancouver, British Columbia. Hastings Shingle Manufacturing Co., Vancouver, British Columbia. Thomas Kirkpatrick, Cedar Cove, British Columbia. Lulu Shingle Co., Eburne, British Columbia, R. McNair Shingle Co., Vancouver, British Columbia. Smith-Shannon Lumber Co., Vancouver, British Columbia. Westminster Mill Co.,, New Westminster, British Columbia. The British Columbia Salmon Canners’ Association—The British Columbia Salmon Canners’ Association, with offices at 615 Pender Street, Vancouver, British Columbia, is an association organized by virtually all the salmon canners of British Columbia for their mutual protection and the promotion of their interests. No buying or selling is transacted. The members, as distinguished from the association itself, buy tin for cans and other necessary supplies chiefly from Great Britain and the United States, and sell their output in England and other European countries. Scarcely any goes to the United States.. The canned salmon handled by the members of the association are staple products. . Practically all the salmon canners are members of the associatior, and control fully 90 per cent of the British Columbia output. The members of the association handle also fully 90 per cent of the exports of canned salmon from British Columbia. All salmon for export is sold here for cash, after examination. and Aoptancs by the purchasers, who ship to where they please. I am informed that in the majority of cases the seller is ignorant of the destination of the goods. CL A portion of the members of the association have agents in central and eastern Canada who handle local sales, and a few of the larger firms maintain offices in London, Liverpool, or Glasgow, where British and some other European business is conducted. It is claimed that British Columbia canned salmon is superior to any other grade, and that it commands a higher price. The principal competition is experienced in respect to Alaska salmon. which generally grades lower in quality and is sold at a cheaper price. No dumping or price policy is maintained. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 169 The organization has no connection with the Government save she usual obligation, nor with any other business interests. It has no connection with the governmental authorities in foreign markets save in New Zealand, where they enjoy a 50 per cent preference on the duty on British Columbia canned salmon. The combination assists in foreign-market extension, advertising, and mutual help and advice, but the products of the constituency of the association sell solely on their merits. All salmon canners are eligible for membership in the association, and all concerns of any importance belong to the association. No competition is experienced. American competition is discouraged by a duty of 30 per cent plus a war tax of 74 per cent on canned salmon. British Columbia canners, agents, managers, or owners. B. C. Packers’ Assoclation, 517 Granville Street, Vancouver, British Columbia. Anglo British Columbia Packing Co. (Ltd.), H. Bell Irving & Co., agents, 322 Richards Street, Vancouver, British Columbia. Fosse Millard Canning Co.. Molsons Bank Building, Vancouver, British Columbia. J. H. Todd & Sons, Victoria, British Columbia. Kildala Packing Co. (Ltd.), 193 Hastings Street East, Vancouver, British Columbia. Qcottish Canadian Canning Co. (Ltd.), Steveston, British Columbia. Great West Packing Co. (Ltd.), New Westminster, British Columbia. B. C. Canning Co. (Ltd.), Findlay, Durham & Brodie, agents, Victoria, British Columbia. St. Mungo Canning Co. (Ltd.), New Westminster, British Columbia. Glenn Rose*Canning Co. (Ltd.), New Westminster, British Columbia, . M. Desbrisay & Co. (Ltd.), Fairfield Building, Vancouver, British Columbia. Defiance Packing Co., Hutchinson Building, Vancouver, British Columbia. Bagle Harbor Canning Co., 163 Hastings Street West, Vancouver, British Columbia. Skeena River Commercial Co. (Ltd.), R. V. Winch & Co., agents, Vancouver, British Columbia. Tassiar Packing Co. (Ltd.), Canadian Bank of Commerce Building, Vancouver, British Columbia. Wallace Packing Co. (Ltd.), 736 Granville Street, Vancouver, British Columbia. Draney Fisheries (Ltd.), 18 Hastings Street West, Vancouver, British Columbia. Clayoquot Sound Canning Co. (Ltd.), 531 Bastion Street, Victoria, British Columbia. Ruathiaski Packing Co. (Ltd.), Quathiaski Cove, British Columbia. Kincolith Facking Co. (Ltd.), 18 Hastings Street West, Vancouver, British Columbia. John Wallace, Work Island, British Columbia. B. C. Fisheries (Ltd.), Queen Charlotte Island, 903 Yorkshire Building, Vancouver, British Columbia. } Jervis Inlet Canning Co. (Ltd.), 104 Duncan Building, Vancouver, British Columbia. Canadian Fish & Cold Storage Co., Prince Rupert, British Columbia, Goletas Fish Co., Vancouver Block, Vancouver, British Columbia. Nanaimo Canning Co., Nanaimo, British Columbia. Redonda Canning & Cold Storage Co., Mr. Russell, agent, P. O. Box 1037, Vancouver, British Columbia. Preston Packing Co. (Ltd.), 16 Hastings Street East, Vancouver, British Columbia. ’ Steveston Canning Co. (Ltd.), Yorkshire Building, Vancouver, British Columbia. 170 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. HONDURAS. Snes report of Consul E. M. Lawton, Tegucigalpa, Honduras, October 27, Honduras (sometimes erroneously called Spanish Honduras) is the central one of the Central American Republics and the least developed. The estimated population is 575,000 and the area about £8,000 square miles. The western half of the Republic is the most densely populated, cdntaining three-quarters of the entire population. The extreme eastern portion is in a measure unexplored, and “ Sambos ”? or native inhabitants there are only partially civilized. For economic matters Honduras may be said to be divided into two parts, the north coast, or fruit sectiony and the southern half, where the main industries are agriculture and cattle raising and mining. There are no railroads or connecting roads other than mule trails, and from the capital to the north coast is a six-day journey, while during the rainy season the swollen streams make communication impossible sometimes. All freight for the southern section must come by way of the Pacific port, which is the town of Amapala located on Tiger Island, in Fonseca Bay, 25 miles from the mainland subport of San Lorenzo. Honduras has no manufactures of particular importance. A few small establishments for making cigars, alcoholic liquors, soap, candles, and bottling soda water constitute the general run of factories, but there are also two or three small breweries, a shoe factory, a flour mill, and lately some fairly extensive sugar mills have been erected. None of these establishments, however, manufacture articles for export. The lack of transportation facilities also prohibit much movement of their products in the country itself, so the average factory produces only for consumption in the immediate vicinity. It is therefore self-evident that there exists no association or combination among the limited number of manufacturers native to Honduras, nor do they receive any especial protection from the Honduran Government other than accorded to all classes of individuals, except that they usually receive certain preferential on import duties in order to encourage enterprises for industrial development. The import trade of Honduras has never assumed sufficient imi to attract organized associations of foreign manufacturers. ‘he same may be said of any combination of exporters or similar industries. Perhaps the combination of fruit companies on the north coast might be mentioned in this connection, though hardly coming under this category. The United Fruit Co., with headquarters at Tela, Honduras, has for subsidiary companies Vaccaro Bros. & Co., at La Ceiba, and Hubbard, Zemurray & Co., at Omoa. These severally have banana plantations and lines of steamers to New Orleans and Mobile, and also under concessions are building railroads ostensibly to objective points but in reality merely tram lines to connect up their several plantations. The several companies are of American origin, the Vaccaros being an Italian family and the Hubbards and Zemurrays, Jewish. No evidence exists of any organization of Honduran buyers in any lines of American goods, such as cooperative societies, retailers, or importers in general. In fact, due to the very isolated conditions of SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 171 the several business centers, any advantage to be gained thereby is dubious. Perhaps the competition and rivalry among dealers is more prominent than any evidence of organization. The one single exception may be noted is that a prominent European firm and also two native firms in this city receive a preferential rate on unloading and lighterage charges from two European firms which control the’ unloading of ships and lighterage privileges at the port of Amapala. It is this situation at Amapala which furnishes perhaps the only chance for application under the subjects of this instruction. Briefly, German exporting firms for more than 30 years have monopolized the shipping business in Amapala. They are branches of firms in Hamburg, and own all the beach frontage. It is estimated that they receive 20 cents of every dollar’s worth of imports by their charges for unloading, handling, and lightering to the mainland. This wide margin permits them to introduce German goods (handled exslusively by them) at less cost than corresponding American goods. The only remedy seems to be the long-considered project to build a port on Corn Island and connect same to the mainland. This project was almost begun in the latter part of 1913, but was.dropped for the time being. Another thing which acts against American goods, or rather the amount of American goods, is that all the Government purchases of voods are made through commission houses (usually the Amapala firms just mentioned) or thrcugh the Honduran consuls in the United States. This Government has recently begun to revive the form of free trade which at one time existed between Honduras and other Central American countries. Recently a treaty of “free commerce” was signed by the Honduras and Salvador officials and a similar treaty is being considered with Nicaragua. These are designed for protection mainly of home products. SALVADOR. Special report of Vice Consul Lynn W. Franklin, San Salvador, Salvador, November 20, 1915 (approved by Consul General Henry F. Tennant). Salvador is the smallest Central American Republic and the most densely populated republic of the Western Hemisphere. Its population is given as 1,200,000, and it has an area of some 7,225 square miles. Agriculture is the chief industry and coffee the chief product (80 per cent). It is rich in minerals, gold, silver, copper, and iron; the first two are worked to some extent by both foreign and native capital. The exports of importance of Salvador are precious metals, coffee, indigo, sugar, balsam, rubber, and hides. The chief imports are cottons, drugs, foodstuffs, and manufactures of iron and steel. The capital of the Republic, which is San Salvador, and the towns of Santa Ana and Sonsonate, are connected by railroad with the port of Acajutla, on the Pacific coast. The Pan American Railway is in course of construction and is now some 50 miles from the capital, the railway being built at the present time from the port of La Union on the Gulf of Fonseca, where there is constructed the only concrete pier in the Republic at which ocean vessels can load and unload by tying up to same. 172 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. There is only one class of industry which may come within the scope of the present inquiry, and that is the sugar industry. This mdustry can not be said to be controlled absolutely by a trusi, combination, syndicate, or cartel, and what control there may be of the same is merely for internal purposes and works indirectly for the benefit of all those engaged therein. There are some five large sugar growers in this combination, namely, Mercedes v. de Melendez y Cia., producing some 60,000 bags of sugar (100 pounds each); Eugenio Araujo, producing some 85,000 bags of sugar; Alexandra A. de Fiallos, producing some 15,000 bags of sugar; and Francisco Duefias, producing some 30.000 bags of sugar, making a total of 165,000 bags of 100 pounds each. These growers deliver the sugar which they have to sell in the Republic to the firm of H. de Sola & Co., San Salvador, a large wholesale and retail store, and here it is sold to the best advantage of all. The selling agent states that they have no plan of organization and that the product is sold in any market and by taking advantage of the large trade of his firm they are in a better position to market the sugar than those raising sugar who are not in the combination. They have been able to maintain a stable price for sugar. Next to coffee growing the manufacture of sugar is the most important industry of Salvador, and there is a heavy duty on imported sugar and an export duty is placed upon sugar so that none is exported from the country unless there is plenty for the home consumption; consequently there is no market for foreign sugar here. No sugar has been imported into the country for the last five or six years. The following statistics have been obtained from the bureau of statistics as to the exportation of sugar from this Republic, no other statistics being available: 1911, 5,831,149 pounds, value, 580,063.42 pesos ($378,536); 1912, 3,792,385 pounds, value 878,559:10 pesos ($165,736) ; 1913, 1,821,239 pounds, value 182,126.90 pesos ($72,852) ; 1914, 1,007,968 pounds, value 209,128.20 pesos ($83,651). Only refined sugar is exported. The average retail and wholesale prices of sugar sold by the combination during the past five years has increased from 6 pesos (approximately $2.40) a quintal (100 pounds) for refined sugar and 4 pesos er $1.60) a quintal (100 pounds) for unrefined sugar to the prices now in vogue, namely, 10 pesos (approximately $4) a quintal and 7 pesos (approximately $2.80) a quintal. The retail price is generally 25 per cent higher than the prices stated herein. The sugar combination, from what I have been able to learn, was formed for the purpose of marketing their sugar without difficulty, and in order to maintain a stable price for same, and to be able to sell for cash. All the sugar in the combination is sold direct to the buyer for cash. Those in the combination, I have been told, are fined 5,000 pesos each time they sell sugar in the country outside of the combination; that is, it must be sold through the selling agent only. There is no restriction placed upon those in the combination for the exportation of sugar. All those in the combination work independently in the export trade. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 1738 Sugar is not sold at or below cost in order to market the surplus or to drive out competitors. The surplus is exported and sold for cash to the buyer at the current price. Small producers of sugar profit by the combination. They can undersell it when in need of money, as this organization maintains a steady price all the year around for their product. Thus the small dealer is satisefid because he can realize his money immediately, while the combination is able to wait until it sells its sugar at the regular price, which it can do by maintaining the supply equal to the demand in the country. : Many others sell sugar, and the combination does not control the sale of the same. HAITI. Sepsis {port of Consul John B. Terres, Port au Prince, Haiti, November There are no manufacturers in Haiti producing goods for export, and very few for home consumption. The country relies almost entirely on imports from foreign countries for its supply of manufactured goods. The merchants as a rule order their goods through commission houses, a few direct from the manufacturer. The exports of the country consist principally of coffee, cocoa, cotten, hides, goatskins, beeswax, honey, logwood, lignum-vite wood, hardwoods, etc. There is no tendency toward progress; nothing done for the improvement of the means for the cultivation of the fertile soil; no well-organized plantations. All the farming is done in a very primitive manner, and very few of the modern agricultural implements are employed. Plows are almost unknown. The country is capable of producing five times the present output for export, and consequently the imports would rapidly increase. The United States would probably receive any increase in trade, being now the controlling factor, and when the time comes to have a reduction of the high export duty on coffee the United States could handle the crop, which formerly was shipped to European markets, principally France and Germany, where a better price is obtained fhan in the markets of the United States. Since the European war the imports from England, France, and Germany have been very much reduced, and from the outlook of the present year they will undergo a still further decline. The United States controls almost the entire provision trade of Haiti. France furnishes a few articles, such as cheese and canned goods. Denmark furnishes table butter, in 1 and 2 pound tins. All of the cement now imported comes from the United States. Formerly this trade was in the hands of Germany. Lumber, coal, carriages, kerosene and lubricating oils, machinery, automobiles, and bicycles are all imported from the United States. There has been a steady increase in the imports of hardware, glassware, dry goods, etc. With peace, so that the people can work their fields, and with security for the capital invested, there will be a rapid development of the country. 174 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The Haitian Government has granted several valuable concessions lo a syndicate of capitalists, principally Germans. These concessions have not met with the success that was expected up to the present time, entirely owing to the unsettled condition of affairs and the vacillation in exchange. Under proper conditions and with exchange reduced to a normal rate, all of these concessions will be found to be very valuable. The Central Ratlroad Co. of Haiti, general office, No. 25 Broad Street, New York City, holds the different concessions enumerated below : (1) Le Compagnie d’Eclairage Electrique de la Ville de Port-au-Prince et de Cap Haitien; capital stock, $250,000; 6 per cent obligations, $500,000. All of the securities are owned by the Central Railroad Co. of Haiti. This company owns and operates the electric lighting plants at Port au Frince and Cape Haitien under a 50-year concession, from 1907, granting the exclusive right of electric lighting in the two cities above mentioned. The modern and substantial power houses in both cities were completed in 1911 and have been in full operation ever since. By its contract with the electric lighting company the Republic of Haiti is obliged to pay, during the entire life of the concession, at the rate of 75 cents, American gold, per night for 825 arc lights in the cities of Port au Prince and Cape Hamtien, which number has been increased to 375 recently by an additional contract made with the Government. This produces a gross earning for public lighting alone of over $102,000 gold per annum, which 1s assured to the company by the harbor dues of Port au Prince and Cape Haitien, pledged therefor and collected for the company by the National Bank of the Republic of Haiti. Many of the private dwellings have the incandescent lighting systems, and the demand continues to increase. This is an augmentation to the revenue of the company. (2) La Compagnie Haitienne du Wharf de Port-au-Prince; capital stock, $600,000; 30-year 6 per cent mortgage. bonds, $357,000. The company has also issued promissory notes to the Central Railroad Co. of Haiti covering the excess cost of constructing the wharf to the amount of $233,000. All of the bonds and notes, as well as two-thirds of the capital stock, are owned by the Central Railroad Co. of Haiti. This company owns and operates the wharf at Port au Prince under a 50-year Government concession, dated from 1907, which grants exceptional privileges to the company, consisting of the collection of a fixed change of $1 gold per ton on all goods imported or exported at Port au Prince, whether the facilities of the wharf are used or not. This charge is collected by the company direct from the owner of the vessel or the agents. A collection also for transportation charges for handling all outgoing and incoming goods passing over the wharf to and from the customhouse. These charges are paid by the merchant shinning or receiving the goods. The wharf was built by the Empire Engineering Corporation, of New York. The main construction was completed about 1910. It is of concrete reinforced with steel. Its length is nearly one-half mile; the outer end is 60 feet wide, and has a substantial iron warehouse about 700 feet long, with a storage capacity of 36,000 square feet, SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 175 offering a safe deposit for merchandise. This wharf is equipped with a double-track railroad, with rolling stock for the transportation, loading, and unloading of merchandise. The company employs the following rolling wh all of American type: One 18-ton locomotive, eighteen 15-ton flat cars, and one passenger car. With an increase of commerce this will prove to be a very valuable concession. (8) Railroad to the Plains de Cul-de-Sac; capital stock, $760,000; 8 per cent obligations, $564,200; 5 per cent obligations, $68,600. All of the securities issued are owned by the Central Railroad Co. of Haiti. This company owns concessions granting the exclusive right of operating a railroad from Port au Prince through the Plains of the Cul-de-Sac and from Port au Prince to Leogane, and also the exclusive right of operating tramways in the city of Port au Prince and its suburbs. Its rights and privileges will remain in force until July 1, 1950. The company is operating 60 miles of substantially constructed railway, running 30 miles northeast of Port au Prince through the Plains du Cul-de-Sac and from Port au Prince southwest .to Leogane, a distance of 20 miles, and also the tramways of Port au Prince, consisting of 10 miles of tracks. The railroad has a gauge of 30 inches, is stone and gravel ballasted, and laid with 45-pound rails on its railroad and on part of the tramway lines. The remaining part of the tramway lines is 35-pound rails. By virtue of its concession the railroad receives an annual interest of $41,286, paid quarterly by the Haitian Government, which is secured by special pledge of 20 per cent of the revenues derived from the export duty on logwood and cocoa, which is collected by the National Bank of the Republic of Haiti for the account of the railroad company. There is also a contract for the electrification of the tramway and an extension of the lines, which has not yet been started. The company has a fully equipped repair shop, office buildings, and stations, and also owns the following rolling stock: One 38-ton locomotive, four 30-ton locomotives, four 25-ton locomotives, one 18-ton locomotive, eight 12-ton locomotives, one 7-ton locomotive, 23 passenger cars, 120 freight cars. The fuel used on the railroad to the Plains and Laogane is wood. The city tramways use coal. When the electrification of the tramway is started and completed it will add very much to the revenue of the company, as they can then run trains at shorter intervals. All of these different concessions are financed in the United States, and all the requirements for maintaining the concessions are imported from the United States. In addition to the foregoing concessions of the Central Railroad Co. of Haiti, the following enterprises may be mentioned: (1) Ice factory in Port an Prince, organized as société anonyme, capital $150,000; Haitian corporation, 50-year monopoly, from 1895. This wy complete plant, with all modern improvements, has a capacity of 15 tons of ice daily. Actually sold at this time, 6 to 8 tons daily. The most of the stock of the company is held by the following firms: C. Keitel & Co.; August Ahrendts, Germans; and Achille Bathe, French. The plant is situated in the lower part of the city. The fuel used is rs and wood. All the requirements are imported from the United States. 176 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. (2) Compagnie de Construction Haitienne, Messrs. J. C. Marsh and F. H. Berlin, contractors. Previous to the commencement of the streets and sidewalks concrete work the entire drainage was surface, and consequently the streets in the lower part of the city, from the accumulated stagnant water, were insanitary, and much malaria existed. When the company commenced the work of concreting the streets and the sidewalks they constructed large concrete sewers in each street that is now finished, and consequently the cleanness of the streets has been much improved. The work, which has proved to be very durable and solid, is still being continued, and the company is now using about 8,000 bags of cement a month, all of which is imported from the United States. The company is well equipped with all necessary machinery, as well as carts, wagons, tools, etc., all imported from the United States. (8) The National Railroad Co. of Haiti. The constructing work of this company has almost ceased. The branch from Port au Prince to St. Marc is fairly completed, and trains are run between these two cities twice a ay but there is very little traffic, certainly not sufficient to defray the running expenses. (4) There are two or three small plants for making brown granulated sugar. But from the scarcity of sugar cane, caused by the severe drought that has prevailed for the past four or five years, these establishments have not been able to supply sufficient sugar for the home consumption. Consequently a considerable quantity of granulated and cut white sugar is imported from the United tates. The vast sugarcane land lying idle in this country shows the great necessity of peace for the development and improvement in the means of cultivation of the soil and general progress of the country. The different enterprises enumerated above comprise all at present on the island. It is to be hoped a change for the better in fhe improven of agriculture is pear at hand, and that the country will e placed on a high scale of progress, such as is enjoyed by the neighboring islands. SOUTH AMERICA. BRAZIL. Special report of Consul George H. Pickerell, Pars, Brazil, December 12, 1913. There are no trusts existing at present in this district, and I doubt very much whether such an organization could be profitably operated in this market. The firms of Zarges, Berringer & Co, and Zarges, Ohliger & Co. were the representatives of Heilbert, Symons % Co., of London and Liverpool, England, and as such and because of their ability tn secure credits they were enabled to buy rubber at times when others less favorably situated were forced to Teep out of the market, but at no time were they able to control the situation. Since the beginning of the war in Europe it has become necessary for Messrs. Heilbert, Symons & Co. to separate from the two firms named in order to comply with the demands of the British Government. They have therefore named as their buying agents Messrs. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 179 Stowell & Co. for the British market and Messrs. Suter & Co. for the American market, the latter firm claiming to be owned by a citizen of Switzerland. Since the separation of Zarges, Berringer & Co. and Zarges, Ohliger & Co. from Heilbert, Symons & Co. the two firms have been changed and are now known as Berringer & Co., of Para, and Ohlinger & Co., of Mandos. Both are shipping rubber to the United States, but their largest business seems to be in the capacity of bankers. Pralow & Co. are the successors of Messrs. Scholte, Hartje & Co., of this ity and Mandos, and who went into liquidation. Messrs. Sempre & Co. are located at Mangos. They have a number of correspondents in the United States, but I do not believe that they can from any point of view be considered as trust representatives. This inability to control the market was very clearly demonstrated in the attempt of the Brazilian Government, through the Bank of Brazil, to valorize rubber. The nearest approach to a trust is the present, or rather last year’s, agreement between certain American houses to control the Brazil nut trade by placing their orders with two local firms (Alden & Co. and Sydney Fall & Co.). I do not know if this agreement extended to Manios, but I doubt it, as several shippers were doing business, hotably Sempre & Co. Unfortunately for the agreement in question, the local supply was short of the demand, and a number of producers have preferred to consign their stocks of Brazil nuts. The result was that prices were very high, much higher than the preceding year, and the parties to the agreement derived little or no benefit trom it. (Note.—Consul Maddin Summers, of Sio Paulo, was iif the United States at the time the commission’s inquiries were sent to the consuls and therefore did not have an opportunity to prepare a report on the topics submitted. He conferred at length with representatives of the commission, however, and in this manner furnished much information of value in the preparation of the report.— FEDERAL TRADE COMMISSION.) ARGENTINA. Special report of Vice Consul in Charge John S. Calvert, B Ai " tina, December 8, 1915. » Buenos Aires, Argen After making a very careful investigation it could not be found that there existed in Argentina any cartels, syndicates, or combinations of manufacturers either engaged in the domestic trade or in exporting to other countries. Argentina, it may be said, practically has no manufacturing industry. It is primarily an agricultural and stock-raising land, and its exports comprise almost entirely the products of agriculture and live stock and the by-products therefrom. Argentina’s imports are comprised of almost everything in the manufactured line, as the little that is produced domestically is capable of supplying but a very limited part of the demand. Nearly all the leading European nations and the United States enjoy a portion of Argentina’s import trade. There is and always has been a keen competition hetween the international merchanfs established here in the import trade, and it can not be learned that there exists any syndicate or combination of importers, either foreign or native to the country, who exercise an absolute control of any branch of this trade, 27241°—p1 2—16—-12 178 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. which would give them the power to regulate prices to the exclusion of independent dealers. The meat industry—For about 18 months prior to April, 1913, there did exist in Argentina a combination among the meat-freezing companies established here, whose entire trade consisted in exporting frozen and chilled meat to the London market. The participants in this combination were the following firms, viz: Las Palmas Produce Co. (British ownership). Smithfield-Argentine Meat Co. (British). River Plate Fresh Meat Co. (British). Cia. Sansinena de Carnes Congeladas (Anglo-Argentine). : Frigorifico Argentino Anglo-Argentine). Cia. La Blanca de Carnes Raia American). La Plata Cold Storage Co. (American). The agreement which existed between these companies was to limit the output in proportion to the capabilities of each works and the amount of money invested. In the early part of 1913 the La Blanca Co., backed with American capital provided by Armour, Morris, and Swift, added new buildings and installations to their plant, thereby increasing the capacity of their output, and demanded of the other companies that their share of the output stipulated in the agreement be allowed to increase, to which the other companies objected. The La Blanca Co. then decided to no longer adhere to the agreement, and withdrew on April 5, 1913. The La Plata Cold Storage Co., which was also primarily a Swift (American) enterprise, also withdrew. For a time thereafter there followed a severe price cutting in the London market between the two American companies and the five English companies. For several months the two i room companies shipped on an average of 53,000 quarters of frozen and chilled beef gach week to London, when that market was capable of receiving only about 45,000 quarters. The result was the glutting of the London market, with a radical drop in the price of meat, while all the companies here were selling at a , of from $30 to $40 Argentine paper ($1 equivalent to $0.4246 United States currency) on each head of cattle shipped. It was contended by the English companies that the American firms could afford to accept these losses in view of the heavy financial backing which they had, until such time when they had complete control of the business and could then dictate their own prices, while the American firms claimed that although they had losses on the meat exports, these were generally offset 3 utilizing all the by-products from which profits were made. About this time the five English and Anglo-Argentine companies sent a joint note to the minister of agriculture of the Argentine Republic, asking for the intervention of the National Government to prevent an excessive exportation of meat by the two concerns connected with the American Beef Trust, the La Blanca Co. and the La Plata Cold Storage Co. This note contained the following: We are ready to produce proofs that the prices at which Argentine beef is sold in the English market, relatively to those which have been paid here for steers from the beginning of April, cause to all the frigorifico (meat-freezing plants) companies, without exception, a loss oscillating between $30 and $40 Argentine paper on every animal exported. It is therefore evident that this rommercinl pelicy, tending to cause, artificially, losses so Important that they will be supported only by those who deliberately produce them, is going to SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 179 establish, by the force of facts, the absolute monopoly of our industry in favor of those who are not satisfied with the normal profits permitted by commercial competition. This being the situation in its absolute truth, it only remains to be decided whether or not it interests the progress and well-being of the country that the products of the pastoral industry destined for exportation are sxempt from the fiscalization of all competition. On our part, we have to state that the present situation of the business of exportation of chilled beef will indefeasibly occasion, if it should continue for a short time longer, the closing of our respective factories, as the only way of safeguarding the interests of our shareholders. We hope that this announcement will be duly appreciated as the sincere manifestation of those who consider that their own interests are closely bound to those of the Argentine pastoral industry, as well as to those of the 6,000 workmen now engaged in the meat-freezing establishments and who would have to be the innocent victims of the audacious attempt to establish in this country a monopoly of which the frightful consequences have been experienced in other countries, where the same grasping tendency has been shown and always to the prejudice of both producer and consumer. After making a careful inquiry, the National Government found that there was no justification for any exceptional legislation, and replied to the above note under date of June 12. 1913. as follows: I have brought to the attention of the President your note in which you euntreat the National Government to provide such official measures necessary to avoid the monopolization of the meat-freezing industry, which, according to your opinion, it is being endeavored to establish in this country. The executive power has studied with a great deal of interest the fundamental principles of your petition, has carefully investigated that industry, has examined the various measures proposed to defend it against the dangers which you have shown, and has consulted the opinion of several eminent citizens authorized to give expert advice to the Government in this grave question. The executive power, upon hearing these opinions and making the above Investigations, believes that for the present it can not modify the régime of liberty under which this important industry has been developed. If, in the future, new evidence is produced which would indicate that there is In formation a combination prejudicial to the economic development of the country, the executive power will adopt such measures as it may consider *onvenient to the protection of the national industries. Since then the various meat companies have been operating independently, although the Frigorifico Argentino has ceased operations. The plant of this company, however, has since been leased for three years, with an option to purchase, by the Chicago firm of Sulzberger Sons & Co., who are actively exploiting same. The Armour Co. has also erected a plant and has been operating since July of the present year, and between these two companies and the La Plata Cold Storage Co. (Swift) and the La Blanca Co. (Morris) the American concerns ship considerably over 50 per cent of the frozen-meat exports from Argentina, although Argentine authorities do not believe (and it can not be Pe in any quarter) that there exists at the present time any agreement between these companies to control the entire frozen-meat industry in Argentina. The various English companies located here are shipping regularly, although in lesser quantities. Foreign capital invested in Argentina.—There is no doubt whatever that the heavy European capital investments in Argentina have had considerable effect in diverting the channels of trade to those countries. European capital is invested here in public-service corporations, national and provincial loans, steamship lines, public works, etc. In 1913 it was estimated that the total British investments amounted to $1,551,000,000: French, $771,000,000; German, 180 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. $298,000,000 ; Belgian, $180,000,000; Spanish, $80,000,000; American, $20,000,000. Most of this latter is represented by the various meatfreezing plants. Within the last 18 months there have been placed in the United States Argentine national bonds aggregating $40,000,000. These figures illustrate the vast hold which the European nations have acquired on this market. Approximately 90 per cent of the railroads in Argentina are British owned, as well as the street-car lines, the subway, the gas company, etc. The electric-light plants are operated by German and Italian enterprise, while the greater portion of the public works are carried out by European constructing firms, employing European engineers, European machinery and equipment, etc. The majority of the large importing houses 1n Buenos Aires are British, German, and French owned, while European countries also have well-developed banking facilities, which assist their importers, which have been in existence here for many years. There is also, in normal times, a well-developed steamship communication between Argentina and Great Britain, Germany, Holland, Belgium, France, Spain, Italy, and Austria-Hungary, and ships of these nationalities are coming into the port of Buenos Aires almost constantly. In the Argentine public works department considerable employment of European engineers to give expert technical advice has been a common custom in the past. These men generally exercise a large amount of influence in securing for this country the necessary machinery and equipment in prosecuting the public works from their own native country. Government attitude toward the industries—As Argentina finds a very ready and easy market for its agricultural and pastoral products, which is carried on by established export houses with European connections, there has never been any occasion for the Government to make any efforts to foster this well-established trade, while in the case of imports, this, too, is left to the individual merchant to seek his clientele and to meet the existing competition. The Argentine Government, however, is making every effort to foster its own domestic manufacturing industry, and makes general grants of concessions of various natures, such as land leases, exemption from customs duties of such machinery and equipment as are destined for the industry, exemption from certain internal taxes, and other facilities which may be instrumental in founding and in fomenting the industry. CHILE. Spgeip) erort of Consul General L. J. Keena, Valparaiso, Chile, December In addition to nitrate and iodine! the export products of Chile consist for the most part of copper and copper ore, frozen meats. wool, whale oil, agricultural products, hides and skins, nuts, wine, etc. There are no products manufactured in the country which are regularly exported unless wine be classed as such a product. The Government through its diplomatic and consular officers has rendered valuable assistance to the wine exporters in the way of information 1 For facts regarding the combinations in the nitrate and iodine industries see Pt. I, pp. 205 to 208, and Pt. II, pp. 497 to 503.—FEDERAL TRADE COMMISSION, SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 181 as to the possibility of marketing this product in foreign countries, in furnishing lists of importers, etc. Otherwise this et is not in any way under Government patronage. The meat packing and freezing industry consists of three establishments located in the Punta Arenas district, the entire product of which is shipped to England. The normal value of this export is approximately $2,000,000 United States currency. These packing and refrigerating plants can not be said to be a combination. The most important plant of the three, that owned and operated by the South American Export Syndicate (Ltd.), of 102 Fenchurch Street, London, has a capacity of 8,000 carcasses (sheep) per day and a storage capacity of 12,000 carcasses. The Houlder Bros. Steamship Co. is a large holder of the stock of the South American Export Syndicate (Ltd.), and most of the product of the refrigerating works is carried to England in that company’s steamers. The companies engaged in this industry enjoy no Government export bounties and no preferential freight rates other than what may be privately arranged between the producing and the carrying companies in a case such as the above in which the carrying company is a large stockholder in the producing company. The other export products mentioned are not controlled by any gombination, syndicate, or cartel and enjoy no Government bounties or assistance. At times in these products there are temporary and informal combinations, formed with the idea of raising or maintaining prices, but ordinarily these informal combinations are automatically dissolved by the individual members becoming disinclined or unable to hold out for the price aimed at. One of the largest products of Chile is coal. Up to the present, however, the country has not been able to produce more than 60 per cent of the coal needed by the country. While there is no combination among the coal producers, there is aptilielly an understanding, based for the most part on the knowledge of terms at which rival producers of coal in Chile would be willing to make coal contracts, the general objective sought in the matter of price bein always to approximate but to undersell imported coals. The companies receive no bounties from the Government, and coal is not en export product. In view of the general sentiment developed by the war toward patronizing and protecting home products, considerable discussion has taken place in Government circles as to the advisability of placing an import tax on foreign coals, the returns from this tax to be used principally in developing coal ports of shipment, improving the railroad service in the coal fields, ete. No tes action has yet been taken on this subject. In as far as can be determined by this office there are no cartels, syndicates, or combinations of manufacturers foreign to this country which have an organization here to market their exports. The principal importing business of Chile is done by large import houses, ractically all of which are about as largely engaged in exporting Be Chile. These houses accept agencies and import a very wide variety of foreign goods on order or for stock. The importations made by nearly any one of these houses individually would embrace a variety of articles such as coal, machinery, food products, textiles, tea, furniture, cement, chemicals, construction and railroad ma- [82 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. terials, etc. The reason given for carrying so varied a stock or engaging in sd many lines of trade is that Chile is so small a purchas-Ing market that a house of importance must necessarily engage in many lines of trade in order to pay the expenses of its organization and in order to fill the space on outbound steamers which these same companies will refill with nitrate for the return voyage. The function performed by these import and export companies in the import field is a necessary and an important one. They bring all classes of merchandise to Chile, either as purchasers or on commission, land and clear it here, sell it at conventional terms in accordance with trade custom and with the needs of the local wholesaler ‘or retailer and in commission work look after all collections in the interest of the foreign shipper. In other words, they supplement the country’s general lack of capital for the direct purchase and financing of its imports. Being engaged in both export and import trade, the volume of their exports establishes credits abroad for the goods which they import and effects for them a constant saving on exchange. For the most part these companies are financed by foreign capital and are controlled by their foreign offices. The two principal companies of this type which have their main offices in the United States are W. R. Grace & Co. and Wessel, Duval & Co. All of the principal English and German companies have a number of American agencies, and to the best of my knowledge they all show a disposition to take on more American agencies for any lines which could be competitively sold at a profit in the local market. The type of business done by these companies and the fact that their stocks are purchased for them by their offices (and for the most part by their controlling offices) in foreign markets, financed, transported, and offered for sale by them in Chilean markets form conditions particularly favorable for dumping. It should be added, however, that dumping in the Chilean market on the part of these import houses is sporadic rather than regular, and is dependent on opportune purchases made by the foreign offices of these houses. As has already been stated, these large import and export houses control the bulk of the Chilean import trade. In addition there are a number of direct branch agencies of foreign manufacturers which usually represent only one line of goods and a large number of Chilean houses which import general or special lines for wholesale or wholesale and retail trade. To the best of the knowledge of this office all of these houses, except the branch houses of foreign manufacturers, operate with independent capital, and in accepting foreign agencies are guided only by their judgment as to what would be most profitable for themselves. It is probable that a number of these companies have been formed by combinations of manufacturers as a working basis and for the sale of certain articles, but the market is so limited that any growing import house must necessarily take on other and more diversified lines of goods, and ordinarily goods of the production of two or more different companies. This office knows no reason why any American company now engaged in trade with Chile or desirous of engaging in that trade could not enter this market with any salable merchandise and prosper in accordance with the efficiency of its organization, its command of the necessary capital, and its willingness to meet strong but free competition. SPECIAL REPOETS FOB FEDERAL TRADE COMMISSION, ' 183 ECUADOR. Special report of Consul General Frederic W. Goding, Guayaquil, Ecuador, October 5, 1915. The information given in this report covers the Republic of Ecuador only. There is but one combination of business men in this country, Associacion de Agricultores, which was approved by the Executive January 25, 1913, with its principal office in Guayaquil. The object of the association is to unite the .growers of cacao against speculators, to sustain reasonable prices, promote the acreage devoted to the growing of cacao, and the marketing of it in both the old and new centers of consumption; in other words, to defend the planters against the imposition of ruinous prices. It is a semiofficial organization, as it is permitted to collect a tax of 1 sucre (48 cents) on each 100 pounds exported. The only product handled is cacao, which, on occasions, is shipped to the world’s markets, the proportion so exported varying with the price, as only when the offers are below a certain price is the association active. Sometimes for months it will export all the cacao, at other times none. The plan for selling followed is to offer cacao in the world’s markets on its own account or through banks, the fund created from the 1-sucre tax being utilized in equalizing the difference between the price paid and that received. The organization is strongly supported by the public, as it never enters into competition with the independent exporters, buying only when low prices prevail when the latter are excluded from the markets. Possibly this association should not be classed with those combinations referred to in the present inquiry; but as it is the only commercial combination in Ecuador, it has been thought best to forward these data, especially as the subject has not been extensively treated in reports from this office. Nore.—Consul General Goding transmitted with his report a copy of the Regulations and Constitution of the Association. For a translation of this see Pt. II, pp. 504 to 508.—FEDERAL TRADE COMMISSION, PERU." Special report of Consul General William H. Handley, Callao-Lima, Peru, January 24, 1916. General business conditions in Peru—The general scope of the investigation now being made by the Federal Trade Commission concerning combinations of foreign manufacturers and merchants and other conditions in foreign countries affecting the foreign trade of the United States applies to Peru only to a minor degree. This is largely due to the fact that Peru is essentially an agricultural and mining country, the few manufacturers being confined principally to several small cotton and weolen mills. There are undoubted] some agents of European syndicates or cartels operating on a small scale in Peru. The potash syndicate of Germany has an agency here, and there is possibly a considerable quantity of European manufac- 184 REPORT ON COOPERATION IN AMERICAN EXPORT TRADR. tured goods that find their way here from foreign syndicates or combinations that come within the scope of this investigation, but the headquarters of these institutions are in the manufacturing centers of Europe. In interviewing one of the merchants here he was at a loss to know whether the textiles which he imported from Germany and other European countries emanated from cartels, syndicates, or combinations. The place and condition of origin apparently did not interest him. Importations from such combinations are permitted under the Peruvian law. Operations of othe Peruvian Corporation (Lid.).—Probably the organization here that more closely comes within the scope of this investigation is the Peruvian Corporation (Ltd.), an English organization with headquarters at London. This corporation in 1890 took over the depreciated bonds of the Peruvian Government on the condition that the Government-owned railroads and the guano exportations be under their control for a period of years. The agreement between the Peruvian Corporation and the Peruvian A. ernment was signed in 1890. By its terms the bonds were exchanged for stock in the Peruvian Corporation. The corporation later surrendered the bonds to the Peruvian Government in exchange for the following concessions: (a) The use for 66 years of all the railroad properties of the Peruvian Government, most important of which were the Southern Railway of Peru and the Central Railway of Peru. (5) Assignment of the guano existing in Peruvian territory, especially on certain adjacent islands, up to the amount of 2,000,000 tons. (¢) Certain other claims on guano deposits, especially in the Lobos and other islands. (d) Thirty-three annual payments by the Peruvian Government, each of $400,000. In 1907 this arrangement was modified by an extension of the leases of the railways from 1956 to 1973, by a reduction in the number of annual payments from 33 to 30, and by a further agreement on the part of the Peruvian Corporation to construct certain railroad extensions to Cuzco and to Huancayo. The most important feature of this corporation’s interest in Peru as affecting the trade of the United States is, of course, the exportation of guano and fixing its price. In fact, their privileges constitute a monopoly of all Peruvian guano exported to foreign countries. This, however, does not apply to its use for agricultural purposes in Peru. In recent Jor there has been continual litigation between the corporation and the Peruvian Government regarding the exportation of this product. For a short period of time during last year the Government prohibited the exportation of guano and limited its extraction only from certain islands. specifying the months in which it should be taken from the islands. The bonds of this corporation are largely held by English, French, and Dutch subjects. Consequently, the diplomatic representatives of these three countries in Peru are constantly manifesting proper interest in the welfare of their nationals, the bondholders. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 185 VENEZUELA. Spent report of Consul Homer Brett, La Guaira, Venezuela, November 9, Sugar syndicate—So far as the investigations made by the consulate have revealed, the only combination or syndicate native to Venezuela is the Compaiiia Anonima Unién Agricola, the headquarters of which are in Maracaibo. Its object is solely to maintain the price of “ papelon,” as brown sugar in cones is called, and of other kinds of sugar. It accomplishes this object by dumping the surplus upon the English market at whatever price is obtainable, so that Venezuela presents the anomaly of exporting from 2,000 to 4,000 tons pf sugar annually while the price of sugar in the country is never less than twice the price ruling in the open markets of the world. As the quantity exported is increasing and six modern centrals are being erected, it is probable that it will be continually more difficult to maintain the high domestic price. Foreign combinations.—Of foreign combinations the first is the well-known German potash syndicate. This has an agent here and has done considerable propaganda work, but almost entirely without success, as land is too cheap in Venezuela for the importation of fertilizers to be profitable. The Union Comercial Francesa, with headquarters in Paris, maintains an agent in Caracas. Exact information is not obtainable but it appears that the combination sells principally drugs and pharmaceutical products; that other French manufacturers compete with it successfully. The agent is a local business man and it is not apparent that the union spends any unusual amount of money in trade development or is in any way to be particularly feared by gompetitors. The only other combination of which the consulate has been able to obtain knowledge is the Consorcio de Fabricantes Italianos, which appears to be only an association of Italian manufacturers in noncompeting lines for convenience in seeking foreign trade. Its main office is at Milan. From the scope and character of its operations in Venezuela it does not appear that it has any resources or methods that would enable it to monopolize any market that would otherwise be competitive. In the main it is considered that conditions in Venezuela are not favorable for the operations of syndicates or combination, as trade in any one line is too small usually to constitute a business of importance. All merchants are general merchants and almost without exception make their foreign purchases through export houses which grant the long credits required. Accurate and dependable information regarding credits is unobtainable, and commerce depends upon a personal knowledge and taking of risks not compatible with the exact and machinelike methods of large corporations. The West India Oil Co. constitutes an exception to the foregoing, as by maintaining a stock of its products in the country it has obtained a commanding position in the oil trade. Addresses of syndicates or combinations in Venezuela. Sr. J. Pauly, representante de la Union Commercial Francesa, Caracas. BE. B. Levi y Ca., agentes del Consorcio de Fabricantes Italianos, Caracas, Alberto Moreno, superintendent of the West India Oil Co., Caracas. Salas & Lavery, agents German Potash Syndicate, Caracas. 186 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, BRITISH AND DUTCH GUIANA, Special report of Consul George E. Chamberlain, Georgetown, British Guiana, October 30, 1915. British Guiana.—There are no cartels, syndicates, or combinations of manufacturers in this country. In fact there is little manufacturing carried on in the district, and all the industries are owned and operated by individuals or private firms. The combinations foreign to this country doing business here are the Singer Sewing Machine Co., West India Oil Con Texas Oil Co., United States Steel Products Co., Armour & Co., Swift & Co., Libby, McNeil & Libby, and Cudahy Packing Co., all American. . The Singer Sewing Machine Co. has an office and salesrooms in (Georgetown and bw | agencies in various parts of the colony. Their business here is conducted in the usual manner employed by this concern in all parts of the world, selling chiefly at retail for cash and on the installment plan. They fix their own prices and are independent of all other concerns, and their only competitors are local importers handling various makes of machines. The West India Oil Co. has an office and warehouse located in Georgetown under the management of an American, and one American clerk. They import direct from the United States and carry a sufficient stock of oils of all kinds to meet demands. Their sales are confined to dealers and large consumers, and prices are maintained based upon the New York market prices plus shipping charges and local expenses. The usual terms of credit are 30 days. The Texas Oil Co. is represented by a local firm of general importers—Messrs. Sandbach, Parker & ie carry ie sufficient to meet all requirements. They conduct this business along the same lines as the West India Oil Co. maintaining prices and selling to dealers and large consumers. The United States Steel Products Co. has no local representatives, but sells to all importers who desire to purchase their products. A traveling representative occasionally visits the local trade. Their competitors are chiefly English houses. Swift & Co., Armour & Co., Libby, McNeil & Libby, and the Cudahy Packing Co. are all represented by local commission merchants, selling to the general trade throughout the colony. Prices are maintained and are the usual export prices f. 0. b. New York. Their chief competitors are English houses—Crosse & Blackwell and C. & E. Morton—and others who sell direct to the importers.. Thus far this market has not been used as a dumping ground by American, English, or other foreign houses, only in the case of certain summer goods. At the end of the spring and summer seasons local importers have made a practice of buying piece goods, millinery goods, etc., in the London and New York markets which the exporters are glad to dispose of at reduced prices rather than carry them over. This trade, however, is limited. The United Kingdom and her colonies are favored in this market by a British preferential tariff on many articles of import, the preierential rate on ad valorem goods being 12 per cent as against 15 per cent from foreign countries. The tariff on goods subject to a specific duty varies greatly, many of the articles having no preferential rate SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 187 while others are favored. Flour, for instance, imported from Canada is subject to a duty of 90 cents per barrel, while that from the United States is assessed $1.15 per barrel, and oils are subject to the same rate of duty from whatever source imported, the duty on refined petroleum being 25 cents per gallon. The assistance derived from the preferential tariff is all that is rendered by the Government to English and colonial competitors, but this, together with that natural tendency of local English houses to patronize their own countrymen, has made it difticult for American exporters to compete in this market on lines procurable in these rountries. Sinee the commencement of the war, however, much merchandise has been imported from the United States that formerly came from England. Freight rates favor imports from the United States at all times as against those from England, while Canadian rates are practically the same. There are no international syndicates or combinations doing business here at the present time. All importers buy independently, there being no combination of buyers. The only foreign capital of importance invested in the country is that of Americans, chiefly in mining, rubber, and lumber. The mining and lumber industries purchase their machinery in the United States, while the outlay on rubber is chiefly for labor and provisions purchased in the local market. Under normal conditions the exchange rates are slightly in favor of remittances to London, but at the present time the rate fluctuates from 8 to 5 per cent against the imports of American goods, as all remittances to New York are subject to these rates. This condition, however, has not seriously interfered with American imports, as merchants have been compelled to buy where they could get delivery regardless of the high cost of remitting. None of the local manufacturers are assisted by the local government, except so far as the import tariff may protect their products. Dutch Guiana.—Conditions in Dutch Guana are much the same as in this colony. Both oil companies are represented there on the same basis as here, also the Singer Sewing Machine Co. The products of the Chicago packing houses are also imported under similar ronditions. ASIA, JAPAN. Special report of Vice Consul Harold C. Huggins, Yokohama, Japan, November 25. 1915. In a broad sense there are no cartels, syndicates, or combinations in Japan whose history as such is readily obtainable or whose methods of working are so apparent as to be readily studied. The extent to which the few known combinations of manufacturers, buyers, and sellers actually regulate prices, methods of distribution, the flooding of competitive markets, etc., is unknown to any but a very few outside the inner circles of such organizations, and it is practically impossible for the foreign observer to obtain any 188 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. light on facts other than the bare statements of the alleged purpose of such organizations. There are.certain organizations of manufacturers, buyers, and sellers whose workings are more or less a matter of public knowledge. The Cotton Spinners’ Association, for instance, a time to time decides that in order to keep the market from being flooded with goods for which there is no demand, and whose presence on the market would consequently depress prices, there shall be a certain diminution in the output of the cotton-spinning establishments for a period of weeks or months, and the number of spindles which is to remain idle is divided amongst the factories concerned. In the same way the Association of Manufacturers of Artificial Fertilizers meets and decides that fertilizers will not be sold under a fixed price, and all members of this association abide by the price agreed upon. These incidents of control of the market in this country are from time to time brought to the attention of the public through the daily press. But the manner in which the decisions of these associations are binding on the members of the association, and who are the members of the association, are matters beyond the knowledge of the ublic. P The guild system.—There are, however, certain combinations of business men in Japan whose organization, whose business, and Those, methods are more or less readily studied. These are the guilds. In practically every trade there is a guild of manufacturers, buyers, and sellers. Sometimes these people form separate guilds, sometimes they form one large concern. In the case of the Tea Guild, which is by far the largest and most important of these organizations, there are many small guilds, which elect members to intermediate guilds, which guilds in their turn elect members to the Central Tea Association, which organization is directly under the control of the Government and is in a small way subsidized by the State. The smaller guilds are all granted more or less subsidies by the prefectural and district governments. These subsidies are used for giving prizes to growers and to manufacturers and to pay the expenses of the upkeep of the organizations. The Central Tea Association received from 1899 to 1906 a subsidy of 70,000 yen ($34,860) annually from the Imperial Government; this amount was in 1907 decreased to 85,000 yen ($17,430). The subsidy is used to establish and maintain tea houses in the United States, Canada, Vladivostok, and Paris, in which the products of the association are offered for sale. The organization of guilds has been carried on in Japan under a law promulgated -on March 6, 1902, law No. 35. By the provisions of this law the Government is able to keep very strict control of the business of the guilds. Among the provisions of the law are the following: ARTICLE 2: The chief aim and purpose of such associations should be to correct bad business methods and to improve the business conditions of the associated members. ARTICLE 3: Before permission will be granted by the minister of agriculture and commerce for the organization of such an association, two-thirds of the business men in the trade stated, located in the district for which the association desires to organize, must agree to the establishment of the association; a general meeting of these business men must be held, and the by-laws of the asso- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 189 elation adopted and submitted to the minister of agriculture and commerce, * * * ARTICLE 4: Anyone engaging in a business for which there is an association in his district must join the association; but under special circumstances an exception may be made should the minister of .agriculture and commerce not consider his joining the association necessary. ArTicLE 6: * * * Both the associations of merchants, ete., engaged in the same business and the united societies thereof may not engage in any business which brings in a profit. ArricLe 10: Both .associations of merchants, etc., engaged in the same business and the united societies of such merchants may establish inspecting organs for the output of the members of these organizations. Both the associations of merchants, etc., engaged in the same business and the united societies of such merchants may state in their by-laws the regulations concerning the punishments of members, the reasons for confiscating the goods manufactured against the terms of the by-laws, and the fines which are Imposed upon members for infractions of the by-laws. There have béen formed under this law in the Prefectures of Japan 1,060 different associations of merchants and traders engaging in the samme or allied businesses. The greater part of the guilds are too insignificant to notice. The more important of them have been organized in Tokyo-fu, Osaka-fu, Kyoto-fu, Kanagawa Prefecture, Hyogo Prefecture, and Nagasaki Prefecture. The Tea Guild —Under the guild system all business in Japan is fo a greater or less extent organized to meet competition, without being actually on a monopolistic basis. Certain guilds, such as the Tea Guild, are monopolies, no one not a member of these guilds being in a position to sell or buy tea in any part of the Empire. Certain foreign tea firms who objected to entering the central association were finally constrained to join. As representative of the organization of all the more importdnt guilds, the Tea Guild is the best known. The law under which this guild was formed and the agreements under which it operates are given below in part. The agreements of the Shidzuoka Prefecture Joint Tea Association are given in part. This association is a member of the central association, but is the most powerful and important member of the central association, and as such its organization is of interest. Government regulations under which tea associations are organized. —The regulations under which the tea associations are organized by law are given in part below in a translation published by the department of agriculture and commerce. ‘The order No. 4 issued by the department of agriculture and commerce of the Imperial Japanese Government in the year 1889; the revised order No. 5 of 1891, Nos. 1 and 3 o 1802 No. 2 of 1893. Nos. 5 and 14 of 1894. No. 6 of 1908, No. 17 of 1909, and No. 32 0 . SecTioN l.-—QGeneral rules. ARTICLE 1: The tea men generally termed in the regulations contained herein include all of those who manufacture and sell teas and who sell raw-leaf teas out of their own tea gardens, as well as brokers or sellers of raw-leaf or fired teas. ArTicLE 2: The tea men shall establish a tea association with an aim to Improve the manufacture of teas, to enlarge sales, and to make the dealings exact and honest, and shall be members thereof; provided that those deemed unnecessary by the minister of agriculture and commerce to enter such an association shall be exempt. Persons who sell the raw-leaf teas remaining out of their household use shall be excused from entering the association under such restrictions as stipulated by respective tea associations. 190 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ArTicLE 7: The association shall establish a joint tea association (Rengo Kaigisho) in each Province or Prefecture at a convenient place for its purpose of unification between them, and also shall establish a central tea association (Chuo Kaigisho) at a convenient place in the whole country for the promotion of tea trade with foreign countries. ArTIcLE 8: Within the regulations stipulated herein, the association shall make respective agreements among associations for the. transaction of their business affairs. ARTICLE 9 (a): The agreements and budget of associations shall have the approval of the governor of the Prefecture concerned, and those of the central tea association shall have the approval of the minister of the department of agriculture and commerce; provided that, when all or a certain number of associations in more than two Provinces or Prefectures deem it necessary to join and make special agreements, they shall submit said agreements to the minister of agriculture and commerce in order to obtain his approval. n & SEcTioN II.—The association members. ArTicLE 10: No association member shall be allowed to do any money-making business in the name of the association. AxrTICcLE 11: Association members shall observe the agreements of assoclations, and members of the joint association in more than two Provinces or Prefectures shall observe the joint agreements thereof, and also they shall have the obligations to bear their respective expenses; the rate of their responsibility and the means of collection shall be fixed by the agreements. Section ITI.—Ofices. SEcTIiON IV.—Councils. J SEcTION V.— Agreements. ArticLE 37: The agreements of each association shall be determined by the committee appointed out of the members of the respective associations, acrording to the following items: The location of the association. The certificates of the association members. The means of supervising impure and unwholesome tea. Means of election of officers. Means of handling persons who enter and withdraw from the association. Means of assessment for expenses, collection, and outlay. Means of punishment of violators of the agreements. Other conditions necessary according to the ruling circumstances of the associations. ARTICLE 38: The agreements of a Joint tea association shall be determined by the council thereof according to the following items: The location of the joint tea association. Means of improvement of teas and enlargement of sales. The means of correcting evil practices exercised in the manufacture and yale of tea. The means of managing the affairs regarding respective associations and arbitrating difficulties and troubles among them. The means of election of the members of a joint council and the officers thereof. Rules relating to the joint council. The means of punishment for violators of agreements. The means of assessment for expenses, collection, and outlay. Other conditions necessary according to local circumtances. ArTicLE 39: The agreements of the Central Tea Association shall be determined by the council thereof according to the following iteins: The location of the Central Tea Association. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 191 The means of planning out the development of tea trade with foreign countries. The means of investigating the actual conditions of tea business at home as well as abroad and reporting the same. The means of election of the members of the central council and the officers thereof. Rules relating to the central council. The means of assessment for expenses, collection, and outlay. : Other conditions deemed necessary by the central council. SECTION VI.—Punishments. ArticLE 40: Violators of articles 2, 9, 10, and 11 of the regulations shall be liable to a fine of not less than 2 yen and not exceeding 25 yen. The above is the law under whose provisions the various tea guilds throughout the country are organized. There are, it will be seen, three classes of guilds; the local guilds, the provincial or prefectural guilds, composed of members elected from the local guilds; and the Central Tea Guild or Association, which is formed From the provincial or prefectural guilds, called joint tea associations in the law. Agreements of the Central Tea Association—The agreements of the Central Tea Association, or Central Tea Guild, as revised in 1913, are, in part, as below: Section I.—General rules. ArtIcLE 1: The Central Tea Association shall carry out the following bustaess for the purpose of developing the foreign tea trade: 1. The ways and means for the enlargement of sales of tea abroad. 2, The means of improvement for manufacturing teas. 3. The unification of joint tea associations and the associations in the Province or Prefecture where the joint tea association is not located. 4. The inspection of teas. 5. The investigation of the demand and supply of teas abroad. 6. Compiling and distributing statistics, yearly and monthly reports, and various other prints regarding tea business. 7. Other necessary business. ARTICLE 2: The Central Tea Association shall establish its office at No. 10 Sojuro-Cho, Kyobashi-ku, Tokyo, and a branch at Shidzuoka. Article 3: The fiscal year of the Central Tea Association shall begin on April 1 and end on March 31 in the following year. ArTICLE 4: These agreements can not be altered or repealed unless more than two-thirds of the attending members at the central council consent. SEcTION IL.—Means of enlargement for sales of tea. Article 5: The Central Tea Association shall carry out the business stipulated in Nos. 1 and 5 of Article I by establishing branch offices at important localities in, or by means of dispatching a commissioner to, the foreign countries, ArricLe 6: The Central Tea Association may practice the advertising in newspapers and the magazines for the enlargement of sales abroad, and also the distribution of sample teas. ArTicLE 7: The Central Tea Association may appropriate a certain amount of temporary subsidy to tea rooms abroad and to such organizations established for the enlargement of sales. Section III.—Means of unification and connection. ArricLE 8: A Joint tea association and tea associations in the Province or Prefecture where a joint tea association is not located shall investigate the following items in their districts and make the report every year to the Central Tea Association: 192 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, 1. The number of members of the tea associations and respective acreage ander cultivation of tea plants on the 31st of May. . 2. The kinds of teas manufactured, the quality of production, and the prices of each kind, for the whole year. 8. The kinds of teas sold to the foreign tea merchants by the natives, their guantity by pounds, number of packages, and the prices paid for each kind, for the whole year. 4, The kinds of teas exported to the foreign countries by the natives, the exporters’ names, and the quantity by pounds, number of packages, and the prices of each kind and the exporter, for the whole year. 5. The market conditions of the tea trade during May, June, and July. 6. The financial statement for the following year, and the work record during the preceding year of the joint tea association or the tea associations. 7. The altering or repealing of the agreements of a joint tea association, or respective tea associations under its control, or the tea associations in the Province or Prefecture where a joint tea association is not located, the measures taken against violators of the agreements, and also the outlines of facts of the arbitration of troubles. B. The other important affairs regarding tea business. The final term for the reports shall be as follows: The last clause No. 1, on the 31st of July; Nos. 2 to 4, on the 31st of January of the following year; No. 5, on the thirtieth day after each month mentioned is passed; the outlines of facts of the alterations of the agreements of No. 7 on the fifteenth day after they are acknowledged by the governor or reported to the same; the punishment for the violators of the agreements in No. 7, and the outlines of the facts of the arbitration of troubles on the thirtieth day after the violation or the trouble occurred. SectioN IV.—Supervision and inspection of teas. ArticLE 9 (a): The tea men are prohibited from manufacturing or dealing in such teas as are mentioned below: 1. Imitation teas made of leaves of a different plant or mixed with genuine tea as such. 2, Teas mixed with sand purposely in order to increase the weight and capacity. 8. Salted or decayed teas, or such teas refired or mixed into genuine teas with such. 4. Teas manufactured with sticky or coloring matters on leaves, or mixed into genuine teas as such. 5. Teas polished and faced with substance or mixed into genuine teas as such. 8. The imitation * zin,” made of tea dust. or mixed with genuine teas as such, : 7. Green teas dried without using a heat of fire, or mixed into genuine teas as such. 8. Brick teas mixed with sand, or incompletely pressed. D. Teas containing moisture more than 6 per cent of the whole quantity. 10. Teas similar to each clause mentioned above. ArTiCLE 9 (b): No members of a tea association shall be allowed to keep any coloring or facing matters to be used on teas in their own shops, factories, or tea storing places after the 1st of April, 1912. ArticLE 10: The Central Tea Association shall establish tea-inspecting offices at necessary places through the resolution of the central council. ArTIcLE 11: The packages of teas brought from several places in the country besides Formosa, Sakhalin, and Korea into the places where the tea-inspecting office is located must be strong in packing and have the gross weight, tare, and net pounds described on each package, and the invoice with the total of each lot describing the gross weight, tare, and net pounds shall be attached; provided that, as to the tea packages in jars, the invoice with the gross weight, tare, and net pounds described in each package shall be attached. ArTicLE 12: The tea-inspecting office must inspect teas other than refired teas brought from places besides Formosa, Sakhalin, and Korea to the teainspecting office, and also brick teas for export to foreign countries, and is required to investigate the tea market every month and make a report to the president of the Central Tea Association, and in case the tea described as refired tea is in doubt, or the refired tea is judged to fall under either clause of article 9, such teas may be Inspected. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 193 ARTICLE 13: The tea-inspecting office shall give a certificate for the teas inspected, except those objectionable under either clause of article 9. The quantity by pounds and the percentage of dust contained in tea packages may be mentioned in the certificate. ArTICLE 14: When the chief tea inspector or tea inspectors discover teas objectionable under either clause of article 9, they shall seize the same and report the details of the fact to the president of the Central Tea Association, the owners of the teas seized, and the joint tea association concerned, or the tea association in the Province or Prefecture where a joint tea association is not located. In case the owners of such teas seized make protest against the seizure, they may present the details of the protest to the president within 14 days after the day notified. The president shall take proper proceedings after obtaining the views of the chief tea inspector or the tea inspectors who made the seizure, showing them the details of the protest. In this case the president shall report the facts of his decision to the respective joint tea association or to the respective tea assopiation in the Province of Prefecture where a joint tea association is not located. ARTICLE 15: When the chief tea inspector or tea inspectors discover tea nackages on which the cargo tickets fixed by the joint tea association or tea associations are not used, or such tickets are re-used, they shall seize said packages and report the details to the owners of such teas and the joint tea association concerned, or the tea association in the Province or Prefecture where a joint tea association is not located, and on their request proper proseedings shall be taken. It is, however, provided that in case the owners of the tea seized or their agents put the cargo tickets on and offer security for indemnity determined by the chief tea inspector or tea inspectors for the violalion of the agreements the seizure shall be discharged. The chief tea inspector or fea inspectors shall secure the details relating to it and report it to the president without delay. ARTICLE 16: The officers of a tea association, a joint tea association, and the Central Tea Association, and the chief tea inspector, tea inspectors, tea examners, and the other staff connected with the inspection of teas can inspect personally at any time the tea belonging to or in charge of a member of a respective tea association; provided that in this case, they shall carry with them certificates showing their authority. When deemed necessary in the above case they can take away without compensation such teas, the imitated teas, or coloring or facing matters on teas needed for inspection. The tea association members can not refuse such a personal inspection or an act of taking away as mentioned in the above two clauses. The stipulations of the last two articles shall respectively apply in case of personal inspection under the first clause by the officers of the Central Tea Association or the staff connected with the inspection of teas. ArTIcLE 17: The inspection of teas at the tea-inspecting offices shall be made in each lot of packages according to the following rates; the special cases excepted: ¢ Packages less than 10, 1 package. Packages more than 10 and less than 50, 2 packages. Packages more than 50 and less than 100, 8 packages. Packages more than 100 and less than 200, 4 packages. Packages more than 200 shall be increased by 1 package for every 100 added. ARTICLE 18: The various rules for the inspection of tea shall be made by the president with the consent of the council. ARTICLE 19: The tea-inspecting offices shall not be liable for damages to tea packages while they are in charge of the officers. Section V.—Opices and officers. * * | J - Section VI.—Council. ARTICLE 26: The central council may have sessions of two kinds, namely, the regular and extraordinary meetings. The regular meeting is to be held in January once a year; provided that the president may change the time under a resolution passed at a meeting of the councilors. 97941 ®—pT 2—16—-18 194 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, The extraordinary meeting 1s to be held in the following cases: 1. When the president deems it necessary. 2, When more than three of the councilors or more than one-fifth of the memhers of the central council request a meeting, showing the purpose of the council and the reason for convening it. ARTICLE 27: The central council shall be convened by the president, and notice shall be sent at least 15 days prior to its assembling, to all the members of the central council, with the date, time, and place of the meeting. ARTICLE 28: The term of office of the chairman and the vice chairman of the central council shall be three years. ARTICLE 29: The traveling expenses and the board and lodging of the members of the central council shall be paid by this office, the said amount being determined by the council, Section VII.—Finance. ArTicte 80: The president shall determine the budget for every fiscal year ander a resolution of the central council. Items of the budget can not be interchanged and appropriated to other uses. In case circumstances require an emergency appropriation, it can be allowed by a resolution at a meeting of the councilors; provided that, in this case, a report shall be made to the minister of the department of agriculture and commerce after the resolution is passed and shall be put into the hands of the next council (central) for its acknowledgment. ARTICLE 81: The total amount of pro rata assessment and the assessment of the Central Tea Association shall be used for the expenditures of the association. : The amount of the pro rata assessment shall be assessed to the tea assoelations, The assessment shall be made for the tea packages brought from other places in the country besides Formosa, Sakhalin, and Korea into the places where the tea-inspecting offices are located, and also for the tea packages for pxport abroad from the places where the tea-inspecting offices are not located, and also for the packages of brick tea for export abroad; provided that, accord-Ing to the kinds of tea, the assessment prescribed herewith in this article may not be collected by a resolution of the central council. The standard for the collection of pro rata assessment and the amount of the assessment for one package of tea shall be fixed in the budget every year; provided, as to the assessment, in case brick tea exceeds 160 kin and other kinds of tea 110 kin, they shall be assessed as two packages. ARTICLE 32: The assessment for the imported tea packages as stipulated in the last article shall be paid by the consignee, in case he is a member of a tea association, otherwise by the consignor. ARTICLE 33: The pro rata assessment shall be paid twice a year, on the last day of September and of March, unless the day of payment is fixed by the president; provided that, if a joint tea association for convenience makes the proposition to bear the total sum of the pro rata assessment of the tea associations in its control, it can take the place of them by offering on the same appointed day for each half of the year the money for the pro rata assessment. ARTICLE 34: The assessment shall be collected by the tea-inspecting offices, and shall be paid on or about the 20th day of the month for packages of teas Imported from the 1st till the 15th of each month, and on or before the 5th of the following month for tea packages imported from the 16th till the end of the month, unless the day of payment is fixed by the president.’ ARTICLE 35: When the teas inspected at the place where the tea-inspecting office Is located are turned over to places in the country besides Formosa, Sakhalin, and Korea more than 20 days after inspection, the inspecting office thereof shall pay back two-thirds of the collected amount of the assessment for such tea packages according to the last several articles, and in case the collection has not been finished, shall collect the one-third of the amount to be assessed and collected according to the last several articles; provided that, in case the account may happen to have an amount below “sen,” the amounts not reaching five shall be omitted, and the amounts above five shall be entered as * sen.” ArticLe 86: The financial statement and work report shall be submitted to og i a council the following year, and the acknowledgment thereof shall obta. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 195 Section VIII.—Punishments. AxrTtrcie 37: When persons violate the provisions of article 9, second clause of article 9, or third clause of article 16, an indemnity of not less than 20 yen and not exceeding 1,000 yen shall be collected by the president of the Central Tea Association or the president of the joint tea association to which they belong, or the chief of the tea association to which they belong, and the articles connected with such violation shall be thrown away or dealt with properly, and the president of this office shall collect an indemnity of not less ‘han 3 yen and not exceeding 500 yen from the violators of other provisions, and shall charge them in accordance with the circumstances. , The president of either the central or joint tea association or the chief of the tea associations who take such measures as mentioned above shall report the Jetails of the fact immediately to the tea associations, the joint tea association concerned, or the Central Tea Association. The indemnity connected with the violation of the first. clause shall helong to the ny association, or the joint tea association, or the office that dealt with such, Section IX.—Miscellaneous rules. Agreements of the Shidzuoka-Ken Joint Tea Association.—The Shidzuoka-Ken Joint Tea Association is the most important member of the Central Tea Association. Its agreements (revised 1914) are, in part, given below: Section 1.—General rules. ArTicrE 1: The Shidzuoka-Ken Joint Tea Association shall have its office at 229 Otemachi, in the city of Shidzuoka. ARTICLE 2: The members of a tea association shall carry with them the certificates given by respective associations, and in case deputies are employed the deputies also shall carry with them their certificates when they travel and deal in teas. ArticLE 8: Even the tea men of other Provinces or Prefectures, when they are engaged in business in Shidzuoka Prefecture, shall enter the association. ARTICLE 4: The standard teas shall be settled in this office according to last year’s teas and, after the approval thereof by the governor, shall be made public by the end of March; provided that the detailed rules relating to the determination of the standard teas are to be settled separately. ArTicLE 5: The tea inspection business shall be intrusted to and carried out by the chief of each tea association, or this office shall conduct the same. ArticLe 6: The disposal of the unwholesome and impure tess mentioned in these agreements and the punishment for the violators of the agreements in these respects shall be carried out by the chief of the association where the violation occurred; provided that the disposal of teas imported from other Provinces or Prefectures and colored teas shall be carried out by this office. Section IL.—Manufacture and dealings. AxrTIcLE 8: The members of a tea association shall be prohibited from manufacturing or dealing in the following teas: Teas below standard. Teas dried in the sun, smoked by charcoal, roasted in pan, or prepared in a metallic tea roller, excepting the teas prepared by using a metallic roller with the sieve above No. 50 till the middle of the heating process, those prepared by the improved machine with an aluminium roller and also those prepared by hot-air furnace. Teas made in a8 machine in such a way as to be exposed to the direct flame of fire, Teas made in a cylindrical tea-leaf moistening and drying machine, commonly called “ peanut roaster,” and in similar ways, excepting when the process is im- 196 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. proved by use of the hot-air furnace. Besides the above, such unwholesome and impure teas as are deemed unhealthy to the human body or injurious to nonest dealers. ArTICLE 9: Persons who manufacture teas by means of machines shall do so in accordance with the following provisions: 1. Persons who use tea-manufacturing machines shall give a statement of the kinds and number whenever they buy or borrow machines of the Joint Tea Association through the tea association to which they belong, and in case the ase is suspended, the association shall be notified of the fact. . 2. The quantity of steamed leaves to be put into a machine shall not exceed the fixed quantity for which the machine is qualified, but the fixed quantity may in some cases be determined by this office. 8. An iron plate, porcelain lined or zinc plate, or similar equipment on the roller of the preparatory rough-rolling machine shall not be used, but the plate shall be changed and laid with bamboo or a thin wooden board. ¢. To prevent the scorching of teas, the plate shall be kept clean by sweeping it and taking off stuck things whenever the steamed leaves are put in. 5. The rolling part of the machine must be washed daily while in use, and the stuck things must be taken off. 8. Using machines deemed unsatisfactory by this office shall be prohibited. ArticiE 10: Putting raw leaves on the floor, or exposing steamed leaves or the rolled teas on the roadside or under the eaves of a house where the dust an easily be mixed with them shall be prohibited. ArricLE 11: The manufacturers of teas shall be required to have a drying furnace made with a capacity of more than three against ten of the heating furnace (two against one tea manufacturing machine), excepting when ansther drying process is used. ARTICLE 12: Mixing the new teas made prior to the 30th of May with the old teas reserved, or making dishonest packings, or mixing the teas with dust shall be prohibited. ArtICLE 13! In the case of teas to be exported to other Provinces or Prefectures, as well as to foreign countries, the tea association members shall be required to place prominently on the packages the following cargo tickets issued by this office: Red cargo tickets—for the teas to be shipped to an open port. Exporting cargo tickets—for the teas packed for export to foreign countries. Blue cargo tickets—for the teas to be shipped for the home trade, including Korea and Manchuria. ARTICLE 14: Teas shall be packed for shipment in chests, tin cans, and brown double paper bags; provided that the use of a cloth bag is allowed only in dust teas. Article 15: Teas for export from the prefecture shall be packed in chests, except in the following kinds of teas: The rare teas, early picked and manufactured, packed in quantities of less than 8 kamme. The dust teas and “ Kawayanagi” tea. The teas to be directly transported to one’s own refiring factory. ARTICLE -16: The capacity of a tea chest for transportation from this prefecture to another province or prefecture shall be limited to not more than 6 cubic shaku and 5 bu, and packages for shipment to points within the prefecture shall be limited to not more than 16 kamme in capacity; provid-Ing that teas exported abroad shall be packed in such usual method as has been previously adopted. Section IIL.—Supervision and inspection. ARTICLE 17: Several tea inspecting offices and inspectors shall be established at places necessary for the supervision of teas; provided that the location of the inspecting office and the number of inspectors and also the appointment and discharge of same shall be determined by the president. Artic 18: The inspectors shall oversee the work of the tea association members, and in case violations of the agreements should appear, notice of the details of the circumstances thereof shall be sent to the tea association concerned ; provided that, in case of the violation of article 13, notice shall also be sent to this office. Article 19: When the inspectors discover teas of the qualities stipulated in article 9 of the agreements of the Central Tea Association, and article 8 of SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 197 the agreements of this office, they shall hold such teas in seizure and immediately notice shall be sent to this office or to the tea associatiofr concerned, with samples of the teas seized; provided that, in case the chief of the tea association concerned and the inspectors differ in their findings as to the seized articles, the president of this office shall have the power of giving final decision thereon. ARTICLE 20: The members of a tea association can not refuse to permit inspectors to inspect teas and to enter the factory or storing places when deemed necessary. ARTICLE 21: As to the teas seized by the inspectors, this office shall have no responsibility for any indemnity for charges accrued against the articles, for damages sustained by the packages, or for loss caused by the fluctuation of the market price. SECTION IV.—Arbitration of difficulties. SECTION V. ArTIcLE 26: The regular council meeting shall be Leld in February every year, and a special meeting shall be called at the will of the president or by the proposal of more than one-half of the members; provided that, in some vases, the date of the meeting can be changed. ARTICLE 27: The following are the items to be discussed at the council: First clause. To give answers to inquiries by the Government regarding the tea business, and to make petitions and proposals to the authorities. ’ Second clause. To plan out the means for the improvement and progress of the tea business and also for the enlargement of sales of tea. Third clause. Matters regarding the agreements of this office. Fourth clause, The budget of this office. ‘ Fifth clause. The examination of the work record and the financial statements of the previous year. ARTICLE 28: The term of the counci. shall be five days for the regular meet-Ing, and two days for a special meeting; provided that, in some cases, the duration may be prolonged or shortened. ARTICLE 29: Seven members of the standing committee and one finance superintendent shall be elected by the members from among their number; the standing committee shall consult with the office regarding the carrying out of the important business policies, and shall assume responsibility therefor, and the finance superintendent shall make examination of the finances, and when deemed necessary he may call for the advice of the standing committee. ARTICLE 30: From each respective tea association the following definite aumber of members of the council shall be elected and shall present themselves at the council meetings: Papr- «=Kamo-Gun Tea Association ___________________________________________ Tagata-Gun Tea Association .______._____ mem Sunto-Gun Tea Association comme __________ fuji-Gun Tea Association._..__._____. [wara-Gun Tea Association __ oo. ______________________ Abe-Gun Tea Association._______________________ Shidzuoka-City Tea Association. ________________________ ___________ Shida-Gun Tea Association __________________ Haibara-Gun Tea Association. ooo _________________ Ogasa-Gun Tea Association __________________________ ______________— [wata-Gun Southern Part Tea Association ____— oo __ [wata-Gun Northern Part Tea Association______ Shuchi-Gun Tea Association___________ Inasa-Gun Tea Association_.______ ____________________ Hamana-Gun Hamamatsu City Tea Association. _____ oo _____ Tea Refirers’ Association. ____.____________ __ _______ ______ ______ Total cue. | 198 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ArTicrE 81: The membership is limited to those qualified in either of the following capacities at present and in the future: Persons who own or cultivate more than 8 tanbu of tea gardens. Persons who manufacture more than 3,000 kin of tea. Persons who deal in tea to the extent of more than 20,000 kin. Section VI.—Offices. * * * SEcTioN VII.—Punishments for violators of agreements. aie 38: Members who violate article 2 shall be liable to a penalty of sen. ARTICLE 39: Members who violate article 8 or cause their employees to do so, whether knowingly or not, shall be liable to a penalty of not less than 1 yen nor exceeding 20 yen, and also such articles shall be forfeited, burned, or subjected to the proper disposition. ARTICLE 40: Violators of article 9 from the first to the fourth clauses, articles 10, 11, and articles 14-16, shall be liable to a penalty of not less than 20 sen nor exceeding 1.90 yen. : ARTICLE 41: Members who fail to pay the tea association dues without any reason shall be liable to a penalty of five times the amount. ARTICLE 42: Persons who violate article 13 shall be liable to a penalty of 20 times the fixed amount. ARTICLE 43: Persons who do the acts prohibited in article 12 shall be liable to a penalty of 1 yen and 90 sen, and also in case the old tea is mixed the dealings prior to the 80th of May shall be suspended, and in case the dust is mixed the tea shall be cleaned. ARTICLE 44: Persons who refuse to submit to the punishment prescribed in the foregoing articles shall be reported to the authorities. ARTICLE 45: When the imported teas from other Provinces or Prefectures are found to be objectionable under article 8 and also article 9 of the agreements of the Central Tea Association such tea shall be forfeited, burned up, or shipped back to the consignor. Section VIIIL.—Finance. ARTICLE 46: The fiscal year of this office shall begin in April of the year and end in March of the ensuing year. ARTICLE 47: The expenditures and cargo tickets of this office and of each tea association shall be assessed pro rata and shall be made according to the circumstances of the tea association concerned. The collection may be made separately by a resolution of the committee. ARTICLE 48: The final day for the report of the receipts and expenditures of this office for every fiscal year shall be the 30th of June of the following year. ARTICLE 49: The pro rata assessment shall be less than 20 sen, and the cargo tHckets in red shall be 15 sen apiece, 10 sen apiece for the export tickets for foreign countries, and 18 sen for the blue cargo tickets; provided that 12 more sen is added for the time being to the blue, thus making the total 30 sen. ARTICLE 50: The pro rata assessment shall be collected at the time of the delivery of a certificate at each tea association, and the prices of cargo tickets shall be collected from the persons who use them; provided that, at the time of the marketing of tea, the buyers shall receive 2 sen; for the time being 3 sen per 1 kamme from the sellers for the price of cargo tickets. ARTICLE 51: The standard assessment for tea-making machines used in respective associations shall be 1 yen per set. It may be, however, distributed according to the kinds and sizes of the said machines, or it may be apportioned according to the circumstances of the association concerned. ARTICLE 52: When each tea association handles respective cargo tickets, the amount thereo? shall be paid immediately to this office. ARTICLE 53: In case the purchase of other cargo tickets is requested of this office during the season, they shall be used only before the close of the following fiscal year, and after such term is passed, this office will not redeem the same. ARTICLE 54: No amount of appropriation allotted to a tea association shall be ased for other purposes than those stipulated, except for work and office expenses, ARTICLE 55: When ‘this office is obliged to make an extra outlay besides the Axed amount, or requires to interchange the appropriation stipulated in the items of expenditure, it shall be done by resolution of the standing committee; in such cases, however, the proceedings, together with the closing account, shall be reported to the regular council of the following year; provided that no salaries can be interchanged or increased. SPECIAL REPORTS FOR FEDERAL TRADE COMMIssioN, 199 ARTICLE 56: The office is allowed to raise a loan only by resolutions of the rouncil ; provided that a temporary loan during the current fiscal year can be made under a resolution of the standing committee. These laws and agreements under which the tea guilds of this country operate are given in detail, because they show the manner in which all guilds operating in this country are organized and conduct their business. Other conditions—The other guilds of importance, organized under the law permitting the combinations of business men now in existence in Japan, are— The Matting aed Guild, Kobe. The Guilds of Manufacturers of Marine Products, Yokohama. The Guild of Stock Breeders, address care the Department of Agriculture and Commerce, Tokyo. There are no international syndicates o erating in Japan whose operations are known to the public. The Guild of Raw Silk Manufacturers, Sellers, and Brokers might be said to have an international character, but no information bearing on this feature of its organization is to be obtained here. The Homeward Shipping Conference Syndicate, of all shipping companies doing business in this country, is organized on the plan of the British shipping conferences. CHOSEN (KOREA). . ! Special report of Consul General Ransford S. Miller, Seoul, Chosen (Korea), November 9, 1915. There are no important cartels, syndicates, or combinations of manufacturers native to this country engaged either in export or in the domestic trade. The chief wealth and industries are mineral, agricultural, and marine products. The manufacturing industries are still in a primitive state, the greater part being carried on by hand and in the homes of the people so engaged. Obviously, the stage of combinations on any large scale has not yet been reached in the native industries or export trade of Chosen, The nearest approach in Chosen to the subject of this special report would seem to be the various undertakings carried on by the Government itself. These comprise the following, the estimated income from each for the fiscal year ending March 31, 1915, being added for reference: Description. Rwy. cuvepimmmenposponpunen wow 2osts, telegraphs, and telephones. .e..veeeeeicnnncacnns.. Teijo (Pyong-yang) coal mine. ...c..ceeueen-cennnenn .rinting office... - Waterworks...... Veights and mea—1ree. Jinseng monopoly. . Jalt manufacture.. Jpium monopoly. wwe Lumber undertaking.... Porest Products... ...coceeeesceannecenns Publication of textbooks and calendars. ... Hale of State properties.............. Sale of articles made by convicts. . Imad cssnossnannsetmeenT~ Coal. ccecnncnconns. Estimate for fiscal year 1814-15. 84, 805, 687 1.856, 216 469,159 188, 827 207.043 107,853 832, 609 134,156 64,146 72, 456 33,771 4,235 10.094 08. 929 8, 725, 158 200 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Of the above, those that might possibly fall within the scope of this report are presumably the manufacture and sale of weights and measures, ginseng, salt, and lumber. A brief account of each of these undertakings, based on Government reports, is accordingly given below: Weights and measures—The weights and measures to be used in Chosen were regulated by a law promulgated in 1909, which provided that all denominations and units of weights and measures must be similar to those in use in Japan proper and that the manufacture and sale of weights and measures was to belong exclusively to the Government General, but weights and measures examined and approved by the Japanese Government might be imported and sold in Chosen with the approval of the Government General. The weights and measures manufactured by the Government were to be sold through licensed agents. This law is strictly enforced, and while a limited number of scales and measures are imported from abroad, with the consent of the Government, for use in private hospitals, their importation or use for purposes of trade is not permitted. Ginseng monopoly—The ginseng monopoly was established in 1899 by the ay household of the former Korean Government, was made a State enterprise in 1907, and was regulated by the ginseng monopoly law promulgated in 1908. Under the provisions of this law the manufacture of medical ginseng belongs exclusively to the Government, all products of ginseng used for medical materials are to be purchased by the Government, and the cultivation of ginseng is allowed only to persons who have received permits, and then only in such areas as are approved by the Government. The cultivation of the product is encouraged by prizes and by advancing capital on the security of the crops. The sale of the product was formerly made by public tender anaually, but as this was found to result in an undesirable fluctuation of prices, the term was changed from one to five years. The average prices paid by the contractors (the Mitsui Co.) for the five years ending in 1914 were $30.94 per Za for the best quality—and from $13.60 to $21.88 per pound for the lower grades. The amount of ginseng exported in 1914 was $245,325, of which $244,917 went to China, where it is in great demand and commands superior prices. Salt manufacture~The amount of salt consumed in Chosen exceeds 400,000,000 pounds per annum, of which formerly above 330,000,000 pounds was of domestic production, crude in quality and relatively high in cost. The Government decided, in 1909, to undertake on its own account the manufacture of salt by the natural evaporation method as well as by the Japanese system of boiling. Evaporation basins covering an area of 6,125 acres and capable of producing 400,000,000 pounds per annum were accordingly projected and were partially completed (2,526 acres) in 1912. The capacity of the basins already completed, when fully ripened, is 132.000.000 pounds per annum. Timber undertaking.—The timber undertaking along the upper reaches of the Yalu and Tumen Rivers was originally (from 1907) conducted as a joint enterprise of the Korean and Japanese Governments with a nominal capital of $5,976,000. After annexation this timber undertaking was placed under the control of the Government SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 201 General of Chosen. A few sawmills were erected, the lumber being used for the construction of military barracks, for sale to private parties, and for export. The results, however, have not been either conspicuously large or successful. The imports from Japan, China, and the United States amounted to $843,724, of which $69,203 was from the United States and $663,149 from Japan proper. Foreign combinations—1t should be noted in general, that commercially Chosen (Korea) is but an outpost of Japan proper. Most of the important business connected with this field is conducted in Japan, the principal companies being represented here only by branches or agencies. Accordingly only ‘the conditions peculiar to Chosen are treated in this report. The combinations foreign to this territory operating in Chosen may be divided into two classes, viz, private and government or semigovernment. In the first class are the Standard Oil Co., of New York, the Rising Sun Petroleum Co., of Japan, and the Nippon Oil Co., of Japan, all dealing in oils; and in the second class are the tobacco monopoly of the Japanese Government and the South Manchuria Railway Co. (semigovernment), the latter supplying locomotives, cars, and railway materials. 0il.—The Standard Oil Co., of New York, maintains a foreign staff of five members and a proportionate number of native clerks, with headquarters at Seoul. The Chosen branch is under the direct control of the main offices for Japan, which are located at Yokohama. The trade of the Standard Oil Co. is chiefly in the superior grades of kerosene (those having a specfiic gravity of more than 0.73), which is imported from the United States in large, special shipments three or four times a year, thus reducing the freight charges. The oil is placed upon the market through native middlemen, who purchase it upon a secured credit basis. Although the prices charged by this company are roughly 10 or 15 cents per case higher than the prices of their competitors, yet, through a perfected system of organization and careful control of the field, it has been found possible to secure and hold about four-fifths of the total oil business done in the country. The amount of business done by the company in Chosen has averaged about $1,500,000 per annum during the past five years. The only competitors of the Standard Oil Co. in this field are the Rising Sun Petroleum Co. and the Nippon Oil Co. The former company is subsidiary to the Asiatic Petroleum Co., an English corporation dealing in the Borneo and Sumatra oils, and was organized in Japan by the parent company to handle its products there. The Nippon oil Co. 1s a Japanese corporation handling only the Japanese oils and has only within the past year or two so extended its business in Chosen as to be considered a competitor of its forerunners in the field. The competition of these two companies has up to the present been confined to the lower grades of oil, although recently increasing stocks of the superior qualities have been coming from Japan. At present the Japanese product has no decided advantages other than lower freight and insurance charges, inasmuch as the Chosen customs duties now apply equally to Japan and other countries, as notified by the Japanese Government in its declaration on annexation of August 29,1910. In another five years (August, 1920), however, Chosen will regain its tariff autonomy and a schedule more favorable to the Japanese product may confidently be expected. 202 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. In the post rate wars between competitors have been fairly frequent and sustained. Such conflicts have generally been composed by all the competitors joining in fixing a schedule of rates which will enable each to do a share of the business. So far as conditions in Chosen are concerned there is no reason why other independent American producers should not successfully compete with the Standard Oil Co. Such competition would, however, involve the maintenance of a competent organization on the field and a preparedness to meet strong competition in prices, a condition which, as noted above, will tend to increase rather than decrease in the near future. Tobacco—The tobacco monopoly of the Japanese Government operates in this field to a limited extent through the Toa (East Asiatic) Tobacco Co. (local) as sole agents. The monopoly enjoys no known special advantages at present in Chosen, since the same import tariff and the same local regulations apply to its products as to others. It has been supposed that the Toa Tobacco Co. received some special rebates as agents of the monopoly, but this has not been established. As a matter of fact, several independent Japanese tobacco companies are successfully competing with the monopoly. [ts chief competitor up to a year ago was the British American Tobacco Co., which maintained a considerable foreign staff in Chosen and a factory. The factory was closed and the foreign staff withdrawn in July, 1914, but as a consequence of the enforcement of a consumption tax law, with rigid inspection of accounts and manufacturing methods, rather than as a result of the monopoly’s competition. The British American Tobacco Co. continues operations here only in a small way through local agents, having confined its main activities to the Chinese field. A few figures may serve to make clear the scope of the operations of the tobacco monopoly in Chosen. The total value of the output of the tobacco ie industries of the country for 1914 was approximately $2,000,000. The amount of exports, principally to China, was $188,842, of which $130,854 was cigarettes of cheap quality. The total imports for the year, including the monopoly products, was only $87.599 ($81,970 cigarettes). From these figures it will be seen that the monopoly as yet does not dominate the market, but that the competition of local and private industries is still keen and effective. The South Manchuria Railway Co—The South Manchuria Railway Co. (semigovernment) has recently appeared in Chosen at one point, the supplying of locomotives for the Chosen railways. As the activities of this company in this field will doubtless steadily increase, the following description of the company is taken from the Japan Yearbook (1914): The capital is 200,000,000 yen, divided into 1,000,000 name shares of 200 yen sach, one-half of the capital being represented by the Manchuria Railway and pecessories and the coal mines at Fushun and Yentai belonging to the Japanese Fovernment, which therefore owns 500,000 shares. The remaining shares were sffered to Japanese and Chinese subjects, for which 60,000,000 yen have been »alled in. The Government guarantees the profit of 6 per cent on the paid-up capital for 15 years and refrains to claim dividend for its shares when it does not come up to 6 per cent. The Government guarantees the payment of interest, or, if deemed necessary, of principal, of the debentures within the limit of 100,000,000 yen, which the company may issue, subject to the approval af the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 208 Government. In 1913 the company obtained approval of the Government to jistribute dividend of 7 per cent, and in the following year that of 8 per cent. The company is paying dividend of 2% per cent to the Government shares of 100,000,000 yen.' . Company’s enterprises: ‘Besides railway business the company is engaged in these enterprises, viz, shipping, harbor, colliery, gas, electricity, hotels, exploitation of the railway zone, and experimental laboratories. While no reference is made in the above quotation to the company’s workshops, an examination of its capital account shows an expenditure of $3,019,872 for that purpose. In a uecent instance, when locomotives were needed for the Chosen railways, the tenders were limited to three Japanese companies, including the South Manchuria Railway Co., which received the order. Notwithstanding the fact that some 200 out of 208 locomotives now in use on the Chosen railways are of American manufacture, the representative of a prominent American firm, who was on the ground, was not allowed to bid. The South Manchuria Railway Co. was, however, unable to fill the contract without ordering a large number of parts from the American firm. Direct competition by American manufacturers under such conditions, in which orders are placed by the Government with semigovernment concerns, regardless of price, is manifestly out of the question, although some business may be done, as in the instance above quoted, along a different line. As the company’s workshops are equipped with Emerican machinery to turn out the various kinds of rolling stock and railway equipment, the outlook for American competitors in these lines is not bright. Judging by the import returns, the only other lines of trade in which the operation of combinations might be looked for are the cotton goods and machinery schedules. As to cotton goods, while the activities of the Japan Cotton Spinners’ Association are undoubtedly increasingly felt in this field, particularly by their chief competitors, the British, the said association, as its name implies, appears to be a confederation of cotton manufacturers for certain specific purposes rather than a syndicate or combination of capital. (The history, organization, and methods of the Cotton Spinners’ Association are fully described in Special Agents’ Series No. 86, Cotton Goods in Japan, published by the Department of Commerce.) As to mashinery, no known combinations are operating here other than the South Manchuria Railway Co., above referred to. Government attitude toward industry.—There are no important international syndicates or combinations operating in Chosen, nor any known combinations of buyers, unless in the latter category might be included the various branches of the Chosen Government General, which are the chief purchasers of railway materials and building supplies. The only field (other than Christian missions) in which foreign capital is invested to any extent are the gold mines, the more important of which are owned and managed by Americans. On the other hand, the Government owns and operates the railways, and has taken over the direct control of a number of the more productive industries, as noted above. The principal construction works, such as harbors, roads, and public buildings, are controlled by the Government, a large proportion of such works being paid for | The ven is equivalent to $0.498 United States gold. 204 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. by Government subsidies rather than from local sources of taxation, ste. The principal steamship companies and routes are subsidized, and the largest bank (the Bank of Chosen) is a semigovernment concern. For the purpose of promoting the technical industries of the country the Government has established a technical industrial training institute in Seoul, where weaving, dyeing, ceramics, metal and wood work, and applied chemistry are taught; it has established a central chemical laboratory for testing materials and processes for industrial purposes; industrial training schools have been established in various Provinces, at Government expense; and subsidies are granted by the Government to industries and associations engaged in industrial education or in certain local industries, such as weaving, paper making, matting, bamboo work, and pottery. CHINA. Special report rendered by William B. Webster and approved by the American minister, Paul S. Reinsch, Peking, China, January 15, 1916.. No attempt has been made to give detailed information concerning any territory but that of China proper, but much of the general information given herein will apply to Manchuria as well. Nrganization of domestic trade of (hina.—Generally speaking there are no important cartels, syndicates, or combinations of manufacturers native to China. It is not normally an industrial country, and is not likely to become one for many years. The manufacturing industries of the country are still in a primitive state, the greater art being carried on by hand in the homes of the people so engaged. The large manufacturing plants are few in number. The most important are cotton, spinning, and weaving mills, 48 in number, of which 38 are Chinese. There are 27 docks, shipbuilding, and engineering works; 62 distilleries, breweries, and aerated-water works; 39 electric light plants; 41 flour mills; 18 glass and porcelain works; 19 match factories; 34 oil mills; 54 printing and hthograph mills; 20 sawmills; 25 soap and candle works; 18 cement and brick factories; 9 ice and cold-storage plants; 3 steel and iron works; and others, numbering in all about 600 plants of relative importance. There are very few railways in China for such an extensive territory, but there are now about 6,000 milex open to traffic, with 32 lines. There are 2,000 miles more under construction and some 8,500 miles projected. Of the 6,000 miles in operation, about 5,000 are owned and operated by the Government, 100 privately owned, and 300 are provincial lines. There are, however, certain classes or combinations of merchants and dealers in China who play a very important part in the control of prices, products, wages, etc., and who will have to be taken into consideration by any importer or manufacturer in this country. These are the “ guilds.” There is no trade which has not its guild of manufacturers, buyers, and sellers. There are bankers’ guilds, the tea guild, the silk guild, the piece-goods guild, and others. Many have their headquarters in the principal provincial cities and towns. Their rules and by-laws form the commercial law of China, which is enforced between the mem- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 205 bers, and the local courts will even observe these rules between nonmembers. Each guild adopts its own standards of weights and measures. These combinations, or close corporations of traders, have great influence on all questions. They are able to control all traffic in their particular fields, and can force all undesirable competitors out of the market. All prices are adjusted by them to a limited ,extent, and the old East India Co. has testified that in 23 years their net loss on British products shipped from England to Canton was £1,668,103, because of the absolute power given to the members of the guild merchant at Canton to fix prices, with no check from free competition. With the exception of the guilds and their operations, as already described, there are probably no combinations of buyers of the different lines of American goods in this country. Besides the ownership of railways, as already shown, the Government has a complete monopoly of the production and sale of salt in China. The consumption of salt here amounts to over 1,488,000 tons annually, for which the people pay 81,000,000 taels. The Govsrnment received about $60,000,000 Mexican in revenue from this source in 1914. The retail price of salt has varied from 25 to 60 cash per catty (13 pounds). The importation of foreign salt is prohibited by treaty. Foreign combinations in China.—To properly understand this section it will be of value to note the following statistics: Directly prior to the outbreak of the war, when trade was normal, the annual proportion of the value of imports into China amounted to 56 per cent from the British Empire, 5 per cent from Germany, 20 per cent from Japan, and 6 per cent from the United States. The percentage accredited to England is a little high, due to shipments to England and Hongkong from other countries, and from Here being transshipped to China. However, the large proportion of the import trade is with England. Of these four countries, the Japanese had 1,269 firms in China (mostly small merchants) and 80,219 residents, America had 131 firms and 5,340 residents (mostly missionaries), Germany had 296 firms and 2,949 residents, while the British had 590 firms and 3,966 residents (largely traders). The preponderance of British influence in the Orient can thus be easily seen. There are several very powerful combinations of English manufacturers and engineers who have great influence over the Chinese imports. The largest of these is the British Engineers’ Association. Full details concerning the organization, personnel, and object of this concern is set forth in the inclosed pamphlets of 1913 and 1914 telling about this association. (NoTe.—For excerpts from these pamphlets see pp. 208 to 215 below.—Federal Trade Commission.) Another of these importers’ syndicates recently formed is the Chinese Engineers’ Association (Ltd.). This is under the leader: ship of Mr. Arthur J. Moore Bennett, a man of wide experience in the commercial Orient, who has become its manager. The London address of this new association is 88 Fenchurch Street, E.C. Its principal purpose is to secure an outlet for British-made machinery and the products of the firms represented, who compose many of the firms given in the list under the British Engineers’ Association. Still another of these British importers’ combinations is the Representation for British Manufacturers (Ltd.), which company is 206. REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. composed of such important manufacturing firms as Cravens (Ltd.) ; Dorman, Long & Co. (Ltd.) ; Thos. Firth & Sons (Ltd.) ; Sir William Arrol & Co. (Ltd.), ete. It is not a trading concern; its sole object is to establish and maintain staff representatives in certain Asiatic ports for the sale of manufactures. It thus combines the features of an agency or propaganda and a selling organization. The Germans shortly prior to the outbreak of the war were instituting similar import combinations. The Export Verband of Germany is an illustration. This company had started an organized effort of trade propaganda. It was an agency of represéntation for discovering and investigating trade opportunities and guiding manufacturers in Germany in their competition with foreign enterprise. International combinations.—The international cartels, syndicates, or combinations which engage in business in China are mainly banks or institutions created for loaning purposes or carrying into effect the terms of the loan given. The greatest of these is the Hongkong-Shanghai Bank, which was incorporated by special ordinance of the legislative council of Hongkong, July 20, 1867, and confirmed by her late Majesty’s Government. It has a capital of $15,000,000 Mexican, a reserve of $32,000,000 Mexican, and has branches in all the large cities in India, China, and Japan. Up to 1905 the operations of the bank were practically confined to exchange business, but, from 1905 on, the policy and proceedings of the bank were completely changed. All the large British rallway and governmental loans have been made through its Peking agency. The English concern, Jardine, Matheson & Co. (Ltd.), are the fiscal agents and business partners for the Hongkong-Shanghai Bank, and up to 1905 the political side of the operations of that bank was handled entirely by this firm. It took charge of the expenditure of the bank’s loans on railways, and in handling such business it secured a 5 per cent prciasyy commission. This concern, as merchants, represents 25 firms, while in their engineering department they are the sole agents for some 26 manufacturing establishments from the different parts of the world. An outgrowth of the connection of the Jardine, Matheson & Co: combining with the Hongkong-Shanghai Bank is the British & Chinese Gorporation (Ltd.), or sometimes called the Chinese Central Railways (Ltd.). This is an Anglo-French syndicate formed in 1898 in view of German competition with the English loans in the Yangtsze Valley, and it was used by the British for the purpose of nndertaking railway and financial Hor ho north of the Yangtsze River. To this syndicate was intrusted the carrying out of some of the valuable concessions obtained by the British Government. The German financial interests are represented in China by a branch of the Deutsch-Asiatische Bank, which began to exert influence in 1895, at which time, by agreement with the Hongkong-Shanghai Bank, it secured a share of the British loans in the Yangtsze Valley, and by 1909 effective control of the loan funds in the case of the Tientsin-Pukow Railway. This bank used several large German firms as its fiscal agents in China, such as Carlowitz & Co., import and export merchants, and Diederichsen & Co., Government contractors. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSIO* “Wf gl *nugh & “hg 0 the— Similar financial work is done by the Russian Governmend + the branch of the Russo-Asiatic Bank in Peking, which ac financial agent of that Government and operates directly unc _ instructions of the Russian minister of finance to further the interests of Russia in China. The big competitor of the Standard Oil Co. in the Orient is the Asiatic ; Fs Co. (Ltd.), an English concern with its head offices in Shanghai and Hongkong and 13 suboffices in the principal Chinese cities. All agencies have tanks installed, while 135 agents work in north China and 95 in south China. Most of the oil is secured from the Dutch East Indies and British Borneo, where this company is allied with the Dutch and the Shell interests, who are the oil L proquose. oreign investments in China.—This section of the questionaire is without doubt the most important one, as far as China is concerned. There are a multitude of foreign interests in this country with their different nationalities and conflicting claims, special rights, spheres of influence, privileges secured through treaties, large loans or immense investments. No estimate of the amount of foreign capital invested in China has ever been made; but it is generally admitted that the British have about £500,000,000 invested, mostly in the Yangtsze Valley. The total amount of the long-time foreign loans and indemnities, exclusive of the sums raised for the construction of railways, is about $700,000,000 gold, while the short-term loans will add about $100,-000,000 gold to this total. There has been a practice of insisting upon effective supervision of the expenditure of who loans. Therefore, usually when a foreign loan is made to construct a particular railroad or mine, the engineer if charge of construction is of the same nationality as the source of the loan. A study of China’s foreign railway agreements will disclose the manifold rights which foreign financiers and engineers have secured in this very important phase of Chinese political and economic life. All of these activities of foreign Governments and financial agents do and will without doubt affect the importation into China of particular lines of goods from the United States and the investment of American capital in this country. Recently, Messrs. M. Samuel & Co. negotiated a loan for the development of Hankow with the Chinese Government. ‘L'his agreement called for the issue of a series of bonds to a total amount of £10,000,000 for the development of Hankow. Preference for British materials was provided for, and the London office of Messrs. M. Samuel & Co. were to act as agents for the supply of the materials required. Governmental development of Chinese export trade—The activities of the Chinese Government to foster the foreign trade of its manufacturers has only been of recent growth, and consequently has not reached large proportions. The Government has lately instanced a tendency to encourage industrial production by the creation of a commercial and industrial commission, under the ministry of agriculture and commerce, which is to study and to aid, as much as possible, the organization and development of industries in China. As a consequence of this policy, there has been formed recently a Chinese tea 208 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, association by the tea merchants of China, under the direct sanction of the above ministry. Its essential project is to further the sales in foreign countries. It is to organize a special bureau to fix prices for the different varieties of tea, to establish branch selling shops in all the important foreign cities, and to unite all the tea merchants in all Bis Poviness to secure a uniform method of carrying out the tea usiness. THE BRITISH ENGINEERS’ ASSOCIATION. (32 Victoria Street, Westminster, S. W.) [Bxcerpts from Yearbook, June, 1913.} THE COUNCIL. President: Mr. Douglas Vickers. Vice presidents: Mr, T. O. Callender. Sir Robert A. Hadfield, F. R. 8. Mr. Herbert Marshall. The Rt. Hon. Sir William Mather, P. C., LL.D, Sir John I. Thornycroft, LL.D., F. R. 8. Chairman of executive committee: Mr. Wilfrid Stokes (Ransomes & Rapier, Ltd.). Other members of council: Mr. H. Allcock (W. T. Glover & Co., Ltd.). Mr. Arthur Balfour (The Eagle & Globe Steel Co., Ltd.) Mr. William Brow (Edward Wood & Co., Ltd.). Mr. W. Collingwood (The Vulcan Foundry, Ltd.). Mr. R. BE. Commans (Sandycroft, Ltd.). Mr. Percy B. Crowe (W. H. Allen, Son & Co., Ltd.). Mr. J. E. Darbishire (The Hydraulic Engineering Co., Ltd.). Mr. £. R. Davenport (Willans & Robinson, Ltd.). Mr. W. H. Dixon (Hadfield’s Steel Foundry Co., Ltd.). Ar, James Downs (Rose, Downs & Thompson, Ltd.). Tr. I. Cunningham Ford (T. Cooke & Sons, Ltd.). “fr. Stephen Garrett (Richard Garrett & Sons, Ltd.). ‘fr, . B. Hunter (Swan, Hunter & Wigham Richardson, Ltd.). ‘Ir. Stainer Hutchins (The Power-Gas Corporation, Ltd.). Mr. 3dward Jackson (Midland Railway Carriage & Wagon Co., Ltd.). My, Arthur Jacob (The British Aluminium Co., Ltd.). Mr. Jhristopher James (Joshua Buckton & Co., Ltd.). Mr. H. Norman Leask (Heenan & Froude, Ltd.). Mr. R. S. Lloyd (Hayward-Tyler & Co., Ltd.). Mr. doward Marsh (George Fletcher & Co., Ltd.). Mr. W. W. Melville (E. Green & Son, Ltd.). Mr. Lewis H. Ransome (A. Ransome & Co., Ltd.). Mr. Charles S. Schultz (Dick, Kerr & Co., Ltd.). Mr. Arthur H. Smith (Holman Bros, Ltd.). Mr. Clarence Smith (T. & W. Smith, Ltd.). Mr. T. Cuthbert Stewart (Stewarts & Lloyds, Ltd.). Mr. Philip Thaine (Vickers, Ltd.). Mr. John E. Thornycroft (John I. Thornycroft & Co., Ltd.). Mr. Thomas Woof (Alfred Herbert, Ltd.). Commissioner in China: Capt. T. C. Fitz Hugh, M. V. O. Secretary: . - Mr. Stafford Ransome. NAMES AND ADDEFSSES OF MEMBERS OF THE ASSOCTATIONS Adamson, Joseph, & Co., Hyde, Cheshire. Allen, Edgar, & Co. (Ltd.), Imperial Steel Works,-Sheffield. Allen, W. H., Son & Co. (Ltd.), Queen’s Engineering Works, Bedford. 1 Thig list 1s from a publication of the association. dated 1914. SPECIAL REPORTS FOB FEDERAL TRADE COMMISSION. 209 Alley & MacLellan (Ltd.), Sentinel Works, Polmadie, Glasgow. Archdale, James, & Co. (Ltd.), Ledsam Street, Birmingham, Armstrong, Sir W. G., Whitworth & Co. (Ltd.), Elswick Works, Newcastle-on-Tyne. Arrol, Sir Wm. & Co. (Ltd.), Bridgeton, Glasgow. Avery, W. & T. (Ltd.), Soho Foundry, Birmingham. Avonside Engine Co. (Ltd), Fishponds, Bristol. Babcock & Wilcox (Ltd.), Oriel House, Farringdon Street, London, BE. OQ. Bailey, Sir W. H., & Co. (Ltd.), Albion Works, Salford, Manchester. Baker, John, & Co. (Rotherham) (Ltd.), Rotherham, Bates, W. J., & Co. (Ltd.), Victoria Iron Works, Denton, Lancs. Bayliss, Jones & Bayliss (Ltd.), Victoria Works, Wolverhampton, Beardshaw, J., & Son (Ltd.), Baltic Steel Works, Sheffield. Belden, Robert, 1a, New London Street, London, E. C. Belliss & Morcom (Ltd.), I.edsam Street Works, Birmingham, Bentall, BE. H., & Co. (Ltd.), Heybridge, Maldon, Essex. . Berry, Henry, & Co. (Ltd.), Croydon Works, Hunslet, Leeds. Bertrams (Ltd.), St. Katherine’s Works, Sciennes, Edinburgh. Bessemer, Henry, & Co. (Ltd.), Sheffield. Birmingham Battery & Metal Co. (Ltd.), Selly Oak, Birmingham. Birmingham Carriage & Wagon Co. (Ltd.), Smethwick, Birmingham, Birmingham Metal & Munitions Co. (Ltd.), Birmingham. Birmingham Small Arms Co. (Ltd.), Birmingham, Blackstone & Co. (Ltd.), Rutland Works, Stamford. Braithwaite & Kirk, Crown Bridge Works, West Bromwich. Briddon & Fowler (Ltd.), Engineering Works, Bradbury, Stockport. Bridge, David & Co. (Ltd.), Castleton, Manchester. Brightside Foundry & Engineering Co. (Ltd.), Wicker Ironworks, Sheffield. British Aluminium Co. (Ltd.), 109 Queen Victoria Street, London, BE. C. British Electric Transformer Co. (Ltd.), Hayes, Middlesex. British Insulated & Helsby Cables (Ltd.), Prescott, Lancs. . Broughton Copper Co. (Ltd.), Broughton Copper Works, Manchester. Brown, Bayley’s Steel Works (Ltd.), Sheffield. Buckton, Joshua, & Co. (Ltd.), Meadow Road, Leeds. Bullivant & Co. (Ltd.), 72 Mark Lane, London, E. C. Callender’s Cable & Construction Co. (Ltd.), Hamilton House, Victoria Embankment, London, E. C. Cammell, Laird & Co. (Ltd.), Cyclops Steel & Iron Works, Sheffield. Chatwin, Thomas (Ltd.), Great Tindall Street, Birmingham. Chloride Electrical Storage Co. (Ltd.), Pendlebury, North Manchester. Clarke, Chapman & Co. (Ltd.), Gateshead-on-Tyne. Clay Cross Co., Clay Cross, North Chesterfield. Cleveland Bridge & Engineering Co. (Ltd.), Darlington. Colville, David, & Sons (Ltd.), Dalzell Steel & Iron Works, Motherwell. Cooke, T., & Sons (Ltd.), 3 Broadway, London, 8. W. Cooke, William, & Co. (Ltd.), Tinsley Steel, Iron & Wire Rope Works, Sheffield. Coventry Chain Co. (Ltd.), Coventry. Cowans, Sheldon & Co. (Ltd.), St. Nicholas Works, Carlisle. Cradock, George, & Co. (Ltd.), Wire Rope Works, Wakefield. Craven Bros. (Ltd.), Vauxhall Works, Manchester. Crossley Bros. (Ltd.), Openshaw, Manchester. Curtis's & Harvey (Ltd.), Cannon Street House, London, E. C. Davy Bros. (Ltd.), Park Iron Works, Sheffield. Delta Metal Co. (Ltd.), Delta Works, East Greenwich, London, S. E. Denison, Samuel, & Son (Ltd.), Hunslet Foundry, Leeds. Dick, Kerr & Co. (Ltd.), Abchurch Yard, Cannon Street, London, BE. O. Dorman, Long & Co. (Ltd.), Middlesborough. Doxford, William, & Sons (Ltd.), Pallion Yard, Sunderland. Dudbridge Iron Works (Ltd.), Dudbridge, Stroud. Eagle & Globe Steel Co. (Ltd.), Dannemora Steel Works, Sheffield, Blectromotors (Ltd.), Openshaw, Manchester. Ellison, Esq., George, Victoria Works, Warstone Lane, Birmingham. Ferranti (Ltd.), Hollinwood, Lancs. girth, Thos., & Sons (Ltd.), Norfolk Works, Sheffield. Fleming & Ferguson (Ltd.), Phoenix Works, Paisley. Fletcher, George, & Co. (Ltd.), Litchurch, Derby. Foster, Blackett & Wilson (Ltd.), Tyne Lead Works, Hebburn-on-Tyne, 97941 °—p1 2—16——-] 4 210 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Fraser & Chalmers (Ltd.), 3 London Wall Buildings, London, E. C. Gardner, L., & Sons (Ltd.), Patricroft, Manchester. Garrett, Richard, & Sons (Ltd.), Leiston, Suffolk. General Electric Co. (Ltd.), 67 Queen Victoria Street, London, E. C. Glenfield & Kennedy (Ltd.), Kilmarnock, N. B. Glover, W. T., & Co. (Ltd.), Trafford Park, Manchester. Graham, Alfred, & Co., St. Andrew’s Works, Crofton Park Road, London, 8. BH. Green, E., & Son (Ltd.), Sales Department Wakefield. Greening N., & Sons (Ltd.), Britannia Works, Warrington. Hadfields (L.td.), Tinsley, Sheffield. Haggie, D. H. & G., Wearmouth Ropery, Sunderland. Hall, J. & BE. (Ltd.), 10 St. Swithin’s Lane, London, E. C. Hall, J. P., & Co. (Ltd.), Blackriding Iron Works, Werneth, Oldham, Hardy Patent Pick Co. (Ltd.), Heeley, Sheffield. Harpers (Ltd.), Aberdeen, Scotland. Hathorn, Davey & Co. (Ltd.), Sun Foundry, Leeds. Hawthorn, Leslie & Co. (Ltd.), Forth Banks, Newcastle-on-Tyne. Hayward-Tyler & Co. (Ltd.), 99 Queen Victoria Street, London, E. C. Head, Wrightson & Co. (Ltd.), Teesdale Iron Works, Thornaby-on-Tees. Hecco Developments (ILtd.), 86 Cannon Street, London, E. C. Heenan & Froude (Ltd.), 4 Chapel Walks, Manchester. Hendry, James, Esq., Laminated Leather Works, Bridgeton, Glasgow. Henley’s, W. T., Telegraph Works Co. (Ltd.), Bloomfield Street. London Wall, London, E. C. Herbert, Alfred (Ltd.), Coventry. Hingley, N., & Sons (Ltd.), Netherton Iron Works, Dudley, Worcs. Holden & Brooke (Ltd.), West Gorton, Manchester. Jolman Bros. (Ltd.), Camborne, Cornwall. Holroyd, John, & Co. (Ltd.), Milnrow, North Rochdale. Hopkinson, J., & Co. (Ltd.), Britannia Works, Huddersfield. Howell & Co. (Ltd.), Sheftield Tube Works, Sheffield. Hughes & Lancaster (Ltd.), 16 Victoria Street, London, S. W, Hulse & Co. (Ltd.), Calder Street, Salford, Manchester. Hurst, Nelson & Co. (Ltd.), Motherwell, N, B. Hydraulic Engineering Co. (Ltd.), Chester. Jessop, William, & Sons (Ltd.), Brightside Works, Sheffield. Johnson, Richard, & Nephew (Ltd.), Bradford Iron Works, Manchester, Kearns, H. W., & Co. (Ltd.), Broadheath, North Manchester, Keighley Gas & Oil Engine Co. (Ltd.), Imperial Works, Keighley. <endall & Gent (Ltd.), Belle Vue, Hyde Road, Manchester. Serr, Stuart & Co. (Ltd.), 5 Broad Street Place, London, E. C. Lancashire Dynamo & Motor Co. (Ltd.), Trafford Park, Manchester. Laycock, W. S. (Ltd.), Victoria Works, Millhouses, Sheffield. Lee, Howl & Co. (Ltd.), Tipton, Staffordshire: Lister, R. A., & Co. (Ltd.), Dursley, Glos. Locke, Blackett & Co. (Ltd.), Lead Works, Newcastle-on-Tyne. Luke & Spencer (Ltd.), Broadheath, Manchester. MacFarlane, Walter, & Co., Saracen Foundry, Possilpark, Glasgow, Main, A. & J., & Co., Clydesdale Iron Works, Possilpark, Glasgow. Marsden, H. R. (Ltd.), Soho Foundry, Leeds. Marshall, Sons & Co. (Ltd.), Gainsborough. Massey, B. & 8. (Ltd.), Steam Hammer Works, Openshaw, Manchester. Mather, The Rt. Hon. Sir William, P, C., LL. D., Bramble Hill Lodge, New Forest, Hants. Mather & Platt (Ltd.), Queen Anne’s Chambers, London, S. W. . Mavor & Coulson, (Ltd.), 47 Broad Street, Mile End, Glasgow. McNeil, John, & Co., Colonial Iron Works, Govan, Glasgow. Mellowes & Co. (Ltd.), Corporation Street, Sheffield. Midland Electric Manufacturing Co. (Ltd.), Stafford Works, Rea Street, South Birmingham. Midland Railway Carriage & Wagon Co. (Ltd.), Birmingham. Miller & Co. (Ltd.), London Road Foundry, Edinburgh. Mirrlees Watson Co. (Ltd.), Scotland Street, Glasgow. Monk Bridge Iron & Steel Co. (Ltd.), Leeds. Morton, B. K., & Co. (Ltd.), Box 76, G. P. O., Sheffield. Muir, Wm., & Co. (Ltd.), Sherbourne Street, Manchester. Newall's Insulation Co. (Ltd.), 31 Mosley Street, Newcastle-on-Tyne, SPECIAL REPORTS FOR FEDERAL TEADE COMMISSION. 211 Nobel's Explosives Co. (Ltd.), 195 West George Street, Glasgow. North British Locomotive Co. (Ltd.), 110 Flemington Street, Springburn, Glas-BOW. North-Eastern Marine Engineering Co. (Ltd.), Wallsend-on-Tync. Osborne, Samuel, & Co. (Ltd.), Clyde Steel Works, Sheffield. Owen & Dyson (Ltd.), Rother Iron Works, Rotherham. 2ark Gate Iron & Steel Co. (Ltd.), Parkgate Ironworks, Rotherham, ?arsons, C. A., & Co. (Ltd.), Heaton Works, Newcastle-on-Tyne. ?aul, Matthew, & Co. (Ltd.), Levenford Works, Cumbarton, 2earn, Frank, & Co. (Ltd.), West Gorton, Manchester. Peebles, Bruce, & Co. (Ltd.), Engineers, Edinburgh. 2iggott, Thomas, & Co. (Ltd.), Atlas. Works, Spring Hill, Birmingham, Platt Bros. & Co. (Ltd.), Hartford Works, Oldham. Pollock & Macnab (Ltd.), Bredbury, Manchester. Power Gas Corporation (Ltd.), 89 Victoria Street, London, 8. W. Priestman Bros. (Ltd.), Holderness Foundry, Hull. Pulsometer Engineering Co. (Ltd.), Reading. Ransome, A., & Co. (Ltd.), Newark-on-Trent. Ransomes & Rapier (Ltd.), 82 Victoria Street, London, S. W, Ransomes, Sims & Jeffries (Ltd.), Ipswich. Reavell & Co. (Ltd.), Ranelagh Works, Ipswich. Renold, Hans (Ltd.), Progress Works, Brook Street, Manchester. Reyrolle, A., & Co. (Ltd.), Hebburn-on-Tyne. Robey & Co. (Ltd.), Globe Works, Lincoln. Robinson, Thos., & Son (Ltd.), Railway Works, Rochdale. Robson, John (Shipley) (ILitd.), Alexandra Works, Shipley, Yorks. Roe, A. V., & Co. (Ltd.), Miles Platting, Manchester. tose, Downs & Thompson (Ltd.), Old Foundry, Hull. totherham Forge & Rolling Mills Co. (Ltd.), Rotherham, 1oyce (Ltd.), Trafford Park, Manchester. Rubery, Owen & Co., Victoria Works, Booth Street, Darlaston, South Staffs. luston, Proctor & Co. (Ltd.), Lincoln. Jamuelson & Co. (Ltd.), Britannia Works, Banbury. Sanderson Bros. & Newbould (Ltd.), Newhall Road, Sheffield. Jandycroft (Ltd.), Sandycroft, Chester. : Scottish Tube Co. (Ltd.), 34 Robertson Street, Glasgow. Scott’s Shipbuilding & Engineering Co. (Ltd.), Greenock, N. B. 3iebe, Gorman & Co. (Ltd.), 187 Westminster Bridge Road, London, 8. E. Simons, William, & Co. (Ltd.), Renfrew, North Glasgow. Smith, Thos. & Wm. (Ltd.), Guidhall, Newcastle-on-Tyne. Smith's Dock Co. (Ltd.), High Docks, South Shields. Somers, Walter, & Co. (Ltd.), Haywood Forge, Halesowen, North Birmingham. 3pencer, W. H., & Co., Hitchin, Herts. . tterne, L., & Co. (Ltd.), Crown Iron Works, North Woodside Road, Glasgow. Stevens & Sons, 239 Southwark Bridge Road, London, S. E. ltevens, W. A. (Ltd.), 26 Victoria Street, London, S. W. stewarts & Lloyds (Ltd.), 41 Oswald Street, Glasgow. Stothert & Pitt (Ltd.), Bath. Stubbs, Joseph (Ltd.), Mill Street Works, Ancoats, Manchester. Swan, Hunter & Wigham Richardson (Ltd.), Wallsend-on-Tyne. Tangyes (Ltd.), Cornwall Works, Birmingham. Thornycroft, John I., & Co. (Ltd.), Caxton House, London, S. W, Turner, BE. R. & F. (Ltd.), Ipswich. Turton Bros. & Matthews (Ltd.), Sheffield. Vickers (Ltd.), Vickers House, Broadway, London, S. W. Vulcan Foundry (Ltd.), Newton-le-Willows. Walber, William Alexander, 88 Victoria Street, London, S. W. Walker Bros. (Wigan) (Ltd.), Pagefield Iron Works, Wigan. Wallsend Slipway & Engineering Co. (Ltd.), Wallsend-on-Tyne. Ward, H. W., & Co. (Ltd.), Lionel Street, Birmingham. Ward, Thos. W. (Ltd.), Albion Works, Sheffield. Watson, Laidlaw & Co. (Ltd.), 98 Dundas Street, Glasgow (South). Weir, G. & J. (Ltd.), Cathcart, Glasgow. Weldless Tube Co. (Ltd.), Icknield Port Road, Birmingham. White, J. Samuel, & Co. (Ltd.), East Cowes, Isle of Wight, Wwillans & Robinson (Ltd.), Victoria Works, Rugby. 212 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, williams, Henry (Ltd.), Railway Appliances Works, Darlington. \ Wolseley Tool & Motor Car Co. (Ltd.), Adderley Park, Birmingham, Wood, Edward, & Co. (Ltd.), 81 Cannon Street, London, E, C. Yarrow & Co. (Ltd.), Scotstoun, Glasgow. Yates & Thom (Ltd.), Canal Works, Blackburn. Tae Score, OBsEcTs, AND CONSTITUTION} INCORPORATION UNDER A BOARD OF TRADE CERTIFICATE. The association was formally incorporated on April 26, 1912, under an license from the board of trade, and is now carried on under the companies consolidation act, 1908. Consequently the liability of its members is limited. It is not a trading or profit-making concern and the privileges of all its members are identical. For the time being the association’s attention is directed exclusively to China, as that country is the one where British engineering interests are threatened more than in any other. But as soon as the membership warrants it, the association’s influence will be extended to other parts of the world where British engineering interests are menaced. In order to avoid conflicting interests the membership is strictly confined to actual manufacturers. The association is unconnected with any business concern. Its policy is to promote the interests of its members as a whole and not to interfere with their existing business arrangements in any way. OFricIAL RECOGNITION BY THE FOREIGN OFFICE. The association -received the formal recognition of the foreign office on December 20, 1912, and its status is recognized by the Chinese authorities. The British minister in Peking has been instructed by the secretary of state for foreign affairs to give his official support to the members of this association who may be traveling in China and to instruct the British consuls throughout China to do the same. THE GOVERNING BopY. The association is governed by a council consisting of a president, 5 vice presidents, and not less than 15 or more than 30 ordinary members of council, elected annually from all the members of the association. An executive committee carries on the active business of the association. The executive committee is elected by the council from among its own members. THE ASSOCIATION'S WORK IN CHINA, The work of the association in China is carried on by a resident commissioner or official representative. His headquarters are in Peking. He is in close touch with the other business centers of China by frequent personal visits and through the agency of correspondents in such places. 3 The following excerpts are from the assoclation’s yearbook for 1813. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 213 The filling of this position required a great deal of care on the part of the council, as it was essential that the association’s commissioner should not only have a thorough knowledge of the Chinese language and methods, but should also be intimately acquainted with high Chinese officials and with the officials of the British and other legations. The association has been fortunate in securing the services . a gentleman who possesses these qualifications in a high degree. The duties of the commissioner may be classified in the following manner: (1) To gain an inner knowledge of all those matters which affect British engineering interests and to keep the association promptly and accurately informed on these subjects. (2) To use his influence and that of the association to secure, as far as possible, British advisers and instructors to the Chinese in engineering matters. (8) To know how contracts are to be given out and to influence buyers in favor of members of the association. (4) To get the names of members on the Government and other lists in connection with contracts. (5) To make it clear to the Chinese purchasers that they will be treated fairly by members of this association and that its members are capable, between them, of supplying everything in the way of an engineering plant that China may require. : (6) To make full use of the fact that the association is formally recognized by the foreign office. (7) To introduce members who may be traveling in China to officials or anyone who cap help them to secure business. (8) To be constantly on the lookout for young Chinese who are destined to be engineers and are likely to occupy good positions, so that they can be trained under British influence either in China or Great Britain. . The commissioner is not entitled to give any advice or assistance to anyone, even if an applicant for advice purports to be the agent or representative of a member, unless he possesses credentials from the association. Tar OBJECTS. The objects for which the association is established as set forth in the memorandum of-association are: _ (1) To promote and protect the general interests of British manufacturing engineers. (2) To consider all questions connected with such interests. . (3) To promote or oppose legislation and other measures affecting such interests. (4) To collect and circulate statistics and other information affecting the general interests of British engineers and to diffuse amongst its members information on all matters affecting such interests. (5) To support the British Government, bankers, financial corporations, shipping and railway companies, and any other organizations in promoting the general interests of British manufacturing engineers. (6) To watch and report upon the methods and progress of foreign competitors in Asiatic and other markets and to suggest methods of counteracting foreign influences. (7) To encourage the predominance of British technical instructors in Asiatic and other schools. (8) To encourage technical colleges and schools in Great Britain to give facilities for oriental and other students, and to establish or aid in the estab- 214 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, lishment of technical schools abroad for the furtherance of the objects of this association. ‘ (9) To aid by agvice, cooperation, donations, or otherwise any individual or concern who is ablé to promote the objects of this association. (10) To invite members of the association to give facilities for the introduction into their works for varying periods of oriental and other engneers or engineering students. (11) To endeavor to make the English language the recognized medium for the transaction of all engineering business. THR FUNDS. The funds of the association are derived from the subscriptions of members and entrance fees. The first 200 members will be admitted without an entrance fee. The annual subscription for the time being has been fixed at 10 guineas, which it is estimated will provide the funds necessary to enable the association to carry on its work efficiently. THE QUALIFICATIONS FOR MEMBERSHIP, Article 4 provides the following qualifications for membership: Candidates for admission as members must be approved by the council and must be bona fide British manufacturing engineers or bona fide British manufacturers of articles accessory to engineering plant other than those whose Interests in foreign manufactures or otherwise might be antagonistic to the objects of the association, and must be individuals or incorporated bodies. Any unincorporated body or firm falling within the above definition if approved by the council may have the privilege of membership, meaning thereby the right to nominate anyone of its members to be a member of the association as its representative. * * * The essential point which will determine the qualification is whether in the opinion of the council the applicant for Rlemjershin has or has not foreign interests or connections which are detrimenta to the interests of the association. TEE IMMEDIATE ADVANTAGES OF MEMBERSHIP, The benefits which members will derive from the association forthmith may be summarized as follows: (1) Members receive at frequent intervals reports on matters which affect their business interests in China. These reports are issued without the delay which is incurred in the issuing or Government information, and they are untrammelled by those restricting influences which generally rob Government reports of their practical value. They are issued only to members. This information alone is worth the annual subscription of 10 guineas. (5) Members who wish to estimate for ‘a particular contract in China, but have not a permanent representative of their own, can be put in touch with technical men on the spot who can negotiate the matter on their behalf. (6) Members can by collective action control the conditions of tendering both in the home and foreign markets. Thus objectionable clauses in specifications can be successfully combated. (8) Members are warned of undesirable business connections in China. (9) Members can have their names, addresses, and specialties printed on a list in English and Chinese which will be issued by the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 215 sunsiion to the consuls and the European and native purchasers in China. (12) Members can obtain business from their fellow members. There is a growing fenemicy for members to place orders with each other, and the secretary is often applied to for the names of members who manufacture some particular article. Special report of Consul C. E. Gauss, in charge of Consulate General at Shanghai, China, December 1. 1915. (Note.—Consul General Thomas Sammons, of Shanghai, was in the United States at the time the commission’s inquiries were sent to the consuls and therefore did not have an opportunity to prepare a report on the topics submitted. He conferred at length with members and representatives of the commission, however, and in this manner furnished much information of value in the preparation of the report.—FEDERAL TRADE COMMISSION.) This report is intended to cover China proper, excluding Manchuria and Hongkong. Combinations, syndicates, ete., native to China.—So far as has been shown by the limited investigation possible by this consulate general, there may be said to be no combinations, cartels, or syndisates of manufacturers native to China, whether Chinese companies or foreign companies organized for operation in this field. China’s manufacturing industries are still in the early stages of development, and while there are a number of mills and factories of various sorts in operation, there is as yet no combination of manufacturing efforts meriting attention. China has, of course, its home industries—the manufacturing carried on in small shops in a small way by the natives—which are of interest, and most of the consular officers to whom requests have been addressed for information and suggestions for this report have pointed out—purely as a matter of interest—the guild system in China, whereby the native crafts have combined in a measure for their own protection and regulation. . Of the more prominent manufacturing concerns operating in China, none of which individually may be said to be of any predominant importance as controlling the trade in their respective lines, some data as to their capitalization and operations may be found in the China Stock and Share Handbook. Attention is directed to the companies under the following classifications: Section 7, Industrial undertakings and manufacturing companies; section 11, Mining companies; and section 14, Spinning and weaving comanies. ° In cotton mills there is an organization known as the Cotton Mill Owners’ Association, which might be described as similar to organizations of the same character in the United States, whose efforts might be devoted to such objects as recommendations for special tariff or taxation treatment, or, as at Shanghai, toward a cotton antiwiiliaration house for the testing of cotton received from native sellers. The importance of these various companies in a sense of combination does not lie in China in any combination or syndication of the companies themselves, but in their control, by management or by holding of the majority of stock, by the large foreign trading houses such, for instance, Ya. Matheson & Co. (Ltd.), who are the general managers, and probably the majority owners, of three cotton mills at Shanghai with a total of something around 100,000 216 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. spindles, and which in addition maintain engineering, insurance, shipping, import and export, and finance departments all more or less related in the one vast trading combination or company. Perhaps the most important manufacturing industry in China in point of view of size is the Han Yeh Ping Iron & Coal Co. (Ltd.), a Chinese corporation, which owns and operates the iron and steel plant at Hanyang, the Tayeh iron mines, and the Pinghsiang coal mines. The exact capitalization and financial condition of this company can not be ascertained locally, but according to data published in the Far Eastern Review recently, the capitalization of the company is $20,000,000 Mexican. It employs 40 foreign engineers and 8,050 Chinese laborers at the iron works at Hanyang. The plant can produce 15,000 tons of pig iron per month, steel rails to the amount of 7,000 tons, and practically unlimited steel plates and nails. The output of pig iron for 1914 was estimated at 135,000 tons, while steel reached a total of 98,536 tons. Nine hundred tons of bolts, ete., and 1,200 tons of fire bricks were also made. At the Pinghsiang collieries 560,000 tons of coal were produced, of which 165,000 tons were turned into coke. The Tayeh mines produced 480,000 tons of iron ore. With new shafts being opened it was expected that this output would be considerably increased. Large quantities of iron ore and pig iron from the Hanyang company go annually to Japan, with the result that there is little opportunity for export elsewhere. Kxtensive Japanese contracts for the output of the company are in force, and it is claimed that there are large Japanese loans to the company. A combination of interest is the Kailan Mining Administration— a combination of the Chinese Engineering & Mining Co., a British company, and the Lanchow Mining Co., a purely Chinese company, which were for a number of years in competition in the Kaiping coal mining region in North China and which have now amalgamated in regard to capital and management. The combined capital amounts to £2,000,000, with a further sum of £1,200,000 in § per cent debentures. The outstanding features of the amalgamation are the foreign and technical control of the joint companies and the division of profits up to £300,000 per annum in the proportion of 60 per cent to the Chinese Engineering & Mining Co. (Ltd.) and 40 per cent to the Lanchow Mining Co., the net profits exceeding £300,000 being equally apportioned. The administration controls extensive, valuable coal fields in North China and subsidiary industries. The coalmining operations at the present time amount to about 8,800 tons per day. The administration maintains lines of owned and chartered steamers serving the Far Eastern trade and is also understood to enjoy special facilities with the Government railways for the handling of bulk traffic at through rates. The administration is engaged in an extensive trade in coke and is practically the only manufacturer of refractory clay Loss in the or East. On the subjéct of manufacturing industries, it might be of interest to draw attention to the British Cigarette Co., which maintains several large cigarette factories in China, including the one at Shanghai, for the manufacture of cigarettes for the native trade from native and imported American leaf. Information concerning the capital and extent of operations of this company is not obtainable SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 217 here, but it is closely associated with the British-American Tobacco Co. (Litd.), which is a large importer of American and other tobacco, cigarettes, etc., and which was in the past closely allied to the American Tobacco Co. For the most part the products manufactured in China are for home consumption and do not enter into the export trade of the country. ey anlydired products do not compete to any great extent with imported goods, except in the way of cotton yarns and cloth, which find themselves more in competition with Japanese and Indian yarns and cloth than with any other. With American products it may be said that the China products in any way that they might compete would do so on the ground of lower cost, and there is no question in China at this time of tariff discriminations or the activities of combinations. The only instance of the competition of China manufactures with American manufactures in the Far East—that is, Hongkong, Singapore, and other foreign colonial points—that has come to the notice of this consulate general has been in the matter of wheat flour. The exportation of foodstuffs from China is prohibited under the treaty tariff. American flour has found a large and ready market for years in Hongkong, Singapore, and other colonial possessions, practically without serious competition. More recently the Chinese Government is understood to have given limited permission to Chinese flour mills for the exportation to “oversea Chinese,” under restriction, of Chinese wheat flour, with the result that the lower cost of the Chinese flour has worked with disastrous results on the American flour market in the Orient at the present time, especially considering the state of the silver market and its effect upon the price of the American flour. Foreign combinations exporting into China—It is exceedingly difficult to furnish information under this heading, on account of the scant sources of information at this end. The foreign combinations do not show up in the trade of the country as conducted by the foreign trading houses or hongs in China, which may or may not be the representatives of combinations of manufacturers in foreign countries. That the foreign trading houses or commission houses in China do represent combinations of manufacturers abroad may be the case to some extent, but the exact combinations and the terms and conditions of such representation are impossible of being ascertained at this end. In China are found some of the largest foreign trading organizations in the world, as, for instance, the firm of Jardine, Matheson & Co. (Ltd.), British ; Arnhold, Karberg & Co., German; Carlowitz & Co., German; and Mitsui & Co. (Ltd.), Japanese, etc. These firms do not confine their business to particular branches, but are all embracing in their operations in the country. They stand as importers and exporters in all departments and classes of manufactures, maintaining large engineering staffs and showrooms, large sales forces, branches in all important treaty ports in the country, steamship lines—coastal, riverine, and foreign (either as general managers or agents)—and they hold themselves out as overnment, railway, mining, engineering, and general contractors, 218 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. financiers, shipowners, and agents, etc. Many of them are actively interested as general managers, agents, or majority or large stockholders in cotton mills, silk filatures, paper mills, egg-product factories, tanneries, etc. They contract for the financing and construction of electric light, telephone, street railway, and other public utilities, and through a multiplicity of interests, a wide organization, and almost unlimited capital, with their close financial connections with foreign banks and bankers, represent such combinations of trade and manufacture, with the exclusion only of political powers, as did the early trading companies, such as the British India 0., ete. Perhaps the most conspicuous examples of this type of trading combination or organization is Jardine, Matheson & Co., with an organization extending from London through all the treaty ports of China. They are closely allied with the a & Shanghai Banking Corporation and with that bank are the representatives in China of the British & Chinese Corporation, so largely interested in the railway and other loans, acting as purchasing agents of these railways under their loan agreements, and at the same time tendering on purchase requirements from these lines; maintaining at Shanghai alone an establishment with an office force of about a hundred; with extensive import, export, and engineering staffs; serving as general managers for cotton mills, silk mills, ete.; operating coast and riverine steamer lines and agents of the Royal Mail Steam Packet Co., and the Indra Line; agents of the Russian Bank for Foreign Trade, Petrograd, and the Mercantile Bank of India; agents of extensive wharves and warehouses, of marine and fire insurance companies; engaging in the past in the opium trade; and holding a great share of the British engineering and railway business of China, besides being large importers and exporters of al? character of foreign and native goods. They do not make public the British and other manufacturers whose representation they hold in this country, nor the terms and conditions of their representation, and it is impossible to say what combinations or syndicates of manufacturers operate through them. As of possible interest in this connection, reference is made to the article in the Far Eastern Review for January, 1915, by George Bronson Rea, entitled “ Roads toward peace,” which purports to be an exposition of the fundamental commercial problems which make forsnational discord and strife with special reference to the activities of official trade organizations in China. With, in no sense, any indorsement or corroboration. of the statements and opinions expressed therein, this pamphlet is referred to for the interesting comment on the operations of the so-called British engineering 2 railway monopoly in China as represented by the house of Jardine, Matheson & Co. (Ltd.), and the Hongkong & Shanghai Banking Corporation, operating as the China agents of the British & Chinese Corporation. Some idea of the operations of this corporation with the Chinese Central Government alone in railway enterprises may be had from the schedule of loans from foreign sources set out on pages 50 and 51 of the China Stock and Share Handbook. The dominant influence of this corporation in Chinese railway history is readily SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 219 shown in Railway Enterprise in China, by Percy Horace Kent, published by Edward Arnold, London, 1908. Outside of Jardine, Matheson & Co. (Ltd.), while there are a number of British firms that stand out prominently in China, there are none worthy of special mention as of the magnitude of the company named. Messrs. Butterfield & Swire, next to Jardine, Matheson & Co. (Ltd.), perhaps maintain the largest trading organization throughout the country, but their interests are largely confined to shipping, insurance, and general import and export. An organization known at Shanghai as “Representation for British Manufacturers (Ltd.) ” maintains a general manager and assistant at Peking and a manager at Shanghai. This organization claims to represent a number of British manufacturers, including Davy Bros. (Ltd.), Sheffield (forging presses, boilers, steam hammers) ; Sir William Arrol & Co. (Lid) Glasgow (bridges, harbor works); John Brown & Co. (Ltd.), Sheffield (steel forgings and castings, armor plates); Cravens (Ltd.) (railway coaches and wagons) ; Dorman, Long & Co. (Ltd.) (sections and structural steel work) ; Thomas Firth & Sons (Ltd.), Sheffield (tool steel and projectiles) ; R. W. Hawthorn, Leslie & Co., Newcastle on Tyne ning and locomotive sing biden) Hulse & Co. (Ltd.), Manchester (machine tools) ; W. S. Laycock (Ltd:), Sheffield (railway and tramway rolling stock appliances); and Simon Carves Coke Oven Co. (Ltd.) Manchester (coke ovens, coal washers, etc.). Of German firms, the most prominent, with wide trade organization by branch offices and agencies through the country, are Arnhold, Karberg & Co.; Carlowitz & Co.; Diederichsen & Co.; Melchers & Co. | Samamen & Co.; and the Siemens China Electrical Engineering Co. Arnhold, Karberg & Co., with offices in Hamburg, London, New York, Shanghai, and elsewhere, maintain a large establishment at Shanghai, engaging in import and export business of all doscriptions, maintaining a large engineering department, and engaging to some considerable extent in the financing of industrial and other loans. The same comment may be made in reference to Carlowitz & Co. Neither of these firms is perhaps as large as Jardine, Matheson & Co. (Ltd.), but all of them are of high standing, with large staffs, evidently with strong financial connections, and prepared to engage in Goverment, railway, and industrial contracting, engineering, and general business on an extensive scale. Messrs. Carlowitz & Co. are the representatives, among others, of-— Friedr. Krupp, A.-G. Gusstahlfabrik, Essen. Friedr. Krupp, A.-G. Grusonwerk, Magdeburg. Friedr. Krupp, A.-G. Stahlwerk, Annen. - Friedr. Krupp, A.-G. Germaniawerft, Kiel-Garden., Henschel & Sohn, Cassel. Deutscher Stahlwerksverband, Diisseldort. Heinrich Lanz, Mannheim. Deutsche Waffen & Munitionsfabriken, Karlsruhe-Berlin: Waffenfabrik Mauser, A.-G. Oberndorf. » Vereinigte Koeln-Rottweiler Pulverfabriken, Rottweil. Deutsche Sprengstoff, A.-G. Hamburg. Carl Zeiss, Jena. Westfaelische Drahtindustrie, Hamm. J. Pohlig, A.-G., Koeln. 220 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, H. Fuellner, Warmbrunn. Norddeutsche Seekabelwerke, A.-G. Nordenham. Tabrik Nietloser Gittertraeger, A.-G. Diisseldorf. Prankfurter Maschinenfabrik, G. m. b. H., Grossauheim, Maschinenfabrik Karl Krause, Leipzig. Maschinenfabrik A. Hogenforst, Leipzig, Burkheiser & Co., Hamburg. The Apollinaris Co. (Ltd.), London. Heidsieck & Co., * Monopole,” Champagne, Reims, Lubricating Oil Import Co. (Ltd.), Antwerp. Messrs. Diederichsen & Co., among others, are representatives of — Rickmers-Linie. Deutscher Rhederei Verein in Hamburg. Farbenfabrik Hansa, G. m. b. H., Kiel. Hannoversche Maschinenbau-Actien-Gesellschaft, vorm. George Egestorft, {annover-Linden. ! Rheinische Metallwaren u. Maschinenfabrik in Diisseldorf. Transatlantische Gueterversicherungs-Gesellschaft, Berlin, Carl Schlieper, Remscheid. The Siemens China Electrical Engineering Co. represents— Siemens Bros. Dynamo Works, London-Stafford. Siemens Bros. & Co. (Ltd.), London-Woolwich. Siemens Schuckertwerke, G. m. b. H., Berlin-Nuremberg. Siemens & Halske, A.-G., Berlin-Nonnendamm. Gebrueder Siemens & Co., Berlin-Lichtenberg. There is at Shanghai a German Engineering Office for China, as well as a German Engineering School For Chinese, with a large German technical staff, which is intended to be a big factor in the German engineering and machinery trade with China. [ am informed locally that a new British engineering association, designed to extend British engineering business in China and to be known as the Anglo-Chinese Engineering Association, is now being organized in London. No further data, however, are available. In turning to Japanese firms, the two most prominent are the Mitsui Bussan Kaisha (Mitsui & Co., Ltd.) and Okura & Co. It is presumed that the firm of Mitsui & Co. (Ltd.) will be mentioned in the report of the consul general at Yokohama as representing perhaps the largest combination of Japanese financial, manufacturng, and governmental interests in the Orient. But none of these firms mentioned appears in this field solely as a combination or as a syndicate of foreign manufacturers; they are essentially foreign trading establishments engaged in all manner and class of business, banking, loan, shipping, importing, exporting, (Government, railway, engineering, and contract work. Their organizations are extensive; their financial resources and connections large; they are quite largely in control of the trade of their respective countries with China, Dut not to the exclusion of hundreds of smaller firms of established reputations and standing, engaging in general or special lines, with apparently substantial profits. As to organizations for trade purposes in China those that stand out most prominently, outside of the Japanese—who, with their low salaries, can and do send men into all parts on constant trade scouting—are the Standard Oil Co., of New York, the British American Tobacco Co., the Singer Sewing Machine Co., and the Asiatic Pe- SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 221 trolenm Co., (British). These not only maintain their own agencies at the treaty ports, and, in the case of the oil companies, their tanks and oil installations generally, and as to the tobacco company, their depots for supplies, but they have established Chinese agents under the title of dealers at all important interior points not opened to trade, and, with extensive foreign staffs, maintain constant supervision and direction over the whole selling organization, the distribution of supplies, the regulation of prices with outside competition, and the settlement of claims disputes, difficulties with the officials, ete. But these companies are engaged in selling special commodities of general distribution throughout the whole market. As to competition by American producers with the foreign firms, there is little to be said that has not already repeatedly been set out in trade reports and addresses by Government officers and business men in the Far East. Americans have not satisfactory representation in this field. The large foreign organizations are not willing to accept American agencies, or, when they do so, are sometimes Ikely to take them for the purpose of stifling any possible American competition. The small American producer, offering one particular product, finds, in the first place, difficulty in obtaining reputable representation, and, in the second place, that his other foreign competitor has the advantage of the large organization of his representative, the technical advisers and promoters, the financial conneclions for financing industrial enterprises in which his products may be used, etc. {nternational syndicates, etc—The consulate general has nothing to offer under this head except to point, in passing, to the groups of bankers interested in Chinese Government, railway, and industrial loans, with corresponding benefit to the foreign machinery, engineering, general contracting, and equipment manufacturers. Combinations of buyers of American goods~—No such combinations exist in China. Competitive conditions.—So much has been said, and so repeatedly, on the subject of the great deficiencies which prevent the development of American trade in China that more than a brief sketch here in the form of recapitulation is unnecessary. The advantage of other foreign countries in China has been due bo two things, (1) organization and (2) investment. By organization is meant the existence of large commission and trading houses capable of taking up and hagas the representation of foreign manufacturers, with large sales and technical staffs, engineering departments, good financial connections with liberal credit facilities when necessary, and such extensive organizations, including not only import and export, but specialized departments, control of coastal, riverine, and foreign shipping lines, insurance departments, ownership and management of local industries, etc. Investment of capital by means of Government, railway, and industrial loans, with the consequent control of the appointment of engineers, managers, purchasing agents, and others for railways, or in public services where their influence may always be exerted in behalf of their own nationals, the specifications drawn up according 222 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, to their own foreign standards, ete. . This has meant financial groups, foreign banks of large capital, etc. The investment of foreign capital in local industries, such as cotton mills, paper mills, etc., naturally guarantees the use of the same foreign machinery, equipment, and supplies, and each successful mill has been a model for Chinese imitation with the employment of the foreign managers and specialists; innumerable instances of this kind might be pointed out, not only in cotton mills but in other maguicaRing beanies, in mining, Tailway work, ete. Under the Hukuang Railway Toan agreement foreign engineers are to be appointed for the several sections of the road, foreign purchasing agents are provided for, with commissions, and naturally, although the agreement specifies equal foreign competition, specifications drawn by British or German engineers to British and German standards in themselves prove a serious obstacle to American competition, in the same way that specifications drawn by the American engineer, probably on American standards, would be equally favorable. On the subject of discrimination in banking or transportation facilities it is pertinent to comment that with only one American bank, of limited capital and conservative or restricted banking policy, American trade has had to be financed through foreign, principally British, banks, and the interest of those banks in American trade obviously is not as close and keen as in the trade of their own country, whose laws, institutions, manufacturers, etc., are all within their close, intimate knowledge and association. In shipping facilities, until recently the only American ships were those of the Pacific Mail Steamship Zo. which have now been withdrawn. A feature of discrimination, if such it may be said to be, is the effect of the British enemy-trading regulations on the trade of neutrals in China, and also the Japanese enemy-trading restriction. The former forbids British firms, banks, subjects, or vessels to be concerned in any way, directly or indirectly, in trade with which enemy subjects of Great Britain may be concerned or may, or may have, profited, directly or indirectly. The British firms control the shipping, the lighterage, the marine insurance, the press packing, ete. American firms trading directly or indirectly with Germans or Austrians in American, Chinese, or other products or manufactures pre forbidden the use of any of these facilities, upon which they had long depended; with the withdrawal of such facilities their trade must, under the circumstances, cease in the absence of facilities of their own. In so far as the facilities are granted for other trade, their every transaction is now closely scrutinized by the British authorities, with the production of papers and documents, the examination of records to-ascertain whether the firm is largely engaged in trade with enemy subjects of Great Britain, etc. This may be described as under the heading of activities of foreign Governments due to war conditions, SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 223 For other comment under the heading of competitive conditions nay, of course, be mentioned the extensive attaché systems of the British and Germans in China, the aid rendered by the German Government to the German medicine and engineering school at Shanghai and to other institutions throughout China for the education of Chinese along German lines, with the naturally apparent results thereof, and the close diplomatic support of foreign railway and loan proposals, in accord with the spheres of influence and political considerations of the several powers. Government attitude.—On the subject of the activities of the Chinese Government in behalf of China’s industries for home competition with foreign products, reference might be made to the railway loan agreements, as for example the Hukuang Railway loan agreement concluded May 20, 1911. This agreement provides that “with a view to the encouragement of Chinese industries, preference avill be given at equal prices and quantities over British, French, German, American, and other foreign goods to Chinese materials and goods manufactured in China.” In the same article of the agreement (Article XVIII) it is specifically recommended that rails and their accessories should be manufactured and supplied by the Hanyang Iron Works, the price to be settled by the ministry of posts and communications with the Hanyang Iron Works, after comparison with the current quotations for rails purchased by other lines from Europe or America. Recently the Yangtze Engineering Works (Ltd.), a Chinese company at Hankow, by virtue of the provisions of the same agreement became a competitor in bridge construction work with considerable success, and the agreement gives the Chinese interests the further advantage that the purchasing agents do not receive the 5 per cent purchasing commission on Hanyang products furnished, such as is provided for on purchases of materials from abroad. The American consul general at Hankow mentions the Government paper mill at Seven Mile Creek, near Hankow, and the Hupeh government spinning and weaving mills at Wuchang, as Chinese Gov ernment industrial enterprises which may be mentioned as competing to some extent with foreign goods in their particular lines, and to this list might be added other Government enterprises, such as the Kiangnan Dock & Engineering Works at Shanghai, the Chinese Government dockyards and arsenals at Foochow and Whampoa, Government leather factories at Wuchang, Chengtu, Yunnanftu, etc., the Government paper mill at Shanghai, the Canton government paper and printing works at Canton, the Government paper mill at Isinanfu, and other Government institutions, all of small size, howaver, The Government salt monopoly may be mentioned, and also the native wine and native tobacco monopolies, etc., and the agreement with the Standard Oil Co., of New York, for the joint prospecting of the petroleum fields of China and possible subsequent joint operation thereof. So far as concerns the activities of the Chinese Government toward fostering the foreign trade of its manufacturers, little, if anything, has been done in this line. 224 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. CHINA, MANCHURIA. Spoital seaport of Consul General P., S. Heintzleman, Mukden, China, October , . There are no syndicates or combinations of Chinese manufacturers in Manchuria engaged in either the export or the domestic trade. Manchuria is primarily an agricultural country, and up to the present there has been little or no manufacturing. Several combinations of Japanese manufacturers and exporters of cotton goods operating in Manchuria call for special report—the Japanese Cotton Fabric Export Syndicate and the Manchurian Cotton Exporters’ Association. In June, 1906, a Japanese syndicate called the Cotton Fabric Export Syndicate was formed by the Osaka, Mie, Kenshi, and Temma spinning and weaving companies for the purpose of extending the market of cotton goods in Manchuria. The Mitsui Bussan Kaisha, Japan’s largest commercial concern in Manchuria and the principal distributors of Japanese piece goods, was appointed selling agent of the syndicate. The Japanese Government agreed to arrange for the syndicate to obtain money at easy rates as an exchange fund for the export of zoods. The Yokohama Specie Bank was instructed by the ore ment to accept four months’ sight drafts at the rate of 4 per cent on a total amount exceeding 5,000,000 yen per annum and 4} per cent on an amount under 5,000,000 yen per annum. Furthermore, in consideration of the constant fluctuation in the rate of exchange and the financial conditions in Manchuria, it was arranged in December, 1906, that from that date the money drawn on drafts of the syndicate should be repaid in Japan. Moreover, the syndicate, with the assistance of the Mitsui Bussan Kaisha, made an arrangement with the two leading Japanese steamship lines to China, the Nippon Yusen Kaisha and the Osaka Shosen Kaisha, for the latter to carry cotton goods at the specially low rate of 45 sen per bale between Osaka and Dairen. The South Se, Railway Co, a semigovernment institution, with an authorized capital of 200,000,000 yen, operating the Japanese railways in South Manchuria and conducting as adjuncts many other enterprises, was also approached for the purpose of obtaining a reduction in freight for the syndicate goods, but the egy was not in a position then to allow a discount, as its system was still undeveloped. Steps were taken to insure the uniformity of the quality and packing of the syndicate goods. The members of the syndicate carefully examine each other’s goods every month. From 24 to 30 bales of cotton cloth gh in each mill are picked out at random, and the quality carefully examined in respect to weight, width, length, border, etc. In addition to this examination one bale of every quality of goods produced by each mill is brought to one company’s mill in turn, and an examination is conducted by the chief experts of that mill. This arrangement was put into practice from October, 1906. The manufacturers’ syndicate, however, did not prosper. The sale of cotton goods on consignment or through branches abroad, which plan was also attempted, did not pay as it was felt it should, so that both methods were in time practically discontinued. As a consequence manufacturers, as a rule, do not now try to export, and SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 225 there is little or no commission business being done at present. Instead there has grown up a body of exporters who, as a rule, buy outright from the mills, some buying on fixed orders and others taking a mill’s whole output for a certain period, and then making their own profit on the exports. Finally, on April 1, 1914, the leading Japanese exporters of cotton goods to Manchuria organized the Manchurian Cotton Exporters’ Association, with headquarters at Osaka, Japan. Its declared object is to enhance the reputation of Japanese cotton goods in Manchurian markets by stopping the export of goods of inferior quality and to maintain standard prices. The chief members comprised the Mitsui Bussan Kaisha, the Japan Raw Cotton Co., which trades in Manchuria under the name of Nisshin Yoko, Okura & Co., Yussa & Co., the Kyoyakaisha, the Komei Yoko, the Yeijun Yoko, etc. This association was allowed for one year a rebate of 10 per cent on the freight rates furnished by both the Imperial Government railways and the Chosen railways, provided all their consignments combined exceeded 5,000 tons pe annum. Smaller rebates were given in proportion to the size of the shipments. The privilege was renewed in April, 1915. At the instance of the Japanese and Chosen railways, a reduction of freight of 30 per cent on 11 kinds of through cargo carried by the Antung-Mukden Line, including cotton piece goods and yarn, was inaugurated by the South Manchuria Railway on May 1, 1914, A similar reduction in favor of the steamer-borne cargo was extended to the same goods when carried by the main line of the railway from the terminal points, Dairen and Newchwang. These factors, combined with the agreement of May 29, 1913, under which dutiable goods imported into Manchuria from or through Chosen, and exported from Manchuria to or through Chosen, by rail via Antung, are allowed a rebate of one-third of the tariff duty, have had marked influence in encouraging the trade in Japanese cotton goods. However, it must be admitted that these reductions in freight and duty are greatly stimulating trade in general. The principal company connected with both the syndicate and the association is the Mitsui Bussan Kaisha. This company is known in America and Europe as Mitsui & Co. It is not only one of the foremost commercial firms of Japan, but it is also among the most progressive and best-organized trade Serhemations in the world. The company’s staff contains able and sterling business men, who are among the most representative in the economic system of Japan. The company is careful about the personnel in its organization and its staff. It is capitalized at 20,000,000 yen, with a reserve fund of 15,000,000 yen. It is staffed with 1,525 officials, clerks, etc. In the diversity of lines of business in which this company is engaged it is probably unique: Coal contractors to the Japanese Army, Navy, and arsenals, State railways, industrial works, and home and foreign mail and freight steamers. Sole proprietors of many well-known coal mines in Japan, and sole agents for many other coals. Importers and exporters of cotton, cotton yarn, cotton piece goods, bookbinding cloth, copper, silver, tin, lead, and other metals, railway material, acids, camphor, flour, cereals, manure, opium, isinglass, mushrooms, sugar, wax, vermicelli, sulphur, hemp, beer, cement, cigarettes, matches, paper, hides, leather belts, teak and other timbers, machinery, etc. 27941 —pr 2—16—185 226 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Its head office is in Tokyo, and, outside of Japan, Chosen, and South Manchuria, it maintains five branches in the United States, three in Europe, four in India, seven in South China and the South Seas, seven in North China, and one in Australia. The branches and agencies in Manchuria, all of which are under the direct control of the Dairen branch of the firm, are as follows: Antung, Mukden, Yingkou, Chinchou. Hsinmintun, Kaiyuan, Tiehling, Ssupingkai, Kungchuling, Changchun, Kirin, Shaungchengpu, Shihtouchengtzu, Harbin, and Tuichingshan. The branch at Vladivostok is also under Dairen. Through these the Mitsui Bussan Kaisha is kept in touch with all variations in market conditions. So far as the cotton industry is concerned, it imports raw cotton and cotton-mill machinery into Japan and exports cotton yarn, cotton cloth, knit goods, etc., and is in close touch with all branches of the cotton industry of Japan. The Manchurian branches and agencies are engaged -chiefly in the importation of cotton cloth and yarn and the export of Manchurian staple produce. The amount of business, both import and export, done by the Dairen branch during 1914 was 60,000,000 yen, the former having been 25,000,000 and the latter 85,000,000 yen. The importation of cotton cloth and yarn alone amounted to 18,000.000 yen. The Mitsuis ship largely to Dairen by the Nippon Yusen Kaisha and the Osaka Shosen Kaisha, but also employ a good many chartered steamers for carrying coal, etc. Owing to its expanding business and to the higher rates charged for carriage it is now buying steamers to take the place of those chartered, and it will probably soon be carrying most of its exports of cloth as well as other articles in its own ships. The Mitsui Bussan Kaisha, as well as the other members in the Cotton Exporters’ Association, get a 10 per cent rebate on the scheduled freight rates of these steamship lines for cotton piece goods to various points in Chosen and China, as well as to Hongkong and Manila. The firm is by far the most powerful commercial medium in conducting direct trade between Japan and foreign countries. Formerly Japan’s foreign trade was carried on exclusively through the hands of foreign middlemen at the open ports of Japan. As the Japanese quickly learned how to do business on their own account direct with their foreign clients, the system of the middlemen and commission merchants was almost completely dispensed with. A general tendency has been noted of late among the manufacturers in all the leading products of Japan to undertake the sale of their own goods abroad through regular selling organizations. This may mark the advent of a revolution in the economic system of Japan. In the case of the Mitsuis, this firm, in addition to acting as selling agents for Japanese products, are also agents in the Far East for a number of American and other foreign concerns. They are sole agents in Japan and in Manchuria for a number of prominent American firms. The firm is agent for many large insurance companies, both Japanese and foreign. It also acts as agent for the Nippon Yusen Kaisha, is sole agent for the Onoda Cement Co., and undertakes the export of Fushun coal. These mines, located near Mukden and yielding SPECIAL REPORTS FOB FEDERAL TRADE COMMISSION. 297 about 7,500 tons daily, form the most valuable of the subsidiary properties owned by the South Manchuria Railway Co. The Mitsui Bussan Kaisha is given a substantial advantage over their competitors in certain lines in the matter of inland taxes. The present inland taxes on foreign goods, with a few exceptions, amount to 3 per cent. By a special arrangement between the Mitsui company and the tax offices located in the principal markets of Manchuria the former by paying to the latter a stipulated amount per annum which in some instances is only 3 or 4 per cent of the amount. normally - accruing, become exempt from the payment of the taxes. Whenever a sale of goods is made a bill is rendered to the dealer, which shows that the Mitsui company is responsible for the taxes. Whenever the tax official calls upon the dealer for taxes he is shown the bill and referred to the Mitsui company. Similar arrangements have been entered into by the Standard Oil Co., the Singer Sewing Machine Co., British- American Tobacco Co., the British and Russian oil concerns, etc., all of which firms maintain distributing organizations here. Also a consumption tax of 2 per cent is imposed on foreign ey in the hands of the native merchants. All the above firms by selling direct to retailers and by giving them a receipted bill covering all duties and charges have enabled the latter to evade the payment of this tax as well. Mention should also be made of the fact that much of the Japanese goods imported into Manchuria and intended to be marketed in the interior does not take out a transit pass, as they are marketed in the various Japanese settlements along the South Manchuria Railway by Japanese sho keepers, who are not liable to Chinese taxes. By way of Ss a transit pass, I should add that if imports are intended for an “inland ” place, i. e., any place not a treaty port, the purchaser has the option of paying the inland taxes or likin en route or of paying half the import duty additional, not exceeding a nominal 23 per cent ad valorem, and obtaining a “transit pass”; this certificate exempts the goods from all further inland charges. The injurious effect of this system upon American trade generally is apparent when it is recalled that, aside from kerosene, tobacco, and sewing machines, American goods, especially cotton piece goods, are chiefly imported from Shanghai through Chinese and ia by Chinese, who pay these taxes. On the other hand, Japanese products marketed in these Provinces are almost entirely imported by Japanese subjects, and a considerable portion is distributed by Japanese merchants. It is therefore quite easy for them, as well as for non-Japanese firms mentioned above, to see that their treaty rights are respected as regards the imposition of taxes. The TE terms given by the Japanese are 16 days for spot cargo and 1 month for ordered cargo secured on documents signed by the customers. In cotton cloths, which are carried in stock, the Mitsuis usually give 80 to 45 days’ time, and occasionally up to 2 months. Some of the Chinese merchants buy outright from the Mitsuis, while others sell for them on the usual 2 per cent commission. Payments must be made in gold yen or its equivalent. Extensions of credit are made as required, the customers being charged interest, the rate in such cases being quite high. American cotton goods are recognized by the Chinese as being superior to those made in Japan. The superiority of American 228 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. goods lies in the fact that not only are they of finer and more substantial texture, but they are also less heavily sized than Japanese, which, when washed, lose a greater percentage of their weight than do the American. Japanese goods have supplanted those of American manufacture for a number of reasons, contributing mainly to cheapness, of which may be mentioned (1) the smaller cost of production; (2) the smaller cost of transportation from the mills, and incidentally the advantages of direct and frequent shipments; (3) the presence on the ground of Japanese firms with extensive facilities for the distribution of goods, enabling the Chinese dealers to obtain supplies in quantities as small as they desire, while in buying American goods through Shanghai importers it is necessary to contract for considerable quantities at a time, more than most native dealers are able to handle; and (4) the difference in time required for filling a contract, being spot or, at most, two or three weeks in the case of Japanese, against two or three months required for American. Japanese competition can be met only by producing a cheaper grade of cloth and by adopting similar distributing methods. As the Kobe-Dairen (steamer) route and the Kobe-Fusan-Antung (rail) route are the shortest and cheapest channels for American goods destined for the Manchurian markets, they should be availed of by American manufacturers and exporters. By so doing American trade would share the facilities and secure the benefits of the modern business machinery that Japan is providing for its own commercial development in Manchuria. There need be no’ fear of discrimination as such against American goods, which, I am satisfied, would receive the same treatment on the Japanese railways and at the Chinese customs stations at Antung and Dairen as the goods of Japan or any other nation. While the special arrangements described above are undoubtedly devised with a view to giving Japunese trade additional aids, yet, so far as their features are known, they do not constitute a discrimination against American trade in contravention of the principle of equality of opportunity in trade in China. The disadvantage to American trade lies in the fact that these facilities are rarely, if ever, availed of by any but Japanese shippers. The only international syndicate or combination engaged in business in Manchuria is the British-American Tobacco Co., a: British corporation. There are no combinations of buyers of American or other foreign goods in Manchuria. Japan controls the leading banking and transportation facilities in South Manchuria and maintains its own postal, telegraph, and telephone services. The Japanese gold yen is in general use throughout South Manchuria and is expected soon to become the sole circulating medium. In the international competition for the trade of this region Japan possesses the advantages of proximity to Manchuria, the residence therein of a large and increasing number of subects, several large, reliable firms, with extensive facilities for the distribution of goods, and men with ability and experience to cope with the peculiar local conditions. Japanese firms with branches located in many towns throughout the interior do much of their business by what 1s SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 229 practically barter. Moreover, Japan possesses 70 per cent of the total trade of Manchuria and receives the greater part of Manchuria’s products, its imports from Manchuria exceeding its exports to that istrict. In a word, with little or no competition the Japanese are unloading in Manchuria the products of their cheap home labor, unrestricted by factory legislation and favored by Government subsidies, special steamship and railway rates, preferential customs treatment, and exemption from internal taxation. Herein exists the nucleus of a gigantic Japanese importing and exporting trust which is in process of development. The day is not far off, if indeed it is not already here, when there will exist but one wholesale trading, banking, and forwarding agency in Manchuria; i. e., the South Manchuria Railway and its allied enterprises and services. Over all is the directing hand of the paternal Government of Japan lending every encouragement and affording every means of protection and support to its subjects and firms connected with Manchuria and its trade. In promoting trade relations in Manchuria it seems advisable as well as practicable for American commercial interests to act through, and in certain instances to combine with, the Japanese, who possess such superior facilities for handling this trade. Though this field is being systematically exploited by Japanese manufacturers and exporters, yet with serious concerted effort American manufacturers should expect to share the prosperity of this country. FRENCH INDO-CHINA. Special report of Consul Lawrence P. Briggs, Saigon, French Indo-China, November 16. 1915. The only domestic organization in Cochin China which could possibly be included within the scope of this inquiry is the Syndicat des Exporteurs de Riz de Saigon. This is merely an association of business men, rather than a trust or combination. There is little, if any attempt to regulate prices. Different members of the Syaiiante will on the same day quote different prices for the same product. The members of this organization operate separately, in competition with each other. They operate only in Saigon; i. e., they have no agents elsewhere, although their products will be delivered in other ports if desired. Their operations are confined principally to rice, which forms between 70 per cent and 80 per cent of the export, by value, from this port. This syndicate is a voluntary organization and receives no encouragement from the local government. There is no foreign syndicate doing business here, unless the Standard Oil Co. and the Franco-Asiatic Petroleum Co. be considered as such. Nor are there any international combinations doing business in this district, nor any combinations of buyers of American goods. There are nb competitive conditions affecting the importation of American products into this district except taste, custom, and national prejudice. There are no restrictions on the investment of foreign capital, the employment of foreign managers or engineers, or the purchase of land from private owners. Domain lands, however. 230 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, are granted only on conditions of settlement and improvement or by special concessions. These special concessions are left largely in the hands of the local government, and foreign corporations might sometimes find themselves at a disadvantage. However, the principal landholders in French Indo-China have always been German firms and the principal industry, rice milling, is now_entirely in the hands of the Chinese. The two conditions favoring French goods, which are a result of French governmental policy, are a tariff (not so high as ours in the Philippines) and a heavy subsidy to the two French lines—the Messageries Maritimes and the Chargours Rounis, carrying goods from France to Indo-China. INDIA. Special Soper of Consul General James A. Smith, Calcutta, India, December From inquiries which have been made of official sources regarding cartels, syndicates, or combinations in India it appears that information regarding them is exceedingly meager. Industrially speaking, India is not nearly so advanced as those countries where cartels or trusts are usually found. Before the outbreak of the war there was a reported combine, or quasi combine, in the Indian hide trade, with headquarters in Calcutta, controlled to a very large extent by German interests. With the commencement of hostilities this organization, which had, owing to its methods, been severely criticized, automatically ceased business as a syndicate, and, so far as can be ascertained, there are at the present time no industrial combinations in India which, strictly speaking, can be described as trusts or cartels organized for the express purpose of controlling prices and eliminating competition. A possible, but partial, exception to this situation is the Standard Oil Co., which maintains branches in India ‘and is popularly supposed to have a working agreement with the Burmah Bit Co. and the Asiatic Petroleum Co. in connection with the marketing of illuminating oil. The extent of this agreement is not known, however, in either commercial or official circles outside the interested concerns, and the latter are naturally averse to divulge to the public any facts regarding it. Rate wars between the Standard and Shell interests, which involved Burmah companies, broke out as long ago as 1910. The conflict was supposed to have resulted from overproduction and the appearance of new competitors with supposed or expected encroachments on the spheres of conventional rights of the respective companies. With imports of kerosene aggregating in the last fiscal year 188,-000,000 gallons, Burmah oil was imported into India to the extent of 108,000,000 gallons, and if the entire imports from the United States of 47,000,000 gallons are considered as from the Standard Oil Co., which is probably the case, it is apparent that the complete control of the market is not altogether in the hands of these companies, and that kerosene from Persia and Russia compete in this market with the Standard and Burmah interests and those of the Asiatic Petroleum Co., which latter company, I am informed, markets the oil received here from the Strait: 'nd Borneo. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 931 CEYLON. Special report of Consul Walter A. Leonard, Colombo, Ceylon, November 1, 1915. No important combinations in Ceylon.—There are no important cartels, syndicates, or combinations of manufacturers native to Ceylon. The exports of Ceylon consist almost entirely of tropical prodacts, which find a ready market in industrial countries without being pushed by combinations of selling organizations. By referring to the kind of products Ceylon exports it will be evident why no cartels, syndicates, or combinations are necessary for their further trade extension. In fact, two of Ceylon’s important exports, viz, rubber and plumbago (graphite), were restricted by embargoes to all neutral countries during several months of the present war, and can now be purchased by the United States od other neutral countries) only under certain restrictions. Tea and rubber alone comprise about three-fourths of Ceylon’s annual exports. In 1914 of the approximate $70,000,000 value of Ceylon’s exports about $50,000,000 consisted of tea and rubber and $20,000,000 of other tropical products of the soil. No export bounties, preferential export freight rates, or other such facilities are furnished by the Government of Ceylon to exporters. On the contrary export duties are levied. « Ceylon products organizations.—The only Ceylon products organizations in existence are of a commercial and industrial nature. They do not concern themselves with exporting methods. These organizations are as follows: Ceylon Chamber of Commerce.—The organization and purposes of the Ceylon Chamber of Commerce, located in Colombo, are similar to those of chambers of commerce in the United States. The chamber, however, is reticent about giving information to any but its own members, and in that respect may be considered quite dissimilar to chambers of commerce in the United States, which freely give information to all inquirers. In fact, the purpose of the chamber of commerce seems to be to a great extent to promote trade between the home country and Ceylon. The Ceylon Chamber of Commerce regulates the conditions for the sale of tea and rubber by auction. It further regulates the rates of agency commission and brokerage, and also the storage rules at the port of Colombo for plumbago and coconut products. The chamber of commerce has recognition from the local government, and one of its chief functions is to bring trade matters before the governmental officials so that they may be best treated to the best interests of the British Empire. Planters’ Association of Ceylon—The Planters’ Association of Ceylon is a sort of an agricultural society, with headquarters at Kandy. It is composed of managers or firms interested in the planting industries of Ceylon, principally the products of tea. The purpose of this association is to promote the general welfare of the planting community. It is not an organization concerned with foreign trade. Tow Country Products Association.—The Low Country Products Association is composed of native Sinhalese interested in products of the low country (principally the southwestern coastal plain of 289 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Ceylon). It is chiefly concerned with coconut growing and the products thereof. To a less extent it also concerns itself with the roducts of cinnamon, citronella, paddy, and spices. The Low Country Products Association endeavors to do for the Sinhalese what the Planters’ Association does for the European planting community. It does not concern itself with or attempt to regulate export conditions. The individual members are free to use their own initiative and compete with one another in foreign markets. Combinations of manufacturers exporting to Ceylon—Regarding the combinations of manufacturers foreign to Ceylon which export to this British possession, I must acknowledge I am unable to give concrete, definite information. : Any information which might be obtained in Ceylon would, I fear, be unreliable as compared with the information obtainable by the consular officer in the home country of the combination. For instance, Sweden exp safety matches to Ceylon, but whether Jonképings-Téndsticksfabrik is a member of some Swedish exporting trust I am unable to learn from local importers. In fact, I have reason to believe they do not know. British domination of Ceylon import trade.—A study of the trade statistics of Ceylon shows that the imports to this island are largely from the United Kingdom and colonies. In 1914 only 15} per cent of the imports came from elsewhere than the British Empire, while in 1913 and 1912 the percentages were 153 and 15, respectively. Thus it is noted that about 85 per cent of Ceylon’s import trade is British. No combinations of American goods buyers—I am satisfied that no combinations of buyers exist for the purpose of importing goods. Importing is done-by jobbing houses, commission merchants, and sther dealers independent of each other. Other competitive conditions in Ceylon.—The statement that there are at present no foreign investments in Ceylon is practically true. Before the war the only foreign investments of any consequence were German. These are at present under British control. AFRICA. SOUTH AFRICA. Special report of Consul General George E. Murphy, Cape Town, South Africa, December 3, 1915. Although the Union of South Africa is a country large in area, its civilized popuistion does not exceed 2,000,000. Moreover, it is not yet a manufacturing country, the principal industries being mining, stock raising, and farming. The large bulk of exports are raw products, while the imports are overwhelmingly from Great Britain. Before the outbreak of the present war to, about equaled the United States in the amount of its exportations to South Africa, but apparently it was a larger buyer. This was due to the fact that it maintained direct lines of freight communication with this country, while the United States bought and received largely indirectly, via England. There is very little exportation of manufactured articles from here, nor is there any large or important combination of manufacturers which controls trade in the home market. As 1s well SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 233 known, there is a cooperative control of the diamond industry in South and Southwest Africa, but this relates to raw products and is not of competitive interest from an American standpoint, its object being to regulate the output to conform with the world’s demand and thus to keep prices on a profitable basis. Steel and machinery.—Prior to the present war there was a large trade here in German steel, particularly rails for the mining industry, and this trade was fostered by the German Steel Works Union. Likewise wire products were handled by Hamburg combinations, the selling being done through the different local agencies of Messrs. Arndt & Cohn. German combinations and a Belgian syndicate also supplied fencing standards in very large quantities at very low prices. The trade in galvanized corrugated sheets is a large one here, and English manufacturers have long had a price combination, the center of the industry in England being at Wolverhampton. Selling prices and the allotment of districts were arranged by the ring. Requirements in rails and rolling stock for the railways are filled as far as possible from Great Britain and British Dominions, even in some instances, it is said, to the extent of giving a price concession in addition to the 3 per cent customs preferential rate. Nevertheless foreign rails have in some cases been bought, but the preference is usually given to British material. There is, however, no hard and fast rule, for many good Government orders have gone to America, such orders being won against competition and the preferential customs advantage. The only concession of the Union Government of which I have any information is one granted to an iron and steel corporation of Johannesburg and Vereeniging. This is the Union Steel Co. It rolls steel products, such as bars, small shapes, etc., practically all of which is consumed on the Rand. It is principally engaged in rolling up the accumulated scraps of the railways. Under contract with the Union railway department such scrap is conveyed to them from all parts of the country at a fixed rate of £1 ($4.8665) per ton. At least this was the original agreement. As the finished products of these works are near the centers of consumption, this is an advantage for the Union Co., but its possible output is not very large. A resident American writes me: I know of no combination in the machinery line, and I believe that all requirements in this country—for the mining industry they are considerable— are catered for by individual manufacturers without any combination. Buying organizations.—There are a few farmers’ cooperative societies here (such as the Western Province Agricultural Society, the Fruit Growers’ Association, Cooperative Dairies, etc.) which may occasionally buy from overseas, but most of their purchases are made through local merchants. One of my informants states that the Government has made attempts to assist the farmers with large cooperative schemes which have not borne much fruit. For instance, about six years ago the department of agriculture at Pretoria allocated a large sum of money for the purchase of fencing wire, which was to be sold to farmers on special terms to enable the latter to fence in land at less expense than would have been possible if they bought directly from merchants. The scheme, however, proved a failure, and is not now in operation. 284 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. I do not know of any buying organizations of jobbers or importers. Influence of foreign investments and management.—The territories of Rhodesia are controled by a company, the British South Africa Co. In that country large ranching companies have recently been established. These are alleged to be financed by American meat-packing concerns, and it is possible that there may soon be large stock operations there connected with a meat-packing industry. American managers and engineers have been, more largely in the past than at present, employed by the mining companies, and American experts are utilized to some extent in developing the local tobacco raising and manufacturing industries. Government aid to industries—All South African products, commodities, and manufactures are carried over the Government-owned railways at special rates, which are stated to be much lower than the rates charged for foreign goods of similar character. As stated above, Great Britain and British possessions enjoy & 8 per cent preferential rate of customs duty. No bounties, unless it be for sugar, are granted by the Union Government, so far as I am informed, but maize for exportation is carried at a special rate of 10 shillings ($2.43) per ton of 2,000 pounds from any inland station to any Union seaport. There is also a special rate for coal for export, and a rate of 5 shillings ($1.22) per ton on oats, barley, and similar cereals disatched from places within 100 miles of Cape Town to f. 0. b. Cape own docks for oversea shipment. ‘There are no very important instances here of facilities being granted for manufacturing or of discrimination against foreign material, though there, of course, exists a preference for doing business with Great Britain, which preference will possibly be intensified as one of the results of the present war. Wool, hides, and skins.—The recent development, as a result of the war, of American purchases of South African wool, hides, and skins, etc., has led to the establishment here of several representatives of American manufacturers of textiles and leather goods. Sugar.—Most of the sugar used in Cape Province comes from Natal and Zululand. Prior to 1914-15 occasional importations were necessary, but production has now reached approximately 118,000 tons, which about covers the needs of the Union. About 5,000 tons come from Portuguese East Africa under an agreement with the old Transvaal Government whereby it is admitted free of customs duty. This agreement still has about four years to run. The import duty on all refined sugar is 3 shillings and 6 pence {85 cents) per 100 pounds, with the exception of loaf, castor, and icing, which pay 5 shillings (1.22) per 100 pounds. In the early part of the present year the Union Government placed an excise of 1 shilling (24.3 cents) per 100 pounds upon all sugar produced in this country. The present price of No. 1 refined sugar, packed in pockets of 70 pound each, is 22 shillings and 3 pence ($5.41) per 100 pounds c. i. f. Cape Town, including excise. No American sugar has been imported during the past three years with the exception of cubes, which came to replace 'L'ate’s English cubes, which have become unobtainable, The American cube is described as being of “excellent quality but somewhat large in size.” SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 235 Production is fast increasing, and it is anticipated that a surplus will soon be available for exportation, Southwest Africa absorbing part of next season’s production. Supplemental report from the consul at Durban. To the above information the consul at Durban adds details which are taken as follows from his report to the Cape Town office: There appear to be no trusts or combinations controlling trade soncerning which any printed information is available. The soap business is controlled by Messrs. Lever Bros., who have the whole trade of South and East Africa in their hands. The Indian market is also supplied from here. This company controls the trade in high-class as well as common soaps. It has agreements with Colgate, Pears, and other firms, so that the business of the rincipal soap manufacturers of Great Britain is managed by Messrs, Lever Bros., competition having been swept away. This firm carries on only a cash business so far as Natal is concerned, the purchaser attending to the transportation of his acquired wares. The sugar industry is often referred to as a trust. It is bounty fed to the extent of £3 ($14.60) a ton on all sugar manufactured. This practically keeps out all foreign manufactured sugar, including that from other British possessions. This industry is in the hands of comparatively few individuals who control the mills and own ths timited number of refineries. Recent alteration of the law governing the supply of indentured Indian labor has almost doubled the cost of field labor. Attempts are being made on the larger and more up-todate estates to use machinery to a certain extent, and experiments are also being made with white labor in some departments. The coal-mining industry is also said to be to some extent worked on the cooperative plan. The entire production is, however, relatively small when compared with that of the United States. There are several dozen companies in the Natal Coal Owners’ Association, but this can hardly be considered as a syndicate or trust. The shipping combine is perhaps the closest trust in South Africa. A combination known as the Conference Lines lays down the terms and conditions upon which shipowners are permitted to do business with South Africa. For instance, imports may be brought into this country by vessels of the Union Castle Steamship Co., the Natal Line (Bullard and King), the Harrison-Rennie Line, the Clan Line, the Ellermann-Harrison Line, the Canadian South African Line, the Prince Line (from New York), and a few others, but only the purely South African lines are permitted to take freight out of the gountry. is of the White Star Line, the Blue Funnel Line, the Peninsular and Oriental Line (branch service), and the Aberdeen Line may either take or leave passengers when going to or from Australia, but they can take freight only to or from Australia. Rates from New York and Canada are also fixed by the Conference Lines in London and they are high, compared with other freight rates from both places. Condensed milk is another article which is under control, and nc foreign manufacturer of this article can bring his goods into this market except with permission from Nestlé Milk Co., in London. 236 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. This firm has no plants in South Africa, but it holds large stocks here and is thus able to keep out other brands. If such foreign exporter persists in his effort, Nestlé refuses to sell to firms handling the rival commodity and in this way other kinds of milk are kept out of the market, except to an extent permitted by Nestlé, whose terms are cash at office with order, and the order has to be made on the firm’s order form, the buyer himself taking the wares away from the bonded warehouse if his place of business is in the same town. Ooze the goods are deliveréd at the railway station or ship’s side. Chain stores are another form of combination. The agricultural implement business here is handled largely by firms which own such chains of stores. Nominally the country store, and sometimes the town store, is owned by the man whose name appears on its signboard, but frequently the ownership or control is held by the coast merchant. One of the benefits of this system is that when a foreign exporter can get a large local firm to take up his goods, there is an assured market by reason of such chain of stores. One of the disadvantages is that other firms will usually not handle the same brand of goods unless it is one which is indispensable. For instance, take the case of Cadbury’s Cocoa. All firms keep it in stock, yet Cadbury must stimulate the demand by canvassing throughout the country. The coast firms would not take the trouble. Cadbury’s travelers obtain orders from shopkeepers, and these orders are either handed to the firms with which the shops do business or the wholesale firm with which the shop is linked is credited with the sale. Th's tends to regulate Prices These chains of stores enable the coast firms to allow credit to farmers, who settle with maize or wool for shipment to the seaport firm. The fertilizer trust, otherwise the Chemical Union, has a strong foothold in this country, but it is considerably influenced by the fact that the Union Government sells guano from certain islands belonging to the Union. By this means farmers are assured of a supply of fertilizer apart from the trust. Special rates are quoted for Gove ernment guano. “ Dumping ” is controlled through the customs, the sale of goods below prices ruling in the country of origin being forbidden. Special report of Consul E. A, Wakefield, Port Elizabeth, South Africa, November 9, 1915. So far as the local commercial situation is concerned, there are no syndicates or combinations for controlling or restricting trade in any way. This refers to Port Elizabeth and the other municipalities with the exception of East London. East London merchants’ combine—There is said to be a combination of importing merchants at East London for the purpose of regulating the prices on many of the staples imported. Naturally, this would, to a greater or less extent, include the up-country products sent to the East ar commission merchants. One of the principal manifestations of the existence of this combine was noticed some months ago when most of the importers refused to handle the products of the United Tobacco Co. As a result the United Tobacco Co., instead of dealing as formerly with the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 237 wholesale trade, started to sell direct to the retailers and are still continuing this method. This combination was sufficiently effective or objectionable to cause public comment by the mayor. This official stated that many lines of imports were sold at higher rates at East London than at any other coastal port. This office has received communications referring to the “merchants’ ring,” but apart from the preceding statements, I have no knowledge of affairs there. Shipping combine—Prior to the war a combine known as the Conference Lines controlled practically all South African trade or rather that portion of it which was imported from Europe and America. The German East African Line was not in this combine, but it is probable that there was most of the time a working agreement between this company and the Conference Lines. To a more limited extent this combine still exists, but apparently does not entirely cover the produce export trade from South Africa. : By a comparison of freight rates it may be readily seen that the rates between England and South Africa are more favorable than those quoted from New York to South Africa. EGYPT. pect report of Consul Arthur Garrels, Alexandria, Egypt, November 13, The following report covers Egypt and the Soudan. With the exception of cigarettes, the production of manufactured articles of commerce holds a most unimportant place in the industrial endeavor of Egypt. There is no manufacturing in the Soudan. All products, except cigarettes, manufactured in Egypt are for local consumption. The manufactures comprise cigarettes, sugar, cotton goods, paper, soap, beer, cottonseed oil, and are produced by only a few plants for each article. As far as can be learned there is only one combination or syndicate existing among manufacturers in Egypt. The owners of the ice-producing plants in Alexandria have formed a selling company through which all of their product is marketed— “Glacieries Reunies d’Alexandrie.” The company confines its sales to the city of Alexandria and adjacent territory. . An agreement exists between all of the important raw-cotton exporters (Egyptian cotton exports approximate $130,000,000 annually) and three steamship lines, i. e., Ellerman Line, Moss Line, Prince Line. In accordance with the pertaining agreement, which has been in existence a number of years under annual renewal, the steamship lines on their part agree (1) to transport raw cotton from Alexandria to Liverpool during the cotton season, September 1, 1915, to August 31, 1916, for a fixed rate, (2) and bind themselves to have freight room at the disposal of the shipper, always in desired quantities. The shippers, on the other hand, agree to ship no cotton destined for England and the United States by any other ships. As far as can be learned there are no combinations of manufacturers foreign to Egypt which export products to Egypt, nor are 288 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. there any international cartels, syndicates, or combinations operatng as such in Egypt. here are no combinations of buyers of American goods in Egypt. English banks are prominent in in finance. French capital has for many years found investment in Egypt, in concessions and contract undertakings, as well as in commercial and import commission lines. The culture of the Levantine native is French, and French banks are important. German capital before the war was invested in import i) export business and German cotton firms vied for supremacy with British houses. All of this can not fail but militate against unimpeded markets for American products. The jack of direct steamship connections and direct banking facilities with New York are other features hampering the expansion of the sale of American products in Egypt. ; ALGERIA. Special report of Consul Dean B. Mason, Algiers, Algeria, November 9, 1915. Algeria is a French colony having, according to the census of March, 1911, a total population of 5,563,828 inhabitants, of which only 752,043 are of European origin. The native population, which is Siig Mohammedan, is accustomed to a simple standard of living and is a much smaller consumer of manufactured or foreign goods than the population of European origin. No native combinations of manufacturers.—Algeria is an agricultural country, and most of the manufactured products consumed are imported from France. Coal is not mined in Algeria, the cost of fuel is high, and there is no water power suitable for manufacturing purposes. Manufacturing enterprises are on a small scale and are only of local importance. According to the testimony of the secretary of the Chamber of Commerce of Algiers, of the directors of two banks, and of wellinformed business men, no cartel, syndicate, or combination of manufacturers exists in Algeria. The parties in question are intimately acquainted with business conditions in Algeria, and their testimony is confirmed by information received from the Bureau of Commerce of the Algerian Government. Special agreements may be made from time to time between independent manufacturers as to the prices at which goods are sold, but as far as can be ascertained there are no combinations of Algerian manufacturers which can regulate prices or control the actions of their members. French manufactured goods can be imported into Algeria without paying duty, and, owing to the highly developed character of French industries and somewhat unfavorable manufacturing conditions, it is impracticable for Algerian manufacturers to control the Algerian market. The French influence—~It is believed that the business, industrial, and political connection between France and Algeria is so intimate that, in so far as the activities of combinations of manufacturers are concerned, Algeria ‘should be considered as French territory. It is understoood that conditions of sale, business policy, and methods are either identical or very similar in France and Algeria. Shipping facilities are cheap and rapid, and, if a comparatively insignificant allowance be made for extra transportation charges, prices and terms SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 239 are generally the same in Algeria as in France. Most of the manufactured goods sold in Algeria are imported from France. In 1913, the last year in which business conditions were normal, the Algerian customs statistics report $81,883,724 worth of manufactured goods imported from France and only $5.778.806 worth imported from foreign countries. It as been ascertained that, while, in some instances, French manufacturers may belong to combinations created for the regulation of prices, etc., the development of their trade in Algeria is not due to the activities of combinations. The large sale of French manufactured goods in Algeria is chiefly due to the fact that they pay no duty, while the high French tariff is applied to foreign manufactures; to the fact of better transportation and banking facilities; and to the intimate business, financial, and political connections between France and Algeria. It is not especially due to the activities of French combinations of manufacturers. An agreement exists between the different French sugar refineries as to the prices at which their products are sold. Sugar is purchased by Algerian importers from French manufacturers, but the prices at different refineries are always the same. It was stated by a prominent importer that sugar was purchased in France by correspondence, but that he knew nothing definite as to the nature of agreements between the different French manufacturers. According to information received from the Department of Commerce of the Algerian Government, which has been confirmed: from various unofficial sources, no special relations exist between the Algerian Government and French or foreign combinations of manufacturers. Combinations foreign to Algiers—XKnowledge of local business methods and conditions are essential, and foreign manufacturers generally make special arrangements with Algerian importers or dealers for the sale of their goods. Exclusive right of sale is frequently accorded in order that Algerian firms may be interested in deveioping trade. The Algerian market is not sufficiently important to Jastity the maintenance of a number of selling organizations in this country by foreign manufacturers. Inquiries have been made at the Bureau of Commerce of the Algerian Government, at the Chamber of Commerce of Algiers, and a large number of business men have been consulted, but it was only possible to ascertain two foreign combinations of manufacturers aving an organization in Algeria, namely, the American Harvester Co. and an Italian petroleum company intimately connected with the Standard Oil Co. of New Jersey. Reports relating to the activities in Algeria of the said combinations are given herewith (pp. 240 to 242). The Kali Syndikat (Potash) of Germany.—The contract between the Kali Syndikat G. m. b. H. of Berlin, Germany, and the Algerian firm which has the exclusive right of sale of its products in Algeria, and the selling conditions of the German syndicate are given in Exhibit V (pp. 479 to 482). The Algerian firm actually purchased the products of the syndicate, and it is consequently not understood that the syndicate possessed a selling organization in this country. The sale in Algeria of the products of the Kali Syndikat has been 240 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. pushed by the Algerian firm which has exclusive right of sale in this country, and the demand for the products of the syndicate has steadily increased. Sales have also been materially promoted by a bureau for the propagation of information as to the value of fertilizers, whose expenses were paid by the Kali Syndikat. The director of the bureau was a professor of agriculture receiving a salary from the Algerian Government. The bureau advocated and facilitated the sale of different valuable fertilizers and not only the products of the Kali Syndikat, so that it is likely that its connection with the German syndicate was not generally appreciated. Owing to the war, all business connections with Germany and Austria have been severed, and it seems unlikely that business can be done by German and Austrian cartels or manufacturers for a considerable period of time. Other conditions.—There are no combinations of buyers purchasing American goods in Algeria. It is not. believed that the competitive conditions in Algeria, in so far as the investment of foreign capital, the activities of foreign managers, engineers, or (Governments, etc., are concerned, are of a nature to materially affect American exports to this country, but cheaper freight and more rapid delivery of goods from European countries are of undoubted advantage to foreign competitors. The export of Algerian manufactured goods is so insignificant that no special measures have been taken by the Algerian Government for its promotion. International Harvester Corporation.—The principal products of this company are: Harvesting machinery, gasoline and kerosene engines, kerosene tractors, tillage implements, and binder twine. It is represented in France by the “ Compagnie Internationale des Machines Agricoles de France,” a company organized under French laws and registered as a French company, with a paid-up capital of 2,500,000 francs, the majority of the stock being held by the International Harvester Corporation. The Compagnie Internationale des Machines Agricoles de France has branch houses at five different points in France proper and one in Algeria at Algiers. The latter existed for two years as a subagency of one of the French branches, but in April, 1915, became autonomous, being made into a regular branch agency, with direct responsibility to the head office of the Compagnie Internationale des Machines Agricoles de France at Paris, and with jurisdiction over Tunis, Algeria, and part of Morocco. Its organization consists of manager, assistant manager, office staff, warehouse staff, and a staff of expert erectors. Up to the present it has sold to jobbers only, but the present war may eventually force it to sell direct to the farmers. Its products are universally recognized as being of the best quality, both in material and workmanship. Its prices are fair to the jobber, though the jobber usually gets a higher price for this company’s goods than do his competitors with similar lines of different origin. All goods sold during the year are due and payable as follows: Repair parts and binder twine, September 30; harvesting machinery, one-third on October 81, one-third on November 30, one-third on December 81: gasoline engines, 90 days from date of shipment; SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 241 tractors, part cash (usually one-third) with order, part on arrival at purchaser’s station, balance in 15 to 30 days from date of first run of tractor; tillage implements, having two seasons of sale in each year, are payable in March for all bought since the previous October, and in October for all bought since the previous March. No exception is made to this system, but certain facilities are given the jobbers as regards the settlement of harvesting-machine purchases. For these machines, and these only, the jobber is allowed to settle by paying half the value in cash on the dates already indicated and for the balance by giving customers’ notes due not later than the end of the following year, the jobber paying interest in cash and in advance at the rate of § per cent for the part so settled. If for valid reasons, poor crop, locusts, drought, etc., the jobber has been unable to dispose of all he has purchased during the year, the company waives the interest on the value of the unsold goods, provided the latter does not exceed one-third of the total purchase, but settlement must be made in negotiable paper, as above stated. No special privileges of any kind are allowed as to the settlement of tillage implements or any other products of this company. They must all be paid for in cash on the dates indicated. No dumping is practiced by this company, and its tendency is toward increased prices. Their Berens prices net considerably higher than for the same goods sold in the United States, a grain binder netting here $138 that nets not more than $125 to $127 in the United States. The Harvester Corporation has no special relations with governmental authorities or important business interests in Algeria. , This company sells at least 80 per cent of all harvesting machines sold in North Africa, 60 per cent of all binder twine, but less than 30 per cent of all tillage implements. A great deal of the successful results are due to combination, permitting the formation of a better selling organization both in quality and equipment. The company’s resources allow it to pay high salaries in order to get high-grade salesmen and to keep a staff of employees expert in all branches constantly at the command of the customers. ; Walter A. Wood Co., of Hoosick Falls, N. Y.,sells through branches of their French jobbers, Th. Pilter. They are not important cometitors in Algeria, but get a large share of the business in Tunis. They are increasing slowly but steadily, due to the fine salesmanship of their manager, who is paid a commission as well as a salary. Their machines are high grade and are sold at much the same prices, though on somewhat easier terms than those of the International Harvester Corporation. The Harvester Corporation has long-established business relations with the Algerian jobbers and dealers in agricultural implements, and having a competent selling department in Algeria, has a great advantage over independent American manufacturers desiring to introduce similar products in this country, and competition is very difficult on the part of other American producers. Societa Italo Americana pel Petroleo.—The Societa Italo Americana pel Petroleo of Genoa is an Italian company, the majority of whose stock is owned by the Standard Oil Co. of New Jersey, which maintains an agency at Algiers for the sale of petroleum and naphtha. 97941°. p19 1A 18 242 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, It is claimed by the representative of the company at Algiers that there is no petroleum trust in Italy, and that petroleum is sold by several important firms competing with one another. The Societa Italo Americana pel Petroleo has the exclusive right of sale of the products of the Standard Oil Co., by which it is controlled. It hasa capital of 20,000,000 francs, and is the owner of depots and tank steamers. The agency at Algiers is managed by a director who transacts business at Algiers or through agents in other Algerian cities. Selling prices in Algiers are fixed by consultation between the Italian company and its directors at Algiers. Selling prices fluctuate with market prices in the United States, and as cost of delivery is very similar in Algeria and Italy there is no very material difference in selling prices in the two countries, when allowance is made for the different rates of duty. The quality of products sold is good, all supplies being produced by the Standard Oil Co., and there is no dumping. Credits of 80 to 60 days were allowed by the Algerian agency prior to the war, but at present cash payments are exacted. The agency at Algiers possesses a depot where products are discharged from tank steamers. It distributes its products from depots at Algiers to other Algerian localities, and manufactures barrels for shipment of its products. No special relations exist between the Italian company and the Algerian Government or with important business interests in Algeria. The agency of the Italian company was established at Algiers some 11 years ago. There has been no very marked increase in the sale of petroleum, but the sale of naptha has become much more important owing to greater demands for automobiles and autobusses. The demand for faphtha has been greatly decreased by the war. Both petroleum and naphtha are necessities whose sale is not dependent upon the activities of combinations of manufacturers, but economic and satisfactory methods of distribution due to combination and effective business organization tend to promote business. Petroleum is also sold at Algiers by the representative of Pluch & Cie. for the Raffinerie du Mibi, which is owned by three important firms dealing in and refining crude petroleum. The said French firms, Desmarais Fréres, Deutsch, and Tenaille & Despeaux, have an agreement between themselves regulating prices and quantities sold by each firm. It is not understood that the said combination of French manufacturers transacting business in Algeria through the organization known as Pluch & Cie. are afforded any special facilities by the Algerian Government. The petroleum ol naphtha sold in Algeria by Pluch & Cie. are imported from France, and the business methods and prices, etc., of Pluch & Cie. are similar to those of the [talian company. It only does about half as much business. KONGO. Special report of Vice Consul in Charge Harry A. McBride, Boma, Kongo, November 13, 1915. Cartels, syndicates, and similar combinations formed for the purpose of internal and external trade or industry do not exist in Kongo. he only formations of this sort which may operate in such a manner SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 243 as to effectuate a juncture of interests, but which could in nowise be designated as projects whose object is to ultimately control the trade in certain specified lines or to bring any one class or industrial enterprise under one management, are found in two or three instances in the colony and have become known locally as “financial groups.” Peculiarities of import and export trade hinder the formation of combinations—Kongo is a vast, almost totally undeveloped colony, the area of which is 909,600 square miles and the population about 9,000,000 natives and 6,000 whites. Only during the past 30 years has trading been carried on, and only since 1912 has the entire colony been open to traders. During this period, and more especially since the proclamation of the annexation of Kongo to Belgium in 1908, many trading companies and firms have started in business. The. colony itself produces practically nothing in the shape of foodstuffs for the white inhabitants and there are no manufactures of any sort.” The chief imports are therefore foodstuffs for the white population and cheap textile goods for the natives. The value of the former is about $2,000,000 per year and of the latter $1,700,000. These are the chief classes of imported goods, and the only merchandise sold in quantities large enough to warrant the combination of various companies to control their sale. -The most important local trading firms are merely branches of companies in Europe. The first firms in the field were the Dutch and the British, both of which were engaged in barter with the natives years before Stanley’s tour in the Kongo. ‘After Belgian in-Auence became strong, several Belgian companies were formed to operate in various parts of the colony, and there is also French, Portuguese, and German capital in the field. Owing, therefore, to the diversified nationalities of the commercial undertakings now in operation, and to the fact that there are only two classes of goods sold in large quantities, both of which are produced to some extent in all the countries wherein the headquarters of the local firms are located, it would be exceedingly difficult for them to unite their interests and form a syndicate or corporation to deal with the imported goods. The same difficulties exist in the export trade. There are no manufactures, and the exports are composed solely of tropical products, and minerals, such as rubber, ivory, gum copal, cocoa, copper, etc., the total, annual value thereof being about $12,000,000, of which rubber is one-half and ivory and gum copal about $1,200,000 each. Most of the firms engaged in importing goods are also exporters of tropical products, but each firm ships to its own headquarters, whether it be in Antwerp, Brussels, Liverpool, Lisbon, or Hamburg, and there is no arrangement for operating the export trade as a combination. Therefore, as far as the buying and selling of merchandise is concerned, all firms work independently. Financial groups—The development of a large colony such as Kongo, where climatic conditions are very unfavorable, is necessarily slow. A great deal depends upon the he utilities, such as steamship lines, railways, banks, hotels, etc., and unless the Government undertakes the construction thereof it is often difficult to find the capital required for such enterprises. This state of affairs has given rise to the formation of the “ financial groups” above referred to. 244 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. --The most important one is known as the “Thys’s group,” and a description thereof will give an idea of the causes for the formation of these combinations and the manner in which they operate. The Kongo River is navigable from the sea as far inland as Matadi, a distance of about 100 miles, but, between Matadi and Leopoldville, the river is full of rapids, whereas above Leopoldville the Kongo and its tributaries offer about 9,000 miles of navigable waterways. So the first need was a railway from Matadi to Leopoldville. The group of capitalists, most of whom were Belgians, formed a company fo build the railway which, after its construction, paid large dividends because every person and every ton of freight entering or leaving the Upper Kongo were forced to use the line. This company 1s known as the Compagnie du chemin de fer du Kongo, and en. Thys was the first president thereof. The same capitalists then became interested in a steamship line from Belgium to Kongo, which would operate a freight and passenger service under the Belgian flag, so another company was a, to be known as the Compagnie Beige Maritime du Congo. Later the Société La Citas was formed to engage in river transport on the Upper Kongo, and now many small river steamers are in operation. This company also has trading posts along the rivers for dealing with the natives. The Compagnie d’Alimentation -du Bas-Congo was the next company formed by the same capitalists, the object being the comstruction and operation of good hotels at Matadi, Thysville, and Kinshasa. Then, the Société des Petroles au Congo was established for building a pipe line over which fuel oil for the use of the river steamers could be pumped from Matadi to Leopoldville. Large tanks were constructed at Ango-Ango, near Matadi, where considerable stocks of oil may be kept. The Compagnie des Produits du Congo was also formed by the same group, the object being the purchase and breeding of cattle to supply fresh meat at Boma, Matadi, and Leopoldville, and some of the same financiers have also invested capital in the Banque du Congo Belge. Each of these companies is entirely independent of the other, and a local manager of each one has charge of the interests of his company solely and has nothing whatever to do with any of the other companies. There is no general assembly or combined meeting of directors of all the companies in Europe, nor is there an executive or administrative committee to manage the combined interests. They work as separate and distinct organizations, the only connection being that some of the same parties have furnished the capital for all of them. . Manner of operation of the financial groups—The various enterprises of the same group naturally favor each other in their local dealings. For example, the material and supplies for the railway and other companies are always shipped, if possible, on steamers of the Compagnie Belge Maritime du Congo; the railway and the hotels purchase their supplies of fresh meat from the Compagnie des Produits; the hotels use ice made by the railway company; the railway company in turn now operates its locomotives with fuel oil which is purchased from the Société des Petroles; and shipments of merchandise belonging to any member of the group to Upper Kongo are always made on river steamers of La Citas. Thus, in many ways they work together locally. SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. - 245 The companies do not seek a monopoly, however, as there are hotels, river-transportation companies, suppliers of fresh meat, steamship companies and other competing enterprises, all outside of the group, also established in the colony, and, in many instances, their scale of operation is quite as great as that of-the group comanies: ° Beside the * Thys group ” there is the combination known as the * Société Général” and one or two others of lesser importance. In the Katanga district the copper mines, railway, and a construction enterprise are operated by a similar group of capitalists. European addresses, legislation, etc—On account of the war the headquarters of the various members of the “Thys group” and of other Belgian companies have been temporarily established in London, England, and the present addresses are not known here. Communications addressed to them care of the Banque du Congo Belge, 51 Lime Street, London, E. C., England, will undoubtedly reach the proper destination. No information as to the names of the members of these companies, date of formation thereof, etc., is available, nor have any publications upon the subject appeared. As far as can be learned from local authorities, no legislation as to the formation of combinations in Kongo has been made. There are no combinations of buyers of different lines of American or other goods in the colony and no organizations of consumers, retailers, jobbers, or importers. . The colonial government has taken no steps designated to foster the foreign trade of Kongo, except in lowering export duties when the rubber crisis of 1912 threatened to seriously injure the colony’s chief industry—rubber gathering. Since the outbreak of war the government has been studying a project for financing the exportation of ivory and certain other tropical products, But as yet no Jefinite results have been effectuated. AUSTRALIA. Special report of Consul General J. I. Brittain, Sydney, Australia, November 22. 1915. 3 Australia being as yet more of a primary than a secondary producer, especially of exportable commodities, it is obvious that forma. lion of syndicates or combinations to control the selling of manufactured goods in markets beyond its own borders could not have been attempted on anything like a comprehensive scale. Australian export statistics show clearly that wool, metals, hides and skins, butter, apples, coal, meat, and a few other similar products are responsible for a very large share of the total. Such producing as is lone in lines ordinarily described as “ manufactured goods” is applied almost exclusively to’ satisfying the domestic demand. The Commonwealth’s list of factories is a fairly long one, but the aggregate capital investment is relatively Sil and the number of employees commensurate therewith. In spite of its extensive geographical area the country’s population is still below the 5,000,000 mark, and is largely centered in the coast cities. The rural districts are but sparsely settled, and constitute, therefore, no conspicuous factor in the equation of consumption. No doubt its isolated position 246 KEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. is responsille in great measure for Australia’s present unimportant standing as an exporter of manufactured goods. There is hardly a country in the world which is not situated more favorably for marketing its products in the crowded communities of the Northern Hemisphere. To these, Australia sends to-day practically nothing but staples, raw materials for mills and factories, of whose output a fair proportion finds its way back again to the originating source. But despite these conditions, which apply about equally in all the States, Australian producers have undoubtedly, in some instances, resorted to consolidation as a means to restricting competition and maintaining prices. Agreements of this nature, when existent, are based upon verbal understandings among the persons interested, but they are rigidly respected and nonparticipants therein find their independent endeavors seriously hampered. “Understanding ” in coal and coke trade.—This is apparent in the coal and coke trade of New South Wales. One of the “outside” operators has assured the writer that in the case of coke the situation is peculiarly acute. By an “understanding” among the cokeoven proprietors all coke destined for the Statc of Victoria shall be sold at a price of more than $15 per ton. The price of coke at the ovens is not more than $4. Efforts to purchase coke without disclosing its intended destination with a view to combating the “ understanding ” have been met with searching questions, and upon its being ascertained that the coke was wanted on Victorian account the sale has been refused. Even could purchase in such circumstances be accomplished, it is practically certain that cargo space in vessels from New South Wales ports would be found unobtainable. Another indication of the existence of a tentative “ combine ” is cited in the coal trade. An independent producer having stocks on hand at a time when the industry was suffering from a strike of miners was asked to supply a certain vessel with a small quantity for bunker purposes. This was done. Later, when approached with an offer of further * independent ” coal this vessel’s owners said that they did not dare place any further orders with outside producers. The business of the * independent ”’ mine owner was therefore curtailed and he has since informed me that he has found it practically out of the question for him to sell his output in competition with the allied mines. And yet there is no direct evidence that any black and white contract binds the proprietaries of these allied mines to act only in concert. The coastal steamship situation.—Apparently. there is also an agreement under which the coastal steamship services of Australia are operated. To all intents and purposes the several companies constitute, in the consolidation of their interests, a trust. Fares and freights are regulated along noncompetitive lines and passenger tickets are interchangeable. Time tables, too, are systematized in such a way as to equalize as far as possible the benefits to the different owners. And yet the companies, all of the limited liability class, are ostensibly independent, there being nothing to indicate joint control. Each has its own board of directors and each maintains its own offices or agencies in the various cities of the Commonwealth. If there be any interlocking of directorates it is well concealed. The chief factors in this indirect alliance are the Australian Steamships (Ltd.), the Adelaide Steamship Co. (Ltd.), the Australian United Steam Navigation Co. (Ltd.), and Messrs. McIlwraith, McEachern SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 247 & Co. Prop. (Ltd.). These concerns do a coastal business only. Other lines whose ships touch at two or more Australian ports on voyages to and from foreign ‘centers all follow the prescribed schedules in their local operations. A similar understanding is apparent in the working of the Australia-New Zealand vessels. Two principal companies are involved, the Union Steamship Co. of New Zealand (Ltd.), and Huddart Parker (Ltd.). And yet there is nothing in the way of published documents to show by what means the several interests are related. Merchants and shippers whom I have interviewed are unanimous in their conviction that these shipping companies are “combined,” but from none has it been possible to get any concrete proof. The managers of the companies themselves are extremely reticent, and while not actually denying the existence of an understanding, are unwilling to affirm it. Sti the evidence of experience leaves no doubt as to there being at least. a “-gentlemen’s agreement ” at the back of the conspicuous unanimity of conduct of the various services. The sugar industry.—The production of cane and refining of sugar in Australia are almost entirely in the hands of a single great concern, the Colonial Sugar Refining Co. (Ltd.). Cane growing is confined to the two States of Queensland and New South Wales, and in both the operations of this company are extensive. It is essentially a “ close corporation,” and while not being declaredly a monopoly is so in effect. Gradually small producers have vanished, usually, when their interests have been of appreciable value, by being absorbed by the “ C. S. R.,” as the Colonial Sugar Refining Go. (Ltd.), is locally known. Australia is both an importer and exporter of sugar. In 1907 the exports exceeded the imports for the first time. In 1913 the figures were: Exports, 3,419 tons; imports, 74,861 tons, showing that the present tendency is for Australia to use most of its sugar at home. Such exports as are now made go principally to the United Kingdom, South Africa, Portuguese Africa, and the Pacific islands, but the bulk even of this is not of Australian origin. Of the 1913 total, 8,419 tons, only 6 tons was of Australian origin. The sugar so reexported comes mainly from Java, Mauritius, and Fiji, at which last-named place the Colonial Sugar Refining Co. has extensive holdings. In beet sugar Australia has so far done nothing but experiment, and that in a very small way, the industry being confined to the State of Victoria. But of the inner workings of the Colonial Sugar Refining Co. (Ltd.), little is ascertainable. That the company is jealous of its interests and guards them most carefully from outside attacks is manifest to all who follow the trend of commercial practice in Australia. The fact that there is but one principal sugar company is significant and points to an organization of peculiar completeness. Foreign-buying methods.—It is not common practice in Australia for buyers of foreign-made goods to syndicate their purchasing. The larger department stores and most of the jobbing houses buy extensively through London representatives. American goods, as well as British and continental, are handled in this way, but in practically every instance the buyer operates for his own client and is in effect an employee of his Australian principals. This is not to say, however, that local buying from traveling salesmen is dis- 948 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. couraged. On the contrary, the Australian importer is quite prepared to give his best attention to commercial men from abroad if equipped with accurate samples. It is in the big staple lines that the London buyer finds his chief business. The question of competition.—As might naturally be expected in a British dependency like Australia, British ideals exert a wide in-Juence in commercial relations. The country’s industrial undertakings, by which is meant in this instance its manufacturing activities, are influenced very slightly if at all by foreign capital. Undoubtedly there are many foreign holders of shares in the larger limited liability companies, but the management and general administration are not affected noticeably thereby, and the directorates are comprised ordinarily of local men. Generally speaking, however, Australia has so far financed its own factories, except in the case of foreign concerns which have come here to produce established lines of goods in order to escape tariff imposts and effect other economies. But even these must be registered under the companies acts of the State or States in which they intend to operate, the custom being to add the words “of Australia” or “of Australasia ” to the orignal firm or company title and affix the “limited.” Thus the local trading name of the Studebaker Corporation, an American company, becomes here “The Studebaker onions: Mo of Australasia (Ltd.).” By far the greater proportion of the engineers engaged in industrial activities here are of British extraction and experience. Many of them are themselves British born, and it is to be expected that they should prefer British machinery to that of American or other non-British origin. In cases where a consulting engineer is employed, as he is in all the larger plants, he acts as an advisor on all questions involving the purchase of machinery. Other things being equal, he will favor British manufacturers. There is growing up in Australia a strong feeling against importing engineers or experts of any sort to fill high-salaried posts. This is the outgrowth of trade-unionism, no doubt, but it is undeniably an influential factor in the general scheme and one, too, which, as time goes on, will be more and more respected by the employer classes. Government enterprises—In New South Wales the Government has of late evinced a desire to inaugurate industrial competition and to that end is now operating a bakery, a timber yard, a quarry, a brickyard, and several other plants, re output 1s in direct opposition to products of similar plants owned and operated by private or corporate capital. This matter is relevant to the subject of this report only in so far as it shows that even if combinations of manufacturers or producers were recognized and authorized as such here they would be liable to the preferred competition of the Government should the Government feel disposed to set such competition on foot. It is generally thought that this liability has interfered in some degree with the fuller development of Australia’s manufacturing Ip ssinies ereas the Government of the Commonwealth and the governments of the several States where the labor party rules are paying considerable attention to industrial expansion, none of them Jus as yet taken any decisive steps in the direction of promoting the export of manufactured goods. In New South Wales, as stated, the SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 249 Government is increasing its endeavors to acquire factories, and already it has set up .considerable competition with private and corporate interests, but the reason given is that the people will benefit directly when these undertakings are established. It has, however, been shown by recent statements from the treasury that these Stateowned industries are not all profitable commercially. The Government has prevented private speculators from taking advantage of the public by stepping in and regulating prices. ‘This was done recently through the Necessary Commodities Commission restricting prices on sugar, butter, eggs, flour, bread, fodder, etc. The Government’s aim is to protect the consumer. It must be remembered in considering Australian conditions that the railroads are State or Federal utilities, as are the telephones, telegraphs, and many of the street railroads. Buying by public tender, the common practice in Australian governmental departments, may possibly restrict the volume of trade. Furthermore, the time allowed for tendering is not always sufficient for foreign suppliers to compete, unless they have their own special representative on the spot watching opportunities as they may arise. Provisions of the constitution of the Commonwealth.—In the Commonwealth constitution certain clauses and sections are empolis which have direct bearing upon trading, both domestic and oreign. Section 51 authorizes Parliament to “make laws for the peace, order, and good government of the Commonwealth with respect to (i) trade and commerce with other countries and among the States, and (xx) foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth.” It was recently proposed by the Government to amend the constitution, and a bill was submitted to Parliament to that end. There was an effective majority of each house to the third reading of the proposed law. It now awaits a referendum to the People At the latter part of October, 1915, it was decided to delay taking this referendum until a more opportune time. Undoubtedly, however, if the Federal administration at present in power remains in power after the war this referendum will be taken, and it is probable that the constitutional amendments proposed will be carried. Therefore it is worth while to study briefly those phases of the amendments which have reference to the subject of this report. Section 51 of the constitution above quoted will be altered by omitting from paragraph (i) the words “ with other countries and among the States,” thus making the constitutional power practically absolute in respect of trade and commerce. Paragraph fer, also cited above, will be altered by omitting from it the words ¢ foreign corporations, and trading” or financial corporations formed within the limits of the Commonwealth,” and inserting in their stead the words “corporations, including (a) the creation, dissolution, regulation, and control of corporations; (b) corporations formed under the law of a State, including their dissolution, regulation, and control, but not including municipal or Government corporations, or any corporation formed solely for religious, charitable, scientific, or artistic purposes, and not for the acquisition of gain by the corporation or its members; and (¢) foreign corporations, including their regulation and control.” 250 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Paragraph (new) (x1) will be added and will read “ Trusts, combinations, monopolies, and arrangements in relation to (a) the production, manufacture, or supply of goods, or the supply of services, or (5) the ownership of the means of production, manufacture, or supply of goods, or supply of services.” he constitution will be further altered by inserting, after section 51 thereof, the following: “51a. (i) When each House of the Parliament, in the same session, has by resolution, passed by an absolute majority of its members, declared that the industry or business of producing; manufacturing, or supplying any specified goods, or of supplying any specified services, is the subject of a monopoly, the Parliament shall have power to make laws for carrying on the industry or business by or ander the control of the Commonwealth, and acquiring for that purpose on just terms any property used in connection with the industry or business. (ii) This section shall not apply to any industry or business conducted or carried on by the government of a State or any public authority constituted under a State.” EXHIBIT II. EXCERPTS FROM PUBLIC HEARINGS HELD BY THE COMMISSION. “31 EXHIBIT IT. EXCERPTS FROM PUBLIC HEARINGS HELD BY THE COMMISSION. Hearings on foreign trade conditions were held by the commission between June 1 and August 24, 1915, in the following cities: Boston, Mass.; New York, N. Y.; Chicago, Ill.; Detroit, Mich. ; Cincinnati, Ohio; Indianapolis, Ind.; Minneapolis and St. Paul, Minn. ; Spokane, North Yakima, Tacoma, and Seattle, Wash. ; Portland, Oreg.; and San Francisco, San Diego, and Los Angeles, Cal. The purpose of these hearings, or conferences, was to secure information as to trade conditions in and with foreign countries where associations, combinations, or practices of manufacturers, merchants, or traders, either in their home countries or in other countries, affected the export trade of American manufacturers or merchants, or where other conditions existed that affected the foreign trade of the United States. Many interesting facts and valuable suggestions were received from prominent business men and others acquainted with foreign trade conditions, who appeared at the various hearings. Excerpts of the more important matters which relate directly to the investigation have been classified as follows: 1. Foreign combinations competing with Americans. 2. Foreign buying combinations. : 3. American export cooperative agencies already existing or proosed. P 4, Advantages of American export combinations. 5. Disadvantages of American export combinations. 6. Effect that American export combinations would have on competition in the domestic market. 7. Essential factors in the export trade. The excerpts on these topics are given below: 1. FOREIGN COMBINATIONS COMPETING WITH AMERICANS. (a) Organization and Operation. H. C. Atkins, president of E. C. Atkins & Co., Indianapolis, Ind.. manufacturers of saws, stated that— English manufacturers, in dealing with their Government, in dealing with anybody, have exclusive combinations on prices, as the Germans do under their Government supervision, and they do it with the consent of the Government. Francis A. Goodhue, vice president of the First National Bank, of Boston. said: In the foreign field I think the Germans have worked that out (combinations) nicely, and there are a great many lessons that we could learn from them, such as the pooling of territory, and the apportioning of orders among the members according to their size of capital, the number of spindles in the 282 254 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. mill, or some equitable method by which each member of the association would receive his proportional share. = Practically all of these steamship lines, whether Italian, German, French, or English, are in agreement, by which they pool the territory and pool the freight from any one country or any one continent. Then, there are arrangements with the charterer by which these steamship companies allow-—I think it is 10 per cent—rebates to any shipper who ships continuously by allied steamship lines, or the lines in the agreement. They hold this rebate for six months, and at the end of the first six months the shipper gets one month’s rebate back. He is always six months in arrears, so far ag the rebate goes. If at any time he ships by an independent line he forfeits the entire amount of rebate, and that, in a good many cases, amounts to many hundreds or thousands of dollars. They (Germans) have banks, steamship lines, and manufacturers, and all are allied and working together, hand in hand. They have manufacturers’ associations, I understand, in Germany which enable them to give the very iong-time credits they do. That is, a manufacturer will go to South America, and if he is a member of the association at home, he can sell his goods on three, six, or nine months’ time, taking the note from his customer, indorse it, and send it back to his association in Germany, and the association will take care of it for him, through the Deutsche Bank, one of the largest German banks, which is fostering the parent organization in Germany. In fact, they work in very close combination. I do not think, or did not hear, that the English work in that way. I think they are on a mere competitive basis and work more as individuals than do the Germans. oe The Germans had to use artificial means to get into the South .American countries and secure the trade. They had to cooperate and combine and eliminate every possible chance of competition among themselves that they possibly could; and I think that accounts for the highly efficient organization of the German banks, steamship companies, and manufacturers. As to the potash syndicate, J. Ogden Armour, president of Armour & Co., Chicago, Ill., said: In carrying on our various industries we have come to know the European “trade convention,” the “syndicate,” the * cartel,” and the ‘ get together” of continental Europe, and especially of Germany, where this method of buying and selling has reached its greatest development. We buy from them; we sell to them ; we compete with them. Many of these syndicates are as efficient as buzz saws and as dangerous to fool with. Sales pooling is encouraged by the German Government, In some industries the German States participate. The result is greater efficiency at less cost, the public as well as the member sharing the economy. Some of these conventions “ go wrong,” as, for instance, the one controlling the buying and selling of some 300 glue factories scattered through Germany and Austria; others “ go right,” as, for example, the steel convention, the sulphate of ammonia selling company, and last, but not least, the potash syndicate. This syndicate now represents some 160 mines, owned probably by 80 companies. This one selling organization takes the place of, say, 80 under competitive conditions, and saves the industry and the country at large an unnecessary selling expense. It has one export department, with representatives in every country. Its educational fund totals a million and a half dollars a year, and a large part is expended in foreign trade propaganda. Its trade increases each year. Prices, considering the number of mines participating, have been fairly reasonable. Mining has been carried on under strict Government supervision, with no waste. Their prices are profitable enough’ to cover good mining methods, unlike much of our coal mining, where, I understand, low prices have compelled wasteful mining methods and inadequate protection to workers. , Alfred Terrell, of the Simmons Manufacturing Co., Kenosha, Wis., which manufactures metal beds, said: In 1911 negotiations that ran over several months took place between the British Manufacturers’ Federation and the Bedstead Workmen's Association EXCERPTS FROM HEARINGS. 255 for the purpose of adjusting any questions of remuneration or working conditions. Out of those negotiations about 50 of the producing bedstead firms In England formed a combine, which practically meant the entire bedstead Industry of Great Britain, with the idea of eliminating reckless competition and adjusting prices. In some of the rules laid down there were very severe penalties in the event that any firm in the combine did not live up to the rules or withdraws. The retail merchants and jobbers in Great Britain and abroad were asked to sign a statement whereby they agreed to buy 100 per cent from the federation. By buying of the Federation they receive a 10 per cent deferred rebate once a year. If they buy any beds outside of the Federation, then they lose that rebate. That is the competition we have been up against and run into when we got into the export business—this rebate system. As to combinations in the chemical industry, Eli Winkler, of Isaac Winkler & Bros., Cincinnati, Ohio, selling agents for the Columbia Chemical Co., said: We come in contact with syndicates and combinations purely. There are no independent manufacturers. There are these cartels and arrangements and combinations of all kinds; they do not only fix the price, but they divide the territory, and act in perfect unison all the way through. - H. E. Horrocks, manager of the Pacific Creosoting Co., Seattle, Wash., in advocating the manufacture of creosote in this country, stated : If there was some way devised whereby we could get together and develop this foreign market, we would help the lumber industry and we would help ourselves at the same time. It is a big field and one that can not, as I say, be carried—that burden can not be carried—by any one company. It must be carried by some organization. * * * We know—without having the absolute evidence—as a matter of fact that the manufacturers of creosote and the distillers of coal tar in Great Britain and in Germany are in a combination. We know that, because creosote has been f. 0. b. vessels in European ports progressively increasing in price, and we know that we can not look around, for we could not find any independent seller of creosote with whom we can deal. We have got to deal through iust about one source. Of methods employed by foreign competitors in South America, Calvert Townley, the assistant to the president of the Westinghouse Electric & Manufacturing Co.. Pittsburgh, Pa.. said: In most of the southern countries the individual concerns were represented alone. I mean to say that they were not in combination, but it is generally understood by European countries that there is an understanding or cartel In a number of lines of electric produce in Europe. For example, the incandescent lamp is one. But, in South America, the individual concerns have nsually individual representatives in some form or other. * * * In some of the countries they compete quite vigorousfy—Brazil, for instance. The Siemens-Schuckertwerke and the Allgemeine Elektrizitiitsgesellschaft, two large German companies, are hoth represented by substantial sellers. Maurice Coster, the export manager for the same company, said: The Germans have been able to reduce their selling expenses by making agreements between themselves as to the territory to be exploited. For instance, a few years ago we would hardly ever meet any German competition in Argentina excepting that of the Allgemeine Elektrizitiitsgesellschaft—the A. E. G. On the other hand, in Chile, we would have nothing but the Siemens-Schuckertwerke; whereas we would 'find all the leading American electrical companies competing with each other in both Argentina and Chile. By reducing their selling expenses the Germans have been able to sell apparatus cheaper. I think, if we should ga to our principal competitors in this country and make such an agreement, we might be called to task, on the ground that we were moving against the provisions of the Sherman Act. We would like to make such an agreement, because South America is an immense fleld. 256 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. it can easily be divided up. In Brazil, for instance, there is a very decided pro-American feeling. We do not need to meet German competition in Brazil— not always. On the other hand, in Argentina, where there is so much German, English, and Italian capital, we absolutely have to meet competition. W. L. Saunders, chairman of the board of the Ingersoll-Rand Co. manufacturers of mining machinery, New York City, referred to an address made by him at the Second National Foreign Trade Convention, in which he said: A further and very practical reason for encouraging and freeing American merchants in the export trade is the fact that our strongest foreign competitors not only do this, but, through a system of cartels, which aré really tradeunions among merchants, combinations antagonistic to the United States exist. Cartels are permitted in England, France, Germany, Belgium, Italy, Portugal, Spain, Russia, Switzerland, Scandinavia, and even in some of the Balkan States. - The effect of these cartels and combinations is that the prices at which American goods may be sold in certain foreign markets are fixed through combinations of foreign buyers. * * * In Germany there has existed for a long period a system of bounties, used in connection with the cartels, to encourage export trade. Fy -* “In consequence of lower export prices of steel in Germany, cartel export bounties were paid from time to time to such of their customers as were enraged in export trade. This practice extended back to 1891 in the iron trade. The significance of the export bounty system became greater during the period of depression following the crisis of 1900, and it resulted in an extension of the bounty system. In 1902 it was scientifically and systematically organized by the establishment of an “ export accounting office” in which the coal, coke, pig-iron, half-products, and beam cartels united to pay export bounties to each other and to the mills which made and exported the finer products.” (Francis Walker, Quarterly Journal of Economics, 1906.) ik The stronger cartels in Germany maintain a firm export policy. They make a practice of exporting at lower prices than are charged home consumers, finding foreign markets an excellent outlet for excess production, particularly when the home market is poor. The cartels in the mining and iron industries have been forced to assist their customers, who have combined for self-defense, hy granting rebates on exports of goods manufactured from raw and semimanufactured products. The coal syndicate allows 13% marks per metric ton upon fuel produced from the syndicate and used in the production of iron which is exported. This bounty came into operation in 1913. The pig-iron syndicate grants a bounty on pig iron purchased from it and used to manufacture articles for export. This bounty, together with the coal bounty, amounts to 4% marks per metric ton. The rolled-wire syndicate has increased its export bounties so that they now amount to 11% marks per metric ton of raw material used in the case of ironware and of wire goods made from rolled wire, and to 164 marks for material used for wire tacks. Even in the liquor industry the State grants a refund of the internal-revenue tax on spirits exported, and there are syndicated industries in this business which reimburse their members for loss sustained in making sales abroad at iower prices than were obtainable at home. oe " Evidence has been given that German manufacturers went so far as to even secure rebates on freight for goods delivered at the seaboard for export, and German cooperation and concentration have extended to securing information from invoices and shipping papers where American goods were shipped on German vessels to countries other than Germany. M. C. Parsons, the president of the Parsons Trading Co., New York City, said: The Verband Deutscher Dachpappenfabrikanten, for example, in Germany, places a large part of their products—I am talking now about news paper—I EXCERPTS FEOM HEARINGS. 257 think about 75 per cent. On that 75 per cent they get, for example, a price of 2} cents, in Germany, from the local papers. They sell the other 25 per cent of their product in competition with the American mills at anything they can get for it, down to 2 cents and under, delivered or c. i. f. at foreign ports. Of course that competition is such that you can not meet it. * « * * My impression is that they control about 90 per cent of the paper marketed— he news paper marketed—in Germany. * *® » * It is simply a selling organization; they make contracts with the individual mills—contracts to sell their output. Cdl Frank L. Moore, the president of the American Paper & Pulp Association, New York City, said: The great bulk of this product [news paper] consumed in other nonmanufacturing countries has been furnished by Germany, either from its >wn mills or from those of other European manufacturing countries whose products were handled for export either by the associations themselves or by aggressive commission merchants of Hamburg or Bremen absolutely controlled by the manufacturing associations. . ole u* Se Germany, better than any other country, has known how to develop its foreign rade in a most aggresive manner. The Imperial Administration has for years acted through its consular and diplomatic service as the advance agent of the German manufacturer and merchant. Special courses have been established by the Government in various large centers of the Empire to teach the trade of axports. Foreign languages are taught in public schools. In a word, the German was equipped, not only by private, but by Government means, as an export agent and distributor of the nation’s manufacturers. Exports were given sperial rates on all Government railroads, and by special agreements German manufactured products were given rebates on German steamship lines, Manufacturers’ associations agreed to devote a certain portion of the products of their associated mills to the export trade at such low prices as would perforce give them the consuming markets. In enumerating the important factors in building up Germany’s export trade W. S. Kies, the manager of the foreign-trade department of the National City Bank, of New York, said: Cooperative societies were organized for the advancement of export trade. Chambers of commerce, which were active bodies and not paper organizations, rollected data and information for the benefit of all interested. Charles M. Muchnic, vice president of the American Locomotive Sales Corporation, New York City, said: In France, for instance, the locomotive builders have an association called the “ Comité des Forges.” This committee is apparently composed of all the manufacturers of locomotives. It establishes prices. It fixes prices on the various types of locomotives, and then the railways, both State and private, must pay the price fixed by this committee. The orders are naturally apportioned to all the manufacturers in proportion to their output. It then becomes not a rivalry of prices among the manufacturers but an effort on the part of each one to turn out a better product than his competitor. After an experience of over 10 years this arrangement has worked out entirely satisfactorily, as far as I know, to the Government, the purchaser. and manufacturer. dip Of the railways in Argentina, fully 90 per cent belong to British companies, and it is tacitly understood by the local engineers, as well as by the London boards. that no foreign manufacturer would be allowed to supply equipment fon the Argentine railroads—except the British—unless it is a question of urgent need and delivery. These English roads purchase anywhere from 250 to 300 locomotives from England annually, 27941°—p1 2—16——17 258 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, As to cooperative organizations for handling foreign trade, J. H. Kirby, a prominent yellow pine lumber manufacturer of Houston, Tex., said: We would be on the same basis then with our competitors, especially our British possessions’ competitors, who have no such handicap, as I understand it. And they form these organizations for the purpose of handling foreign trade. They even go so far as to provide bottoms to carry their product in. (b) Effect on American Export Trade. Eli Winkler, of Isaac Winkler & Bros., Cincinnati, Ohio, selling agents for the Columbia Chemical Co., speaking of the effect of foreign combinations in the South American trade, said: The result is that we five or six manufacturers in this country, who are trying to find a market for our surplus, if we ever have it—we have had it— and we run up against these enormous company combinations; they are all smart, brainy people who are connected with them, and they know their business. As soon as we go after trade In Brazil, for example, they will pluck our heads off in Brazil. When we get tired there, we go somewhere else, and there Is not much left of us. They will pursue that policy, and have been doing it for years. They have had a market for themselves for probably 100 years. They have never had any interference and naturally they resent it now and make every effort to prevent our inroads. The business itself is not particularly large, as business goes nowadays; that is, the volume, Probably $8,000,000 or $10,000,000 is the amount of their exports in our line. But, of course, with their organization and concentration, as they have it, they are capable of doing it much cheaper than we are. We five are fighting, not only each other, but we are fighting them also. The operations of a German chemical cartel in stifling American exports were described by Herbert H. Dow, of the Dow Chemical Co., Midland, Mich. Excerpts from his statement follow: Possibly the most highly organized chemical in existence is indigo. It is the most important of all the dyes. Possibly eight or nine years ago we made a little indigo in the laboratory to see if we could make it. From time to time we have worked on the matter of intermediate products and are to-day turning out one intermediate product that we did not turn out a few months ago. We have an organization now working on indigo. It will require, however, a very large investment to complete an indigo plant, if they decide that they know how to make it well enough so that they think they can compete. The question will then arise as to whether the price will immediately be reduced the minute we start to manufacture. All indigo is sold through a German organization. Not one pound is sold otherwise. And this applies, as far as I know, to all German chemicals. We have been up against the German Government in competition, and we believe that we can compete with Germany in any product that is made in sufficient amount, provided we have the time and have learned the tricks of the trade. Until we learn the tricks of the trade, however, we can not compete. We have had some experience in the past in which a German has come over to our plant and told us that for every pound we exported he would put two pounds in the United States, irrespective of the price. As I said, the representative of the German cartel told us, in so many words, that he would put two pounds in the United States, irrespective of price, for every pound we sent abroad. The price at that time was about 49 cents in Germany, but, at first, they tried to maintain the market price at 15 cents in the United States after paying the import duty of 25 per cent on the German price. Prof. Oliver M. W. Sprague, professor of banking and finance, Harvard School of Business Administration, Cambridge, Mass., said : My own feeling is that the most valuable, the most profitable foreign trade which we will develop, in addition to that which arises out of the exports of EXCERPTS FROM HEARINGS. 259 our natural products, 1s specialties; and in the production and in the market-Ing of specialties we have nothing in particular to fear from cartels or other organized methods of selling, since the cartels are practically all confined to staple products in which no particular concern has or can develop good will Alfred Terrell, of the Simmons Manufacturing Co., Kenosha, Wis., in speaking of the combination of English bedstead manufacturers, said * About four years ago we became very much interested in the export business, and we have made considerable progress, but one of the biggest disadvantages we have met with is the British competition caused by a combination of manufacturers. ¢ * *' We went after the South American business about three years ago. We had a very good representative down there and the only thing that knocked us out was this 10 per cent rebate. The only things we could sell were certain articles we were making that were not made by the federation, Louis Swift, of Swift & Co., Chicago, Ill., with regard to the German potash syndicate, said: : A large quantity of German potash was sold to American buyers and the German Government took exception to the sale, claiming that the price was too low, and they would not let.the sale go through. They right away made legislation so that the sale could not go through, and it had to be canceled and annulled, and another one was executed at a much higher price with their approval. Charles H. Jones, president of the Commonwealth of Shoe & Leather Co., of Boston, Mass., stated : We do encounter a great many obstacles and find ourselves handicapped in a number of ways in exploiting our goods in any country, for the reason that that market is already occupied by some other group of manufacturers from some other country, and they are well intrenched in the business and it is hard for us to break in. In all of the South American countries there are German and English interests that have controlled the business for a great many years and they know all the details and methods of getting around those obstacles and financing that we do not know anvthine ahout. 2. FOREIGN BUYING COMBINATIONS. (a) Organization. Methods Employed, etc. As to combinations of buyers in the copper business, John D. Ryan, president of the Amalgamated Copper Co., New York City. said: The business has been done in foreign countries largely with foreign dealers who made combinations; who withheld their business when there was an overproduction or when there was any chance of making a break in the price; who manipulated the speculative markets for copper abroad; who kept the actual consumers out of the market; and who prevented their buying until such time as they had driven the price to as low a level as they thought it could be driven. They bought all that they could buy of us, and when they got through buying the domestic consumer, who never was allowed to combine with us and who had to buy for himself and on his own judgment, followed them along, and as a result paid seven-eighths of a cent a pound more, which is the cost of manufacturing copper into wire, and manufacturing it into other products. In other words, the German had his copper manufactured for the same cost as the American consumer had his copper raw, and was not able to meet his competitor in any market of the world. Now, that is our line of business. I say, honestly, in my opinion, that this question applies with greater force to the lumber business. E's dr The people who really handle large quantities of copper between the producer and the manufacturer in Europe get together and sav. * Now. it looks 260 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. to us as though this copper market is not very strong. We will sell 10,000 tons or 20,000 tons in the London market, and start out, and every day for a week we will sell 1,000, 1,500, or 2,000 tons, and break the price five or six or seven pounds a ton ’—it is quoted in pounds per ton—* and when we get down to the bottom some manufacturer, or some producer here who has got a considernble stock of copper and who is commencing to borrow money, will begin to get aneasy.” The price has been going down right along, and one day some representative of this foreign group—and this happens regularly-—calls him up on the telephone and says, “ What will you take for 15,000 or 20,000 tons of copper ? —maybe 10,000 tons or 5,000 tons—but a large block of copper. If they can not buy a good quantity, they go around to the other producers and buy what they can. They have sold this copper short; they did not actually jeliver any copper against those sales they made of 10,000 or 15,000 or 20,000 fons... Then, having bought a large quantity of copper from American producers, who are the only people who have any large quantity to sell, they start in and buy back that copper and cover their shorts; and by the time they get it back they have got the price back to where it started; and the copper they bought from here they sell at that price. You see, it is a very nice transaction. That is what we termed in the days when we were “ trapping,” catching them coming and going. But that is what they do. I don’t know what would happen to a group of copper producers who tried to protect themselves in this country, The thing has often been talked about, but we have all got too much sense to try to do it. But if a group of copper producers, seeing this thing going on right along, should get together and say, “ Now, when they sell that 10,000, 15,000, or 20,000 tons of copper in the market, we will buy it and divide it among ourselves, proportionately,” * * * Asher Miner, president of the National Association of White Corn Millers. Cincinnati, Ohio. said: Normally the greatest foreign consumption of hominy feed is in Germany, where they are better informed of its value than elsewhere, and where it is known as “ Maizfutter.” The important importers of this feed in Germany are only three or four in number and they work in close conjunction with each other, undoubtedly with the encouragement and support of their Government, 50 that there is practically only one association of buyers which controls the jemand and the price paid. ! J. H. Genung, sales manager of the American Hominy Co., In-Jdianapolis. Ind., was of the same opinion, and said: For instance, you take one branch of our business, hominy feed, and’ there is a considerable demand for that—100,000 or 150,000 tons—in Holland and Scandinavian countries, and in England, Germany—principally in Germany. Our observation has been, personally and otherwise, that while there are three or four importers in Germany, when it comes to making a price they pretty nearly know what they do, and it is done by and with the consent of the Rovernment. John Crosby, of the Washburn-Crosby Co., Minneapolis, Minn., was asked whether there were common buying agencies abroad which treated with American millers in the purchase of flour. He replied: There has never been, at least until this war condition. Now it is common report, and we have seen it in the papers, that this buying of flour will perhaps be concentrated. But so far as our company knows that has not happened yet. It may happen on this new crop, but we have not the evidences of it yet. Of course this is true, that the various Governments have bought in this market, and they may supplant individual buyers, and to that extent it may be done. Joseph N. Teal, counsel of the West Coast Lumber Manufacturers’ Association, Portland, Oreg., made the following statement in regard to buying combinations in Australia: I would like to have the time to tell you of the conditions that we meet with, or that we believe we meet with, in Australia. It is all subject to con- EXCERPTS FROM HEARINGS. 261 firmation by an examination of the records of the Department of Commerce and others. : We have reason to believe that there are combinations there which fix the buying and the price. We know that we rarely meet the buyer and the consumer, We know that it is handled through intermediaries, who make arrangements for sales six months or eight months in advance. We know that everyone we came in contact with is a bear upon the price, and has no interest in the lumber industry or any other industry, except to get it at as low a price as possible, ¥ We know that in Australia the tariffs are so framed as to take up lumber as against the manufactured product. D. E. Skinner, president of the Port Blakely Mill Company, Port Blakely, Wash., speaking of Australian lumber dealers, said: The information we receive is this, that after they have formed their. selling agency, as they call it down there, which is also a buying agency, necessarily if they can fix a price at which they sell after they buy it in cargo lots, I assume they also fix the price about what they will pay for it. We learn from those who are selling lumber there; we learn from contact with the trade, that if one man is not acceptable to that combination we had better not sell him, otherwise we will simply have to depend on his trade instead of the trade of the greater number who are in this combination. We have the representations of the Australian merchants who come here, and they say, “ We do not hesitate to tell you we are making two pounds a thousand on your lumber and do not want to handle it at any less.” And that is as much or more than we get f. 0. b. (b) Effect on American Export Trade. John D. Ryan, president of the Amalgamated Copper Co., New York City, said: In studying the effect of competitive selling in foreign countries upon our business—the copper business—I long ago came to the conclusion that this country, which is the great storehouse of the natural resources of the world, undoubtedly, has practically since its beginning thrown away its substance, robbed itself of its mines, its forests, its soil, and sold its natural resources in competition with itself practically; one forest tract with another, one mine with another, and one farm with another, in the severest and bitterest kind of competition everywhere in the world. It seemed very simple to me that that was the greatest economic mistake, perhaps, that this country has ever made, and it continues; it continues until to-day. There has been absolutely no change In it. Five or six concerns control, say, 80 per cent of the copper business of the country. But under the existing laws those five or six concerns are driven to such competition, one with the other, that * * * the result has been that in 10 years ending with 1913, * * * the domestic buyers paid, delivered at New York Harbor or in the Connecticut Valley, 83/100 cent per pound— practically seven-eighths of a cent per pound—more than the foreign buyers paid. delivered at the foreign ports. uw & We sell large concerns in Europe. It is a daily occurrence to get a cable from our representative saying, “So and so is in the market for 1,000 tons,” or “3,000,” or “4,000 tons,” or whatever the quantity may be, “and will give us business on equal terms,” He will say, “ A,” who is our competitor, “is quoting 10 shillings under us.” Now, A’s office is only two blocks away from my office here, and yet I don’t dare to call him on the telephone to ask whether that consumer in England, or in Germany, is telling the truth about that quotation or not; and the chances are 9 out of 10 that he is not, and that he is only telling our representative that somebody in England is quoting 10 shillings under him for the purpose simply of trying to bring our man down to that basis, without having a quotation in hand. But we are fighting one another, and the consequences are that the buyer gets the advantage. We can not even compare notes as to what our prices are. The practice to-day in the trace, if the man wants business, is to send an open order—a carte blanche—to his representative abroad, and say, “ Meet the competition.” 262 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 3. AMERICAN EXPORT COOPERATIVE AGENCIES AND COMBINA. TIONS ALREADY EXISTING OR PROPOSED. Charles E. Jennings, of C. E. Jennings & Co., New York City, hardware manufacturers, speaking of existing export combinations, said * The larger manufacturer can in a measure take care of himself, but our smaller manufacturers, who have products that are particularly adapted for foreign countries, have had heretofore very little interest taken in then, and in fact they had no knowledge as to how they might proceed to get the trade. As a result of that, some years ago, we formed what we call the American Manufacturers’ Export Association, and we have devoted ourselves as far as possible to the solving of just such problems as that, and we will serve any of the smaller manufacturers in giving them information that is reliable, and niding them to get the foreign trade. - we We have for years obtained our business from Australia through a combination; although the factories were separate, yet they would bear each their portion of the expense. Of course, they were not brought together in the sense of some of our large combinations, because they were different lines of products ; but that made our expense very small. ow We never would allow any representative to take anything that would conflict, Our line would be everything in small tools, covering hand tools, tools for woodworkers, and perhaps for metal workers. Now, in employing an agent, he could take a certain number of other lines associated with that, but aone of those lines should conflict, but rather they should be a help. In that way the expense, of course, is divided between three or four or even six. We do aot want too many lines. Then we take the man, and he goes the same way. He has to be taught, and taken to the factory and thoroughly equipped to know what he is doing when be represents us. Charles R. Murray, vice president of Barnhart Bros. & Spindler, Chicago, Ill., type founders and manufacturers of printers’ specialties. said: Up to about 25 years ago we were floundering around trying to do an export yusiness at that time in Mexico, As a result of a trip of one or two members of our firm to Europe—and I made one of the trips myself—we found, in going Into the shipping rooms of manufacturers there in the same line of business that we were in, packages marked for Mexico and South America. Our eyes were opened to the fact that we were only getting a small part of the business in our ine in these nearby countries. So we, together with another concern in our line, a paper house, organized a Mexican house right in the country of Mexico, the first office being in the city of Mexico. It grew, it made contracts with our company and the other companies for paper, for type, and for printing presses, and we have finally grown until we have put a house in Guadalajara, Vera Cruz, and Monterey. The success of our company there was such that we were importuned to open up what you might call an exporting house in the city of New York. * * * Out of that Mexican company was formed the National Paper & Type Co., of New York. We participated as a stockholder in it and so did manufacturers of printing presses, paper. houses, and other type founders. There they have a bureau of Spanish and Portuguese stenographers and letter writers, and from that point they send out to Cuba and South America, Spanish and Portuguese travelers, men who are acquainted with the trade; men who have previously traveled for the same line of houses from Germany, France, and England, As a result we are doing a very fine business. We have houses in Buenos Aires, San Diego. Chile, and also men going through Venezuela and Rrazil Harrison C. Lewis, secretary and general manager of the National Paper and Type Co., New York, which has been carrying on the business of foreign merchants for more than 15 years, said: EXCERPTS FROM HEARINGS. 263 We have found that the representation of a number of manufacturers has reduced the cost of selling and distribution of merchandise. We have also found that our method of establishing branch houses has made it possible to collect more promptly, and to reduce credit losses. It is, in my judrment, the ideal way to extend our commerce and to meet foreign combinations and competition, and I would therefore respectfully suggest as a basis for the organization of such selling companies and the sale of their capital stock that the following privileges or rights be given: The right to make exclusive contracts with manufacturers covering the exclusive sale of certain products in defined territory. These contracts should be recognized in this country as well as abroad, as it is unfair to the foreign selling merchant, who has invested in stocks of goods, and spent substantial sums in creating business, to have such business taken by a domestic merchant handling the same goods and who has not invested any capital or expense for foreign trade. Foreign selling organizations should be allowed to represent competing concerns if it is found to be mutually desirable. Such an arrangement may frequently give more than one manufacturer an opportunity of marketing his zoods abroad in a satisfactory way, and it will help to prevent the destructive effects of expensive and price-cutting competition. The business and enterprise of foreign selling companies should be preferred by the Department of Commerce in making known opportunities for foreign business. The company devoted exclusively to foreign business, and which is conducted at large expense for that sole purpose, is entitled to preference, and opportunities for getting special orders which may come to the Government’s notice. Relief from certain taxes in this country should be given. Our foreign selling organizations pay very heavy taxes abroad, and it seems unfair that they should likewise be heavily taxed at home on business and capital abroad. The salaries of foreign managers and salesmen should be exempt from our income tax. If economically wise and practical, our banks should be permitted and encouraged to grant special accommodations to selling organizations having branches and stocks of merchandise in foreign countries. In my company, as an example, we have an average of from $150.000 to $250,000 of merchandise and cash en route at all times. That means only cash and merchandise going to or from our own branches— not shipments to customers; that is, stock shipments and remittances on account of sales from stock. Our merchandise is necessarily paid for before arrival at destination. Our cash collections can not reach us for a period of at least 30 days after payment Is made. It is frequently 60 days. We therefore have a large amount of practically dead capital, which, if it could be used as a basis for special credits, would permit of our doing a larger volume of business. It is not at present possible to negotiate drafts against branch houses on stock shipments. If this could be done, it would facilitate financing our export business. If collections abroad could he anticipated by the remittance of 90-day drafts it would help. S. H. Roberts, secretary-treasurer of the Phoenix Horse Shoe Co., Chicago, Ill, after stating that in order to introduce their product in South America they had to send a salesman there, said: We were obliged to form a combination with several other concerns not in the horseshoe business, but with concerns which cater to the horseshoeing trade. We arranged with a nail concern, and a tool concern, and a pad concern to share the expense of sending this man down there. * * * That made the expense lighter, of course, on each one of us, but aven at that the venture was not a profitable one, at least it has not proved so yet. Of course, the financial conditions in the last two or three years in South America have been such as to prevent a great expansion of foreign business, They have lived within themselves as far as they could, and it may be that later on we may be able to do something, but I think that, because of the aatural handicaps of the American manufacturer, the Government ought to use everything in its power to help rather than to restrict the business in foreign lands. 264 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. M. C. Atwood, president of the Western Wheeled Scraper Co., Aurora, Ill, after reciting the ineffectiveness of dealing with agencies with foreign connections, said: We quit that and started joining in with two or three other concerns in lines hat worked along with ours, and got some results in that way at less expense ‘han an exclusive agency would be. But our belief is that it must be exclusive agencies with us, men to represent our line alone. L. I. Ziegler, of the Nordyke & Marmon Co., manufacturers of milling machinery and automobiles, Indianapolis, Ind., gave his experience : During the 15 years that I have been with the company we have engaged, I suppose, a dozen different persons, a number of whom we have sent to Mexico and South America. One party was engaged by a number of different manufacturers, who were manufacturing noncompetitive lines—a party who made a trip around the world. We can not figure that any of these propositions ever paid us. The boys that we sent to the Latin countries were persons who could speak the language and who, while here, were loyal to the fullest extent of the word. When they got down in these Latin countries, they seemed to absorb the customs down there, and desired to get into business for themselvest resulting in the company paying their expenses down there, supporting them furing their educational period, and losing them as soon as they thought they were able to handle business for themselves. I do not know that you gentlemen can be of any advantage to us along that line, but it is a problem requiring serious consideration. George W. Litchenberger, secretary of the Los Angeles Saddlery & Finding Co., Los Angeles, Cal., stated they have entered recently into a joint-selling plan: We have for the last two years considered going after South American trade, but up to the present time the facilities for boats shipping goods down there and the question of credits have always stood in the way. We were assured here some months ago that we would be able to get our goods down there and we have just recently sent a man representing us, who had lived for a number of years in the South American countries representing different firms down there, to represent ourselves as well as another concern here in the city, simply more or less as an experimental proposition, to ascertain whether our goods could be marketed down there—whether there would be a sale. We are satisfied that there is a great field for many of the lines in southern California. The business, we believe, is there, and it is up to the merchants and manufacturers here to go in and get after it. He states further that this company they had joined was in an entirely different line and “ personally I would not think it advisable for noyone to represent two firms in the same line.” Charles H. Jones, president of the Commonwealth Shoe & Leather Co., Boston, Mass., referring to cooperation for the purpose of export trade, said: We do—as a matter of fact, most of the exporters have a limited combination—that is, one salesman carrying four, five, or six different lines, and not competitive lines, that is, a salesman carrying men’s fine shoes will carry also women’s fine shoes, add very likely fancy slippers, and work shoes, and all those shoes that are going to the same customers. They are not, in a strict sense, competitive at all, and, of course, we do not understand that that is offensive at all to the law; it does not limit competition; and is not in restraint of trade in any sense. A. S. Postnikoff, manufacturers’ agent for foreign trade, described the plan of the International Manufacturers’ Sales Co., Chicago, Il., as follows: The International Manufacturers’ Sales Co., which is being now organized, will be an Illinois corporation with a capitalization of $100,000, which will EXCERPTS FROM HEARINGS. 265 he subscribed by 50 manufacturers of widely noncompeting lines. Each manufacturer thus contributing to the capital stock $2,000 has equal rights In all the operations, property, and earnings of the company. The $2,000 investment puts the manufacturer in a position to have his own branch houses all over Russia and through them do his business there in just the same way as he transacts it at home. The $2,000 will be the only expense incurred by the manufacturer, for these branches, as any other branch of a manufacturer’s business, opened in this country or abroad, must be self-sustaining. ‘The plan of operation of the branch houses in Russia will be very much aimilar to those in the States. The main office will be in Moscow, the business center of Russia. This branch will be in charge of an American with long practical experience in the Russian field. The branches in Petrograd, Nizhni Novgorod, Kharkof, Rostof-on-Don, Armovoir, Odessa, Kief, Warsaw, and Riga will be in charge of Russian people high in standing in their community and with good local connections. Each of these branches will have at least 10 Russian salesmen of good sales experience in different lines of merchandise. Each salesman will handle only a few lines which can be presented to the same buyer; as, for instance, hardware, tools, electrical supplies, and paints will be sold to the hardware trade; transmissions, belting, machine tools, and so forth, will be handled by another salesman who calls on factories; and so on until all the 50 lines are taken up. Some of these Russian people of high integrity and selling ability are selected already. The eight latter branches will be under the control of the Moscow branch, which in turn will be controlled by the Chirago office, which will represent a clearing house of the International Manufacturers Sales’ Co. in the States, This office in the States will be controlled by a board of directors of the company, which body will be elected from the manufacturers—members of the corporation—and managed by tie executive officers, who also will be elected from the members—manufacturers of the company. Thus, the full control at all times will be in the hands of the 50 manufacturers who paid $2,000 cash each when organizing the company. In regard to prices for goods sold in Russia, it will be also very similar to any manufacturer's branch house in the-States. Goods will be billed at the same prices as the manufacturer bills them to his branch houses here. To these prices there will be added ccean freight, inland freight in Russia, duty, cost of handling of the goods, overhead expenses of the Russian branches and the Chicago office, and a certain commission in favor of the company. All these items added to the manufacturers’ prices will be taken as the basis for quoting prices to the Russian buyers. The commission being a net earning will be divided between the manufacturers at certain intervals during the year. The only difference between the branches of the manufacturer in the States and those branches in Russia will be the absence of a ledger account with the customers In Russia, because through a certain arrangement which I am working out now, the payments for goods shipped by the manufacturer will be cleared immediately after shipment is made and the final shipping papers presented to the Chicago office. These payments will be made by any bank in the States through connections with Russian banks and four leading banks in Chicago. The Merchants’ Association of New York reported that the following manufacturers of distinct and noncompetitive lines in Philadelphia, who have for several years united in the publication of joint advertisements intended for foreign customers, furnish an example of one of the various forms of cooperation for the promotion of their mutual interests in export business that has been practiced for many vears: Henry Disston & Sons (Inc.). North Brothers Manufacturing Co. Milter Lock Co. Fayette R. Plumb (Inc.). The Enterprise Manufacturing Co. of Pennsylvania. Among the export associations that have accumulated much information concerning foreign markets are: - National Association of Manufacturers, New York. American Manufacturers’ Export Association, New York. The Philadelphia Commercial Museum. Philadelphia, Pa. 2606 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Harry A. Wheeler, vice president of the Union Trust Co., Chicago, Il. said: And in so far as the export of domestic manufactures to foreign countries ls concerned, it seems to me, * * * that a very simple rule must ultimately be followed, and that rule would be that wherever rights of combination or practices of any kind having to do with the sale of productions in foreign countries must be met by our manufacturers in the foreign field, that we will of necessity be compelled in this country to formulate those methods of cooperation or combination which will permit in the shipping of our products to foreign fields exactly the same rights and the indulgence in those practices which we must compete with in the sale of our products in the foreign countries of the world. W. H. Kies, manager of the foreign-trade department, National City Bank, New York City, favors cooperation in export trade. His plan is as follows: The plan that I suggested in broad outline was the organization of an export society, Take, for example, the unbleached-cotton manufacturers: that the nnbleached-cotton manufacturers should have permission to get together in an organization; that the charter of this organization should provide that any nnbleached-cotton manufacturer could become a member upon the same terms AS anyone else, = * » « * * the organization should work along these lines: First, the study of the industry with the idea of developing more efficient methods; second, the study of the markets of the world, wherever it is possible to put that article—to find out the possibilities—and that it should also act as a sales organization. In order to preserve the element of competition, I think I have zone too far; I do not think it is necessary, but I have suggested this sort of plan: That each member of the society should give to the society or the sale§ manager at the beginning of the year a statement of what it could furnish for export business, and at what price, and then the sales organization would proceed to sell that, of course, which was offered at the cheapest price first, and so on—sell everything if it could ; that if, for example, a particular market was found for—we will say again unbleached cotton; we will say a market was found for a million yards of unbleached cotton—the sales manager would notify every member and take bids on it. The lowest bidder would get the prder. In other words, I have tried in the plan—which, again I say, was merely brought forward to try to focus attention upon something and to get some sort of scheme which could be operated temporarily—I have tried to preserve this element of competition, but the main idea was to permit a pooling of resources in this expensive study of foreign markets and the development of the market through sales campaigns. advertising, and the canvassing of the market by personal representatives. Willis H. Booth, vice president of the Security Trust & Savings Bank and general manager Hot Point Electric Heater Co., Los Angeles, Cal., thinks the following method would be practical in handling electrical articles: dy My general opinion would be as to the electrical articles of which I have any knowledge, and one can not speak beyond that, that we would be very glad. indeed—groups would be very glad to associate in the exploitation of foreign ousiness if they felt it could be done safely. Let me illustrate it concretely, perhaps. You take an electrical concern handling sockets and electric-lighting fixtures of that kind-—there are a number of them; Benjamin and a lot of that character whom you know—and then a concern handling cartridge fuses, screw fuses, screw plugs, or something of that kind ; another concern handling electric tape, insulating tape, and matters of :hat kind; a concern handling electric heating; a concern handling devices of Mr. Hurley's character—there is no reason why one man should not represent those five, A. F. Bemis, of the Bemis Bros. Bag Co., Boston, Mass., said: There is one point that I think that I did not make clear. That is that, although I rather favored opening the opportunity for merchants and manufac- EXCERPTS FROM HEARINGS, 267 turers to combine for purpose of export trade, I should not consider it a panacea for all the difficulties in the way of building up our export trade. In my own particular line—I am interested chiefly in textiles—I think it would not be of any great advantage. We have tried to export to South America and to one or two other countries, and have exported to some extent. The difficulties in the way, however, of building up a large export trade in our own particular line, the textile line, are not, it seems to me, connected with the possible opportunities to combine with other manufacturers in this country, but with the cost of production in this country, which is itself a very great obstacle to that end. John 8S. Lawrence, member of the firm of Lawrence & Co., cotton merchants, Boston, Mass., in explanation’ of his suggestion that through cooperation and consolidation with some of his competitors he might give a greater extension of lines to foreign consumers and purchasers, said: I should imagine that the most ideal position would be to take a few of those concerns whom you have confidence in to cooperate in a buying and sales movement to carry the merchandise abroad. Now, a modern factory here has to confine its styles to as small a number as possible. Of course, my field is pnique. ‘That is true of the textile line. We make, I think, about 22 or 23 styles of goods. Only half of those are subject to export. Now, there are 12 styles. If I could pick out 12 from another manufacturer, and 12 more from another manufacturer, I think we could show as wide a variation as English manufacturers, whom I have particularly in mind, actually do show to-day with p. factory half the size of our own mill. And the reason we can keep them out is on account of our costs. Our wages are 33 per cent above theirs; our costs are 33 per cent below, and that is merely because we adhere to that arbitrary standard. - I should say the way to organize for foreign trade would be to carry samples and let the expenses of the salesmen be divided up among the mills in proportion to the sales secured. Ernest G. Howes, president of the Howes Bros. Co., manufacturers of leather. Boston, Mass., said: One of the methods for this definite policy would be the establishment of a separate corporation in the country in which the business is to be done, the number of shares to be purchased and divided in proportion to the volume of the business of each manufacturer entering into the agreement, and a further ngreement that the quantity or value of goods should be sold in proportion to the stock holdings of the different companies entering into the agreement. This would also divide the profits or losses of this organization in their true relation. At hearings held at Spokane and North Yakima, Wash., a committee representing the Fruit Growers’ Council of the States of Washington, Oregon, Montana, and Idaho proposed and presented a plan for the cooperation of the growers of apples, principally in the supervision of the distribution and marketing of the fruit. The plan provides so far only for such marketing in the United States. It appears from the hearings, however, that about 10 per cent of the apples raised in these States are exported to various parts of the world. To the following inquiry on the part of the commission: If the growers’ association develops in the next year or two and is successful, have they in mind extending their business into foreign fields? H. M. Gilbert, a fruit grower of North Yakima, Wash., replied : Yes; that has been talked of. We would combine and have our own organization there, in addition, to receive the fruit and get the orders. You have got to establish a certain amount of confidence and a certain financial connection in order to get business with South America or with the Philippines, 268 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A. Rupert, president of the Rupert Co., dried and canned fruit exporters, Portland, Oreg., which company sells the product of the 11 canneries in Oregon, said: We have an arrangement with these different canning plants, or rather an exclusive selling contract, which is not in the nature of a price-controlling arrangement exactly, but it enables us to not compete with each other to a ruinous extent like in the lumber business at the present. D. E. Skinner, president of the Port Blakely Mill Co., Port Blakely, Wash., in regard to combination in the lumber industry, said: My own opinion is that the law does.not now prevent us from combining in the strictly export trade. With that in view, we incorporated the Douglas Fir Exploitation & Export Co. a year ago last February, I believe, with the idea that we would secure the signatures of enough of the export mills to control a sufficient percentage of the volume of business shipped to foreign countries to at least control in a reasonable way the prices and the conditions of the sale of our own material. * * c® * ® * Our idea Is to set aside sufficient money to be able to send the representatives abroad. We have no quarrel with the broker; he is simply following a system he is :ompelled to follow; but we do propose to inject into this business means by which we can obtain fair and remunerative prices for ourselves and allow him a fair and remunerative price for his position in the business, if he wants to remain in it. If he does not, he will be eliminated and we will do the business direct. We expect to try and increase the trade and increase the volume exported from 600,000,000 feet in 1913 to 800,000,000 or 1,000,000,000 feet by 1916. E. A. Selfridge, jr., president of the Northwestern Redwood Co., Willits, Cal., speaking of the effect of the Redwood Export Co., which handles about one-half of the product exported, says: As consequences flowing from, rather than as causes or motives leading up to, this limited cooperation, it is found that: (a) There has been a relative stability of price, a matter of great moment to the purchasers of this product from the mills. The fluctuations in over-seas freight rates are embarrassing enough without adding thereto fluctuations in the price to be paid the manufacturer in the United States. (b) It is believed that a better price has been received by the manufacturer in the United States for certain grades of the exported product. (¢) The smaller redwood mills are enabled to participate in thig export business. (d) With greater stability of price in the importing country the retailer and wholesaler there are less fearful of carrying more liberal stocks, this resulting in benefit to the manufacturer in this country, owing to the increased demand that flows from the continuous ability of the retailer and wholesaler in the importing country to meet the demand of the consumer, and, furthermore, creating a steady importing demand which can be more economically and profitably contracted for far in advance of the actual time of consumption of the imported product. The securing of charters or space for the. transport of this product is something that must be arranged many, many months ahead. (e) With one selling agency handling practically all the export business, then, and not until then, does exploitation work become possible or produce results. In this particular the redwood industry encounters all the difficulties which usually are met with in the introduction of any new material and many others that are peculiar to itself, but which time will not permit us to enumerate. In this connection it is worthy of note that since Redwood Export Co. was incorporated a very considerable tie business has seen developed with India and the United Kingdom. The east coast of South America iS now engaging the attention of the company, but present transportation conditions prevent results. In conclusion it should he added that the usual proportion of the annual cut of redwood which is exported amounts to about 123 per cent. I think it would be impossible to have an organization of all of the redwood operators. There are certain mills that are equipped for export, other mills EXCERPTS FROM HEARINGS. 269 who are not; and other mills who are advantageously equipped for catering to the eastern trade, others who are not; there are other mills who are admirably situated for catering to their home domestic trade in California, and I think the natural conditions will ultimately lead to groups rather than to one selling organization. . In regard to the Redwood Export Co., Mr. C. R. Johnson, president of the Union Lumber Co., San Francisco, Cal.. said: The economy is very largely that we can, by doing this joint work, regulate our cutting end; we do not have to take, as we sometimes do when we are alone, an order and rush to get it out at tremendous disadvantage and then, perhaps, have a long period of famine. On that sort of order we can run more regularly on it. These four mills that are in here handle the lumber of any other redwood mill that wishes it to handle their lumber, and handle it on a commission of 1} per cent. That has given a profit over expenses, and that profit has been expended in the exploitation of these different markets that we are in or that we hope to get in. For instance, we have an agent in the Argentine Republic that we are paying by the year to try to introduce the wood, As to the per cent of the export business handled by this company, Mr. Johnson said: Probably about 80 per cent. And I think I would like to explain that this company handles exports only to those countries where joint action is very necessary for these physical reasons we have spoken of. For instance, it pays no attention to the exports to Mexico, as the shipments are in comparatively small quantities and can be handled by any unit. J. H. Kirby, a prominent yellow-pine lumber manufacturer of Houston, Tex., said: If we could form an association or cooperative organization of that kind for the purpose of taking care of the foreign trade, it might be $3 or $4 a thousand better than the domestic trade, because not all of us are so situated that we can reach the ports on a competitive basis. There are many interior Jniils like Arkansas, for instance, where there would be a differential against them in the freight rate reaching the port. But it would take out of the domestic trade, to the extent of the consumption abroad, the product the coast mills make that is marketable abroad. There are a great many things where the market is peculiarly in this country, but of their grades which are marketable abroad it would take them out of the domestic market, and of course they would sell for more money abroad or they would not go abroad. None of us have the stock behind us to supply the demand. We have got to have cooperation or else we can not supply the trade and can not make large contracts abroad. None of us, or perhaps no two or three of us, are big enough to supply that demand and meet our contracts. We would have to take in a large number of manufacturers having the capacity to supply the contracts, and that of itself would be effective in attracting to us the bottoms; whether we bought them, or hired them, or whatsoever. Joint selling arrangements for marketing at one time the varied Paialied furniture products of different houses were urged by . B. Smith, president of the Wolverine Manufacturing Co., Indianapolis. He stated: First of all I would like to make the statement that the furniture industry Is classified under specialties. One manufacturer makes one branch of the product. For instance, our particular industry is parlor and library tables. Another man makes bedroom furniture. Another man makes refrigerators. and another man makes chairs. In order to successfully reach the foreign manufacturer or the foreign market, some plan must be definitely devised whereby we can go to him with a household product and sell him complete: and that involves the use of a cousiderable amount of capital. I do not believe that the furniture manufacturer in this country will ever develop much of his foreign business until we have an organization with a sufficient amount of capital and a sufficient variety of product so as to be able 270 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 0 supply the foreign manufacturer and carry that foreign manufacturer; I have sarticularly in mind the South American dealer; so that we could give him a reasonable line of credit. I submitted a plan to one of the financial houses here looking to some such organization. They were afraid to take hold of it, owing to the attitude of the Government at that time. It seems to me, however, that if such a plan could ne approved or countenanced by the Government, whereby the American manufacturers could unite in an organization to reach, particularly the South American trade, and perhaps the European trade, supplying them, for instance, with their hotel equipment, supplying homes in South America with Americanmade products on the basis where the South American dealer could handle it, ‘here would be a great field for the American furniture, where to-day there is practically none. There is practically no American furniture going abroad except in some specialty lines. I believe there are some desks being sold in London, but, generally speaking, the furniture industry is very poorly represented in foreign fields. I believe this has already been touched upon to-day, but if this commission wuld recommend that permission be granted for such an organization to be formed, I believe it would be quite possible to develop a demand for American ‘urniture. Frank A. Preston, assistant manager of the W. D. Allison Co., [ndianapolis, Ind., dealers in physicians’ office equipment, said: We have rather felt that if we get a table or chair shipped into a foreign country it is probably imitated and made there much cheaper than we could set it to them; by the time we add the freight and the duty on it, it makes it rather an expensive proposition for the doctor. For one reason, we have not been able to get in direct contact with the doctors. We have felt that to get ‘he sales in foreign countries we ought to have a representative, almost direct from the factory, who knows the business, and is able to call on the doctors; and it is too expensive for that. We have been contemplating joining with three or four other houses of kindred subjects and lines for the medical profession and sending a man through the South: but that has not been fully developed yet. 4. ADVANTAGES OF AMERICAN EXPORT COMBINATIONS. (a) Competing Lines. W. S. Kies, manager of the foreign trade department of the National City Bank, of New York, said: One significant thing * * * is that the total value of our exports of manu-‘actures from 1900 to 1914—and I have a couple of five-year periods here— shows that the four groups of iron and steel products, refined copper, refined mineral oils, and agricultural implements, constitute a total of 51.1 per cent in value of our total exports. In other words, the four large corporations in this country—the Steel Corporation, the Standard Oil Co., the International Harvester Co., and the Copper Co.—have by some means or other been enabled -0 concentrate and intensify their efforts so that their products represent a total average, over a period of 14 years, of 51.1 per cent of our entire manufactured articles. - = As bearing on the’ necessity of some new means whereby the resources of the various concerns interested can be pooled, I might say that even in this matter of giving credits there is competition, due to the inability or the lack of an opportunity to get together and to arrive at an understanding of the situation. I have several letters from concerns in various lines—one, in particular, from a concern in the cotton line, a very large concern, in which they say: “We wish there was some way for the people in our line who are working in Youth America to get together on this matter of credits. We started in with an idea that we were going to give credits, and gave four months. Some of our competitors are offering six and nine months, and some even a year,” - EXCERETS FROM HEARINGS. 271 The important thing in the developing of a market is the organization of a sales campaign, the developing of a demand for a particular article. That -un not be done with the present machinery for the small manufacturer. He must have some other way to do it, and the only way that he can do it is by being permitted, in conjunction with others in his line, to combine their resources and to pool their efforts, and to divide their expenses. = We take our cotton and we pay a couple of brokerage profits, and we pay » shipping charge, and send it over to England. We get a good deal of it back here in the way of manufactured cotton, and we allow England to make that profit and add to its value, and thereby increase its wealth. We do that because our cotton manufacturers have not gotten together; because our cotton industry has never been viewed and studied extensively by a big man with the idea of developing a large cotton export business. What I should like to see, and what I think is necessary in this country, is the possibility of an export organization of cotton manufacturers making unbleached cottons— an export organization started by these cotton manufacturers which shall intensively study these foreign markets, shall employ experts, shall study efficiency methods in production—all with a tendency of decreasing the unit vost in this country, of developing a market in the foreign country, and of running our industry at a greater speed. By * greater speed” I mean to decrease the cost and to increase the output. That can not be done unless there is some provision whereby, for export business alone, and for the purpose of studying the industry, there may be under our laws some provisions for the organization of such a company or sogiety which will develop an expert corps of salesmen and of efficiency experts working for the building up of the Industry. * * * The things that enter into the cost of export business (and when I speak of the cost of export business I mean particularly to the small manufacturer) are the cost of representation abroad—and if that representation is to pe efficient it must be personal ; the cost of sales campaigns, of advertising, and of promotional campaigns of all kinds abroad, for the development of a market; the burden of financing the shipments; and the expense caused by a lack of facilities for obtaining credit experience and credit information. Now, those four elements very largely multiply the cost, and the cost of those four elements can be reduced by organization for the individual manufacturer, and that is the only way to reduce them. If I might suggest to your Commission, it would seem to me that the essential thing, at this time, is for manufacturers who are planning to go into this foreign business, or who have lately entered it, to be advised of the limits. In other words, we have had so much of “ Thou shalt not ” in this country that we ought to have something of the “ You may.” * * * But that work, valuable as it is, is not sufficient, and it must be supplemented by the most intensive kind of investigation into foreign markets if this foundation is to be rightly laid. And right here is where there is an immediate necessity. It will not do to wait until the Sherman Act is amended. There is an immediate necessity for organization, for cooperation, and for that kind of cooperation which will be effective; and to be effective it must be vigorous, and it must be a cooperation which will produce an efficient working organization. } Now, my opinion is that such cooperation is entirely feasible under the Sherman Act at the present time; but you have got to reckon, gentlemen, with a feeling on the part of manufacturers that the Sherman Act is a weapon which they hold very much in awe. * * * The Sherman Act must be amended to permit combinations in export trade under certain proper restrictions, if the United States is going to develop any permanent foreign commerce of large proportion. . « * * What I am trying to urge is simply the necessity of a combination of resources in the development of foreign markets to meet the kind of competition we have to meet, particularly from Germany and England and from others of our competitors who are more thoroughly organized. E 4 Mr, Waterman will not want to combine with anyone, because he has a pen that has a distinctive value, and he has built up a trade name. It is only along those lines where a staple product is made—unbleached cottons, copper wire, certain of the steel products, cement—staple products where the brands are staple and there is not much variance. Along those lines it is perfectly 9272 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ridiculous to have seven or eight concerns having seven or eight representatives -ouring South America, as is the case at the present time in a good many lines. oo oo oe We have made great progress in recent years, and the percentage of increase in the export of manufactured articles was greater in the period of 1900 to 1912 than that of Great Britain or Germany, but if the figures for oil, steel products, efined copper, and agricultural machinery be deducted, the remaining totals would not be encouraging. A study of our export figures indicates that the greatest progress in the development of foreign fields has been made by reason of an intensive study of markets and an intelligent organization of sales forces on the part of great industrial corporations like the United States Steel Corporation, the Interaational Harvester Co., the Standard Oil Co., and the selling companies representing the refined copper interests. What has been done in Germany on a national scale, through the cooperative efforts of all classes, with the encouragement of the Government, has been accomplished by these large American corporations without Government encouragement, and entirely as a result of the skill and ingenuity of the American sales manager with a large vision and a constructive imagination. oh x It is plain, from the experience of Germany and England, that material progress in the development of foreign commerce depends upon cooperative effort, not only between manufacturers, but between the Government and those interssted in foreign trade. * = Export trade, with its many difficulties and problems, requires such a concentration of resources and effort that the great benefits to be derived by the whole country from a large foreign commerce argue powerfully for the removal of all restrictions upon combinations in export trade. Let there be organized under the laws of one of the States a corporation to pe known, for example, as the American Drug Manufacturers’ Export Corporarion, the American Coal Producers’ Export Association, or some similar title; the organization to be incorporated with sufficient capital stock to permit all of the members of the industry throughout the country, or in certain cases those in a particular locality, who so desire, to become members upon exactly the same terms. Each producer desiring membership to subscribe to a definite amount of stock, his subscription being payable in equal installments over a term of years, sufficient stock to be retained in the treasury to provide for those who might subseqtiently desire to become members upon equitable terms fair to the original members, each member to own exactly the same amount of stock. .-The general scheme and method of operation, which will constitute the contract between the corporation and the members, as well as between the members themselves, will properly be embodied in the articles of association, and will be along the following lines: 1. The corporation is to be impartially organized in a8 manner fair to all its members, and the management selected with expert ability as the sole test. 2. Membership on the board of directors to be arranged so that in due course of time every member shall receive representation. To avoid possibility of unfair treatment, there will be provided a permanent arbitration committee, to be selected in an impartial manner and to be made up of persons having no interest in the industry. To this committee shall be referred any questions in dispute, and its services may be invoked by any member. 3. Each member shall, at the beginning of the year, report to the export corporation the amount of its product available for export during the year, the conditions of delivery and of acceptance of orders, and the price at which it is willing to sell in a foreign market. These tenders may be changed from time to time under such conditions as may be thought advisable, and special quotations of additional quantities may be named whenever desirable. 4. The sales force of the corporation will undertake the. disposal of the exportable surplus of its members on the terms and conditions specified, obtaining the best possible, making use of the export commission houses, the local representatives, the trained salesman, and every agency of value in building up foreign trade. The difference between the price quoted and the price ‘obtained EXCERPTS FROM HEARINGS. 278 shall belong to the export corporation as a profit, and upon all sales all members shall pay to the export corporation the same percentage as a commission. 5. Whenever a demand shall be found.to exist in a particular market for a certain quantity of goods which must be sold at a lower price than quoted by any of the members in order to meet foreign competition, all members shall be notified of the possible order and given an opportunity to meet the foreign price. Competitive bids will be received, and the lowest bidder is to receive the order; or, if there are a number of low bidders, the order is to be divided. 6. All profits, after deducting all expenses, and setting aside such a sum as shall be deemed necessary for promotion, advertising, establishment of permanent quarters, ete., shall be distributed equally among the members. } 7. The export corporation shall provide an expert, who shall collect statistical data and information of value to the industry, which shall be distributed promptly and under the same conditions and in the same manner to all members. The export corporation shall also have on its staff an efficient engineer, who shall make intensive study of methods of production in the industry, cost of production, competitive margins, and the productive capacity of various plants. His services shall be available to any of the members for the purpose of giving advice as to the development of greater efficiency in production, diminishing the cost of production, or increasing the output. He shall alsg give to all members technical advice as to the best methods of meeting peculiar requirements of foreign markets. 8. The export corporation may also act as a purchasing agent for raw materials. Being able to purchase in large quantities, as a representative of many consumers in a given line, it will be able to buy in foreign markets at the lowest prices. All members will be entitled to the corporation’s services in this respect upon the same terms. It is, of course, not necessary to limit the membership in such an organization to particular lines. Groups of manufacturers in allied lines could profitably anite to form one export company, which could conduct a sales campaign for all, as, for example, a drug manufacturers’ export corporation might well include manufacturers of toilet articles, cosmetics, perfumes, and bathroom accessories. Manufacturers of cottons, woolens, and silks might combine in one large textile export association. Edward A. Filene, president of William Filene’s Sons Co., Boston, Mass., and vice president of Fifth International Congress of Chambers of Commerce, advocated export combinations: I am very strongly in favor of making of any changes in the Sherman law, or any other law, that are necessary to permit of combinations for foreign trade. The Sherman law was made to help the smaller manufacturer and producer. In this respect it defeats the very purpose for which it was intended. Foreign markets, as Mr. Joy, who has just been down there, has told you, are difficult to study, and difficult to hold after they are once secured, because evil deeds of exporters, not only purposely done, but done through ignorance of conditions, ruin not only the evildoer’s business, but also ruin the business of the Nation, or the States. So, it finally comes down to such a combination as will leave it practically free, afterwards, for the producers to determine at all times. [ am urging this very strongly upon you—that in any legislation that there might be enacted, the producers shall be free to try all kinds of experiments in combination for the selling of their goods in foreign markets, ! ® - I believe that combination among the producers in this country is necessary In order to get and hold foreign trade. It is costly to do the pioneer work, and men will decline to do it if they think some other men are going to come in and reap the benefit of their work. It is unfair, and unjust, and breeds ill feeling. A. H. Weed, attorney at law, representing the Manufacturing Chemists’ Association of the United States, Boston, Mass., stated the necessity and advantages of export combinations in the chemical trade as follows: With the outbreak of the European war and with the consequent shortage caused in the supply of chemicals from abroad, the Association, acting through 27241°—pt 2—16-—18 974 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, its Executive Committee, undertook to study the conditions affecting the foreign trade. * * * Our investigations regarding the South American situation,’ however, brought forcibly to our attention the many obstacles which stood in the way of any immediate or ill-considered effort looking toward the establishment of an export trade with the countries of South America. ® * » All these questions and many others lead the Executive Committee to certain obvious conclusions—first, that if any permanent progress was to be made in building up this export business it must be as a result of most careful study of foreign conditions and the establishment of a policy which would prove sound for the future; in other words, that there was no quick advantage to be gained by any hasty and unenlightened action. The second conclusion reached was aqually obvious, namely, that there were very few members of the Association Individually equipped or individually possessing the resources necessary to undertake this export trade on any comprehensive plan. The Executive Committee considered tlre advisability of undertaking a common investigation of these foreign conditions, looking to the possibility of establishing trade relations through a common and cooperative effort. We believed that through such an undertaking the Association might prove of immediate benefit to its members and of ultimate benefit to the industry, as a whole, by opening up markets at present little known to the chemical manufacturers of this country. In our early deliberations, however, the question was squarely raised as to what the effect of our antitrust laws might be on any such undertaking as we were contemplating. » * * Jt ig sufficient that there is very eminent authority for the opinion that our present laws do prohibit such combinations or agreements. Of course, if the law does not prohibit such conditions, and this Commission should so deternine, there would be nothing left to the question. On the other hand, until such finding has been made, any manufacturer or group of manufacturers, who undertook to cooperate for the foreign trade, would certainly be acting in reckless disregard of the consequences. The Manufacturing Chemists’ Association in the early months of last fall presented its problems before both the State and Commerce Departments in Washington. By request the Association prepared a tentative form of a bill setting forth its ideas as to the character of an amendment necessary to permit the kind of cooperation contemplated. a; = The bill is premised upon the idea that the law should give the absolute, unjualified right to American manufacturers to cooperate for the export trade. The effect of such cooperation, whether it be by agreement, combination, or association, is to be found primarily in the foreign markets where such agreements, combinations, or associations are to be carried out. If the laws of the foreign country permit such cooperation and if our foreign competitors are already acting in combination within these foreign markets, we should have the right to meet that competition on equal terms. In other words, our antitrust laws should have no extraterritorial effect. Along the same line, Henry Howard, vice president of the Merrimac Chemical Co., of Boston, Mass., and chairman of the Manufacturing Chemists’ Association of United States, is quoted : When the war broke out it seemed to our committee that it was an especially good time to investigate the question of foreign trade from South America in ‘hemicals, as the supply from Germany was being cut off. The very first thing which we ran up against was that, under the law, it was very doubtful If we could form a combination to investigate and push in a comprehensive way foreign trade in South America. We had the advice of a number of eminent counsel, and they advised us that it was not safe to do it. There are hardly more than twe, or possibly three, of our members of the association who are large enough to send representatives to South America, and I question If any of them are large enough to send representatives to more than one or two countries. In our case there are only, perhaps, three articles that we manufacture that would find a market in South America. We could not afford to send a representative, because the cost would more than eat up any profit that we might get; but we could join in an export association. which would ne made up of the other members of our association or of other manufacturers EXCERPTS FROM HEARINGS. 275 outside of the association, and contribute toward the maintenance of an efficient staff in all of the leading countries, because the expense, apportioned around among 40 or 50 manufacturers, would be insignificant. The great advantage of such an association is that we would be in a position in foreign trade to meet European competition, where going singly we would not. The European business, as you know, is thoroughly organized and very intelligently managed, and, even if some of us went down there individually, we would be afraid as soon as the war was over that we would be killed out individually ; whereas if we had a strong organization which was acting as a unit, backed up by the whole industry of this country, the foreigners in there would think twice before starting a fight to eliminate everybody, because the fight could not be localized, as it would be in the case of individual Americans. As I say, this is a problem of the small manufacturer; and the point is that the very large manufacturers, such as the Steel Corporation, the Harvester Co., etc, can, of course, maintain a staff and can afford to maintain a staff in all of those countries. I was therefore, in this connection, very much interested to find that Mr. Farrell, of the Steel Corporation, was strongly in favor of this right to combine; not because it would help him in his foreign trade in South America. but because it would help the enormous number of small manufacturers in this country that were consumers of his articles, which he made here; and he figured that the business which he would get in that way, through enabling the small manufacturers, who were the consumers of the large steel products. to export down there as an association, would give him a great deal more business than he could ever hope to get by maintaining perhaps more or less of a monopoly in his export steel business. Charles M. Woodruff, secretary of the National Association of Manufacturers of Medicinal Products, Detroit, Mich., believes that most of the advantages, such as greater assortment, lesser overhead expenses, etc., which are claimed in advocacy of export combination, are already provided by the dealer; and that other benefits claimed can be accomplished through an association such as the one he represents, without any closer. combination being necessary. His statement follows: If our goods were sold direct to the consumer, there would be an advantage fn individual members of the several groups heretofore mentioned combining to offer a greater assortment; but this office is performed by the dealer, who gathers a complete assortment from all the manufacturers. The foreign doctor has his wants supplied by the local dealer, whether such wants call for the fluid extract. for example, of one make or another; and sometimes his preference is based on cost, sometimes on sentiment, and sometimes on his confidence in the maker, The immediate dealer looks either to the wholesaler of his own country, or to the commission house in America, unless he has effected connections direct with the manufacturer. You would be surprised if you would step into our New York office, or Parke, Davis & Co.’s New York office, or the offices of the exporting branches of other houses, to see the large number of little packages going to foreign countries. That is due to the peculiar nature of our business, which makes it desirable. It is a sort of hand-to-mouth business on a big scale. A great many of the items are not permanent, and it is a desirable thing for the dealer to have them as fresh as possible. He has to order small quantities for immediate demands. Some exporters will make a shipment once a week of a large volume, carloads, and some manufacturing houses ship large quantities out every day. There are hundreds of the smaller dealers, however, and that is where the question of the parcels post comes in, which I will speak of later. Therefore, if the principle of reducing expense of exportation just referred to is worked out to its logical conclusion, combinations for the mere purpose of dividing certain overhead expenses connected with exportation will be unnecessary. But there are certain expenses of doing business in foreign countries that might be reduced by wise cooperation. For example, why should not a traveling salesman be permitted to take orders for the fluid extracts of one manufacturer and the medicinal plasters of another, since these manufacturers are not in any sense competitors? Let us go a step further: Why would it be unlawful for the members of this association to combine in maintaining a common warehouse or depot in a foreign 2'76 REPORT ON COOPERATION IN AMERICAN "EXPORT TRADE. country from which orders for the goods of any one of them might be promptly filled? The fact that most of the members of this association would not combine for such a purpose because of well-established individual arrangements already perfected does not affect the value of the illustration in the least. John L. Lawrence, member of the firm of Lawrence & Co., Boston, Mass., cotton merchants, mentioned wages and the standardization of styles as of importance 1n the textile industry: Wages, as you all know, in the United States are higher than in most countries, and it is only possible for us to compete abroad through effective organization and efficiency. This is especially true in the textile industry where wholesale production and standardization are required. Foreign manufacturers offer a very much larger variety of styles of goods, and accept orders for most any kind of detailed assortments and standards required, while we are considered arbitrary in seeking markets and requiring that they adhere to the standards which can be best adapted to our own methods of production—and we must change, if we want to continue to compete in the future. * * * H. P. Davison, of J. P. Morgan & Co., bankers, New York City, said * I think that if we are going to compete with foreign countries—that is, with the older countries having established trade in foreign centers—some form of combination must be had. That is to say, our units here, while they may be large, are not large enough, in the main, to carry on an important foreign trade without some form of association. Of course, there are some large corporations which are developing their trade, and they are competent to do it, but speaking generally of the average manufacturer, of the average producer, I do not see how he can expect to get into the foreign market and meet the competition there alone. In other words, if it were legal, it seems to me it would be very wise that some organization should be effected whereby certain corporations might combine purely for the export business, sharing the overhead charges incident to that business, and having their common representative in these various centers in the foreign countries. In that way they could economize in ‘their methods of doing business—that is, they could minimize the expense of that—and could very materially enlarge and develop their business by reason of that; whereas, as I say, I do not see how the average manufacturer can get into that foreign field without some such combination. I believe that there are certain lines of business in which, if combination rould be effected through a selling agency, tremendous benefit would result to the stockholders in this country. That is to say, the economies that would be oracticed, the lack of competition against each other in a foreign city or center, would result in better prices, which must, of course, result in the benefit of the stockholder in this country, or wherever he may be, so far as that is concerned ; but, assuming that these corporations are owned in this country, the benefit must come to this country. I appreciate that that seems to be a little bit at variance with our moral principles, as recognized, and particularly with the Sherman law as it is now on the statute books, but I do not see anything immoral in endeavoring to provide a joint interest here to sell to a foreign buyer. Roger W. Babson, of the Babson Statistical Agency, Boston, Mass., stated that: I do not see why the large corporations need to combine for such a purpose. * * * [Citing those in oil, flour, cash registers, and sewing machines.} * # =» The smaller manufacturers do need it. Now, if it is given both to the smaller manufacturers and to the bigger manufacturers, I somewhat question whether the ultimate result may not be about the same as it is now, because the large manufacturers have such a predominance over the smaller manufacturers in their combinations that the combination of the smaller manufacturers would practically be put out of business. For instance, if the Standard Oil Co. and the Texas Co. and the Mexican Petroleum Co. were allowed to combine, what possible chance would a combination of little independent ofl producers stand? EXCERPTS FROM HEARINGS. 2nq W. H. Field, of the United Export Biireau, New York City, said: If we could get some way of pooling our surplus stock; if there was some way of pooling the products of our different industries, some department which would look out for that, it would render a very valuable and great service. W. L. Saunders, chairman of the board of Ingersoll-Rand Co., manufacturers of mining machinery, New York City, said: Business in foreign countries can best be obtained by large concerns with abundant capital. The small American manufacturer is placed at a disadvantage unless he can either have his business merged with his competitors into a large and powerful company or, as an alternative, that he can cooperate with his competitors, forming a common selling agency or unit, for the expeditious and eflicient conduct of business abroad against strong competition. . The best selling agency abroad is a branch office, equipped with ‘men who understand each particular line of product and not dealing in a general line, the subjects of which do not coordinate; hence, large concerns like the Steel Corporation and the Standard Oil Co., are able to conduct a prosperous business abroad, while small concerns deal through agents and endeavor to place their business in the hands of foreigners who are not trained in the product. By combinations of smaller concerns, each contributing toward the expense, branch offices might be established abroad, equipped with strong organizations. I should recommend that all combinations entered into or carried on in good faith for the sole purpose of increasing, facilitating, or benefiting export trade, cluding agreements, transactions, and acts entered into, performed, or carried out in the course of export trade, which do not restrain or monopolize or tend to restrain or monopolize trade within the United States, shall be lawful. nn If the people of the United States, through the Federal Trade Commission, permit manufacturers and merchants to combine for foreign business exclusively, and they are doing business here, through their head offices directing the business abroad, and in that combination they leave the little fellows outside, it seems to me that they are plainly not playing fair. In other words, they are restraining the trade of the little fellow by building up a strong organization which gives them a chance to pursue methods for getting this business in foreign countries which the little fellow can not pursue to the same extent or with the same advantage, and, in keeping him outside the breatsworks, they are practically exposing him to the danger of competition with the foreigner, and he is practically at the mercy of the foreigner and at the mercy of this big combination which is formed here for the purpose of fighting the foreigner. So that it would seem plain that the Federal Trade Commission, in a case of that kind, would say to this big combination doing business abroad: “ You are not playing fair; you must see that the little fellow has a show equal to your own; you must either take him into your combination and cooperate with him, or you must pursue other methods in the conduct of your business that will enable him to get business.” Then, another point: The little fellow, if he is permitted, through the interpretation of the antitrust acts which I have stated, to cooperate with other little fellows in doing export trade, he thereby forms a nucleus among smaller manufacturers which, to a large extent, would be able to resist the power of the big combination. By “forming a nucleus,” I mean that if a dozen or a hundred traders in any particular line of industry get together and are permitted to act on the basis that they may do business in a foreign country by fixing prices and by acting through a single selling agency, they thereby build up a stronger unit than any one of them could perhaps conduct, and in this stronger unit they would be able to acquire greater capital; they would be able to employ more experienced salesmen and managers in these foreign fields; they would be able to cut down their expenses very considerably, because the expense of advertising is a very important expense in conducting foreign business. They would advertise in one page, perhaps, instead of advertising in a dozen, and they would get practically the same results; and in numerous other ways, economically, through the management of their business, in their offices abroad, etc., they would be in a position to form a unit that would be more or less strong in competition with the foreigner and with the combination of big fellows. My personal opinfon is that the result of a combination of big concerns in export business, with this Federal Trade Commission holding its hand over them and saying, “You must play fair, and you must see that the little fellow gets the same 278 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. show that you do,” will be inevitably that they will take the little fellow into their camp; they will be very glad to take him into their camp, because the little fellow will really hold a power over them which will disturb their business. If they attempt, in the conduct of their foreign business, to put prices up too high, the little fellow, through the cooperation and concentration and control, through this Commission, will go in there and undercut them, so that they naturally would take him into the camp. - ke 3 The tendency now to send out an inferior article is one of the results of individual action and prohibition of concentration and cooperation. With cooperation I would anticipate a very considerable reduction in the sending out of inferior goods from the United States, because there would be a number of concerns interested to see that that selling agency sells only good zoods, and among those concerns you would have those whose policy has always been, in this country, to sell only the best. * * » * The record of experience proves that only the big concerns with large capital ran do a wholesome business abroad. Now, it seems that it is perfectly plain why this should be the case. In addition to the points that I have mentioned—the command of large capital, the advertising saving, and the saving in various other ways of management throughout the business—there is the potentiality of this large concern to oppose the cartels and combinations of foreign manufacturers, which are always ready to oppose the introduction of American goods anywhere. My experience in foreign business has taught me that the customer has an open ear and an open mind and a willing hand to purchase and use American products; that you have really the first call on him, because he has a very high opinion of the industrial strength and progressive condition of the American manufacturer. He is ready to get your goods; but that is not enough. The other fellow comes along with a very much lower price, a machine made In Germany or England, and you then have to figure to get your price approximately near the price of the competitor or to convinces the customer that you are selling him something very much superior to what the competitor offers him. ® -* * The desirability of cooperation for foreign business is made acute by the importance and almost the necessity of having a varied line of products. The man who started in with a brake-shoe business, and who has reached out to foreign fields, finds that he must also furnish axles and wheels and trucks and cars and things of that kind, which will enable him to keep up a large selling organization and to keep up a large volume of business, so as to keep his cost down in dull times. And if small concerns are able to combine and cooperate for foreign business, they would naturally bring into that combination a varied product. A man may make an engine and he may not make a boiler that runs that engine, and the two generally go together. One concern might manufacture a dynamo and not manufacture a switch, that invariably goes with the dynamo; and in that respect the large concern has a great advantage over the small concern in foreign business, because the large concern usually equips its manufacturing schedule with everything that correlates in its line of products. That puts the manufacturer in a position to supply the trade in foreign countries with a complete outfit covering the entire requirements of a customer, and it puts him in a favorable position before the customer, and it also enables him to keep his warehouses reasonably filled with stock and not unreasonably stocked, as the smaller fellow would have to do, not being able to figure out the ups and downs of the business in the trade. The trade may go down in one thing and up in another, and he would not be prepared to meet that situation unless he had a large and varied line. Joseph P. Grace, of W. R. Grace & Co., exporters, New York City. said: I believe that the first and most important move in capturing South American trade should be to make it possible to have each of the best selling articles in this country represented in South America by a traveling specialist who could demonstrate the article and make the first sales. Such trips are fairly expengive and a single manufacturer is not always justified in going to the expense of sending out such an expert. * * * When manufacturers in the same line EXCERPTS FROM HEARINGS. 9 on realize that they can send out a joint salesman and pool the sales made by him, I believe it will be found that there are a surprising number of new lines which can be initiated in South America. After the business is once started it is not very likely that the pool idea will be retained. After the first orders nave been distributed, probably each manufacturer, taking his share of the ‘nitial business as a basis, will start to do the business, on his own account, ‘hrough the means which appeals most to him, and competition will again be restored. Some manufacturers will do a mail-order business throughout the various parts of the new country; others will deal with some of the local concerns who act as distributors about the main centers; others will do business with the foreign merchants who act as distributors in a more ' general way. * * * For a business to assume really large proportions stocks must be placed within easy reach of those who want to buy at the time they need them; warehouse facilities must be furnished and the necessary credit facili ties supplied to meet the demands of the local market. Whenever the business in any market assumes sufficient proportions to be handled in this way, transportation facilities: and banking facilities have at no time in our experience hindered American trade from continuing to do the business once started and from gradually increasing its volume of business. as compared with that of rompeting foreign countries. Capt. Robert Dollar, president of the Robert Dollar Co., a steamship company of San Francisco, Cal.. said: Now the big manufacturers are selling sufficient in the foreign trade, because they can establish their own houses in the different cities where they go. The small manufacturer is dependent on combination of several and having a selling agency to sell their goods. The Sherman Act, if we would take it literally as it reads, would prevent the small man from going into business in the foreign trade altogether. Ninety per cent of the American commerce of China is conducted by the Standard Oil Co., the United States Steel Corporation, the Tobacco Company, and the Harvester Company. * * * If you take those companies out of China there would not be any American trade to amount to anything at all, * *= =» Another thing that you want to encourage is to get more manufacturers to club together.and get selling agencies out there to sell their goods, so that they will be on an equality with the big manufacturers. Prof. Oliver M. W. Sprague, professor of banking and finance, Harvard School of Business Administration, Cambridge, Mass., said: I feel, therefore, that the field for combination of independent producers is by no means coextensive with the whole field of foreign trade. It is a comparatively narrow field, marked on one side by the possibility of more economical methods of marketing, * * * and marked in the other direction by the possibility of lessening competition among American producers engaged in foreign trade. * * * Now, there seems to me to be a very pssential difference between a combination, the primary purpose of which is to prevent ultracompetition among American producers in the foreign market, and combinations which are designed to spread the cost of marketing among producers and to lessen the risk. I should think that it might be necessary to carefully distinguish between these two very different purposes in formulating a policy with reference to combinations for foreign trade purposes. + * * 7 think it is clear that it might be found advisable to establish a combination for purposes of developing foreign trade in certain markets, while, tor developing the same business in other markets, the export house would be found more serviceable. The third reason for combining that is often brought forth is the existence of combinations among foreign producers which have to be met in neutral markets, - The Germans, of course, have done more in this direction than any other country, through their cartel organizations. I think it would take altogether too much time to enter into a study of the effectiveness of the German cartel system and the extent to which it has contributed to the development of foreign trade. For fighting purposes in those lines in which there is clear 280 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, evidence of an organized selling in foreign countries, a combination might prove to be helpful; but my own feeling is that the most valuable, the most profitable foreign trade which we will develop, in addition to that which arises out of the exports of our natural products, is specialties; and, in the production and in the marketing of specialties, we have nothing in particular to fear from cartels or other organized methods of selling, since the cartels are practically all confined to staple products, in which no particular corfcern has or can develop good will. A. L. Mills, president of the First National Bank, Portland, Oreg., in connection with the lumber industry, said : It would seem to me that there are some things that could be done to help that industry if they could be permitted in some way to cooperate; not an legal combination, but a combination which would be legal, which would enable them to pool their products in some way and enable these mills to run. At the present time almost every one of them is running at a dead loss or is idle: O. M. Clarke, president of the Clarke-Wilson Lumber Co., Portland, Oreg., speaking of the inability of any single mill to maintain selling agencies abroad, said: A single manufacturer could not do it, for the reason that they go to so many different markets. Now, to take care of our stock, for instance, we would take a China order and an Australian order and a United Kingdom order, and perhaps a West Coast order, that would take care of all our different grades, the higher grades going to the United Kingdom and the lower going to China. So we could not afford to keep men in each one of four or five markets. If we could sell all our product, say, in China, we might afford to sell it to keep a man there, but that would only take care of our low grade. C. J. Smith, vice president of the Seattle Chamber of Commerce, Seattle, Wash., as to the lumber business, said: We are greatly handicapped in reaching the foreign countries, because, by the divisions and subdivisions of the ownership of the timber and of the great number of mills, there are no very great combinations of capital engaged in this business, and the expense of ascertaining and soliciting business abroad Is greater than any one of these companies or any one of these mills can undertake by ourselves. The consequence is that we must have, to a certain extent, some combination which will enable them to divide those expenses and also to provide in a large way the supply of lumber that they may obtain as the result of those solicitations. In speaking of creosoted Douglas fir, H. E. Horrocks, manager of the Pacific Creosoting Co., Seattle, Wash., said in part as follows: Fifteen million feet of creosoted Douglas fir sleepers were marketed in India in 1914, and we know there is a big field there. There is that market ; it must be developed in a big way; it can not be done by any individual company. Our company, which represents about 40 per cent of the creosoting capacity of the Northwest, could not afford to do it. Victor H. Beckman, of Seattle, Wash., engaged in the timberland business, in his brief stated that of the imports into Great Britain in 1918: Seventy-five per cent of these imports were from Russia, Sweden, and Norway, and only about 30,000,000 feet from the Pacific coast, valued at about $400,000. The delivery prices of this lumber averaged from $10.41 to $40.67, with rst quality lumber as high as $115 per 1,000 feet. An analysis shows that Pacific coast lumber can compete, after the war is over, with 40 per cent of these imports. To do this, however, will require the establishment of great distributing yards in all the important centers of Europe and the erection of great planing mills to work up the lumber into grades required by the consumers. In no other way can our lumber obtain a permanent foothold. There are only a few firms on the Pacific coast so situated as to finance an under- EXCERPTS FROM HEARINGS, 281 taking of this magnitude, and therefore the Commission should allow the cargo mills to pool issues, as has been suggested by the lumbermen, under the supervision of the Commission so as to prevent restraint of trade. In other words the European field is attractive, but it can only be exploited by cooperative effort and combination of capital. Referring te the apathy of Michigan manufacturers toward foreign irade, Hal H. Smith, counsel for the Michigan Manufacturers’ Association, Detroit, Mich., stated : Two main causes appear as the reasons why these industries have not reached out after export trade. One is their ignorance of the possibilities of that trade. The second and the greatest is their inability, alone and unaided, to either create or finance an organization competent to handle their products In foreign countries. A single furniture plant at Grand Rapids, manufacturing chairs, can see no profit in an attempt to distribute its product in New Zealand. The business it’ could secure is not large enough to justify the expense and the risk, and its domestic business is not sufficient to carry such expense and such risk. If it were to combine with other furniture factories in Grand Rapids to create a joint agency, through which they could together market their product, they are confronted with the possibility of creating a combination in violation of the Sherman Act, thereby making each liable to the penalties of that law. Mr. Smith believes combinations of the sort could market abroad the surplus production here. As to the result of this, he declared : The presence in the domestic market of a surplus may depress prices, but the removal of that surplus to foreign markets can, of itself, give the publie no reason for complaint. For the public, surely, has no right to the continuance of prices brought about by a production so excessive and illogical that it will destroy the producer. = George W. Harris, president of the Trustees’ Sinking Fund of the city of Cincinnati, thinks that the law should be amended so as to permit competition between our exporters and those of foreign countries. He said, in part: They can not do that unless they are allowed by statute to form pools or combinations to fix the selling prices for foreign business, because all the civilized countries, with which they have to compete, have that privilege. * How can our shippers of coal sell, in competition with the shippers of coal in England and Germany, where the shippers of coal In Germany are permitted and are encouraged to form combinations for the establishment of prices for foreign countries? They do it, as we know, and they also do it for domestic consumption ; but that is opposed to the principle of the American Government. W..d. McGee. of the Carbon Fuel Co., Cincinnati. Ohio. stated : The export business is one that would require foreign selling organizations to go about it in the right way; and that is too big an undertaking for the average coal-producing company to attempt singly, and combinations of such producing companies, pools of such producing companies, would be necessary, in my opinion, in order to make any appreciable headway in the export ousiness. That is the way it is handled in England. I understand. and also in Germany. J. Ogden Armour, of Armour & Co., Chicago, Ill, thought combination among manufacturers of staple products an advantage, as is shown in the following: It would seem that serious study might profitably be given the question of gyndicate or trading company organization for the sale in foreign countries of many of our products, such as coal. lumber, and phosphate rock, where one organization in each line could attend to selling, chartering, insurance, credits, advertising, and so on, avoiding duplication in expense and giving the American manufacturer lower delivered costs and a better chance to compete successfully for foreign trade. 282 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The method might not work to advantage on advertised trade-mark goods or where large selling organizations have already developed an efficient distribution for their output. Each industry would solve its own problems. John D. Ryan, president of the Amalgamated Copper Co., New York City, also favors combinations, and said in part: The thing that we want, after all, is the best result for the country, not the best result for a corporation, or for a group of corporations. We want to enable people to go and fight for trade. But, first of all, we want to put our people, whether big or little, in a position where they can command the trade of the markets they are seeking as against our competitors outside of this country ; and the bigger they are the more members they need at times to save the competition, one with the other. They are so strong they will fight one another and get results that are detrimental. I think any change in the law that will permit combination, agreements, and understandings in the export trade is all right; and that the suggestion made by the United States Chamber of Commerce, with practical sugrestions in the form of a bill, is a very excellent one. But, particularly, that ‘he Federal Trade Commission shall have the same power in the matter of regulating—breaking up, if you please—disintegrating or dissolving any such combination if it, the Federal Trade Commission, finds the combination is anfavorably affecting domestic trade. I don’t think that it ought to be considered at all to permit combinations of— et us say, a favored few, whether they are favored because they are small or because they are large. 1 think it ought to be general. I think it ought to be in behalf of the committee of this country, in behalf of the manufacturer, of the laborer, and of everybody who is interested in the production of anything by this country, rather than on behalf of a few weak, small, struggling manufacturers, sr on behalf of a few great, big, strong ones. If the principle is right, it is right all along the line. Competition to-day is depriving this country of a great deal of money that it ought to have—a great deal of benefit that it ought to have, in the sale of its natural resources, particularly, and also of its manutactured products. The competition which we all know costs money is the competition of the big units rather than the competition of the small units. The small units have not the trade. We ought to permit them to combine so as to secure it. The large units that have the trade, and that areslargely marketing our natural resources, ought to be permitted to combine so that they can get the most money for those products and bring it to this country. I think that that is sound economic policy, and I do not think there is very much doubt about it in the minds of anybody giving it serious study, as you gentlemen are. And I am satisfied that you will come to the conclusion, the more you study this thing, that it is not for anybody’s benefit, but for everybody’s benefit; and that no one step in business legislation, in a generation, would do as much for America, or that there is anything that America needs as much as it does this one thing. Because, as I say, outside of the large conrerns our manufactures, for export, are negligible—are not important. + & * The big manufacturer in any country makes a soft spot for the little fellow. He educates the trade. He shows him how to get it; and a little fellow, without any fair proportion of expense or any fair proportion of the trouble, falls right into the trade that the big fellow has established. What we want to help the small manufacturer in this country to do, is to establish American trade in these manufactures. They will get their share of it, and they will get it easier and cheaper on account of the big fellows having laid the foundation and paved the way for them. You will find, Mr. Chairman, in talking with small manufacturers generally, that they always have found it easier to follow a big manufacturer from their own country, and find a market where he was finding it, than if they had to educate the foreigner to their line of goods, or sducate him to the way things are weighed and measured and packed and put ap and all those kinds of things. That is done by the big fellow. His salesmen break the ground, and the little fellow comes along and takes advantage of it; and he will do that in this case if he has got enough ambition te go outside of his own country. The trouble with the small manufacturer in this country is that he has never gone outside: he has never looked for business outside. EXCERPTS FROM HEARINGS. 283 &¢ Simply change the law to say when you go outside the borders, the shores, of your own country, into any other market in the world, you are to tight for that market under the rules that you find in that market: but that the rules you leave at home do not bind. Waldo M. Marshall, president of the American Locomotive Co., New York City, said: Now, I think manufacturers should be allowed to combine, and I think that should be more or less voluntary, and they should be allowed to make. their own arrangements, because those are going to vary in different trades. You might think that if combinations of that kind are to be effective, it would be very easy for manufacturers in different lines, perhaps, that are noncompetitive entirely, to choose a representative, and perhaps let him conduct the business for 10 different concerns in a certain country. But that presents a very different situation, for this reason: It is very hard to get one man that knows enough about 10 different lines of goods to represent them effectively and intelligently. The better way would be to allow those who are competitive at home, or who are very nearly competitive at home, to get together, and in that way they can get representation that will be intelligent and efficient and cover their lines of goods thoroughly. * * * - * In most lines of trade they would not be necessarily large organizations, Chey would be of moderate size. ae ao American manufacturers, it seems to me, when engaged in export trade, if they compete with all the rest of the world, that ought to be sufficient competition to cover that situation; * * * I do not see any reason why they should not agree upon the prices to be charged in the foreign work, and I do not see what harm it would do. If you can arrange that so that you feel that it will not extend to the home market, I do not see any reason why the American manufacturer should be compelled, in a foreign field, to compete with all the world and then with all the people at home, when we know pretty well that his competitors are only looking after him, and do not have to look after their people at home. It seems to me it puts an unnecessary burden of competition upon the American manufacturer. As to the desirability of permitting combination in the export trade, Charles M. Muchnic, vice president of the American Locomotive Sales Corporation. New York City, said: I believe that, unless such permission is granted, the small manufacturer will be unahle to get his share of the foreign business. At the present time most of the exports in railway materials or iron and steel products are made by large manufacturers, and it seems to me that this in itself is convincing proof of the necessity of cooperation between manufacturers. * * * The principal reason why the large manufacturer is able to command a large share of the export trade 1s because of the capital he commands, and of the well-trained sales organization which it has taken years of persevering effort to develop. It is utterly impossible for the small manufacturer to command either the capital or such foreign sales organizations and, therefore, unless the situation, as it is at the present time, is changed, the small manufacturer will eventually be barred from participating in any of the foreign trade. oe * We have very keen competition, under normal conditions, from Belgium, Germany, and England, whose locomotive builders cooperate on some such plan ns above outlined, and unless we can combine—unless American manufacturers can cooperate in meeting such competition—we will not make much further headway. We have done fairly well, but we can not make much further progress unless we are allowed to cooperate. Of course, England is the largest exporter of locomotives. Fully 90 per cent of the output of all the locomotive shops in Great Britain goes to foreign countries, whereas, in Germany, it represents between 50 and 60 per cent; and, with us, it averages about 8 or 10 per cent. So we have hardly touched the possibilities of the export trade as compared with the Europeans. BN 1 284 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Here, i1gain, is an argument for permitting manufacturers to combine in foreign trade. A great deal of the foreign business is secured on -account of prompt delivery. A small manufacturer can not entertain all propositions that are offered to him on account of being unable to supply the product quickly. But if the small manufacturers were in position to cooperate, they, as an association, could accept as large a contract as any corporation can do now and divide it among themselves. Take, as an illustration, in China to-day. We have, on the Hukuang Railways, which are to be financed by the four groups of bankers, American, French, English, and German, I believe, succeeded in arriving at a satisfactory nnderstanding with the foreign engineers that are to build the three sections beside the, American, whereby we shall receive equal consideration in the purchase of equipment—rails, bridges, locomotives, cars—as the other three countries. It was possible to do this by adopting a resolution that the standards of the country would be accepted by the railway engineers—or, in other words, if there is any competition for any of the materials to be furnished for these railways, then the standards of the country which furnished the_bid would be accepted and considered on an equal basis with that of any of the four countries represented, and this is the only basis on which to develop our foreign business in railway materials; it was brought about solely through the cooperation of American banks with foreign bankers to provide a $30,000,000 loan for building of these railways. It is a striking illustration of what American financial participation would mean in the development of our exports. He quoted, with approval, the following from a letter from a representative in South America: Personally I would welcome the day that the United States law permitted nll the large American corporations to unite together in the foreign field, pooling ‘heir interests on a plan somewhat similar to that practiced by foreigners. It would absolutely secure our profits in the markets which we have, eliminating the competition between various American firms for the same business. It would also have the advantage that our various foreign consuls and ministers could work to help the manufacturers without fear of discriminating between two manufacturers, which is the argument put up by them all at the present time. Charles E. Jennings, of C. E. Jennings & Co., New York City, hardware manufacturers. said * The larger manufacturer can in a measure take care of himself, but our smaller manufacturers, who have products that are particularly adapted for foreign countries, have had heretofore very little interest taken in them, and, in fact, they have had no.knowledge as to how they might proceed to get the rade. F. E. Kenaston, president-treasurer of the Minneapolis Threshing Machine Co., Minneapolis, Minn., believed a combination of interests to be vital for foreign trade in his line. He stated: If we ever expect to get anywhere in exporting the lines of goods that 1 am familiar with—that is, heavy machinery—we have got to have a combination of interests. It has got to be done through combination. Perhaps that word does not sound good. Make it a community of interests; it amounts to the same, but it sounds better. We have got to have a community of interests which will enable us not only to get more efficient work, but very much cheaper, and at a great saving of expense. As it is now, we have to buy material in a market that is more or less protected as against the cheaper materials that they have in foreign countries, and we are up against the financing of the business; but I think that is a matter that would work itself out, perhaps. But you take ten or a dozen concerns in any line of business, having a moderate rapital, and each one of those concerns going to the expense of sending their own representatives down there and finding a market which creates a competition which forces lower prices, and it puts the business in such a condition that there is no profit or very little. Now, one manager of an organization that would operate for all of these different concerns would sell practically Just the same amount of goods with less price cutting and yleld a respectable profit ta the people engaged in the business. EXCERPTS FROM HEARINGS. 285 Charles Piez, president of the Link Belt Co., Chicago, I11., thought that: There must be a certain degree of cooperation between manufacturers permitted if we are to undergo the expense in both money and time to secure foreign business. The mere statement that opportunities exist, that the Department of Commeice sends out, is hardly sufficient. There must be something additional to that. There must be organized effort and agencies established, and methods of credit and extensions of terms must be provided for, through the banks or through the Government. before we are going to be very successful in securing foreign trade. J. R. Leeson, president of the Universal Winding Co., Boston, Mass., stated : Those American manufacturers, who have no facilities for personally acquainting themselves with conditions and with clients in foreign countries on their own account, should be authorized and encouraged to form associations for the joint exploitation of distant markets, and, if Federal laws render such joint action impracticable or difficult, they should be modified so as to enable pro-Jucers of moderate caliber to secure the advantages to be had from a wide distribution of products which the larger corporations are able to secure for themselves, S. H. Roberts, secretary-treasurer of the Phoenix Horseshoe Co., Chicago, Ill., said: In order to expand and extend the use of the American style of horseshoes it might be wise for several different manufacturers of horseshoes to combine together to send men into these countries, so they would all reap a certain amount of benefit in the end. It is a very expensive thing to introduce new goods in those countries, and no one concern, unless it is a very large one, is able to float it. Charles S. Brantingham, president of the Emerson-Brantingham Co., manufacturers of farm machinery, Rockford, Ill., stated : At present manufacturers in this country feel that they can not, with safety, discuss with each other, prices, terms, ete., concerning foreign sales, without the chance of being charged with violating the laws of this country. The percentage of profit in our line is not large, the total profit being dependent on volume ; consequently, the expense of establishing and conducting foreign trade, being heavy, discourages many who are considering entering this field. i If more freedom was permitted between manufacturers in the discussion of foreign prices, terms, etc., whereby we could avoid price cutting between ourselves when desired, it would be very helpful. Calvert Townley, assistant to the president of the Westinghouse Electric & Manufacturing Co., Pittsburgh, Pa., said in regard to proposed joint selling agencies among competitors: I should think there are cases where it would work very well, ’ - * = * . x I would class conditions, and where the products competing were of a very different grade, the plan might not work at all. On the other hand, there are many lines in which that does not exist. For example, the incandescent-lamp business is one. There are many lamps made of a very high grade, different in quality, and it is not incompatible with handling by the same representative. 0. De G. Vanderbilt, jr., of the Weir Frog Co., Cincinnati, Ohio, in speaking of the large order for rails recently received by the Cambria and Lackawanna steel companies from Russia, and the track work in connection thereto, said: It will probably be a bigger order than any one firm can handle in the time in which they will expect it to be shipped. It has got to be a combination of two or three manufacturers in this country, to be able to turn that out In the time when the rails must be delivered, * = = 2806 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. It would probably have to be distributed; and that means that there has got to be cooperation among the manufacturers, to determine on the price, and ‘hings like that. There has got to be a price agreement on that. ’ W. W. Hudson, advertising manager and export manager of the Waverly Co., Indianapolis, Ind., manufacturers of electric automobiles, said: If our industry were in a position to consolidate in foreign business, that Is, if all manufacturers in the electric-vehicle industry could obtain one branch house in Bogota, say, or Rio de Janeiro, or some other South American port, we would then be in a position to cover that matter of the batteries; that is, we could ship them disassembled, knocked down, and they could be assembled over there. It is too expensive a proposition for each manufacturer to open a branch house himself. It can not be done for less than $1,000 a month, and the business in the foreign country would not warrant that expense. We have had branch houses in London and Paris. and once in Italy, in Florence, put it was a losing proposition. * * * ] My idea would be that we would have a house there which would take care of the repair, and car batteries, the assembling of them, and all that sort of thing ; but that each house would have its own sales-representative. George E. Smith, president of the Royal Typewriter Co., New York Citv. said: The small manufacturer can not stand the expense of putting out a single organization around the world to sell his individual proposition, but if he can ombine, as has been suggested, and be able to reach these markets with small selling expenses. there is no question but what the market is there. To prevent the price of exports of hominy feed from being fixed by combinations of foreign buyers,” Asher Miner, president of the National Association of White Corn Millers, Cincinnati, Ohio, sugrested : The remedy would seem to be to allow the American white corn millers to agree, if possible, upon a uniform export price, or for all American mills to place the surplus hominy feed they may have for export in the hands of one exporter or broker for sale abroad, so that every one of the mills could thus secure. the best possible price abroad for their surplus stock. -» The cooperation would allow the American millers to contribute to a fund to be used to exploit and advertise in foreign countries the immense value and aconomy in the use of corn products and thus increase materially the consump-Hon abroad and the value to the American farmers of one of our principal crops, while this advertising can not be done by individual millers, because of the great expense involved. J. H. Genung, sales manager of the American Hominy Co, [ndianapolis. Ind.. said: « = = in behalf of the American millers of white-corn goods, we would like to have cooperation. * * * If we could cooperate and have some means of knowing what“is going on, we would be able to get a better price abroad, and consequently the prices in this country would be lower. F. A. Somers, president of Somers & Co., San Francisco, said: I have simply these two suggestions as to combined action on the. part of alfalfa-meal millers. } There are probably 15 or 20 of them in California at this time, and alfalfamolasses mixers, of which there are about five in California, who, if they could combine, must be able to develop this business. which I am sure can grow to immense proportions. And the second suggestion is that of having some kind of a Government stamp on our goods, a warranty of purity and of the ingredients which we advertise on the backs of the packages. EXCERPTS FROM HEARINGS, 2817 C. A. Malboeuf, manager of the Western Fruit Distributors’ Aszociation. Portland, Oreg., said: Only through large cooperative organization, or cooperation between organizations, in harmonious working, and through correct distribution, orchard economics, standard practices in general, will the problem of the Northwest apple grower be ever solved. Common sense dictates the logic of supporting tonnage through large organizations, preferably of cooperative character, and embracing all these conditions as the natural means for broad operation that will serve both the producer and consumer equally profitably. Frank L. Moore, president of the American Paper & Pulp Association, New York City. said: We have been afraid of a combination on account of the Sherman law. We have got to get together so as to meet conditions which we feel we are obliged to meet on account of foreign competition. * sh We must, as has been said, get together, and perhaps discuss things and do things that might be interpreted, strictly so, as being in antagonism to the Sherman law. ; . ¢ * * Some way should be devised whereby the small manufacturers in any line will be able to compete for foreign trade as well as the large companies and organizations. They must be protected, not only because they may want foreign trade but, I believe, for the benefit of our own country here as well, because it is the small producer who is really the backbone of prosperity when we get right down to the final analysis. le They should be. allowed to get together. Hardly any manufacturer—particularly a small one—could expect to put more than a small part of his output into a foreign market on account of the expense that would be imposed. It is impossible for him to conduct it himself. I believe, too, that in merchandising, the more directly a manufacturer and consumer come together, when doing business, the more satisfactory and more profitable it is going to be. In every industry it is found necessary, in order to secure a permanent as against an intermittent export trade, that the industry as a whole or some important unit of it take upon itself the conquest of the export field ; in a word, that the manufacturers themselves, preferably as a body through a special agency of their own, make an active bid for such trade. As an illustration of this point we might take any one of the largest industries of the country and show that no permanent or systematic foreign trade existed in any one of them until an important and leading member, individual, or corporation got, through its own men and agents, into direct contact with the foreign consumer. * * * Fifteen years ago there were occasional small parcels of news paper sent to Great Britain and Australia from this country. Other products of this industry in the United States were seldom found in foreign countries. About 12 years ago an export trade was organized in a systematic manner by one of the large producers of news paper in the United States, the manufacturer making it a point of getting into direct connections with the consumer in every country to which it was possible to export. The result has been that for the last 10 years the news-paper manufacturers of the United States have contributed to the foreign trade of this country a volume of exports of a value of $2,500,000 per annum. &* Most of the manufacturers of the varied products of the paper industry are unable, singly and severally, to install the equipment for rarrying on this export trade for their product. An export equipment is too expensive for each one. It must be entirely distinct and separate from the equipment for distribution in the domestic market. It implies a considerable expense in the propaganda for the sale of the goods, the use of a staff acquainted with the needs of the foreign trade, with the conditions existing in the foreign market, with the distinct packing and shipping methods, and with the financial arrangements prevailing in such a trade—a staff preferably composed of men versed in various languages, traveled men, personally acquainted with consumers at 288 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, distances of thousands of miles from the place of production—in a word, all experts in their lines. The individual mill owner, on account of his limited product, can hardly afford to support the overhead cost of such a service. The result is that most manufacturers, in our own as well as in other industries, state that they can not engage in the foreign trade or do not want to sell anyching “ beyond the Battery,” because they know nothing about it. *® By such association they could meet through increased banking facilities the credit demand of the various markets, which they do not care to meet as individuals, and secure greater shipping advantages on account of being able to offer larger tonnage, thus fostering more than anything else a shipping trade from America, than if they should continue to sell in a haphazard way as the opportunity arises. By such cooperation they would be able to establish strong agencies in the various consuming centers in the hands of most competent and responsible men, who would be attracted as agents on account of the larger volume of business possible, instead of being confined to the limited amount of one particular oranch of the industry. They could employ the best of technical talent, as traveling men, to sell the various products, instead of having to select such men purely on account of their willingness to accept moderate compensation for their work. nN We should have direct representation between manufacturers or manufacturing associations in this country and the foreign consumers, Joint export pgencies in this country, joint export agents in the consuming centers, cooperative arrangements with travelers in the foreign countries, and arrangements, whenever necessary, for the best equipped mills for foreign trade in our industries to carry on such foreign trade with the help, pecuniary or other, of the remainder of the mills in the same branch of the industry. - - - If the Government will clearly state its position in favor of the association, cooperation, and ‘ combination” of manufacturers in the export trade, we are confident that the paper makers in this country will soon find the means of perfecting an organization which will most actively carry out all the Government’s wishes for the development of an export trade in this, one of the targest industries of the land, an organization which will contribute to the fullest extent to the balance of trade in favor of our country and will carry our watermarks with the additional “ made in the United States of America” to all parts of the world. L. A. Fritsch, manager of the Ohio Truss Co., Cincinnati, Ohio, although not in favor of cooperating generally with their competitors, since they were the first to enter the foreign field, said: On the other hand, if you mean from the standpoint of price, I believe that that would be a very good idea.. Fred W. Rice, of Rice & Hutchins (Inc.), Boston, Mass., shoe manafacturers. said: We have not done our business in combination with other manufacturers, although I believe that would be an excellent thing to do. In many cases here are manufacturers who either have not the resources to do it alone, or where the market has not justified them in doing it on their small line alone, and who could well combine with other manufacturers in the same line and build up a business in competition with other and possibly stronger houses. [ believe that would be an excellent thing to bring about. Thomas F. Anderson, secretary of the New England Shoe & Leather Association, Boston, Mass., said: Mr. Jones is probably correct in stating that as a broad proposition, taking in the larger concerns like his own, Rice & Hutchins, and a few of the ther big concerns that are down there already id a large way, an opportunity to combine together with other lines of shoe trade would not appeal to those people at all. But the small manufacturer, who needs this outlet, and who can only find it in foreign countries, if he is going to run his factory on an officient basis, has either got to do his business in the standard way. as it EXCERPTS FROM HEARINGS. 289 Is being done through the American export houses in New York, or else he has got to send his own salesmen down there, at almost prohibitive ¢xpenses, and experiment for a year or two, and perhaps lose all his money, or the only other alternative, get out of the business altogether. George F. Willett, of the American Felt Co., Boston. Mass., said: I heartily subscribe to what I have understood was the line of recommendation that had been made, which chiefly was, as I supposed, that in order to meet that competition abroad we should have the right for common service on the part of merchants here-—a combination for common service which would enable them jointly -to secure service In foreign countries which individually they could not have, and have not had, at least up to the present time. (b) Noncompeting Lines. Harrison C. Lewis, general manager of the National Paper & Type Co., 4 joint selling company for foreign business, New York City, said: The smaller American manufacturer has at present very little opportunity for selling his goods abroad. He can not afford to undertake the selling expense himself, and many of them can not meet the credit requirements of foreign trade. Again, these small articles, and in fact all merchandise except that involving very large tonnage, can not be advantageously sold for shipment from this country after orders are taken, To properly develop a permanent and satisfactory business for these smaller manufacturers their products should be carried in stock in the various countries in which they can be sold. In these statements I am, of course, excepting novelties or patented articles, which are in demand, and which can not be obtained elsewhere. I am referring to competitive articles of general use. : To properly meet the present situation American selling houses carrying stocks of merchandise in foreign countries are required. Experience has demonstrated that American goods are rarely sold, as tliey should be by foreign merchants. It requires an American with American ideas and knowledge to properly present American goods. Thus far American capital and merchandising enterprises have not found it necessary to leave this country, so that few American selling organizations have been established abroad. Those which Lave been established have been rather uniformly successful in a large degree, but few, if any, have been organized to handle specialties in similar lines—I mean in related lines—and such houses are greatly needed. Here is met the difficulty of obtaining the capital and organization needed [In considering the establishment of such houses the interests of the management, of the manufacturer, and of the investor must be regarded and protected. The manufacturer willing to invest in the capital of a foreign-selling organization should be encouraged by permitting him to make exclusive contracts with such organization. ¢ * * Exclusive selling contracts with manufacturers are a protection for the selling organization, and therefore an encouragement for the management, Our manufacturers as a class are not in position to supply all of the capital needed for large and effective selling organizations abroad. There, again, I am referring to the smaller manufacturer. It takes a larger capital to do business abroad than at home, We have to carry larger stocks, and it takes a long time to get them to destination and a long time to get our money. Credits are larger. * * * TT am strongly opposed to any limit [as to size of concerns allowed to cooperate] except that needed. The capital can be moderate, possibly, along certain lines, but in our business, for instance, in one country alone we ought to invest a million dollars to adequately handle the business, and a limit of a million dollars would be entirely inadequate. We are a small concern, and yet we have a good deal more than that invested and we have not nearly enough. The investment is necessarily heavy for the carrying of merchandise in forelgn countries and for the extension of credits. To supply the full capital needed the investing public must be attracted to the capital stock of such foreign companies. It will be recognized that one of the greatest assets of such an organization is in its contracts with representative manufacturing establishments. These contracts must be for a period of years and afford the utmost 27941°—pT 2—16——19 290 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Jrotection to the selling house, else outside capital will not consider the invest. ment. I believe that such selling organizations with contracts and selling nethods legally recognized can be made highly profitable and afford the average American manufacturer the best opportunity that can be offered for marketing his goods abroad in a manner that will insure the permanency of his business. Such organizations will permit of the payment to the manufacturer for his goods within a reasonable time after shipment, so that he assumes no credit burden or selling expense, and his one problem is that of manufacturing at the lowest possible cost. It must be realized that we have to meet the keenest competition, and the most affdetive selling combinations in the world in our export work, and to meet this situation every reasonable facility and advantage should be given us. Frankly, we need a free hand within the limits of fairness, and knowing at rll times that we are under the supervision or control of this Commission against any unfair methods. We have found that the representation of a number of manufacturers has reduced the cost of selling and distribution of merchandise. We have alse found that our method of establishing branch houses had made it possible to rollect more promptly, and to reduce credit losses. It is, in my judgment, the ideal way to extend our commerce and to meet foreign combinations and competition, and I would therefore respectfully suggest as a basis for the organization of such selling companies and the sale of their capital stock that the following privileges or rights be given: The right to make exclusive contracts with manufacturers covering the execlusive sale of certain products in defined territory. These contracts should be recognized in this country as well as abroad, as it is unfair to the foreign selling merchant, who has Invested in stocks of goods and spent substantial sums in creating business, to have such business taken by a domestic merchant handling the same goods and who has not invested any capital or expense for foreign trade. Foreign selling organizations should be allowed to represent competing concerns if it is found to be mutually desirable. Such an arrangement may frequently give more than one manufacturer an opportunity of marketing his goods abroad in a satisfactory way, and it will help to prevent the destructive effects vf expensive and price-cutting competition. The company which I represent has been obliged to cancel two 25-year contracts with important concerns which were competitors, and whose attorneys advised them that the Sherman law and more recent legislation made their position dangerous under the contracts which we held. Our arrangement with these companies was entirely satisfactory to them and profitable to us. Neither of them can market its products abroad as satisfactorily nor profitably as we can. As a matter of fact, of the 30 or 40 manufacturers whom we represent, [ doubt if a single one can sell its goods in our territory as effectively or as profitably as is being done through our company, and these concerns have capital ranging from $25,000 to $8,000,000 or $10,000,000. The advantages of selling in one lot the various specialized products of different furniture manufacturers are instanced by F. B. Smith, president of the Wolverine Manufacturing Co., furniture manufacturers, Detroit, Mich., in support of export combinations. He stated: First of all, I would like to make the statement that the furniture industry is classified under specialties. One manufacturer makes one branch of the Jsroduct. For instance, our particular industry is parlor and library tables. Another man makes bedroom furniture. Another man makes refrigerators, and another man makes chairs. In order to successfully reach the foreign manufacturer, or the foreign market, some plan must be definitely devised whereby we can go to him with a household product and sell him complete lines; and that involves the use of a considerable amount of capital. I do not believe that the furniture manufacturer in this country will ever develop much of his foreign business until we have an organization with a sufficient amount of capital and a sufficlent variety of product so as to be able to supply the foreign manufacturer and carry that foreign manufacturer; I EXCERPTS FROM HEARINGS. 2901 have particularly in mind the South American dealer, so that we could give him a reasonable line of credit. I submitted a plan to one of the financial houses here looking to some such organization. They were afraid to take hold of it, owing to the attitude of the Government at that time, It seems to me, however, that if such a plan could be approved or countenanced by the Government, whereby the American manufacturers could unite in an organization to reach, particularly, the South American trade, and perhaps the European trade, supplying them, for instance, with their hotel equipment and supplying homes in South America with Ameri-»an-made products on a basis where the South American dealer could handle it, there is a great field for the American furniture, where to-day there is pracically none. There is practically no American furniture going abroad, except In some specialty lines. I believe there are some desks being sold in London, put, generally speaking, the furniture industry is very poorly represented in foreign fields. John S. Kent, president of the New England Shoe & Leather Association. Boston. Mass. said: ' I believe, to begin with, that combinations of manufacturers making shoes, sut making different lines of shoes, would be an effective way to get into lhat market. It is a rather difficult and expensive proposition for an ordinarysized manufacturer to make the attempt alone; and so I hope that if such a combination is within the scope of the Sherman law, and is objectionable yn that account, some way can be found to get over that. A very large manufacturer might perhaps take it upon himself to enter an entirely new market and establish himself there, but the medium-sized manufacturer would find it an very risky proposition to take up. 9 W. T. Beatty, of the Austin Manufacturing Co., Chicago, Ill, which manufactures contractors’ machinery, railroad machinery, ate... sald: I can see no reason why manufacturers of kindred lines should not cooperate in foreign business, but not manufacturers in similar lines. We could zo to manufacturers that make concrete mixers and a line of contractors’ machinery, contractors’ locomotives, and a large line of machinery of that sort that would fit into and supplement our line, and which is sold to the same lass of customers by the same salesmen and the same sales methods and the same advertising methods. You could get a half a dozen concerns like that together who would build up a complete line in that way. They might very aasily Help one another in that way. G. L. Walters, of the Adams & Westlake Co., Chicago, Ill, also manufacturers of railroad supplies, said: It would be better, it seems to me, taking Argentina and Brazil and those countries, in place of depending largely on the big exporter in New York, if there should be established a branch whereby there might be several allied industries represented; I do not necessarily mean the same line of goods, but those that are sold to the same trade, and I am speaking now of the railroad business, that is what we are interested in. For instance, a manufacturer of signal lamps and another of switch stands and electric block-signal eijuipment, all those that sell to the same people, could work in harmony, and in that way reach the trade much better than if one man handling signal lamps and another handling electric apparatus or something entirely distinet from the business you are interested in, were to make such visits. E. T. Harris, president of the Payson Manufacturing Co., hardware dealers, Chicago, Ill, thought that some method might be developed by which— # * * g number of collateral manufacturers, or dealers in certain districts could establish some sort of a central agency, whereby and through which their products could be represented and given an opportunity to obtain a footing, 202 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. For instance, a man who is manufacturing edged tools, and a man who is making builders’ hardware, and a man who is making screws, and a long line of various materials such as would be handled by a hardware merchant; there might be 10 or 15 such manufacturers banded together. A. S. Postnikoff, manufacturers’ agent for foreign trade and former representative in Russia of the International Harvester Co., Chicago, Ill., said: If a foreign selling organization, having goods of real merit and in demand abroad, is organized and managed in the proper way, its success is assured, and it means ultimately great benefit to those interested and to this country. The average manufacturer can not hope to export his goods in a satisfactory manner nor to create a permanent demand for them unless he is prepared to spend some money in advance for the absolutely necessary financial requirements of the work. The agent who takes his line on a commission generally does not create a permanent business, and he generally requires the manufacturer to assume the burden and the risk of credits as well. A local concern, and this statement is made as the result of experience, can and does collect, as a manufacturer, situated a long distance from his customers, can not. The seller who is in daily touch with his customers can collect more promptly, his customers grow to depend upon the local stock, and they, if necessary, pay more promptly because of their requirements. It can be said also that one strong concern, representing a number of manufacturers of allied lines, is able to do a larger volume of business on less capital with less selling expenses at a greater profit and give better service than a considerable number of individual concerns working alone. . E. W. McCullough, general manager of the National Implement & Vehicle Association, Chicago, Ill, in this connection, said: The combining of manufacturers or other business classes to build up trade abroad, through cooperation, should especially be sanctioned, for with many, especially the smaller houses, the expense of maintaining independent selling organizations would be prohibitive. To illustrate the necessity for this, an investigation will show that, as yet, the distribution of American implements and farm machinery abroad, like the carrying of it in ships, is in foreign hands, naturally unfriendly from a business standpoint, and ready to substitute their own goods whenever opportunity offers. In Germany and Russia, where the superiority of our product has aroused envy and imitation by local manufacturers is rife, the selling of our goods is largely in the hands of German and English jobbers, whose only interest in them is the matter of better profits. Furthermore, the number of American manufacturers in these lines outnumber these jobbers or wholesalers in all foreign fields; consequently, opportunity to sell is denied those who are not fortunate in securing one of these jobbers, particularly if such a combining to secure representation is not permitted or the expense of maintaining an independent agency is prohibitive. All our lines are branded or trade-marked; consequently it is not contemplated that competing lines would combine, but, for illustration, a line of plows and tillage implements might cooperate with lines of cutting machinery, wagons, buggies, harvesting machinery, etc., as successfully as it has been done in domestic trade. thus placing our foreign representation in friendly American hands. M. W. McArdle, export manager of the Chicago Flexible Shaft Co., Chicago, Ill., stated that— ¢ * * lines, that may be distributed in a similar way or that go to the same class of consumers, might be distributed to advantage in combination; for instance, our Australian house, now seeking lines that they can combine with their own to advantage and selling to the same class of trade and the same class of consumer. That is one thing that I think the American manufacturers could do to advantage; where several manufacturers make articles that are not in themselves competitive, but which go to the same class of trade or are distributed through the same channel, they could be handled by one organization, and a company could be formed for that purpose to good advantage. 293 Howard Coonley, president of the Walworth Manufacturing Co., manufacturers of brass castings, Boston, Mass., said: ! EXCERPTS FROM HEARINGS. The last point, and the one you are specially interested in, is the question of combining to sell; that is, two or three people in kindred lines, competitive lines, being allowed to sell in that country. It seems to me that the only way we can hope to get business is by direct representation. For instance, in South America we sold for a great many years to the export companies and the commission houses, and our business amounted to $10.000 or $15.000 a year, which we got at extremely low prices. : As soon as we put our own representative down there, we began to feel the benefits of it, and after a year our business was ten times what we had handled through the export houses. It seems to be impossible for anybody to compete for that trade unless they have their own representative down there. 1 urge, If it were possible, to have manufacturers in kindred lines allowed to sell goods. For instance, we make a great many steam fitters’ tools—pipe wrenches, for instance. It seems to me it would be distinctly good—supposing that were the only line we made—if we could be allowed to sell our goods through the same channel as some manufacturer who made chains, which we do not make. Those are kindred lines, because they go to the same concerns—the plumber or steam fitter. Anything that goes to the same trade would be kindred. L. D. Sale, president of the Western Wholesale Drug Co., Los Angeles, Cal., does not think “ it necessary to go into a common selling agency with your competitors,” but rather a “combination of several people representing different lines; that is, the one man representing one house 1n each line.” Stephen L. Bartlett, president of Stephen L. Bartlett Co., manufacturers of cocoa and chocolate, Boston. Mass.. said: Briefly I can say this: That If there is some way in which I could combine with some other interests who would take an interest, I would like to do it. But it would not pay us to send representatives to South America to develop this one thing. 5. DISADVANTAGES OF AMERICAN EXPORT COMBINATIONS. Competing Lines. Concerning the disadvantages of combinations in the export trade Welding Ring, president of the American Exporters & Importers’ Association, an organization of export and import commission merchants, New York City, said: In regard to selling agencies, I fully realize the very large manufacturers, such as the Harvester Co., the Standard Oil Co., the Singer Sewing Machine Co., and some others, having specialties, only one line, practically, can accomplish more business by having their own representative on the spot, who is thoroughly familiar with the goods that they are handling; who knows how to explain and demonstrate them and get their orders in return. As regards the smaller manufacturers I have never yet seen the great benefit that some have supposed there existed in the combination of a number of small manufacturers to send out a single representative... The drawbacks to that method are many. First, such a party going .out has to learn the entire field in which he is to operate. That means he must learn the chsagacteristics of customers from whom he expects orders. - He must also learn their financial standing, as to whether they are entitled to credit, and the usual requirements from time to time. In addition, he must be ready, at all times, to cable or write for goods and have them come out to suit the parties to whom he is selling. In order te do that it is necessary to have your representatives in the large cities all the time, and if a combination of small manufacturers goes out, they must establish these same agencies in all the various large cities. That is not practicable, because it is too expensive, and while it might seem desirable, vet, I think, during the past 9 or 10 months, some of these manufac- 204 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. : turers, who have been attempting to do this direct business, and have done this direct business, making shipments under orders received, and drawing against them, have realized there is another side to the question. I mean, the payment of their drafts. We all know that payment on very many drafts has been refused—some drafts come back—, the goods have been declined, and the shippers of the goods have had to take their chances as to getting out the best way they could. } William H. Douglas, of Arkell & Douglas, New York City, export commission merchants, said: I think the attitude of the commission houses in New York, and elsewhere, Is entirely liberal and free from prejudice. They are desirous of having the utmost freedom allowed all manufacturers in connection with the export trade, and, I think, they are very agreeable to have the business handled in any way which the manufacturer seems to feel would be for his best interest. The question of combinations of the small manufacturers is a difficult problem, and one, I think, which should have very careful study. It does appear almost as if the large manufacturers were anxious to have the small manufacturer have something which he does not know whether he wants or not, although very probably the large manufacturer may know that he wants the privilege. That is a line of argument, perhaps, a little different from what has been presented here, and it seems to me it is something that should be gone into. The small manufacturer, as a rule, has so many channels open to him now to do trade that are far greater to his advantage than a combination of a half dozen small manufacturers, that I fail to see where he is going to realize any improvement or benefit by doing anything of this kind. * * * I have failed, after careful ‘investigation, to find very many small manufacturers who desire it, and I have neen unable to discover any good reason to justify the proposition. Presuming several manufacturers combined—small people—they have got to make some arrangement among themselves as to how to pool the profits, or as to whose goods are to have a preference, because, if you tried to put them on an aqual basis, you would never succeed in accomplishing that, and the final result would be that, in a short time one or two of those manufacturers’ goods would se sold largely and the other three, four, or five who have been in the combination would do no business at all. Goods abroad are sold largely by brands; they are introduced by hard work, and, once established, hold the market. It is jifficult for another manufacturer to come in and displace them, and the result is that the man, who gets his goods in, will be pleased, but the other manufacturers will never be satisfied, even, with the division of profit, and if the combination is broken up, he will find, outside of a little profit, that he will have no market at all and have to start and do his work all over again. Then, again, there is a broader question—the question of international obligations; whether we want to say to the world that we do not care to have things done at home because they are wrong, but we are willing they should be done abroad. That is another problem which is very worthy of careful consideration. There is, further, the question of the large manufacturer. I can appreciate how a copper man would like to have the right and privilege of making these combinations, because it will extend his field of operation very rapidly, and the Arst thing you know it will be a world combination, not an American combination, and he will get prices which will suit him and suit the other countries in the world where a similar line of products is taken out of the earth. Whether that would be for the benefit of this country or not, I do not know; that is for the Commission to study. There are very many other grave complications which an organization of that kind would result in. I have never been in favor of allowing the manufacturers of this country, unless on special lines, to decline to sell to everybody and anybody; I think it is a detriment to the country and to the general interests of the broad advantages this country should derive from export trade. Those combinations would unquestionably lead to a few people having selling agencies, controlling exports, while others who might care to Join would be absolutely debarred from doing so and securing advantages contemplated. *« * * JT have tried to satisfy myself as to the merits of the case, but I haven't reached a conclusion. definitely, whether thew are advisable or not. EXCERPTS FROM HEARINGS. 295 a H. Rosseter, manager of W. R. Grace & Co., San Francisco, said: A manufacturer going into an absolutely new market would possibly and probably, no doubt, by proper combination, be able to effect better results at a smaller per capita cost without incurring any of the penalties. But going Into a market where a middleman Is established it has been my ‘experience In the manufacturing business, with which I am also associated, that the attempt to do business direct was very costly. The manufacturing concern was a good one; they knew exactly how to produce the article they were selling locally and abroad; they were among the leaders in that particular activity, ‘hat particular endeavor; but, when it came to selling in a foreign market, and when it came to knowing credit conditions there and knowing customers, they were as a tenderfoot; they did not know it.. * * * From the selfiish standpoint and personally, I would be very slow in participation by any manufacturing interest that I represented in an effort of that kind. * * * Now, to be perfectly fair, it can be said that I have two stands, two situations on that question, because I am also a foreign merchant as well as a manufacturer; but in speaking this way I am trying to advise in a disinterested spirit as far as I can. George H. Richards, export manager of the Remington Typewriter Co.. New York City, said: I believe the utmost freedom of action should be guaranteed to every manufacturer in the United States, who has the slightest desire to engage in foreign trade. Personally, I do not see where any advantage is going to accrue from an attempt to combine on the part of our manufacturers in the United States so far as successfully invading the foreign fields is concerned. Any combination, which did not include everybody in the particular line of rade, would be valueless. It would have to include everybody or no one. I helieve it would be extremely difficult to induce any of the large corcerns, who have already successfully invaded the foreign market, to become a party to a combination of any kind. I don’t believe they would be willing to hold the umbrella up while the little fellow got in out of the rain. On the contrary, if it is the intention, as I know it is, to encourage, stimulate, and expand our foreign commerce, we should try to devise some means whereby everybody in the United States would have an opportunity to reap the benefit to the extent that they were prepared to take advantage of it. oe With regard to the little fellow though, I do not believe that he should be encouraged to feel that some one is going to do something for him that he ought to do for himself ; and, in a combination in which they try to pro rate the volume of business, that is very apt to be the case. He will say, “I will get my share of this,” and let it go at that. In a practice of that kind there is the utter absence of the personal factor, and I believe that counts for a great deal. * * * I Jon’t think we are going successfully to invade the foreign markets if we are going to attempt to hold up prices by combination here without regard to what the foreign competitor is doing. If we combine and make our price $1, our foreign competitor will know it overnight and will make his price 99 cents. The only combination of value is the universal combination, and that, of course, is utterly impossible. As to the desirability of combination in export trade, F. D. Waterman, of L. E. Waterman & Co., fountain-pen manufacturers, New York City, said: We never found any need for it, because we were the pioneers in the field, ind we would only help our competitors by taking them in. When asked whether a selling agency composed of the 10 or 15 manufacturers of duplicating machines might not reduce the selling cost, William G. Arnold, secretary of A. B. Dick Co., Chicago, Ill., said: It might possibly do that, but we have never felt very friendly to that kind of an arrangement, for the reason that we are the largest people in the business. and we do not really care to go into anything of that kind. 2906 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. In this connection, J. E. Blaine, of the Globe-Wernicke Co., Cincinnati, Ohio, said: Personally, I have no occasion for doing it; no desireto doit. * * = * * * we do not make an ordinary commodity, such as nails, something which goes by the ton, but something which goes on its peculiar characteristics ns we make it. Albert Krell, of the Krell Piano Co., Cincinnati, Ohio, did not think combination possible in the piano line for the following reasons: The competition is too severe, and the question of who makes the best piano and all that sort of thing. 1 C. J. Anderson, export manager of Lyon & Healy, Chicago, Ill, said : I doubt it. I think that the only thing to be done would be for three or four at most of the manufacturers to he represented by a single salesman, because a single man could only represent three or four people at a time, and in so far as some form of cooperation is concerned, I do not see that it would be of any advantage in the piano line. G. J. Mitchell, manager of the National Stamping & Electric Works, Chicago, Ill, manufacturers of lighting specialties, stated: I do not believe in trade combination among firms which should be competitors, because of the tendency under such circumstances to smother individual effort. » un I am firmly convinced that knowledge of the foreign-trade conditions is the first and most important item in the building of the foreign trade, and I am also ronvinced that any firm, who produces a good article that is salable in foreign countries, can build up a trade on that article to a better advantage alone and produce better results than he could obtain through a combination with his rompetitors. E. M. Galbraith, of the Anchor Buggy Co., Cincinnati, Ohio, as to cooperation with competitors, said: : I do not feel that that would be of any advantage to us. William A. Biddle, of the American Laundry Machinery Co., Cinrinnati. Ohio. said: In our line there are so few of us that there is no chance to cooperate. There are only two manufacturers of laundry machinery, of any consequence, and we get along nicely. I think there is no advantage we could gain in cooperating, especially in our particular line. W. T. Beatty, of the Austin Manufacturing Co., Chicago, Ill, which manufacturers contractor’s machinery, railroad machinery, ete., said: In order for us to get together we would first have to thrash out a whole lot of our abuses that we have experienced in our domestic business. Some businesses, of course, owing to their very nature, are susceptible to a higher grade, more Inflamed competition than others, and I think we have one of the inflamed kind. Now, if we were part of a company composed of several manufacturers handling our line of goods in some foreign country * * * we would not have any control over that thing at all, and we would not have any way of knowing at the end of a year whether this manager, who would represent practically the good will of the company and who would have the business all at his fingers’ ends, might not fix up a scheme with one of our competitors and go off with the business and we would have it all to do over again. We would feel like spending a little more money and keeping it in our own hands, EXCERPTS FROM HEARINGS, 297 W. O. Washburn, managing partner of the American Hoisting & Derrick Co., Minneapolis, Minn., did not believe a joint selling agency for small manufacturers would be beneficial in his line. He said : In our particular line I do not think it would do any good. We would not be In any such proposition except as a general help to the country, if it could be figured out, but we do not see anything in it. We have had so many cases of that sort put up to us by concerns who made it a business to represent some 10 soncerns—for instance, a brokerage concern would undertake to represent 10 first-class concerns and market their product in foreign countries—but it never turned out satisfactorily at all. We have never had any results to speak of at all. * * * But our experience has been that it is necessary for the manufacturer to send his own representative or some one who will give his line sufficient thought and sufficient care to really find out what is required to establish it. * * * Jf we were to go into an arrangement of that sort, our first care would be to see who would represent our line and how much of his time we could have and whether he would apply it assiduously in looking after our business. ‘Those are the main things. And the man must understand our business ; and, in the majority of cases, if you would go in with a man who did not understand it, he would not get anything at all. Herbert H. Bigelow, of Brown & Bigelow, St. Paul, Minn., manufacturers of advertising specialties, said: I do not think that is practical in our line of business. I have turned it over in my mind several times. We are considerably interested in the South American business, and I feel that one of our principal people will go there inside of the next year and a half or two years. But the nature of our product Is one in which a man i¥ entirely creative, and I do not think that a joint selling agency would be successful any more than a joint selling agency for cash registers would be practicable, * * * If you are selling shoes or selling flour or selling a staple commodity, a Joint selling agency is very practicable and almost 8 necessity to reduce the overhead expenses. But in our line of industry the product is more in the nature of something which people can do without and the desire for which is entirely stimulated. Howard Coonley, president of the Walworth Manufacturing Co., Boston, Mass. (steamfitters’ supplies, plumbers’ supplies, etc.), said: The reason I hesitate on competing lines is this: Another one of our handicaps is the fact that the foreign markets have always been used as the dumping ground of manufacturers in some of the lines when they have a surplus of goods which they can not market in their own country, We want to keep our shops going and our organizations intact, and for that purpose we sell our goods even below cost in order to gain that end. This competition in foreign countries has been at least as keen on account of cut prices as it has been because of meeting foreign trade. I think nine-tenths of the business men feel if they want to go into the export trade they must cut their prices, and that is bad in every way. Now, if competing concerns sell goods through an agent—I am speaking only of the lines with which I am familiar—they lose their identity and they lose the value of their quality, and they deserve a return on the products which they have built up, and it seems to me there might be langer of losing more of that if competing concerns were allowed to sell through one concern. a For instance, take a line of valves we manufacture. Now, every manutacturer has a distinct line of valve, and if only he handles them, * * =» only the quality counts. On the other hand, if I had a representative who was selling my goods and probably two or three of my competitors’ goods, the value of those goods would be lost sight of entirely—the value of the product—and that is what, it seems to me, this country must play for. ® *® wk * » It is natural that only the very largest of the manufacturers can afford bo have agents in these countries, representing them solely. There are a 298 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. vast number of firms who could obtain valuable business in these countries, provided they could combine with others in this marketing. However, as it appears to me essential that goods should be sold on quality, I do not favor the combined selling of strictly competitive lines. Of course, in making this statement, I refer only to goods with which I am familiar and where the brand stands Tor something definite. There may be other lines, such as chemicals, where groups of merchants could combine without affecting the interests either of themselves or their customers, H. C. Atkins, president. of E. C. Atkins & Co., Indianapolis, Ind. manufacturers of saws, said: I do not know that we do, particularly, need it [cooperation with competitors] for the development of our foreign trade in our particular line of business. That is a thing that appeals to me as something outside of our own particular field; there are many lines of business ‘where those cooperative ideas could take care of the trade better than they could without them. I do not think in our line of business that it would make any particular difference, because we have a condition to meet, which condition is not made by us, but by outside competition, and we could meet that without any arrangements with our competitors. James Maloney, president of the Maloney Belt Co., Chicago, I11., did not think common selling agencies in his line feasible, because their goods are not standardized. His statement was: The different qualities manufactured by the different houses make it a complicated question. In leather, you know, of course, the weight and the quality vary, and that is the worst thing we have in our own country here to contend with without going to foreign countries. There are half a dozen concerns here in the United States that do considerable business, who are on the ragged edge all the time. They make a light-weight class of goods, inferior roods, and sell them cheap. The first-class manufacturer has the hardest kind of a time to compete with them, and it is the same way in Furope. I found that to be true in Europe, but in South America they have got to have good goods, and they will pay for them. M. W. McArdle, export manager of the Chicago Flexible Shaft Co., Chicago, I1l., said: 1 do not see any possible way where competing lines could combine to do susiness in foreign countries to advantage any more than they could comrine at home, unless they form a monopoly. The products of different manufacturers, even in the same line, vary so much that if, for instance, these engine manufacturers were to combine on the sale of engines for the Argentine, you would find that some one of the six would be predominating down there to the exclusion of the others, practically. When asked whether the bedstead manufacturers of this country could meet the.English competition if they were permitted to form an association similar to the English combination, Alfred Terrell, of the Simmons Manufacturing Co., Kenosha, Wis., said: I am not here to advocate that; I do think that is practical. * * = 7T think we would have troubles in our own family that would offset any advantage we might gain by being permitted to do that. B. Elsey, general manager and treasurer of the Indianapolis Glove Co., Indianapolis, Ind., said: We awould not consider, however, sending a man in the field, nor would we consider putting our goods into the hands of any cooperative association, because we do not think it is worth while. * * * We would not consider it under any circumstances. If a man takes our line of goods, we will not permit him to sell any other line. We simply restrict his operations to our line alone. Take the firm that handles our goods in England, Scotland, and Australia. When we entered into the agreement, the agreement provides that they shall not offer any other line of stuff; and while they handle various iines of goods, they are not permitted to handle any other glove account. EXCERPTS FROM HEARINGS, 299 While we might enter into an agreement with our competitors here at home ‘hat we would stand on price, and he could work with his agent just the same as we do, that might be advantageous in that way, to have a home organization; but as to making any effort to disposing of our products through a cosperative organization in foreign fields, we would not consider it at all. W. W. Knight, of the Long-Knight Lumber Co., Indianapolis, Ind., said: I do not think such a thing [a cooperative association] is possible in the lumber business, because lumbermen, as a rule, are prefty keen competitors, and they are not always trusting the other fellow, to be frank about it. I can do better getting the business and doing the business myself than I can by doing it through somebody else. That is about it. It is a matter of self-interest. In this connection Isadore Jacobs, president of the California Canneries Co.. San Francisco, said : It seems to me that there would not be any way in which you could control the cooperative representatives, and there would always be that suspicion in the minds of the manufacturers that they might not be getting a square deal in the selling of the goods. Albert E. Castle, member of the firm of Castle Bros., dried-fruit axporters, San Francisco, said: Combinations to fix prices, I do not think, would ever work so far as foreign business is concerned, because domestic business would enter into it at once and we would not be in a position where we could combine on the foreign prices and not on the domestic prices. John Crosby, of the Washburn-Crosby Co., Yinneapoiy, Minn, expressed a doubt as to whether the competing millers of the country could be persuaded to organize against foreign buyers. He said: Now, I am almost ashamed to say it, and it ought not to be so, but the fact 's that the millers in this country have been so used to a pretty ruthless competition that they do not trust each other very far, and anything of that sort would be very difficult to arrange. Edgar H. Evans, president and treasurer of the Acme Evans Co., Indianapolis, Ind., manufacturers of flour. said: The competition between the mills is dependent so much ‘on local conditions, he marging are established by markets and conditions that are common to as all, and the ground is so well understood as to the method of doing business that, except for the diminishing of competition, which, of course, we would all like to see. the matter of cooperation has not been very largely brought out. T. J. Thorsen, Dresijens of the Washington Shoe Manufacturing Co., Seattle, Wash., when asked whether a combination of manufacturers of conflicting lines would be practicable, said: { do not think that would be practicable. Just the same as if you were in the wholesale shoe business and I was your salesman, and I carried a line from another house just exactly the same as you manufactured. You want me to put all my efforts on your line. don’t you? Charles H. Jones, president of the Commonwealth Shoe & Leather Co.. Boston. Mass.. said: {f a salesman was carrying my shoes and another manufacturer’s shoes, and if he did not sell mine, I should be pretty sure to say he was influenced improperly by the other man. Ernest G. Howes, president of the Howes Bros. Co., leather manufacturers, Boston, Mass., said : It is quite a question, in my mind, whether a permanent ould be established in any foreign country made ump of selling agency manufacturers 300 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. producing the same grades and qualities of merchandise, as discord and innumerable petty jealousies are bound to arise from one cause or another, anless a definite selling policy is carried out. Fred W. Rice, of Rice & Hutchins (Inc.), Boston, Mass., shoe manufacturers. said: I would not join with anyone else in that way. I would not expect I was going to get the best results. Iewould prefer to send one of our own representatives. It might cost more in the beginning, but the results would be greater in the end; but I do think that if we were making men’s shoes we could well afford to combine with makers of women’s and children’s shoes, or with other makers of men’s shoes of different grades. 6. EFFECT THAT AMERICAN EXPORT COMBINATIONS WOULD HAVE ON COMPETITION IN THE DOMESTIC MARKET. W. S. Kies, manager of the foreign-trade department, National City Bank, New York City, who favors combinations for the purpose of export trade. said: I do not see that it would have any serious effect. I will answer that, however, by suggesting that, as I understand the Clayton Act, the antitrust ret, your body here would have power to step in and stop any abuse, any attempt to extend that combination to a fixing of prices in this country to ‘he detriment of our own consumers. In other words, what I am trying to urge is simply the necessity of a combination of resources in the development of foreign market to meet the kind of competition we have to meet, particularly from Germany and England, and from others of our competitors who are more thoroughly organized. My thought is that if we work along this line, or if the Sherman Act is amended, your Commission’ stands there as a body that will determine, as a matter of fact, whether a certain practice is an unfair practice or not. And I think you have the power now; that if you should work along this line and tentatively approve some temporary plan of organization until the Sherman Act should be amended, you could guard against any abuses. The point that I am after is to try to Bnd something legal, feeling that your antitrust acts have given this honorable body the power to step in and stop the abuse. You can abuse any legal thing; any plan can be developed along lines that are not proper, and it is your sblization and your privilege to stop that sort of thing. E. A. Selfridge, jr., president of the Northwestern Redwood Co., Willits, Cal., as to cooperative selling agencies in the redwood industry. said: Organizations for these purposes,,no matter how comprehensive in scope they might be, could not under any circumstances maintain prohibitive or monopolistic prices because the output of redwood is so small in comparison with that of the entire lumber industry of the United States—something like 1} per cent—that it would at all times be subject to the competition of the remaining 98% per cent. As to the possibility of preventing export combinations from bringing price fixing and division of territory into the American market, H. P. Davison, of J. P. Morgan & Co.. New York City. said: I can see that there might be a tendency to have one affect the other somewhat. But I should believe that it could be so organized that they would be really, in effect, quite independent. * * * TI think that it would be rather difficult to entirely divorce any influence one from the other, and yet, in practice. I should sav it could be avoided. Combination in foreign trade would be the means of tending to fix prices in this country, in the opinion of Roger W. Babson, of the Babson Statistical Agency, Boston, Mass., but he suggested permitting small manufacturers to combine while denying this right to large concerns. He said: EXCERPTS FROM HEARINGS. » 301 I do not see how it could help but have an influence, if the large corporations were permitted to combine for such a purpose. - = a { am assuming that there would be some—there would perhaps be a dozen— ander the million, and there would be two or three over the million. That croup of one dozen under the million would be competing with the two or three above the million, and that would still leave the element of competition in there, which would take care of the price and prevent the fixing of prices. That reflex effect, it seems to me, is inevitable. It is simply a question of weighing the advantages and disadvantages. Now, I think that in the case of the small corporations the advantages would offset, and more than offset the disadvédntages; but in the case of the big corporation I believe the reverse. [ believe the disadvantages fwould more than offset the advantages. A. H. Weed, attorney at law, representing the Manufacturin Chemists’ Association of the United States, Boston, Mass., a bo the bill the association had prepared, on request, setting forth the ideas as to the character of an amendment necessary to permit cooperation, and said further: To prevent any abuses which might result from such cooperative movements, any retroactive effect which a combination might have to retain trade in the United States, the bill has a provision granting power to the Federal Trade Commission similar to the power which it now possesses to restrain unfair methods of competition under section 5 of the existing law. The ability to market a surplus and the effect upon the doméstic market of the elimination of this surplus was discussed by Hal H. Smith, counsel for the Michigan Manufacturers’ Association, Detroit, Mich. He stated: The presence in the domestic market of a surplus may depress prices, but removal of that surplus to foreign markets can, of itself, give the public no reason for complaint, for the public surely has no right to the continuance of prices brought about by a production so excessive and illogical that it will jestroy the producer. George W. Harris, president of the Trustees’ Sinking Fund of the City of Cincinnati, who favors combinations for the purpose of enpaging in foreign trade, said: it follows that the more goods that can be sold, either of manufactured product or of the raw product, in foreign countries, the cheaper will finally be those things to the American consumer, because the larger the production the less the cost of production. Francis A. Goodhue, vice president of the First National Bank, Boston, Mass., said: It seems to me, with regard to foreign combinations for foreign trade, it is largely a matter of interpretation or ruling as to exactly how far people can go, or what they may do, and also trying to draw a line of demarkation— B strong line—between combinations for foreign trade, so that if they were allowed, they would not overlap into the field of combinations for domestic trade. Of course this would be somewhat of a difficult thing. If done properly and properly supervised, T think it would be very easy. Charles M. Muchnic, vice president of the American Locomotive Sales Corporation, New York City, said that the prices fixed for the export trade in his line would not necessarily be maintained in the domestic market because— * * * each inquiry or order for locomotives commands a certain price which is arrived at after careful estimates of each particular inquiry. No two orders are alike in price, or comparable, and each inquiry must be treated individually. Therefore the manufacturers can have no information or indica- 302 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Hon from a comparison of prices for foreign products as to what domestic prices would be for similar products. If manufactured products, such as we have under consideration, were like a staple commodity, it might be different. We have no fixed prices, and on each inquiry we make a separate price. The probability that export combinations would extend their operations to a restraint” of domestic trade was an objection urged by John Crosby, of the Washburn-Crosby Co., Minneapolis, Minn. He said: Is it not true that, human nature being such as it is, it would be very diffisult for the same men to try to pool issues and compare prices and do all those things that we are forbidden to do by law in this country, and that we do not do; and to do that on a thousand barrels of export and have ourselves so situated as to do that on the export business that we would not do on the domestic? It is conceivable that it should be done, but it looks to me or to us—other millers may feel differently, because I have not talked on this thing—but it seems to us that just so surely as we had that power and began to do it, all that would back up into domestic trade, or some of it would, and we, or some of us, would surely be under suspicion of doing in the domestic trade what ought not to be done under the law and what we do not do under the law. Bernard J. Rothwell, president of the Bay State Milling Co., Boston. Mass.. said: In granting, through modification of existing law, such freedom of action in foreign markets care should be exercised to guard against any permission to resufoe in domestic markets those pernicious practices of unfair and purposely destructive competition which American public sentiment had unequivocally rondemned. F. A. Somers, president of Somers & Co., dealers in grain, hay, etc., San Francisco, said: To be perfectly frank, I think human nature is so weak that there is danger ahead on that basis, but if it could be done on foreign trade alone I believe it would be of vast benefit to the industry here. In this connection John D. Ryan, president of the Amalgamated Copper Co., New York City, said: When you permit a combination, or price agreement, or anything else, in foreign trade, and you don’t permit it in domestic trade, the man has got to violate the law to make a combination in domestic trade. Now, if a man is going to violate the law—if he is that kind of a man—the man will violate it anyway. But I say to you, that I want to be protected against the man who will make a sub-rosa agreement to violate the law; and I won't violate it, simply because I have the right to combine for export—I won't violate it n domestic trade for the reason, if for no other, that I want to make very sure »f holding my advantage in the export trade and not losing it by doing the thing I am prohibited from doing in the domestic trade. And, furthermore, the question of whether it is going to affect unfavorably the matter of price in our domestic trade is something to which we have given a great deal of thought. Remember, you do not sanction any restriction in production that is absolutely prohibited by law. There is no agreement restricting production. If there is a orice agreement abroad that raises prices abroad, and there should be overproduction, has it not got to be marketed, if that price is maintained abroad? Has it not got to be marketed at a sacrifice anywhere in this country; and won’t the consumer in this country get the benefit of that surplus that has to be marketed at a lower price, whatever it is? The competition exists here, and not abroad. The surplus has got to be sold, even at a concession. W. H. Heulings, jr., vice president of J. G. Brill & Co., car manufacturers. Philadelphia, Pa., said: I do not believe that, it would in any way, conflict with our domestic work. If you have a business large enough to subdivide, take your foreign business in one hand and your domestic business in the other, and keep them far apart, vou will still have plenty to do. EXCERPTS ¥ROM HEARINGS. 308 W. T. Beatty, of the Austin Manufacturing Co., manufacturers of grading machinery, Chicago, Ill., was of the opinion that— As a matter of fact they would get to considering things that interested then most, and the things that they can accomplish to their own benefit are included more largely in the domestic field than they are in the foreign field. [ don’t see, therefore, how you could possibly get a bunch of such men together who are bitter competitors at home and have them confine their discussions and negotiations to foreign trade alone. It could not be done in my opinion. Charles Piez, president of the Link Belt Co., Chicago, Ill, in this connection said, in part, as follows: In order to cooperate in any line you have got to assume toward the man you cooperate with a friendly relationship that you can hardly disturb when you are meeting him as a competitor in domestic business. Of course, manufacturers for the past few years have been almost atraid to bow to each other if they have been competitors, because they felt they would be put under the ban of the law by so doing; and there has been, I think, less cooperation among manufacturers than there should have been on that account, because a reasonable amount of cooperation in domestic affairs ought not only to be permitted but ought to be encouraged. But there must be a considerably closer cooperation if you are going to extend that into foreign fields than any relationship that has yet existed in domestic trade, because you have got to have a common agent and you have got to be prepared to assume expenses jointly, because if vou do not do that you will get your selling point above the possible point of profit, and you must have profit in order to secure the business and continue in it. In order to do that, therefore, there has got to be very close personal contact between these gentlemen who are cooperating for foreign business, and I do not see how it is possible to prevent the contagion of comradeship that that would engender extending into domestic relations. = * * There would have to be a comparison of costs; for instance, a thoroughly intimate knowledge of the costs of each of the manufacturers; there would have to be unification of terms and standardization of profit, because the selling agent could hardly represent two manufacturers making the same or similar product but radically different in detail. You see our product may be competing with the product of the Jeffrey Manufacturing Co.’s product, for instance, and their product might be much more desirable from the customer’s standpoint than ours, and such a relationship would have to be resorted to, otherwise there would be the charge of discrimination against one of the cooperators, and that would break down the entire scheme of cooperation. - So, naturally, any scheme of cooperation to secure foreign commerce would involve n very close relationship. That might be carried out under the surveillance of the Commission here, but it certainly would result in very materially reducing the expense of distribution and sale. When asked whether the establishment of the above relations would tend to create a condition in this country where it would be pasy to fix prices, Mr. Piez said: I would not say that. I think it would have a tendency to stabilize and prevent very wide and often disastrous fluctuations in price, because in establish-Ing cooperation in foreign fields, competing with foreign makers, you naturally would establish a line of prices in foreign fields that would affect the home market, and those prices being established in competition in the foreign field would therefore represent fair prices, and, as I say, those conditions reflecting themselves in the home market would certainly tend to stabilize prices and to make them just and fair. Willis H. Booth, vice president of the Security Trust & Savings Bank, Los Angeles, and general manager of the Hot Point Electric Heater Co., Ontario, Cal., said: I can see that a combination for a foreign trade can naturally gravitate into r combination for a domestic trade, and I think that is against the best practice and best thought of competitive business. I would not like to see the foreign trade go that far. And I think the dealers themselves might go that far if they were allowed. One man can do that business just exactly as well as five. 304 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A. F. Bemis, of Bemis Bros. Bag Co., Boston, Mass., said: The opening of the opportunity to combine for purposes of export trade would probably be one method of increasing that efficiency, although I assume :hat considerable care would have to be taken that those opportunities should aot be extended unduly to domestic trade. I would assume that more or less care would have to be taken in the framing of any legislation to guard against the undue growth of monopoly in our domestic commerce. # * » J have no details or specific suggestions, only this: That, through your Commission, which would have the supervision of both lines of trade, I assume that you would be able to regulate the conduct of business, both foreign and domestic, so that there would be really very little of this danger to which I call attention. 7. ESSENTIAL FACTORS IN THE EXPORT TRADE, (a) Effects of Tariff. Relative to English competition in Canada, Charles Piez, president of the Link Belt Co., Chicago, I1l., said: In Canada we meet English competition very largely, because there is a preferential duty there in favor of England, so we have that to contend with. Recently we have established our own plants in Canada in order to put ourselves on more nearly an equal.basis with the English and Canadian competition. Joseph N. Teal, counsel of the West Coast Lumber Manufacturers’ Association, Portland, Oreg., said: Back in South Africa to-day there is a 10 per cent preferential tariff against our lumber in favor of British Columbia. In New Zealand on certain manu-Pactured products there is a 10 per cent preferential tariff. And I say (they are matters of public documents; there is no secrecy about it) that British Columbia to-day is laying the foundation for the securing of further preferential tariffs between constituent parts of the British Empire. Edward T. Hendee, secretary of Joseph T. Ryerson & Son, Chicago, Ill., manufacturers of metal and steel machinery, in speaking of the advantage in tariffs which certain countries-enjoy. said: Germany has a preferential tariff agreement with Austria and Hungary, whereby the duty into those countries on machinery is 20 kronen per 100 kilograms, whereas our duty for entrance into those countries is 29 kronen per 100 kilograms, or half as much again. Similarly, Germany has had reciprocal arrangements with Italy. From the United States into Canada the duty on machine tools is 20% per rent ad valorem. as against England’s preferential duty of 173% ad valorem. i The present treaty between Russia and Germany, which was entered into at the beginning of the Russian-Japanese War, permits the entrance of German goods into Russia on the basis of a duty which, in the case of machinery, figures out at about 15 per cent ad valorem, as against a duty which figures out, in the case of other countries, including the United States, to about 60 per cent. For instance, on a machine which we export very largely and which sells in this country for approximately $3,000, the duty into Russian is $1,800, as against Germany’s duty of $450. This is equally true of all other lines, and is largely responsible for German exports into Russia in 1913 of nearly $260,-)00,000, or about seven times the exports of the United States into that same sountry. The discriminating arrangement which resulted from the Russian-Japanese War has given Germany that market absolutely, and we feel that to-day would be the opportune time for this country to try to get on the same basis as other ;ountries, without exception, into Russia, and that if this is left undone it may be that the outcome of the war will force certain treaties with trade clauses in them that will be very much against the interests of this country. EXCERPTS FROM HEARINGS. 305 F. F. Stetson, fruit canner and <an manufacturer, Los Angeles, (al.. also said: In the can factory we are interested in the sale of cans on the west coast of Mexico, but we find in that district the tariff is very much against us. We can not get cans down into Mexico because of the high tariff. * * * I can not say what it is, because we make the price here, but our customers say they can not do business on the west coast of Mexico on account of the high tariff. Now, we sell cans to those people in San Diego who have fisheries on the west coast, and they will bring the fish up there to can, so we get some business from Mexico in that way; but the establishment of canneries on the west coast of Mexico is an impossibility because of this high duty on the tin cars. * * ¢ They want to can fish on the west coast of Mexico and there are no can factories, 20 they have to import their tin cans, and that has resulted in the abandonment of several enterprises of that sort. Men would go down there and try to establish a fish cannery and could not do it because they could not get any tin cans at a reasonable price. This is all on account of the tariff. The same conditions are found to exist in the salmon canning industry. Miller Freeman, publisher of the Pacific Fisherman, Seattle, Wash., in behalf of the salmon canners, said: I wish to say that covering a period of several years we have carried on an investigation on behalf of salmon canners, which included inquiries with respect to the status of the treatment of the product in all the various countries of the world, and it was shown in effect that practically, with the exception of Great Britain, canned salmon is a product as to which the terms of entry are 80 unfavorable that in many cases the rate is practically prohibitive and cuts us out of the market, * [3 a * For instance, in Brazil the tariff rate is 80 cents a pound. The first work undertaken by our investigation was the gathering of the facts as to the treatment of the product in foreign countries, which disclosed, as I say, that in most of these countries the rate was prohibitive and in other countries it was too high really to make it practicable to do business on any scale of importance. In Germany, for instance, the tariff is 7 cents a pound ; in Austria it is 8 cents; in the United Kingdom there is no duty, and, of course, that is where the bulk of the product goes. Chile, a South American country which has a nominal duty, is a very large user of salmon. They have a duty of only 1% cents. * * * Take it into France, the duty on canned salmon into France is in favor of British Columbia or Canada as against this country. Whenever we do any business with France we have to go to British Columbia and purchase it there and ship it, because the tariff on our canned salmon is large as against British Columbia which goes in free, and we have a high duty to pay, and it is all due to the fact that those duties were put into affect years ago when canned salmon was not offered in those markets. R. E. Small, of the Kelley-Clarke Co., Seattle, Wash., salmon brokers, agreed with Mr. Freeman’s statement regarding the prohibitive duties in foreign countries. As to the effect of the removal of the Philippine tariff on salmon, T. J. Gorman, of Gorman & Co., Seattle, Wash., salmon packers and brokers. said: From infinitesimal shipments of 10,000 or 12,000 cases a year into the Philipnines. it increased in 1912 to something like 160,000 ‘cases, and has held, con-:inuously since, between 100,000 and 160,000 cases per annum, It makes by far ‘he cheapest food they get there, and it is all due to the fact that our Government removed the tariff on canned salmon, provided it #s shipped on a continuous ressel to the Philippines. As to the attitude of the Canadian Government towards the halibut industry, William Calvert, of the San Juan Fishing & Packing Co., fish packers, Seattle, Wash.. said * Commercially we are at a disadvantage on account of the difference between the attitudes of the Canadian Government and our Government as regards the halibut industry and, in fact, the whole fish industry. 27941 °—pr 2—16——-20 306 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The Canadian Government has done everything they could to foster the industry, and particularly the halibut industry, to the extent of subsidizing ships and subsidizing plants. So far as we are concerned, on the other hand, they have laid every obstacle *hey could think of in our way, to the extent of prohibiting our vessels going in there and getting bait or fuel, even prohibiting our going into their harbors except in times of extreme stress of weather, and then they have ordered our vessels out at times when they were unable to stay out and had to turn around and come back into port. One advantage they have is that they have over there Orders in Council which they can place on at a day or two days’ notice to take effect at once, and whenever a condition arises whereby it is to their advantage fo put in certain restrictions, they do so immediately. A. Rupert, president of the Rupert Co., Portland, Oreg., dried and canned fruit exporters, said: One of our greatest difficulties in developing our foreign business has been this matter of tariffs, in which.I presume you gentlemen are very much interested. For instance, in France, where we do a large business and have our wn office and our own man, an American in charge, the duty on canned salmon from the United States is 100 francs per 100 kilos. From Canada the duty is 50 francs per 100 kilos. G. R. Geauque, of Flint & Walling Manufacturing Co., Kendallville, Ind., manufacturers of windmills, said: The greatest handicap to-day in the foreign trade is the matter of ocean ransportation. Of course I quite realize that this is a condition brought about by the present war in Europe. There is probably nothing that can be done at present to relieve this condition. There is a scarcity of steamer space available, and prices have risen to an abnormal extent as a consequence. The competi-Hon of the nations at war has made the rates higher, and, as a result, legitimate trade suffers. We have orders in our files for goods which we can not ship because the ocean rates are too high. In Australia, New Zealand, Russia, and Canada the customs duty is exreedingly high—out of proportion to reason. I am in favor of tariff measures that will place us on a more favorable footing—that is, if they charge a high duty against our goods, we should assess a similar high duty against their goods coming to us. A. C. Loring, president of the Pillsbury Flour Milling Co., Minneapolis, Minn., told of the handicap to American millers resulting from differential duties abroad. .He stated: The questions that came up prior to the war were that our business had Jecreased materially due to the fact that the millers of the Northwest and the United States, as a whole, were unable to compete with the millers in Europe because of the great differential between wheat and flour, and also a differential in the duties between flour and wheat. Many of the countries make a preferential duty on wheat as against flour. That had a tendency as well -to destroy the exporting business. Then some of the countries have a preferential duty to their countries, which have also tended to decrease our export business. Those are the main questions that have resulted in the cutting down of the exporting of flour from the United States, as well, of course, as the building up of better mills in Europe, due to the experience of the American millers. They are the ones who have recently developed the system of milling which is now common the world over. Edgar H. Evans, president and treasurer of the Acme Evans Co., Indianapolis, Ind., manufacturers of flour, said: Fifteen or twenty years ago a very large part of Europe was open to American flour, but since then, by virtue of discriminating tariffs, a considerable part has been closed. The tariffs in some cases have been raised until they were prohibited, and in other cases export tariffs have been issued in favor of the exporting of the foreign country. Germany gives a bounty and France gives a bounty that, at times, makes it very difficult, in fact impossible, for American millers to compete with the foreigner, 307 \ Thomas F. Anderson, secretary of the New England Shoe & Leather Association, Boston, Mass., said: It is extremely difficult to carry on a satisfactory shoe business with South America. } This is due, in the first place. to lack of proper transportation facilities. In the second place, the trouble is exchange. There are other conditions in other places. The tariffs are almost prohibitive—local tariffs in Argentina, Uruguay, Brazil, and some of the other countries. They set up against our shoes a tariff, amounting to 40 or 50 per cent. Again, in the country, and sometimes in the city, the traveling salesman who goes through is obliged to pay a $100 license fee, and their cost of travel is high; the entertainment a man is expected to do, more or less, and all that makes the exploitation of our foreign trade in South American countries exceedingly expensive. So, you have got to add to the salary of salesmen, probably not less than $5,000 a year, for necessary expenses. That means you have got to sell a good quantity of goods or else sell at an abnormal profit. Then you have got to find some way to cut down this tremendous cost of doing business in these South Ameriran countries. Ernest G. Howes, president of the Howes Bros. Co., Boston, Mass., manufacturers of leather, said: Unfortundtely, we can not sell merchandise in South America, as the tariff is too high, * * * In England, Norway, Sweden, Switzerland, and some of the other countries, we are able to ship our merchandise. The tariff wall is entirely too high in Germany, as well as ih Austria and France. In Switzerland we are able to do more or less business. - Relative to concessions granted by Canada, which favor products coming from Great Britain, F. C. Gilbert, assistant secretary of the Timken-Detroit Axle Co.. Detroit. Mich.. stated: Another thing I want to speak to you about is the Canadian differential. I do not know whether you know that, on products coming into Canada from (ireat Britain, there is a differential of 10 per cent in favor of the mother country. That, practically, in connection with the present high Canadian tariff, is almost automatically shutting us out from doing business across at Windsor. As to whether all countries manufacture playing cards, J. S. White, of the U. S. Playing Card Co., Cincinnati, Ohio, said: No, sir; in some countries it is a Government concession, and we can not zet into them. We do get into Germany some, but we are hampered a little there, France we can not get into at all. Italy and Russia we can not get into at all. (b) Transportation. “The relatively cheaper transportation of wheat as compared with flour is responsible for the establishment of mills in Great Britain and the corresponding decrease in American flour exports,” said H. P. Gallagher, of the Northwestern Consolidated Milling Co., Minneapolis, Minn. He stated: The milling industry on the other side, which, as you know, has been encouraged and brought about through the relatively cheaper transportation of wheat as compared with the manufactured product, has been the great thing we have had to contend with all along. There was a time when our business in Great Britain was fully 50 per cent of our [total] business, but in later years the cost of transporting wheat, both by rail and steamship, was so much less than the cost of the transportation of the manufactured product, that it encouraged the building of mills on the other side. I am speaking particularly now of Great Britain, and I fear very much that the bulk of our export pusiness is gone for all time, that is, after the conflict -on the other side hag ended and conditions become normal on that side. 308 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A like complaint came from W. G. Crocker, a director of the Washburn-Crosby Co.. Minneapolis. Minn. He said: I might lay a little more stress on the cause of the decline of the American export in flour, which came about through discrimination in ocean rates nnd in years gone by in domestic rates on. wheat as against flour. That enabled the foreign millers to rebuild their mills, so that now, instead of old mills, they have modern mills that can compete right with us, and that little discrimination between wheat and flour is just enough to give them all the susiness and make competition extremely keen for us, because the margins in the milling business are very close. For 10 or 15 cents a barrel any miller in this country would give you a contract to run full capacity for life, 5 ® If the happy day would ever come that the ocean lines would carry wheat and flour at the same rate, as we said to the ocean carriers, we do not care how you make the rates; what we want you to do is to carry the wheat at the flour rate-and not cut the wheat rate. The CHAIRMAN. Who established those rates? Mr, Crocker. I think they are established by the representatives of the various ocean lines on this side. The ocean lines were very favorably inclined pn year ago at the millers’ annual convention to meet us halfway, and then along came the war and evervthing was unsettled. die The reason was that the ocean carriers and inland carriers, as far as that is roncerned, claim it is easier and cheaper to handle wheat than flour. Naturally they can take a hull and load it and there is less labor fo load it with wheat than with flour. , Relative to the same situation, H. S. Helm, of the Russell Miller Milling Co., Minneapolis, stated: Wheat can be stored, transported, and carried for long periods probably somewhat cheaper than flour. At least, wheat has been transported more cheaply than flour, and that primarily started the building of the mills abroad. The mills are built there on the ground, and they are able to give quicker service than we can offer here. - They are doing business with their own people and have the trade. We get it during periods when there is a surplus of wheat in this country which drops our prices to the basis where we can get it for a time and in a limited quantity, but with the foreign mills able to draw their wheat from all parts of the world, we are only the cheap sellers; we only have our bargains once in a while. It is difficult to work up a steady trade anywhere if.you are only in once in a while. The man on the ground with his mill over there is in it at all times. If we happen to be the chief wheat market of the world here, if our surplus is bagged so that it has to be exported, why, we get in for a little flour; he takes his wheat from here and on a little better basis manufactures it, and when we drop out and our surplus or the pressure of surplus has been relieved, he goes to the next fellow—it may be Argentina or it may be Australia or India, or it may be Russia—who has a bargain to offer and he is always in. That is the great difficulty. That is the rause of the decline of our export flour business. In regard to the advantages of foreign combinations in this connection. Eli Winkler, of Isaac Winkler & Bros., Cincinnati, Ohio, said: Tt might be of interest to know, though, that from their point of distribution to the seaboard they have a freight rate of some 6 or 7 cents a hundred, whereas ours is 163. So, arriving at New York with the disadvantage of probably $2 a ton, we are onfronted with. next. the disadvantage of lack of service in ships. on These combinations in companies abroad have interlocking directorates, and they are enabled to get better rates than we are. So that, all around. we are at a very, very decided disadvantage. Watt L. Moreland, general manager of the Moreland Truck Co., Los Angeles, Cal., stated that his company could meet European EXCERPTS FROM HEARINGS. competition in Australia on prices, but that “we can not compete with them on freight rates.” Frank L. Moore, president of the American Paper & Pulp Association, New York Citv. stated : 309 Then, there is the question of lack of shipping facilities. Our shipping facilities have been such that I had a man tell me this morning that our export business is being greatly hampered at the Present time on account of our not being able to obtain adequate shipping space. In this connection, P. H. W. Ross, president of the National Marine League of the United States of America, New York City, read from bis memorandum. as follows: This country only exports 5 per cent of its products and even that trifling percentage of export is obstructed by innumerable difficulties attendant upon sur lack of control of the ocean transportation of our goods. - Mercer P. Moseley, of the New York Commercial, New York City, thought that— ¥ * * the outstanding fact that our shipping facilities are such as to invite the most serious consideration is patent. We need ships and we have got to aave ships. Who will furnish them? I do not believe that the export trade of America, as large as it may come to be, will ever achieve its full fruition until hrough the adoption of some plan ships flying the stars and stripes shall be ~ommon in every port in the world. M. W. Merz, of the First and Old Detroit National Bank, Detroit, Mich., also described his difficulties in financing operations in the shipment of goods to South America. In shipments to all other countries, he said, a through bill of lading issued at Detroit would support the bill of exchange, but on shipments to South America an ocean bill of lading is demanded. He said: I was wondering whether the Government could not bring that about, that the South American countries would be influenced in that respect so that they would allow goods to be moved from the interior of the United States to South America on a through bill of lading against an exchange of the ocean bill of -ading at the port of destination. You know Germany can do that. They ship Irom the interior right through, via Hamburg or Bremen, to South America, Very often the present practice discourages business, because we have to send the stuff to New York and get an ocean bill of lading and get it back, and in the meantime we miss the boat on which the goods were to go, and. there is trouble right there, and unnecessary delay. Edward Cookingham, of the Ladd & Tilton Bank, Portland, Oreg., in regard to the lumber industry, said: { think that one of the things we need is transportation facilities. We need a merchant marine to get our products to foreign markets. That is one of our nrimest needs. C. A. Malboeuf, manager of the Western Fruit Distributers’ A'ssoriation. Portland, Oreg.. stated that: The first, in so far as Oregon needs are concerned, is direct steamer transportation from our ports here, from Portland, not only to the Atlantic seaboard, charging adequate rates, but also to all the other foreign markets that we have heen able to reach in the past, as well as those we have not been able to reach. Henry W. Louis, secretary and treasurer of the Brownstein-Louis Co.. Los Angeles, Cal., said: Our principal obstacle, so far as I can judge it, 1s the question of transportation, and I believe that if the Government would go- strenuously to work in the way of assisting the extension of the shipping of this country it would help us considerable. We can not ship goods because we have no shioping facilities 310 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 1 On the subject of transportation, Joseph J. Slechta, New York agent Brazilian Steamship Co., said: To those who contend that we need better facilities now for shipment to South America, I am prepared to prove that existing facilities are already better than the profit in the business and other circumstances justify, * *= * The United States Steel Corporation is chartering vessels for the South American trade and paying rates for same such that I hereby pledge myself to pay them $10 for every dollar of profit they can show if they will pay me one for every dollar they actually lose. The Prince Line and Lamport & Holt are maintaining vessels in the South American trade when they could earn fully LOO per cent more by leasing them to operators in the European trade. Robert Dollar, president of the Robert Dollar Co., San Francisco, Cal., said: We have not got our delivery wagons and we have got to depend on Great Britain and other nations to deliver our goods, and when they have their own yoods to deliver they are not going to deliver ours, and we come in second best. * % = AJ] we ask is that you permit us in the foreign trade to operate our ships on identically the same terms; give us no advantage whatever. The American shipowner will do the rest. * = % We are able to take care of ourselves, provided you unloose our hands. He gave the monthly cost of wages and board on three vessels of practically the same nominal horsepower operated by his company as follows: $777 on a Japanese steamer manned according to Japanese law, and fully meeting the requirements of our seamen’s bill; $1,308 on an American steamer manned under the emergency act as if she were a British ship; $3,270 on an American steamer manned according to the requirements of the seamen’s bill. Relative to transportation Percy C. Denroche, president of S. L. Jones & Co., an importing company in San Francisco, said: A few years ago we did some business in Japan. "We used to do all our business with English houses over there, or German houses, and we found as time went on we could not compete—absolutely impossible; we lost all our business. I went over there in 1902 and made a Japanese connection, and that Japanese connection made an increase in my business right away, quite a large increase, and I saw the reasons why, and I remembered we used to buy all our goods on a cost and freight basis—always on a cost and freight basis; and I noticed all our goods came on a Japanese steamer; instead of coming on a Pacific’ Mail or a Dollar boat they came on a Japanese steamer, and I noticed on several occasions when that cargo arrived here I would look at the cubic measurement and shake my head and say, “ That is wrong,” and the weight the same way, and I wondered how that was, and I came to the conclusion that was the manner in which the Japanese helped one another on the other side. That was in the form of a rebate where the goods were shortmeasured or short-weighed, and that is where the Japanese were getting in and cutting out the European exporter in Japan. W. P. Whitley, sales manager of the Pacific Ammonia & Sales Co.. Seattle, Wash., stated that— Transportation is the principal trouble with us in the Orient; yes; and 1 jo not know what we are going to do when the Pacific Mail is taken off. G. R. Geauque, of the Flint & Walling Manufacturing Co., Ken-Jallville, Ind., manufacturers of windmills, said: The greatest handicap to-day in the foreign trade is the matter of ocean cransportation. Of course I quite realize that this is a condition brought about hy the present war in Europe. There is probably nothing that can be done at present to relieve this condition, There is a scarcity of steamer space available and prices have risen to an abnormal extent as a consequence, The com- EXCERPTS FROM HEARINGS, 811 petition of the nations at war has made the rates higher and as a result legitimate trade suffers. We have orders in our files for goods which we can not shin because the ocean rates are too high. L. D. Sargent, of the Baldwin Piano Co., Cincinnati, Ohio, stated : An American merchant marine would help us tremendously in our dealings with South America and Central America. * * * I do not know that I have much more to say, except that if we had shipping facilities which would allow us to ship via a southern port, such as New Orleans or Mobile, it would be a great help to us in reaching the South American countries and Central America. W. H. Miles, export manager of the U. S. Bank Note Co., Indianapolis, Ind., manufacturers of bank supplies, lithographs, bank furniture. and fixtures, said in regard to freight rates: Were we able to obtain satisfactory export rates in less than carload lots we would be able to cut our prices somewhat and still further meet the competition of German, English, and French manufacturers. Also in this connection John Olt, export manager of the Judson Motor Car Co.. Detroit. stated: The export end of the motor-car business, naturally, during the last five months of the last calendar year, was very poor in pleasure cars. Since that time it has improved, but the biggest difficulty in the way of its very rapid development right now, I think, is in the matter of shipment. We do not seem to have the difficulty in getting the business, but we have great difficulty in getting the cars delivered. Orville Simpson, of the Orville-Simpson Co., Cincinnati, Ohio, manufacturers of flour-mill machinery, said as to ocean freight rates If we must pay our boats more money or foreign boats more money, as we do in a great many cases, than they would charge for their own exports from their own countries, it is going to handicap us. I feel, gentlemen, that if we can work together and have our laws covering the merchant marine no more severe than the English laws or the German laws or the Holland laws, it will be a big step in advance toward building ap our export trade. H. C. Atkins, president of E. C. Atkins & Co., Indianapolis, Ind., manufacturers of saws. said: It seems to me that there are many vital principles involved in this export business, such as facilities of shipping, that we can take care of our own export business with our own ships without passing our goods through the port at Liverpool or through a foreign port before reaching destination. It seems to me that we have to provide a means to take care of our export business to a certain extent, and in doing that we should change our shipping taws so that they will enable ships to fly the American flag without penalty attached in the way of expense of operation that precludes the possibility of profits. That seems to me to be a vital question. George Puchta, president of the Queen City Supply Co., Cincinnati, Ohio, although not personally interested in the export business, thought that— The business could be very materially aided by additional shipping facilities, by additional lines of steamships, and I do not know of anything that is going to encourage those shipping facilities more than by subsidizing shipping lines to foreign countries, as foreign countries do at the present time. 312 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. / Edwin M. Herr, president of the Westinghouse Electric & Manufacturing Co., Pittsburgh, Pa., favors the development of our merchant marine and said, in part, as follows: The development of the merchant marine that will sail under own flag and handle our products is of high importance. It is very difficult now to get, and has been before the war, the right kind of transportation for our South American products. We have frequently shipped produce for South America, via England, in order to get to South America more quickly than we could get it there direct, on account of the inadequacy of the transportation facilities from here direct to South America. This has been due, also, to the-better service that has been given; and our men in going to and from South America have generally taken the course of going to England first and from there to South America, rather than going from here direct. Maurice Coster, export pag of the Westinghouse Electric & Manufacturing Co., Pittsburgh, Pa., in this connection, said : Now, another very important thing is this: You gentlemen all realize that we must have cheap shipping. If we have to pay more freight than our European competitors, we are put to large disadvantage. G. J. Mitchell, manager of the National Stamping &, Electric Works, Chicago, I1l., manufacturers of lighting specialties, said : Personally, I do not put a great deal of confidence in an American merchant marine as a cure-all for ‘all export ills. I do not believe that the lack of a merchant marine makes the rates high so much as the lack of competition between steamship companies. That means with the combination of foreign shippers. And to overcome that competition probably the American merchant marine is necessary. As far as shipping facilities are concerned I have had no difficulty whatever. Gilbert H. Montague, attorney at law, New York, representing the Merchants’ Association of New York City, read the report of the committee on the Federal Trade Commission and on foreign trade. As to our merchant marine. he said: Complete unanimity of opinion prevails as to the handicap to our export trade, which will exist so long as it is carried wholly or chiefly in foreign bottoms, and as to the great desirability of reestablishing our merchant marine. Unfortunately, however, thus far there has developed no unanimity of opinion a8 to how this most desirable end can best be accomplished. Until we have direct and adequate mail and freight service between this country and its export markets, American exporters will continue to be at a disadvantage as compared with their foreign competitors. H. P. Davison, of J. P. Morgan & Co.,, New York City, stated that— My feeling has been all along that the one essential to the successful development of foreign trade has been the development of our shipping facilities. I have felt that until the shipping facilities were developed we could not expect to have an important increase in our foreign trade, and that if they were developed, all other matters pertaining to the financing and carrying on of foreign trade would consequently and in sequence develop. In other words, if we have shipping facilities, I do not think we need concern ourselves particularly about the financing of the business or the development of the business. Financing might be arranged, and the goods might be there, but if we have not the shipping facilities, neither the financing nor the goods would be very important in the business. I appreciate that there are legal questions involved, and also the very vital question as to how best to increase the shipping. I do not know that I would care to make any particular recommendation as to that. There are very real and very many obstacles in the way of developing that business, and it is a problem that must be solved if we are going to look to an important Increase in our foreign trade. I do not think this Commission can have any more serious problem before it than that of how best to materially increase our shipping facilities. EXCERPTS FROM HEARINGS, 813 (¢) Banking and Credits. Financing credit through banks—Henry W. Louis, secretary and treasurer of the Brownstein-Louis Co., Los Angeles, Cal., said: Up i the last year or so practically every European banker has been represented in outside countries. Our own banks did not have the privilege until the new banking law went into effect, and since that time I know that several American banks have established their agencies or branches in South America, which will have the effect of putting the customers of these banks in closer touch with conditions in those countries. We have not had that; we have it now, and it probably will assist us, when things are settled, in getting this foreign business. The European countries have had the best of us in the past on the question of terms and credits. Manufacturers in Germany, England, and France were able to sell goods in South America and Mexico and discount their bills immediately and practically sell for cash. We could not do that in this country. We probably can not do it now, and it would be a very much simpler matter if American banks were established in these foreign countries with branches, but I think the principal thing we need is more shipping. We will get the business if we can deliver the goods afterwards. Willis H. Booth, vice president of the Security Trust & Savings Bank, and general manager of the Hot Point Electric Heater Co., Los Angeles, Cal., said: I know, in discussing the oriental business with some Chinese gentlemen we had with us a month or two ago, they felt that the prospect of business there in other lines largely depend upon the banking facilities which were accorded. Waldo M. Marshall, president of the American Locomotive Co., New York City, says: If we had to deal, for instance, through a German bank, we felt that practically everything that occurred in regard to our transaction which could be found out from the outside was known to our competitors when the next time came. The amount of money that we were paid for our locomotives was known to that bank to the last dollar. * * * They often knew all that we paid for freight, and everything of that kind, and we felt that at times we saw the evidence of that knowledge when it came to the next bidding. *# * * To my mind, the advantage of American banks or branch banks of American houses in foreign countries is not only the facilities for exchange, etc., but the knowledge that they will have first-hand of the excellence of certain investments and the knowledge brought home to the people here, so that they will finally invest their money there. # * * There is no reason why our people should not invest more or less of their money in those directions. And when they do, we will have the advantage or the preference that would come with trade following the capital. Moritz Thomsen, manufacturer of flour, Seattle, Wash., stated that— I do not know that there is anything that the Trade Commission can do for us, except one thing, that perhaps would assist us more than anything else, would be to get American banks in foreign countries. * * * So, so far as South America and Central America, what interests us more than anvthing else is banks. U. G. Orendorf, secretary-treasurer of the Parlin & Orendorff Co., Canton, Ill.,, manufacturers of agrianlinral implements, thinks that the matter of export trade with South America is: In its final analysis, it is a question of finance, and our principal weakness in this respect is the lack of American banking connections. Jf our banks in the States would join in the organization of a financial institution in the South American countries for the purpose of assisting or financing purchasers, the business concerns of the United States would undoubtedly be in a position to secure a great deal of the trade which has heretofore gone to Germany and other European countries. 314 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Edward A. Filene, president of the William Filene’s Sons Co., merchants and jobbers, and vice president of Fifth International Congress of Chambers of Commerce, Boston, Mass., said: The pioneer work, as far as I have been able to study the situation, has got to be done by the bankers of this country, if we are to get a real foreign trade. [ am not going into the reasons or the details of that. I think you have probably heard it enough already. You know what is being done by English and German banks, and in South America, in China, and, wherever I went in the Orient, it was the banking men and the bankers who determined largely the amount of the foreign trade that was coming back to their home countries. They were advancing the firms out there, the commission and the shipping firms, and the native firms even, the money. They were asking why they were not buying any goods if they were not buying. They were doing all the work everywhere; in China and everywhere that I have been it is the banking firms that are really the practical pioneers of export trade. Louis M. Cole, of Simon Levi Co., wholesale produce dealers and canners, Los Angeles, Cal., said: : There is another very important feature, I think, and that is the financial end of it. * * * Of course, if we had a condition existing, as I understand it does abroad, where we could take extended paper for 60 days up to 9 or 10 months or a year and rediscount that with our banks and keep our capital turning over or rotating, I think there would be no reason in the world why we could not try to extend our markets and do it successfully if we had the transportation. Those are the two problems, I think, that confront us here in any extension of our foreign trade. * * * But I think our banking arrangements must be taken care of so as to permit us to compete not with the people In the United States but with the people in Europe. Those aré the people who are our greatest competitors. They are the people who have afforded these people the liberal time in which to pay. their bills by these acceptances, and that is where I think our principal competition is to come from, in being able to give them the same identical accommodations that they were formerly able to get in Europe and make them good deliveries of goods. J. C. Hobart, of the Triumph Electric Manufacturing Co., Cin-~innati. Ohio. stated: : The two great difficulties we meet in the export field are the inability to grant the terms required by foreign customers, owing to the lack of financial ~onnections, and the difficulty of getting vessels, accommodations, etc. ? Fred L. Lipman, vice president of the Wells Fargo Nevada National Bank, San Francisco, Cal., said: We have had dealings with German banks in South America, with Holland sanks in the East Indies, with British banks throughout all the world, and have never heard of any difficulty on the part of our clientele. That is purely negative, of course. I have not any information that that is serious. We nave considerable foreign business, and we do our foreign business through foreign banks, and, as far as I can see, it would be no good as an outlet to take care of our clientele to establish a branch any place where our business Is not active. oo Ed * * * * think it would be of some advantage, but I doubt if it would be an adrantage worth paying for. Bankers are not temperamentally promotion men; they are not strong on jevelopment ; they are cautious; they represent another element in the development of trade than push. But no doubt that has been /done; no doubt the English banks and German banks, respectively, aid their own countries. Howard Coonley, president of the Walworth Manufacturing Co., manufacturers of brass castings, Boston, Mass., said: There are a number of things that would help us. In tHe first place, we have always been handicapped because of lack of banking facilities. The EXCERPTS FROM HEARINGS. 315 National City Bank is now taking steps in that direction, as you know. The Shawmut National Bank also is considering extensions of that kind. It seems to me if banks could be encouraged, even in groups, to go down there it would assist us immensely. People naturally like to buy where they are getting credit. A great deal of business passes by and goes to England and the Continent in that line. The lack of proper banking facilities was also emphasized by John Marshall Smedes, of the First National Bank, of Cincinnati, who aald Another great trouble we have, as I understand the question, is the lack of proper banking facilities, which furnish very little banking connection between this country and South America, and the banking is largely done through London, Paris, and Berlin. } The Germans have made very great effort to fasten their banking system upon the people down there, and we have neglected it. The result is that when you go to pay your bills, or when you want their paper discounted down there, it is almost impossible to get it done with us here. It has to be done through foreign brokers, and that adds a. burden fo the problem of selling and getting payment. Credit énformation—T. Edward Wilder, of Wilder & Co., Chicago, Ill, said: One of our_greatest troubles, of course, is credits. We are unable under our present arrangements to transact business with South America, with Russia, with China, and some of the other neutral nations—Russia is not neutral, of course—because of our inability to meet conditions which have been met by Germany and England in long credits. The banking arrangements which are being made now by the National City Bank, of New York, and the National Shawmut Bank, of Boston, and some of the other banks are helping us in our imports of raw materials, but in our exports we have no relief as yet. We are losing much business because of that condition. Edward T. Hendee, secretary of Joseph T. Ryerson & Son, Chicago, Il, said: « # * qyunder the heading of banking, I think little need be said. We have no American branch banks abroad, and until we have such banks we are going to be at a very great disadvantage. G. Fred Collins, salesman for David Lupton’s Sons Co., Chicago, Ill, and former salesman in South America, representing several large concerns, said: The German houses gave from six months to a year credit. The American manufacturers wanted their cash in New York City, so I did most of my business on the last trip through the American Trading Co. and W. R. Grace & Co.. and people of that character, who had their representatives down there and who would collect drafts and so forth against shipments made with bill of lading attached. All the business I did was done that way. I did not give credit to anybody because the American manufacturer did not want to give credit, he wanted to get cash in 30 or 60 days, and nobody was willing to give any credit. The German manufacturer did give credit and the English manufacturer did also. O. E. Osthof!, vice president of H. M. Byllesby & Co., Chicago, Ill., which company has a controlling interest in a steamship line plying to South American ports and has recently organized an export house, said: In starting this mercantile company we find, for instance, that the banking facilities .are not quite what they should be as far as the American banks are concerned. There are several large banks in this country who have advertised iately their purpose to extend credits and organize branches, as an illustration, in South America; but we find that in order to have them really extend the facilities that foreign banks do now, they will have to have a great deal more experience. and at the present time they are probably feeling their way. 316 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. As an illustration, I might cite a case that recently came to our attention where one pretty large New York institution would only discount 75 per cent of the face value of the draft. ao We took this same draft to the Anglo-South American Bank and they discounted it, without question, to the full face value. Lawrence Williams, president of the Oliver Typewriter Co., Chicago, Ill. stated that: Qur main difficulty in doing business with the South American countries was due to our inability to finance our business according to their ideas. The Latin American, as a rule, purchases his goods on time. He would rather pay a larger price for his goods and purchase them on long time than to purchase them for a lesser price and pay the cash; and owing to lack of financial connections we have been obliged to insist upon having our money in the United States before we would put the goods aboard ship, consequently the purchaser was out of his money for many weeks, months in fact, from the time he sent it antil he received his finished goods. Whereas, as I understand it, the German, owing to his banking connections, was able to ship his goods and be assured that his credit would be cared for. Edwin M. Herr, president of the Westinghouse Electria & Manufacturing Co., Pittsburgh, Pa., speaking of the most important thing which would further their export trade, said: The most important thing, in my judgment, is the need of proper financial ronnections. We are extremely handicapped in almost every foreign country from the lack of financial information available. This is due to the fact that all the financial connections there are British, German, or other nationalities than the United States. So that this financial development that is going on—that is beginning-—ig of very high importance, in my estimation. W. 8. Kies, manager of the foreign trade department of the National City Bank, of New York City, said: The matter of credits, due to the difficulty in obtaining credit information concerning firms in foreign countries, is a serious obstacle to the growth of export business. The long-time credit which has heretofore been customary in Fouth American countries and Russia is violative of sound financial principles. (d) Influence of Investments of Nationals in Foreign Countries on Buying. W. H. Heulings, vice president of J. G. Brill Co., Philadelphia, Pa.. manufacturer of electric motor cars. said: We meet competitive conditions in South America, with French-owned and German-owned public-service corporations, and it is utterly impossible for us to break in, sometimes. As a general rule, when those loans are being arranged and German capital is provided for doing the work, there is usually an agreement to the effect that German products must be used. Relative to investments by the English and Germans in foreign countries: and the resulting partiality shown for the German and English machines, W. O. Washburn, of the American Hoisting & Derrick Co., St. Paul, Minn., made the following statement: Our experience has been that it is not so much a matter of competition as a matter of money. We do business all over the world in the tropical countries of the world, and we find that England and Germany have gone into those countries with money. They have used the banks, and through their banks they have hacked their business men—those people with whom we do business—furnishing the capital and naturally influencing the resultant business. We have had that as competition, and it has been pretty hard competition. The business we have secured in the face of that competition we have secured strictly on the merits of our goods over those of foreign manufacture, EXCERPTS FROM HEARINGS. 317 We sell very largely to the growers of sugar cane, manufacturers of sugar. It has been a very prosperous time for them in the last two years. They have been doing very well and have sold their product at very high prices and are in funds now and more or less independent, and we are realizing a little bit from that state of affairs, But so long as the capital is furnished by England, Germany, and France for this business, we can not expect to secure very much trade In return, except on stuff that has a merit beyond anything that the other countries may be able to produce. * * * Most of the people I have interviewed have expressed an extreme desire to do business in this country, but on account of their banking relations they can not do it. They are all heavy borrowers; and they borrow their money with an understanding that the business they may have to place shall be placed through their banks or the brokers from whom they'get the money. We have two or three concerns in New York City, Agar, Cross & Co. is one, which are doing more or less of that sort of business. They will finance some concerns in some particular lines and from them secure a great deal of business which they place in this country, but the amount of that business is small, a drop in the bucket as erompared to the total. G. L. Walters, of the Adams & Westlake Co., Chicago, Ill., manufacturers of railroad supplies, said. in part, as follows: In connection with the South American trade, for instance, we do some busipess in South America, and we are always confronted with the condition of foreign capital being invested there, which is influencing the placing of business, so that to do business in certain countries of South America, particularly the Argentine, it is really necessary to do this business through foreign connections, principally through English houses. Of course, the answer is that we have no influence down there financially, and, naturally, the people that have the money control to a measure where that business will be placed. There is nothing new about this story, but we are another illustration in having to work In that way, even going so far with some of our articles as to practically manufacture them here and then place the label on them in England before they are shipped south. And as to why cooperation in selling had not been resorted to, Mr. Walters said: I think, so far, it has been a question of financing down there, largely. I do not think there has been enough business down there that the people can get away from the people who are financing the roads. Of course, we are very weak agents there, from the fact that we have no financial interests, and that is the greatest thing we have to combat in selling railroad supplies. It is our experience and the experience of a great many I have talked with. It is the same way in China; the German people over there will not buy anything from you as long as they can get it in Germany. If they can not get it in Germany they are glad to take your stock and buy what little stuff you have to sell that is not in competition. {e) Influence of Nationals in Foreign Countries on Buying. F. C. Gilbert, assistant secretary of the Timken-Detroit Axle Co., Detroit, Mich.. stated : We have been after the export business for a number of years; I think for about six years. It has been apparently, up to within the last year, an almost hopeless fight, because of labor conditions here and manufacturing cost and various other items, and because the foreign engineers have been—probably rightly so—prejudiced in favor of their particular design and construction; and the volume of production abroad has not been such as would warrant us in catering to the peculiar designs used in foreign countries. Charles M. Muchnic, vice president of the American Locomotive Sales Corporation, New York City, said: Most of the foreign railways, and particularly those in South America, China, and India, are built by foreign capital and operated by foreign engi- 318 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. neers. These foreign engineers naturally adopt certain standards, English or German or French or Belgian, as the case might be, and when this is done we have the alternative of either building according to their—Ii. e., European— standards, which makes it prohibitive for us, or to refuse to build at all, and zenerally we do not bid. It is only in cases where, like the present, foreign ouilt or managed railways can not get locomotives elsewhere that they are willing to accept our standard type of construction. * * * We supply locomotives to practically all the Chinese railroads operated by the Government, or by Japan—Japanese engineers—but we have never sold any locomotives to railways that were built by German, British, Belgian, or French capital, and operated by foreign engineers. We are not even asked to tender on them. x We must have not only American investments, but we must have American angineers to manage the railways in South America. The prejudice of foreign engineers, when away from their own country, is Indescribable, They look npon any product from any other country than their own as absolutely worthless. For instance, to give you an illustration: In Brazil, Mr. Farquhar, who went down to Brazil some 10 or 12 years ago and succeeded in consolidating and jeveloping a number of small railways that were partly owned by French, Belgian, English, and Brazilian companies, and who formed the Brazil Railway Co., appointed an entire American staff—American managers, American engineers, civil and mechanical, etc. And we supplied (I do not mean ourselves; [ mean manufacturers in the United States) practically all the locomotives, rolling stock, and other machinery used since that time. Now there has heen a change in the management, and we shall propobly meet with foreign competition, unless the former management comes back. American investments, in foreign railways, will naturally result in American engineers managing such railways; and if they are to establish American standards, then, naturally, our industries will greatly benefit. (f) Advantages in Industrial Efficiency. In speaking of the competition with German and English manufacturers, William Gt. Arnold, Juoretany of A. B. Dick Co., Chicago, [1l.. manufacturers of duplicating machines. said: Their prices, on account of cheaper manufacture, are considerably lower chan ours, and, of course, we have to sell as cheaply as we possibly can over there in order to meet the trade, although within the last year we have pro-Juced some new machines and improved our products beyond what theirs is, and in that way, on quality alone, we have been able to command some business. S. H. Roberts, secretary-treasurer of the Phoenix Horse Shoe Co., Chicago, Ill, said: Almost invariably we have found that the foreign people want goods put up in a special way, different from the customs of this country, and where the hand labor enters very much into it, it is almost impossible for American manufacturers to compete with the foreigner because of the cost of labor. Walter C. Fish, of the General Electric Co., New York City, said: Of course I do not have to tell you gentlemen of the Commission anything about the wages paid abroad, or anything about the eompetition we have to meet on account of foreign labor. * * * There are portions of Europe fully as efficient as we are and paying one-half the wages. That brings to my mind the question of not only obtaining foreign trade but of subsequently retaining it. I haven't the slightest doubt but, with all this wonderful stimulus which you are giving to the desire to get foreign trade, that we are going to get more of it, but principally along lines concerning our natural resources and concerning products dependent upon these natural regources. We will also get foreign business principally where the per cent of labor, so to speak, in the value of the product is comparatively small. Our start in increasing our foreign business will be along such lines. EXCERPTS FROM HEARINGS. 319 Relative to packing goods for shipment, G. Fred Collins, salesman for David Lupton’s Sons Co., Chicago, Ill, and formerly foreign representative of several large concerns in South America, said: Another trouble we had in thisscountry was in shipping goods as the people wanted them down there, in certain packages. Certain of our manufacturers would not come along and make them. * * * That was a very serious drawback in my business down there, that the manufacturer would not manufacture the goods and put them in the sized packages, in Kilos; everything down there is done in kilos, and you had to do it that way, and if you did not; you could not sell them. You could not say so many pounds, but so many kilos. {(g) Selling Methods. Samples and exhibits.—Relative to samples and exhibits, John W. O'Hara, Indianapolis, Ind., lawyer and former consul at Bahia. said: It has been suggested that we either build or hire places of display. That ls another thing that I have recommended for years, that we have display rooms. I do not know anything about the purchase of display rooms, but I do know something about the advantage of having display rooms, where your roods may be seen. When you have those display rooms, however, have men in charge of them who are interested in the goods, and who will try to promote the trade, and who speak the language of the country. There is where we have peen lacking. We have presumed on those people; we have dominated all those people when they sent for our goods, which they sometimes did. We have increased the trade—there is no question of that—in certain lines, where men have gone down there. For instance, like the International Harvester Co.; they have established great warehouses in Buenos Aires, which is the center of the agricultural district of the southern part of South America, and for years they have had men in charge of those warehouses that understood the language and manners and customs of those people, and they have had traveling men to go out over the country and sell and put up machines and see that they did the work properly; and when they hauled them into a corner of the fence and let them remain there until the next year they have made repairs to them, even to the extent of two-thirds of the cost of the original machine. And they are selling, now, 90 per cent or more of the agricultural machinery in South America, which practically means in the Argentine and Uruguay. Those are the things we need. Salesmen.—In speaking of salesmen Roger W. Babson, of the Babson Statistical Agency, Boston, Mass., said: I was talking with a large manufacturer of plows and asked him if he had much South American business, and he said yes; but I asked if he had been to Argentina, and he said no, he had not. “ Well,” I said, “have you any salesmen down there?” and he said, * No, I haven't.” ‘ Well,” I said, “ how do you sell your goods?” He said, “I always go to Hamburg to sell them in South America; ” and he told me the name of the firm that he sold to. And then he said: ‘ And, Mr. Babson, I don’t believe that I will ever be able to sell direct to South America until I raise up a new crop of children.” He said: “When 1 went to Mr. Hasenclasen’s home to spend the week end, he had five boys, and one of these boys he was training to go to Japan, one to Russia, one to Argentina, and one to stay at home, and one to the United States. The oldest one of these boys was 16, and the youngest one was 5, and every one of them had tutors according to the nation he was going to. The one who was going to Japan had a Japanese tutor, the one who was going to Russia had a Russian tutor, and the one who was going to Argentina had a Spanish tutor.” * * * [ believe that the fundamental thing that our manufacturers have got to do is to start with the boys—start with their own boys and train them and develop them for that field. That does not appeal to manufacturers; I have spoken to manufacturers about it, and I know it does not appeal to them. They think that all they have to do is to hire somebody and send him down there to represent them. But I am convinced that if the American manufacturer wants to compete with the German and English manufacturers he has got to send not simply a hired man but his own flesh and blood, his own boys, and he has got to start years in advance to train those boys for that work. 320 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Of the agents and representatives of the Westinghouse Electric & Manufacturing Co., Pittsburgh, Pa., in foreign countries, Maurice Coster, its export manager, said : It will surprise the Commission to learn shat the American is a very poor rolonist, and an American, if he is any good at all, is not going to leave home, and when we do find an American willing to go abroad, after he has become accustomed, he wants to come home. We have had to employ Englishmen, who are natural colonists, and like it. They go to foreign countries, expecting to stay, and later on retire. You can’t get a good American to do that, We are obliged in Russia and South America to resort to the employment of English representatives. ] George T. Blow, president of the Western Clock Co., La Salle, IIL, said : Business depends largely upon friendship, upon personal influences and impressions. * * * We all know that England and Germany, our most successful competitors, are overpopulated, and their best young men, knowing that there is no future for them in their own country, are educated and trained for business experience in one of these various countries that we are speaking of. They are educated not only in the language, but in the politics. They go out to that country and make 8 home. = They generally, or frequently, marry there, and they become citizens, and the best possible citizens. It is natural that those people should have an advantage over one of our traveling salesmen who goes out for the first time and has a few Spanish or Portuguese phrases. He has to deal with conditions which are so totally dissimilar to what he has here, that a first-class salesmen here, who would make a record, would go down there and starve because he does not understand the conditions, he lacks the education. Method of quoting prices—T. Edward Wilder, of Wilder & Co., Chicago, Ill, favors the adoption of the metric system, as is shown by the following: It is time * * =* that this Government * * * instigated a change from the haphazard system of the English weights and measures to the unified metric system which is adopted by all nations except England. That would give us some relief, Our leather goes out in feet and pounds, where they want it in meters and kilograms, and the delay in transferring from one to the other hinders commerce. We do not get the business because we are not familiar with it. It should be compulsory, I think, that we should adopt this system. George T. Blow, president of the Western Clock Co., La Salle, Ill, said: Of all the difficulties that confront an American going into that country, the greatest difficulty of all is the system of weights and measures. a3 &* oe & i The advantage of a uniform system is so great that I firmly believe that if two salesmen went into the same place to sell the same goods, there is no question whatever that the one who sold them by the metric weight measures would get the order and the man who sold them in pounds of weight and inches or feet in dimension, would not be considered. Export agents—Prof. Oliver M. W. Sprague, professor of banking and finance, Cambridge, Mass., Harvard School of Business Administration, considers the export house an efficient agency in many cases Practically all British export trade has been developed by export houses: not by combinations of producers, and not by means of direct representation of single producers. It is my opinion that a very large part of the foreign trade field is still the proper province of the export house rather than of direct selling agencies. Direct selling, whether by single concern or by groups of producers, would seem to be advisable where the capital costs of marketing EXCERPTS FROM HEARINGS. 321 goods are very considerable. In the lumber business, for example, or in the furniture business, it is necessary to have stocks of goods in warehouses at different points in order to develop a proper distributing system. This expense Is apt to be rather more considerable than the single furniture producer cares to burden himself with. Here is a case where it is a8 question either between the export house or combinations among furniture producers. Producers of furniture of different grades might combine together in order to spread the capital expenditure of that business, Where, however, good will and trade-marks count for much, there is no room for the combination of producers in a given line in the foreign trade field. It is hardly conceivable, for example, that the various producers of safety razors should combine together to develop sales agencies in foreign countries, They sell under different methods and arrangements in this country, and they are likely to do so abroad. Some might sell direct; some through export houses. . wy = I think it is clear that it might be found advisable to establish a combination for purposes of developing foreign trade In certain markets, while for developing the same business, in other markets, the export house would be found more serviceable, * * * The impression is so widely prevalent in big business circles that direct selling is the only feasible method of conducting foreign trade, that I think this Commission would be performing a service if it made a pretty careful examination of the present place of the export house in our foreign trade, and the place of the British export house in the development of English foreign trade. An export house has branches in the country from which it exports and branches in the countries to which it exports. It may simply buy goods in the open market for export purposes, or it may have various relations, contractual or other, with products for supplying it with goods. In its foreign branches, it has a staff of people who are acquainted with the language of the business people in the country, and which pushes the goods that the export house has, so far as it may. Commission houses.—Mercer P. Moseley, of the New York Commercial, New York City, said: Without in any manner desiring to reflect upon export commission houses that have, through diligence and attention to their personal interests, built up a more or less lucrative business in foreign fields, it Is nevertheless true that many of them have done and are doing much to discourage the American manufacturer. I make particular reference to the nefarious practice of subtitnition L. D. Sale, president of the Western Wholesale Drug Co., Los Angeles, Cal.. recommended large brokerage concerns: The trade can be developed, but it requires a big capital, combination of the different ones, and we have got to be in shape to take their goods before they will take ours, or at the same time. I do not see why it could not be done through large brokerage concerns. That is the way England and Germany are doing the business in South America, through large institutions. One firm told me they had a drawing account of a million dollars on England. Now, they can load and ship or buy anything they like, sell it while it is en route or store it. (h) Quality and Price of Goods. Joseph J. Slechta, New York agent of the Brazilian Bisamayip Co.. referring to competition with foreigners in export trade. said: Successful competition in foreign markets depends to the extent of 99 per cent of the business upon two all-important considerations. The goods sold must be suitable for the market and the price must be right. The Baldwin Locomotive Co. had the Brazilian business for 60 years. The German manufacturer- put out cheaper locomotives, cheaper and poorer, but they would run. They had not 10 per cent of the selling organization maintained by the Amerl-97941 ° pp 2—1686——21 822 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. can concern, but, up to the opening of the war, they were steadily cutting into our business in that line. My own experience in five years of intimate contact with the trend of foreign trade, while resident in Brazil and four years of even more intimate contact through the transportation business, leads me to the emphatic conclusion that it is a question of manufacturing cost and not selling expense. We have to guote every day on prospective orders and I know, not guess, that in most cases where business is lost, it is because the exporter is not able to get as low a price from the manufacturer, laid down in New York, as can his competitor in Europe. H. C. Atkins, president of E. C. Atkins & Co., Indianapolis, Ind., aaid Our chief competition outside of the competition from our own manufscturers in the United States is competition that comes from England and Germany. The competition from both England and Germany is all price competition. Our own cost of manufacture is considerably in advance, evidently, of the cost of manufacture to our competitors abroad, so that if we take this business, we have to figure very close and on a very small margin of profit. The quality competition is mainly from manufacturers in this country. G. H. Powell, in the citrus fruit business, Los Angeles, Cal., said: The foreign trade, Mr. Chairman, in the citrus fruit business is a very small husiness. The reasons for that are, first, the very large quantities of citrus fruits grown in Spain, Italy, Java, and other foreign countries, which can be shipped to all foreign markets at a cost of from probably one-fourth to onesixth of the cost of exporting our fruits to the same markets, * * * Woodward Emery, representing the Universal Winding Co., Boston, Mass., said: Now, in the Universal winding machines, the company has maintained the same price throughout the world. It is just the same on the other side as it is here. It has met with considerable competition over there, but, in spite of that, the quality of the machine and what it will do, has enabled the company to stand up and assert its claim that, even at a greater price, it would pay for itself ultimately; and that is, really, I suppose, the way you have got to build ap a foreign business. Louis K. Liggett, of the United Drug Co., Boston, Mass., said: I think we American manufacturers are prone to feel that we can take our surplus stock from here—and sometimes our * lemons ”—and unload them on our South American trade. That thing has been done in the past, and it has given us a bad reputation, (i) Character of Goods. In this connection O. De G. Vanderbilt, jr., of the Weir Frog Co., Cincinnati, Ohio, manufacturers of railroad track work, said: There is very lttle exportation in this country of railroad track work in any way, shape, or manner. There has been, up to date, very little buying of American rails for export in this country, especially in European countries. The sections of rail used in the European couniries, practically every one putside of the United States are entirely different from the sections of rail ased by the American railroads. The track work—that is, frogs, switches, and crossings—has got to be of the same section of rail as the rail used in the track. For that reason it has practically excluded the American manufactures in our line of business from competing in foreign countries. In stating that they could meet the English and German competition in foreign countries, F. J. Thorsen, president of the Washington Shoe Manufacturing Co., Seattle, Wash., said: We can [compete], on account of the reputation that the American shoes have, narticularly in dress shoes, in better style goods. The European-made shoes ure not as tasty in appearance as the American-made shoes. EXCERPTS FROM HEARINGS. } 3238 Herbert H. Bigelow, of Brown & Bigelow, St. Paul, Minn., manufacturers of advertising specialties, stated in reference to competition with Germany: We compete because we manufacture a distinct product. We can not compete with Germany on a German product, but, in the printing and lithographic line, there has grown up quite a field of individual work in this country that Is separate and distinct from the work done in Germany on what is known as four-color process reproductions and half-tone process reproducing in color. While that process was discovered in Germany, it was made commercially practical in this country and was developed here, and through that process we compete against German stone lithography. (3) Unfair Methods of Competition. Charles M. Woodruff, secretary of the National Association of Manufacturers of Medicinal Products, Detroit, Mich., complained of foreign imitation of trade-marks and labels on chemicals produced by Americans and established in foreign markets. He mentioned also the fraudulent registration of American trade-marks in foreign countries. He stated: The prestige of the American manufacturer, with respect to certain products, is such that they are imitated by the foreign manufacturer whose goods are imposed upon purchasers in his own and other countries as those of the American producer. This was the subject of discussion at the meeting of this association held in February, 1913, on the resolution: “ That the incoming executive committee gives consideration to the imitation of labels and trade-marks, with particular reference to the imitations originating in foreign countries.” During this discussion, Mr. Frederick B. Kilmer, of the well-known “ plaster house ”’ of Johnson & Johnson, who had just returned from Germany, said: *“ We have had a little experience in the last 12 months, which I brought to the attention of our president yesterday. We found that some of our labels were being imitated almost perfectly, except the name, and that they had their origin with our friends in Germany, and in Austria, and the singular part of it was that they were made for export to foreign countries, South America, Egypt, etc, where we found them distributed, and we went over there and lnstituted proceedings. We got one of the imitators in a criminal prosecution, and stopped him, and the matter is now in process of adjustment; but it appears to be very difficult to reach such imitators. The sentiment expressed by a good many dealers in regard to the matter is not very encouraging—I had a good many highly respectable merchants look at the label and say, ‘ You can not touch that fellow; he has imitated your label, but he has not used your name, although he has imitated your label in colors, design, marks, borders, and everything else,” and they seem to think that is all right; that the imitator is a smart fellow to get away with it "—— The PrresipENT. “And should be commended *—— Mr. KitMER. “ Should be commended, especially as I was a foreigner, and did not have much standing in that country; there was not much in common between us. That seemed to be the sentiment among the merchants with whom I spoke about the matter. Of course, they thought it should not be done in Germany between German manufacturers, Austrian manufacturers, etc.” W. O. Washburp, of the American Hoisting & Derrick Co., St. Paul. Minn.. stated : We find that the Germans are very apt copyists. You go into a country with a certain machine and within 12 months Germany will be there with a machine that will do the same class of work, and it is a very good machine, too. Germany is the foremost nation, I think, in mechanics. They grasp our ideas just as quickly as we present them abroad and are in the market almost as soon as we are and get around patents very smoothly and very quickly, and they will always sell their product at a little bit less than what we offer it for. 824 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Charles M. Woodruff, secretary of the National Association of Manufacturers of Medicinal Products. Detroit, Mich., said: The undersigned has seen packages put up by Japanese for trade in the Hawaiian Islands, the Philippine Islands, and the Pacific coast cities, as well as for sale in Japan that so closely imitated the original as to deceive the victim’s salesman.’ In these cases even the trade name of the American manufacturer was used. Another condition is the fraudulent registration of trade-marks in countries where priority of registration is conclusive instead of prima facie evidence of ownership. The condition can hardly be called competitive, and yet it may be proper to mention it in this connection, since we are about to suggest remedies for all of them. A. C. Loring, president of the Pillsbury Flour Milling Co., Minneapolis, Minn., stated: The laws of the various countries permit fraud, and it is one of the things that we are very desirous to overcome. A great many of the countries permit the filing of brands and corporations’ names by anyone who meets the specifications. We have at times, much to our surprise, found that our own full name and brands had been asked for registration, and, where they are, we have no means of protecting ourselves. + = » Jt would be serious if we had much business in these countries. Up to the present time there has been comparatively little business, and we have not felt the danger, but our company has during the past year expended thousands of dollars in filing registrations for brands in the countries in which there is any possibility of developing business. Herbert H. Bigelow, of Brown & Bigelow, St. Paul, Minn., manufacturers of advertising specialties, was asked whether he found any tendency to violate his trade-mark rights in foreign fields. He replied : We have found violations of our copyright. Of course we make no claim for copyright protection outside of the United States, and of course it is not respected, and our rights are not respected on our reproductions any more than they would be in this country, any more than the fact that it is the practice to make a reproduction from a reproduction. } We sent a small line of calendars to Australia a number of years ago, and almost as quickly as the mails could bring it back and allow a short time for reproduction one of our copyrighted reproductions appeared on the program of one of the leading theaters of Melbourne. Of course the reproduction was poor, because it was made from a reproduction, If they had had the original there, they could have spoiled our sale entirely of that subject in that territory. But we make no claim for trademark protection, such as we hear of being infringed in the South American territory. Harry Edward Freund, managing director of the National Association of Makers, Chicago, Ill, thinks that the use of the trademark “ Made in U. S. A.” should be regulated, as is shown in the following statement: The matter that I consider of great importance to bring before the Federal Trade Commission is the unregulated use of the national trade-mark * Made in the U. S. A,” as it will do inestimable injury to American commerce anless used in connection with the maker's name and trade-mark under an adequate system of safeguards. The point being that at the present time “ Made in the U. S. A.” can be used by any manufacturer, and he can put that on any kind of goods, inferior shoddy, for instance, without any guaranty as to quality, the result being that the United States is afforded to-day an unparalleled opportunity in its entire history for the progress and development of its foreign trade. And the greater that development becomes and the larger that foreign trade becomes, unless there is a safeguard that “Made in the U. S. A.” means quality, something of which the Nation can be proud, it is going to prove a big boomerang, and the larger the trade the greater the re- EXCERPTS FROM HEARINGS. 325 action will be. Under existing conditions and circumstances there is nothing to prevent a manufacturer from making use of a magnificent, splendid, national rade-mark “ Made in the U. 8. A.” and using it for his own purposes by putting out inferior goods, so that the Nation’s industries and manfactures for export, by those reputable manufacturers who want to deliver quality and give full value for their money, are at the mercy of those who, for cupidity or gain, are willing to make use of “ Made in the U. 8. A.” and practically not deliver the goods. “ Made in the U. 8. A.” is to-day such a magnificent opportunity as a trademark for the United States to stand with its products and manufactures supreme before the world, but that supremacy can be endangered unless there is some guaranty that the maker’s name and trade-mark is placed on all the zoods or merchandise for export. G. Fred Collins; with David Lupton’s Sons Co., Chicago, Ill., who formerly represented several large concerns in South America, said: When I went through South America the first time, the German houses bought very small quantities of me, a dozen of this or that, just enough to make an order. The English houses bought more liberally. There were very few American houses. It was on the second trip, when I went down representing the same people I had on the first trip, that this thing came up—namely, the people had taken my samples and sent them to their home houses and nad had them duplicated in Germany, and there they were selling them for 30 per cent less than my prices. I will not say that the English people did that. M. W. McArdle, export manager of the Chicago Flexible Shaft Co.. Chicago, Ill, said in this connection: We have very keen competition, especially from England and Germany. Almost every machine we put on the market, unless it is protected by patents, 8 imitated immediately. In fact, I have seen imitations on the market within six months after we have brought them out and put them on the market. But, in the face of that, we have been able to get a considerable proportion of the business on the Continent. England, Canada, South America. Australia, and New Zealand. And, finally, Walter Wyman, export manager of the Carters Ink Co., New York City, said with reference to the imitation of that company’s trade-marks by Japanese manufacturers: In one case I have in mind the only changes they made were in the name, which they made to read, ‘“ Card’s,” and in the shape of the bottle. The lithorraphed cartons, which contained these imitations, had, on all six sides, an exact duplication and contained, probably 8, 9, or 10 reproductions of other packages of ours. It was a really clever piece of work. I took one of these packages and put it up to our own salesmen, and asked them which they liked the best. They would handle it for 5 or 6 minutes. but never noticed that it was not one of our own packages. (k) Miscellaneous. Willingness and ability to adapt the products and the method to the market is the secret of German success in foreign fields, said W. 0. Washburn, of the American Hoisting & Derrick Co., St. Paul. Minn. He stated. I think it is just that the manufacturer of Germany is a wide-awake man, that he is backed up by his Government, and that, wherever Germans have gone, they have been very quick to adapt themselves to the character of the machinery and goods which were required by the country in which they were Joing business. I think Germany has stood in the front ranks. I think we are 30 far behind Germany in that respect that if Germany had not been brought up just now, we would have been so far outdistanced that it would have been hard to eatch up. oe ols Yes, Germany has studied the situation abroad and, I think, understands better than any other country the needs of the business which they were going after. 326 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. They know how to do it. If a concern wanted the goods packed in a certain way, it was their pleasure to do it that way ; they did it exactly as the concern wanted it, and they made their product to suit the conditions and the situation where it was sold, something we would not do in this country. We are too careless about matters of that sort. We are too much inclined to say, “ You take it the way we want to give it to you or we will not give it to you.” That is the tendency of the American manufacturer. I think we are too independent. Then we lack that organization which Germany seems to have had, which is a very fine thing. Of the English manufacturers of cotton goods, William P. Adams, third vice president of the American Manufacturers’ Export Association, New York City, said: They have only two advantages over us—a lower wage scale and closer financial connections with various countries. Charles J. Lynn, of Eli Lilly & Co., Indianapolis, Ind., stated: The pharmaceutical products of this country are found all over the world. In many of the countries, however, the admission of pharmaceutical products is made exceedingly difficult. In Russia, for instance, it is necessary to secure a permit from the medical consul before a product will be admitted into the country; that is, a manufactured product such as we put out; a medical compound, if I may call it that. These permits are exceedingly hard to obtain. If you merely follow out the necessary papers and let matters take their own course, you may never get your permit. If you put them into the hands of some man who knows how to properly draw up these papers and guide them along their rather devious course. you may get greater speed, but at considerable expense. Henry C. Castle, of Henry C. Castle (Inc.). Boston, Mass., wrote: The subjects which, in my opinion, are of most vital importance are navigation. banking, and cooperation, rather than combination. J. R. Leeson, president of the Universal Winding Co., Boston, Mass.. wrote: The prime necessity for success in foreign as in domestic business is fixity of quality, regularity in method, and reliability in both. Much has been written in regard to the importance of packing and shipping details. Our experience is that such matters are of no greater importance in regard to merchandise shipped to Petrograd. Kobe, or Lisbon than to San Francisco, Atlanta, or New Orleans. Charles H. Jones, president of the Commonwealth Shoe & Leather Co.. Boston. Mass., said: About 15 years ago our attention was called to the fact that there was a demand for our shoes in England, and we immediately sent salesmen there and very quickly built up a desirable business. We followed that by exploiting the Australian trade, and within a year or two we got a very substantial business there, but that business was short-lived. It was made possible by the fact that the American shoe manufacturer had a little more ingenuity and a little more experience in the use of his machinery than the English and foreign manufacturers had. We produced a grade of shoes that did not exist, or was not made over there, and they were very popular in this country, and they immediately developed a popularity over there. These foreign shoes were extremely heavy grades, nailed and pegged, except those used elsewhere, which were strictly high-class custom-made shoes, but nothing like the grades of the American shop, where shoes are machine-made, but an imitation of these fine hand-made shoes. As soon as they became aware of what was called, at that time, the American ihvasion, they quickly set to work to reproduce the things that we had sold with such success, and having every facility we had, and some we did not have, they very soon, or within a matter of four of five years, made that market of very much less value, and we ultimately abandoned the English and continental European trade, for the reason that they were able to make just as good shoes and just as cheap. As soon as they found out, the advantages of the American shoe, they. began to appreciate the matter of fit and style, the appearance of the goods. and their flexibility—a number of things of that kind, EXCERPTS FROM HEARINGS. 391 to which they had not been in the habit of giving much attention. They copied the American styles and reproduced them at prices against which we were not able to compete successfully. Our Australian trade was ruined, ultimately, by the enactment of the new tariff in that island. The Government there decided they were going to have that business for the Australians. The business was to be promoted by the Government, and they put on a tariff of 35 per cent and said, if that was not sufficient, they would put on more. We then turned our attention to the countries where shoes were not produced in sufficient quantities by the native population to supply the demand; in countries such as Mexico, Cuba, and the South American countries. There we met manufacturers on a competitive basis and found our shoes were acceptable, and we established a very considerable business there which we still hold ; that is, we do not hold the Mexican business just at the present time, but we are handling such of the South American countries ns are in a position to do business, and we are still doing business with them. With reference to advantages the German and English group of manufacturers have, he said: So far as my observation goes, there isn’t any handicap against the American manufacturers of shoes on the point of the demand for their goods. Our goods seem to be as desirable everywhere and as cheap as foreign goods. The volume of business seems to rest in the fact that the financial affairs of the people in that country are handled by the English or German banks—rather by the representatives of the English or German banks—and that in the financing of our accounts, some of the concerns, are not of sufficient standing to justify piving them credit. * * * If the obstacles could be removed, I think we would have an equal chance in those countries. As to customs regulations—I do not know if these would come within any part of your jurisdiction—they could be regulated by treaty or through management of our Department of Commerce. As they exist to-day, they are certainly a very severe hindrance to American manufacturers. If those methods were corrected, and if the Government would aid us in furthering our export business, and if it could be carried out along the lines I have suggested, it would certainly be very helpful. The necessity or the purpose of our exporting shoes arises from the fact that there are shoe factories enough in the United States to probably make all the shoes that could be used here in six or seven months, if run at full capacity, and, naturally, everyone desires running as fully as possible, and we are continually in need of further markets. EXHIBIT III. SCHEDULES—FORMS. 13 3. EXHIBIT III. SCHEDULES USED IN THE FOREIGN TRADE INQUIRY. Schedules on foreign trade conditions were sent to business men and other authorities who were unable to appear at the hearings held by the Commission. Preliminary to the sending of the schedules, tlowever, letters of inquiry were sent out accompanied by a return post card. (For a copy of this card see p. 839.) The purpose of this card was to obtain a broad yes or no referendum on the advisability of export combinations and to put the Commission in touch with those who were willing to furnish further facts and suggestions. . To those who replied that they were willing to assist the Commission in this manner schedules were sent. Some of the questions in the schedule were designed to ascertain the general understanding of business men as to whether the antitrust laws prohibit export combinations among American manufacturers; whether such combinations are in the public interest; whether membership should be open to all concerns in an industry, ete. Specific information was asked as to foreign combinations, including both buying and selling combinations. Additional questions related to various other conditions which affect American export trade. To supplement the information received in answer to the schedule inquiries, several hundred letters were sent out asking for further information on certain points. For the purpose of this investigation, trade with markets outside the United States or its possessions was considered foreign or export business, and trade with the possessions of the United States was considered domestic business. The schedules were sent to four general classes, as follows: First, manufacturers and producers or selling companies maintained by. them; second, export commission houses, manufacturers’ export agents, export merchants, etc.; third, domestic merchants, importers, ete. ; and, fourth, publicists, economists, lawyers, bankers, engineers, contractors, etc. The schedules submitted to the various groups were of the same general character. Copies of these schedules are given elow * 1. INQUIRIES FOR MANUFACTURERS AND PRODUCERS OR SELLING COMPANIES MAINTAINED RY THEM. 1. Do you believe that the law now prohibits combination or cooperation, solely for export business, not accompanied by oppressive or unfair practices toward competitors? (a) Is your belief based on advice of counsel? (b) Do you understand that the prohibition (if any) Is absolute or applies only to such combination or cooperation as takes in a preponderant part of a given industry? 30 332 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, (¢) Do you understand that the prohibition (if any) applies to cooperation In selling noncompeting products as well as competing products? 2. (a) Are you now exporting through a joint selling agency in which you cooperate with other manufacturers or producers? . (b) Are you now cooperating in any joint advertising campaigns in foreign markets? 8. Do you think it would be an advantage or a disadvantage to you in your business to participate in some form of combination or cooperative selling agency for export trade, and why? 4, Irrespective of your answer to question 1, please give the reasons why you think combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies, or by other means, are or are not in the public interest. 5. If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should: (a) Be open to all manufacturers or producers in the United States in their respective lines, or have the right to exclude any concern at pleasure? (b) Be open to all American-owned concerns, but have the right to exclude any concerns that are conirolled by foreign interests? (c) Be restricted to trade in noncompeling products, or cover competing products also? 6. Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer. How would you prevent their being so used? 7. Have you any further suggestions as to what is needed to help you develop foreign trade? 8. If you do not engage in foreign trade, please explain what conditions have determined your policy in this respect. 9. Please give briefly any facts you may have concerning foreign cartels, syndicates, or combinations in any form whose competition you or other Americans encounter in export business. 10. Please give briefly any facts you may have concerning any combinations of buyers of your products abroad, such as organizations of importers, jobbers, retailers, or consumers. 11. Please give briefly any specific information you may have concerning any other 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, discrimination in banking or transportation facilities, the activities of foreign Governments, etc. 12. Please give what facts you can in regard to foreign concerns or combinations “ dumping ” either in the United States or in other markets. (By * dumping” is meant selling in another country below the price prevailing in the conrern’s home country in order to market a surplus or to drive out competitors.) 18. Please give the names, business positions, and addresses of any other persons especially qualified to give information concerning the topics indicated by the preceding questions. NoTe.—The information requested in answer to the following questions (14 to 17) is essential for classification of the replies. As already explained, the answers which are to be kept confidential should be so designated. 14. How long have your products been actively exported, and to what markets? to 15. What are the principal classes of products that you— (a) Sell. (db) Sell for export. 16. (a) In the table below please check the group in which your total gross sales (domestic plus foreign) for your last business year before the European war would fall. Norn.—In the answer form a space is provided for checking, Total gross sales for year: Less than $250,000. $250,000 to $1,000,000. $1,000,000 to $5,000,000. $5,000,000 to $25,000,000. Over $£25.000.000. SCHEDULES—FORMS. 333 (b) Approximately what proportion of these sales were for export? 17. Please give a brief statement of any special experience, investigation, or responsibility contributing to your interest in the subject matter of this schedule or to your information thereon. 2. INQUIRIES FOR EXPORT COMMISSION HOUSES, MANUFACTUR-ERS’ EXPORT AGENTS, EXPORT MERCHANTS. ETC. 1. Irrespective of your opinion as to whether the law does or does not prohibit combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies, or by other means, please give the reasons why you think such organizations are or are not in the public interest. * 2. If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should— (a) Be open to ell manufacturers or producers in the United States in their respective lines, or have the right to exclude any concern at pleasure? (b) Be open to all American-owned concerns, but have the right to exclude any concerns that are controlled by foreign interests? (c) Be restricted to trade in noncompeting products, or cover competing products also? 3. Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer. How would you prevent their being so used? 4. What would be the advantages and disadvantages of export combinations or cooperative organizations of manufacturers or producers as compared with individual manufacturers or producers exporting through commission houses, manufacturers’ export agents, etc.? 5. In what ways, if at all, could such export organizations meet the competition of foreign combinations or individual concerns in export trade any more successfully than individual manufacturers or producers can now do? 6. In what ways, if at all, could such export organizations deal more successfully with combinations of foreign buyers? 7. What further suggestions have you as to what is needed to help you develop foreign trade? 8. Please give briefly any facts you may have concerning foreign cartels, syndicates, or combinations in any form whose competition you or other Amerimans encounter in export business. 9. Please give briefly any facts you may have concerning any combinations of buyers of your exports abroad, such as organizations of importers, jobbers, retailers, or consumers. 10. Please give briefly any specific information you may have concerning any other 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, discrimination in banking or transportation facilities, the activities of foreign Governments, ete. 11. Please give what facts you can in regard to foreign concerns or combinations “dumping” either in the United States or in other markets. (By * dumping ” is meant selling in another country below the price prevailing in the concern’s home country in order to market a surplus or to drive out rompetitors.) 12, Please give the names, business positions, and addresses of any other persons especially qualified to give information concerning the topics indicated by the preceding questions. NoTE.—The information requested in answer to the following questions is essential for classification of the replies. As already explained, the answers which are to be kept con-Adential should be so designated. 13. Please state about how long you have been engaged in foreign trade. 14, In the column below for exports please check the group in which your total exports for your last business year before the European war would fall. In the column for imports please check the group in which your total imports for the same year would fall. Nore —On the answer form spaces are provided for checking. 384 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Total for year. Group. Less than $250,000 came ecm $250,000 to $1,000,000 cme $1,000,000 to $5,000,000 meee $5,000,000 to $25,000,000 ccmmumme eee Dver $25.000.000 oe Exports. Imports. 15. Please give a brief statement of any special experience, investigation, or responsibility contributing to your interest in the subject matter of this schedule or to your information thereon, 3. INQUIRIES FOR DOMESTIC MERCHANTS, IMPORTERS, ETC. 1. Irrespective of your opinion as to whether the law does or does not prohibit combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies or by other means, please give the reasons why you think such organizations are or are not in the public interest. 2. If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should— (a) Be open to all manufacturers or producers in the United States in their respective lines, or have the right to exclude any concern at pleasure? (b) Be open to all American-owned concerns, but have the right to exclude any concerns that are controlled by foreign interests? (¢) Be restricted to trade in moncompeting products, or cover competing products also? 3. Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer. How would you prevent their being so used? 4. What would be the advantages and disadvantages of export combinations or cooperative organizations of manufacturers or producers as compared with individual manufacturers or producers exporting through commission houses. manufacturers’ export agents, ete.? 5. In what ways, if at all, could such export organizations meet the competition of foreign combinations or individual concerns in export trade any more successfully than individual manufacturers or producers can Dow do? 6. In what ways, if at all, could such export organizations deal more success fully with combinations of foreign buyers? 7. Please give briefly any facts you may have concerning foreign cartels, syndicates, or combinations in any form whose competition Americans encounter in export business. 8. Please give briefly any facts you may have concerning any combinations of buyers of American exports abroad, such as organizations of importers, jobbers, retailers, or consumers. 9. Please give briefly any specific information you may have concerning any other 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, discrimination in banking or transportation tacilities, the activities of foreign Governments, etc. 10. Please give what facts you can in regard to foreign concerns or combinas tions “ dumping ” either in the United States or in other markets. (By “ dumping” is meant selling in another country below the price prevailing in the concern’s home country in order to market a surplus or to drive out competitors.) 11. Please give the names, business positions, and addresses of any other persons especially qualified to give information concerning the topics indicated by the preceding questions. NoTr.—The information requested in answer to the following questions is essential for classification of the replies. As already explained, the answers which are to be kept con-Adential should be so designated. 335 12, Please state the nature of your business—I. e., wholesaler, retailer, importer, etc. What general class or-classes of products do you handle? 13. Please state how long you have been engaged in importing. 14. In the column below, for domestic sales, please check the group in which your total domestic sales for your last business year before the European war would fall. In the column for imports, please check the group in which your total imports for the same year would fall. If you also export, please check in the export column the group in which your total exports would fall. (In the answer form spaces are provided for checking.) SCHEDULES—FORMS. Total for year. Group. : Less than $250,000______.__ $250,000 to $1,000,000 _..___ $1,000,000 to $5.000,000.____ $5,000,000 to $25,000,000__.._ Over $25,000,000 __________ Domestic sales, Imports. Exports. 15. Please give a brief statement of any special experience, investigation, or responsibility contributing to your interest in the subject matter of this schedule or to your information thereon. {. INQUIRIES FOR PUBLICISTS, ECONOMISTS, LAWYERS, BANKERS, ENGINEERS, CONTRACTORS, ETC. 1. Irrespective of your opinion as to whether the law does or does not prohibit combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies or by other means, please give the reasons why you think such organizations are or are not in the public interest. 2, If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should— (2) Be open to all manufacturers or producers in the United States in their respective lines, or have the right to exclude eny concern at pleasure? (0) Be open to all American-owned concerns, but have the right to exclude any concerns that are conirolled by foreign interests? (¢) Be restricted to trade in moncompeting products, or cover competing products also? ‘8. Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer, - How would you prevent their being so used? 4. What would be the advantages and disadvantages of export combinations or cooperative organizations of manufacturers or producers as compared with {individual manufacturers or producers exporting through commission houses, manufacturers’ export agents, etc.? 5. In what ways, if at all, could such export organizations meet the competition of foreign combinations or individual concerns in export trade any more successfully than individual manufacturers or producers can now do? 6. In what ways, if at all, could such export organizations deal! more successfully with combinations of foreign buyers? 7. Please give briefly any facts you may have concerning foreign cartels, syndicates, or combinations in any form whose competition Americans encounter in export business. 8. Please give briefly any facts you may have concerning any combinations of buyers of American exports abroad, such as organizations of importers, jobbers, retailers, or consumers, 9. Please give briefly any specific information you may have concerning any other competitive conditions abroad affecting the export business to particular markets, such as investments of foreign capital in local industries, the emoloyment of foreign managers or engineers in local enterprises, concessions to foreign syndicates or capitalists, discrimination in banking or transportation facilities, the activities of foreign Governments, ete, 336 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 10. Please give what facts you can in regard to foreign concerns or combina-Hons “dumping” either in the United States or in other markets. (By * dumping ? is meant selling in another country below the price prevailing in the concern’s home country in order to market a surplus or to drive out competitors.) 11. Please give lhe names, business positions, and addresses of any other persons especially qualified to give information concerning the topics indicated by the preceding questions. NoTe.—The information requested in answer to the following questions is essential for slassification of the replies. 12. What is your occupation or business? 13. Please give a brief statement of any special experience, investigation, or responsibility contributing to your interest in the subject matter of this schednle or to your information thereon. EXHIBIT IV. REPLIES TO CARD AND SCHEDULE INQUIRIES. 27941°—pT 2—16— 2. 1 4 EXHIBIT IV. REPLIES TO CARD AND SCHEDULE INQUIRIES. This exhibit discusses in detail the replies to the card and schedule inquiries sent out by the Commission as a part of its investigation of conditions that affect American foreign trade. About 26,000 cards were sent to representative manufacturers, export commission houses, manufacturers’ export agents, export merchants, domestic merchants and importers, and to a number of publicists, economists, lawyers, bankers, engineers, contractors, and others, to which 9,628 replies were received. A total of 8,484 schedules were sent out, of which 2,004 were returned answered in whole or in part. In addition, a number of letters were written to individuals or companies, many of these letters asking for further information in regard to specific replies on the schedules. In these ways considerable information was secured on the various phases of export trade. The replies to the cards and schedules have been tabulated so far as practicable to show the general character and grouping of the answers received. F ollowing the tabulation of i 1S a more or less complete discussion of the replies to a number of the schedule inquiries, including information furnished inNletters written in connection therewith. I. TABULATION OF REPLIES. 1. Replies to postal-eard inquiries, In its study of cooperation in export trade the Commission desired to obtain a broad expression of opinion regarding the advisability of combinations among American manufacturers and producers, solely for export trade, by means of common selling agencies or by other means. For this purpose a card was sent out first. which contained the following general questions: 1. Do you favor combinations or cooperative organizations, solely for export business, , among American manufacturers or producers by common selling agencies or by other means? Write “ Yes” or “ No.” 2. Do you think such combinations are in the public interest? Write “ Yes” or “ No.” 8. The Federal Trade Commission desires further suggestions and information regarding combinations for export business and conditions in foreign trade. Will you cooperate with the Commission in this matter? Write “ Yes” or 16 No *? Over 18,000 of these cards were sent to American manufacturers and producers, and some 8,000 more were sent to other authorities on foreign trade conditions, such as export commission merchants, manufacturers’ export agents, importers, domestic merchants, publicists, lawyers, economists, bankers, engineers, ete. This list, totaling about 26,000, was intended to include those who were understood to be 290 34(0 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, interested in foreign trade, as well as many who were not then, but who it was believed would later be interested in the subject. A Jarge number of trade associations were requested to supply the Commission with the names of such of their members as were or might be interested. The Commission took particular pains not to confine its list to classes or groups of concerns whose interests might incline them to favor combinations. It also sought diligently to obtain the views of classes of concerns or individuals who might be opposed to combinations for export trade, because it wished to have all sides of the matter adequately represented. In its final form the list included the following: (I) 1,775 export commission houses, manufacturers’ export agents, export merchants, ete. (II) 1,260 domestic merchants, importers, etc. (LL 5,000 publicists, economists, lawyers, bankers, engineers, contractors, etc. (IV) 18,165 manufacturers and producers or selling companies maintained by them. Replies were received from a total of 9,628, the number from each class being as follows: Class I, 526; class II, 388: class ITI, 1.996; and class IV, 6,715. The answers to the questions and the percentages of those giving the respective opinions indicated are discussed below. In each case, the answers of those who were noncommittal or failed to answer at all were not taken into consideration in computing the percentages. In answer to question one, 7,463 were unqualifiedly in favor of export combinations, while 261 favored combinations under certain restrictions. Hence, a total of 7,724, representing 87 per cent, were in favor of cooperation in export trade. On the other hand, 1,050 were absolutely opposed to the idea, and 51 more returned qualified negative answers. In addition, 489 made poncommittal answers and 314 did not answer this question at all. Replies to the second question show the same general proportions as the answers to the first. In reply to the third question, only 822, or less than 11 per cent, reported that they were unwilling or unable to assist the Commission. The great majority expressed their willingness to help. Of the first class mentioned above, export commission houses, etc., 313, or 64 per cent, expressed an opinion favorable to the formation of combinations for export business and approximately the same number believed that such organizations were in the public interest. Domestic merchants and importers indicated a stronger sentiment in favor of export combinations, more than 85 per cent of those making specific answers being recorded as favoring them. Replies to question No. 2 were in the affirmative by practically the same percentage. Publicists. economists, lawyers, etc., to the number of 1,808, or 98 per cent, answered No. 1 affirmatively. On question No. 2 practically the same belief was expressed. less than 5 per cent answering in the negative. Finally, seven-eighths of the manufacturers and producers in favor of cooperation for export trade, also answered the second question affirmatively. Thus, in each of the four classes, a large majority favored the general idea of export combinations, the percentages ranging from 64 to 95 per cent. REPLIES TO CARD AND SCHEDULE INQUIRIES. 341 Some of the replies included in the percentages of the foregoing paragraphs were qualified, the informant not wishing to commit himself to a “yes” or “no” answer. The fcllowing tale gives in more detail a tabulation of all the replies: TABLE IV.—Summary of replies to Commission’s inquiry cards. Group. First question. Affirmtive. Tega ara, Second question. * firme tive. Negative. Third question. i 5 = g = Exporters, ete....... Bomestiy merchants, lO. cu wnsnasinanny Publicist, ete.... . Manufacturers...... wr 3¢ 99¢ si) z '6, 7155, 8 152 Total. ........[5,628'7,¢* -=el-28 89 37] - 85 89 200 onl 992 - 75 11,428 2. Replies to schedule inquiries, To make a more detailed study regarding combinations for export business and conditions in foreign trade, the Commission prepared brief schedules of questions! These schedules were sent to all who, in response to question 3 of the cards, indicated that they would aid the Commission further in its inquiry. Schedules were also sent to a number who failed to answer the third question, but whose answers to the other questions indicated interest in the subject. The schedules were sent to 472 in class 1 (export commission houses, etc.) ; 832 in class 2 (domestic merchants, importers, etc.) ; 1,767 in class 8 (publicists, economists, lawyers, etc.) ; and 5,913 in class 4 (manufacturers and producers), making a total of 8,484. Up to and including January 15, 1916, there had been returned, answered either as a whole or in part, a total of 2,004 schedules. These replies came from the several classes just mentioned, in the order named. as follows: 103, 65, 426, and 1,410. OPINION OF BUSINESS MEN AS TO LEGALITY OF EXPORT COMBINA-TI0N8.—It has been frequently stated that fear of the antitrust laws prevents cooperative action by American business men for export business. In order to test this assertion by ascertaining the opinion of manufacturers as to the application of the law to cooperative organizations for export business the Commission headed its schedule of foreign trade inquiries for manufacturers with the following question : Do you believe that the law now prohibits combination or cooperation solely for export business, not accompanied by oppressive or unfair practices toward competitors? (a) Is your belief based on advice of counsel? (b) Do you understand that the prohibition (if any) is absolute, or applies only to such combination or cooperation as takes in a preponderant part of a given industry? (¢) Do you understand that the prohibition (if any) applies to cooperation In selling noncompeting products as well as competing products? -For schedule forms see Exhibit TIL 342 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, The purpose of this question was apparently not clear to some business men, re a number either avoided. committing themselves or did not answer the Justin. For example, some replied, “ Do not know,” others * Not sufficiently informed,” ete. As shown in the summary statement below, of those who answered in a direct manner, 512, or 56 per cent, were of the opinion that the present law does probihit export combination or cooperation, while 408 took the opposite view. Of those who stated they had taken advice of counsel, 87 thought the present law prohibits export cembinations, while only 29 thought the opposite. Of those who thought the law now prohibits combinations for the purpose of export trade many thought the prohibition absolute and applicable to noncompeting as well as competing products. On’y a few mentioned the rule of reason in this connection. It is interesting to note that of those who based their answers to this question on advice of counsel, there were 68 who thought the prohibition absolute, while but 8 thought the prohibition applies only in case the combination represents a preponderant part of its industry. Again, of those who had sought advice of counsel, 45 thought that only combinations covering competing products are prohibited, while 56 thought that the prohibition applies to combinations covering noncompeting products as well as competing products. Those who thought the law does not now prohibit export combinations would hardly be expected to answer subdivisions (6) and (¢) as to the extent of the prohibition. Yet some of these did answer them, apparently wishing to register an alternative opinion as to what the extent of the prohibition is in case they are wrong in their primary belief that there is no prohibition. y i summary statement of the replies to the whole question is shown elow : TasLe V.—Summary of replies regarding belief as to legality of export combinations. Main question. Combination. Subdivision (b). Prohibition. 5 a fp Subdivision (¢). Prohibi-‘fon as to— 5] u Ny =f oo 2F 3 2 3 1 1} 5 Z On advice of counsel. . Others. .... Ota cc venccncnascs: 2101 a A 2431 4 18 10 163 | 516 ol 18] 52 ExisTING JOINT SELLING AGENCIES AND JOINT ADVERTISING CAMpaTGNS.—Question 2 of the manufacturers’ schedule was as follows: (a) Are you now exporting through a joint selling agency in which you cooperate with other manufacturers or producers? (b) Are you now cooperating in any joint advertising campaigns in foreign markets? REPLIES TO CARD AND SCHEDULE INQUIRIES. 343 Very few of the manufacturers who replied to this question are, at the present time, exporting through a joint selling agency or even cooperating in joint advertising campaigns. All the replies are tabulated in the statement below: TasLE VI.—Summary of replies regarding existing cooperative efforts. (nt joint selling agencies. ...c.ceeevan-(n joint advertising campaigns. . Yes. No. No an-SWer. Total. 6 ' 1,230 . 82 1,410 48. 1,283) 79 1,410 To note what reply concerns already in joint selling agencies have made to question 1 regarding their view of the law, is suggestive. Practically all who stated they were members of joint selling agencies either were noncommittal on question 1, or believed that export combinations are not prohibited, or that only combinations covering competing goods are prohibited. [t was found upon later inquiry that of those who answered this question in the affirmative many had meant that they sold through export commission houses or foreign agents who handled the prodnets of other manufacturers. Several, however, have cooperated in maintaining agents or salesmen in foreign countries. Practically all the cooperation thus reported consisted only of manufacturers of noncompeting goods. The lines thus represented are of a varied character. For example, a candy manufacturer whose goods are sold in the Orient through a joint selling agency states that their agent handles other products “ from soap to leather goods, about 15 in all.” As a rule, however, the products thus handled are what might be termed kindred products—those that may be sold to the same trade. Thus p New York firm which sells directly through salesmen, whose expenses are borne proportionately by eight or more noncompeting concerns, handles farm machinery, grain cribs, dynamos, grinders, gasoline engines, etc. Another New York firm handles its own pianos together with the pianos of another manufacturer making a cheaper grade. Only a small per cent of those now cooperating by this method are manufacturers of staple lines, such as lumber, coal, etc. The expenses of advertising the various goods handled by a single agency are also sometimes borne proportionately by the manufacturers of these goods. Many of those engaged in joint advertising campaigns, however, do so by virtue of being members of trade associations. Thus the California Fruit Growers’ Exchange, Illinois Manufacturers’ Association, Association of Manufacturers of Chilled Car Wheels, Philadelphia Commercial Museum, and the National Paving Brick Manufacturers’ Association are reported as being engaged in advertising the products of their various members. - ADVANTAGE OR DISADVANTAGE OF EXPORT COMBINATION OR COOPERArive oRGANIZATION.—The third question of the manufacturers’ schedule, a question not included in the schedule sent to the other three classes. was as follows: Do you think it would be an advantage or a disadvantage to you in your business to participate in some form of combination or cooperative selling pngency for export trade, and why? To this question 923, or 92 per cent of those answering directly, said that participation would 5 advantageous for them, and only 344 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 85, or 8 per cent, were of the opinion that combination or cooperation would be to their disadvantage. The results of this inquiry are shown in the following statement : TaBLE VII.—Summary of replies regarding advantage of export combinations. Total schedules received. oo eecee eee memmmmem 1,410 Direct replies «eee eeeeeeeeeeeem= 1,008 Export combinations would be— . AOVANTADE iii ili mm psi: TO TD IBEUQTIUINTIUZD ewermsrormmis ioe 0 0 85 NonCOMMIttal cme oem m mmm em mmm mmm mmm mm mmm meme 324 Not answered ere remem 78 The following questions were included in class 1 (export commission houses, etc.), class 2 (domestic merchants, importers, etc.), and class 8 (publicists, economists, lawyers, ete.) : 4. What would be the advantages and disadvantages of export combinations or cooperative organizations of manufacturers or producers as compared with individual manufacturers or producers exporting through commission houses, manufacturers’ export agents, etc.? 5. In what ways, if at all, could such export organizations meet the competition of foreign combinations or individual,concerns in export trade any more successfully than individual manufacturers or producers can now do? 6. In what ways, if at all, could such export organizations deal more successfully with combinations of foreign buyers? The interest in these subjects is indicated from the fact that from 75 to 86 per cent of the schedules received contained replies to these inquiries. These questions are discussed fully later. (See pp. 349 to 367.) The total number of those answering and not answering these three inquiries are shown in the following statement: Question 4: Total schedules received....-. Answered....... Not aaswered.. . Question 5: Total schedules received.......... Answered.......-Not answered... Question 6: Total schedules received. .c.cceeeeieenacertorsesncncnncacccneneer Answered...... Not answered . Exportars. 103 01 12 02 0 27 Domestic] mer- | General chants. at 56 10 426 365 81 420 363 63 65 47 18 428 328 \ QR t Covers publicists, economists, lawyers, bankers, engineers, contractors, etc. MEMBERSHIP AND EFFECT OF EXPORT COMBINATIONS OR COOPERATIVE 0rRGANIzATIONS.—The expression of opinion in response to questions 4, 5, and 6 of the manufacturers’ schedule and to similar questions { 2, and 3) of the schedule sent to exporters, etc., domestic merchants and importers, and publicists, economists, etc., is very suggestive. These three questions were as follows: 1. Irrespective of your opinion as to whether the Iaw does not prohibit com: binations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies or by other means, please give the reasons why you think such organizations are or are not In the public interest. 2. If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should— (a) Be open to all manufacturers or producers in the United States in their respective lines, or have the right to exclude any concern at pleasure? REPLIES TO CARD AND SCHEDULE INQUIRIES. 345 (b) Be open to all American-owned concerns, but have the right to exclude any concerns that are controlled by foreign Interests? (¢) Be restricted to trade in noncompeting products or cover competing products also? 3. Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer. How would vou prevent their being so used? The problems raised in these three questions—whether export combinations would be in the public interest, whether membership in them should be selective or open to all, whether foreign-controlled concerns should be excluded, whether the combinations should cover competing products or noncompeting products only, and whether export combinations would be used to restrain trade in the domestic trade—are important in a consideration of what policy the Nation will adopt on this matter. A tabulation of the replies on two of these three questions is given below : TapLE VIII.—Summary of replies as to whether export combinations are in the public wnterest. Total schedules received... - Direct replies. ............. Export combinations are— In the public interest.....ceceeeenenccocccneas Not in the public interest...ceee..... Noncommittal.....---Not answered... Total. 9.0" TAL ‘fanufacturers. Exportars. Domestic! mershants. os = General. 426 410 388 24 ( 106 1 Covers publicists, economists, lawyers, bankers, engineers, contractors, ete. TABLE IX.—Summary of replies as to whether export combinations would restrain domestic trade. Total schedules recelved.....-----ecccr--acvcaean Direct replies.......c..ccvaeuee Export combinations would— Restrain domestic trade. ...cccceeececnnccncnene Not restrain domestic trade...-Not answered. . Total, 3,004 i632 19° 7 nog \fanufacturers. "xpor* Domestic] merchants, General} + 428 387 151 236 ag 1 Covers publicists, economists, lawyers, bankers, engineers, contractors, ete. _ It is of interest to note that, of those replying directly to the particular inquiries, about 93 per cent were of the opinion that export combinations would be in the public interest and 74 per cent thought they would not be used to restrain trade in the domestic market. The replies to question 5 of manufacturers and 2 of other schedules, in regard to the character of membership in these export combinationg, did not permit of accurate tabulation, but of those replying directly to the particular questions about three-fourths believed the membership should be open to American-owned concerns under reasonable restrictions and about seven-eighths thought such organizations should be allowed to cover competing products also. A fuller discussion of these three inquiries is given below (pp. 867 to 892). 346 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ADDITIONAL SUGGESTIONS FOR DEVELOPING FOREIGN TRADE.—(Question 7, which applied only to class 1 (export commission houses, etc.) and class 4 (manufacturers), was as follows: Have you any further suggestions as to what is needed to help you develop foreign trade? The total number of those answering and not answering this injuiry are shown in the following statement: Total schedules received. ....... Answered. .....cooeues Not answered Total. 1,513 1,186 307 Exporters. Manufacturers, 103 1,410 82 1,104 2 208 REASONS WHY MANUFACTURERS DO NOT ENGAGE IN FOREIGN TRADE. — Question 8 of the manufacturers’ schedule was not included on the schedules sent to the other classes. It read: If you do not engage in foreign trade, please explain what conditions have determined your policy in this respect. The replies to this inquiry developed the number of persons or companies reporting to be engaged and not engaged in foreign trade, as shown by the following statement: Total schedules received... 1,410 Direct replies_ eee 1, 348 Engaged in foreign trade. ____ imeem meee 1, 110 No foreign trade _________________ i SD No definite information——_—— ue __ 62 FOREIGN COMBINATIONS OF BUYERS AND SELLERS AND OTHER COMPETI-TIVE CONDITIONS IN FOREIGN TRADE.—OQther questions on the several schedules had to do with such subjects as foreign cartels or combinations of buyers and sellers, and other competitive conditions affecting export business. The general lack of information on these various subjects is indicated by the relatively small number that replied to each question. Question 9 of manufacturers’, 8 of exporters’, and 7 of other sched-1les read Please give briefly any facts you may have concerning foreign cartels, syndiates, or combinations in any form whose competition (you or other) Americans encounter in export business. This inquiry was answered by only 517, representing only a little more than one-fourth of the number returning schedules. The replies to question 10 of manufacturers’, 9 of exporters’, and 8 of other schedules only numbered 585, or about 29 per cent of the total schedules received. This inquiry concerned Foreign buying rombinations and read: Please give briefly any facts you may have concerning any combinations of buyers of (your products or) American exports abroad. such as organizations of importers, johbers, retailers, or consumers. Question 11 of the manufacturers’ schedule and the corresponding questions on the other schedules also show a small percentage of replies. This question was a general one and read: Please give briefly any specific information you may have concerning any other competitive conditions abroad affecting the export business to particular REPLIES TO CARD AND SCHEDULE INQUIRIES. 841 markets, such as investments of foreign capital in local industries, the employment of foreign managers or engineers in local enterprises, ecncessions to for-2ign syndicates or capitalists, discrimination in banking or transportation facilities, the activities of foreign governments, ete. The above inquiries are discussed at some length in the following section (pp. 8392 to 434). Question 12 of the manufacturers’, 11 of the exporters’, and 10 of other schedules was answered on 740 or 37 per cent of the schedules returned. This question read: Please give what facts you can in regard to foreign concerns or combinations dumping ” either in the United States or in other markets. The replies to the above inquiry are not included in the fuller discussions in the following section, for the reason that it was the opinion of the Commission that this subject pertained more to the work of the Department of Commerce, and the material received has therefore been transmitted to the Secretary of Commerce for his consideration and treatment. The number who answered and the number who failed to answer these questions, namely, 9 to 12, of manufacturers’ schedules and the corresponding questions of the schedules for the other three classes are tabulated below: QUESTION 8 OF MANUFACTURERS’ SCHEDULE, 8 OF EXPORTERS’ SCHEDULE. AND 7 OF DOMESTIC MERCHANTS’ AND GENERAL SCHEDULES. Total schedules received. ceec-cmm-ovuauerrenec-an Answered....... Not answered. ... Total. Manuiacbarers. Exporters. "Jomesic merrhants. General! 2,004 1,410] 103 6 428 517 407 40 | 13] 87 1,487 1 1,008 63 52 agar QUESTION 10 OF MANUFACTURERS’ SCI "7. 3, ¢ OF CX "ORTERS’ SCHEDULE, AND 8 OF DOMESTIC MERCHANTS’ AND GENERAL SCHEDULES. Total schedules received. ..ooeeeeeeenenecnacnncanns Answered........ - Not answered... 2,004 '585 1.419 1,410 304 1,108 103 65 | 426 31 4 246 72 61 180 QUESTION 11 OF MANUFACTURERS’ SCHEDULE, 10 OF FXPORTERS’ SCHEDULE, AND 9 OF DOMESTIC MERCHANTS’ AND GENERAL SCHEDULES.! Total schedules received. ......eaeeccceriecnencnannn. Answered.......- d Not answered. .. 2,004 580 1,424 1,410 449 961 103 52 51 65 11 M 426 68 358 QUESTION 12 OF MANUFACTURERS’ SCHEDULE, 11 OF EXPORTERS’ SCHEDULE, AND 10 OF DOMESTIC MERCHANTS’ AND GENERAL SCHEDULES.® Potal schedules received..... Answered.........-Not answered. ...ceeee.. 2,004 740 2684 1,410 424 ars 103 51 Be 65 12 83 426 253 173 1 Covers publicists, economists, lawyers, bankers. engineers. ete. REPLIES GROUPED ACCORDING TO SIZE OF CONCERNS.—For the purpose of making an intelligent classification of the replies and to understand better the relative importance of this or that individual or company in his or its line of business, the Commission included in the set 348 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, of questions sent to all but the publicists, lawyers, etc., a question as to the amount of business done by the particular individual or concern reporting. The only purpose in seeking this information is stated above, and in all instances it has been the purpose of the Commission not to disclose individual operations. In the fuller discussion of the several schedule questions which follows this section, the relative size of the company reporting is frequently referred to in order to give additional significance to the opinions or facts reported. Usually this has been indicated by the prefacing remark that “a large manufacturer ” or “an important concern ” in this or that industry says this or that. There Follows a tabulation of replies of manufacturers, exporters, and domestic merchants, grouped according to the amount of total gross sales, of exports, and of domestic sales, respectively. It was believed that the relative size and importance of the manufacturer or merchant would be best shown by the amount of their total gross sales and domestic sales, respectively, rather than by the amount of their export sales. In the case of the export commission houses and others in this class, however, the amount of their export sales was considered the best criterion of their importance. Approximately 72 per cent of those replying exported less than $1,000.000 worth of products. Replies of manufacturers, exporters, and domestic merchants grouped according to amount of total gross sales, exports, and domestic sales. respectively. fanufacturers... Cee SXPOTterS.. .ocvenecanane Yomestic merchants. .... Total. qr 103 AR Over ~E 000.000 $5,000,000 "1,000,000 Coto, te $250,000 » 38 Less than] Not 2950.000. answered 142 26 18 An examination of the replies to the third inquiry on the manufacturers’ schedule discloses the fact that 14 of the concerns, whose total gross sales amounted to over $25,000,000, thought that some form of combination or cooperative selling agency for export trade would be an advantage to them, 2 thought not, and 7 were noncommittal or did not reply; 42 of those having sales of between five and twentyfive million believed such organizations would be advantageous and 4 thought not; and 157 of those whose exports amounted to more than $1,000,000 but less than $5,000,000 believed they would operate to their advantage and 17 thought not. Manufacturers to the number of 710, exporting less than $1,000,000 worth, said that export organizations would operate to their advantage, and 62 that they would operate to their disadvantage. (For tabular and fuller treatment of this question, see pp. 343 and 344.) On question 5 of the manufacturers’ schedule and 2 of the exporters’ and domestic merchants’ schedules, as to whether cooperative export organizations should be made up of competing or noncompeting concerns, 40 of those whose total gross sales, exports or domestic sales, according to whether they are manufacturers, exporters, or domestic merchants, amounted to more than $1,000,000, indicated that in their REPLIES TO CARD AND SCHEDULE INQUIRIES. 349 belief such organizations should be confined to noncompetitive concerns. On the other hand, 215 of the same class were in favor of including competitive concerns also. About 85 per cent of the concerns: with sales or exports of less than $1,000,000 who express a definite opinion voted in favor of including competitive lines. On question 6 of the manufacturers’ schedule and 3 of the exporters’ and merchants’ schedules as to the restraint or nonrestraint of domestic trade, the same group of larger concerns mentioned above were divided as follows: Sixty, or 18 per cent, thought that export organizations of manufacturers or producers would be used to restrain trade in the domestic market; 82 per cent took the opposite view. About 75 per cent of the concerns whose business amounted to less than $1,000,000 thought restraint of domestic trade would not follow. A total of 333 of all classes did not express a definite opinion on this question. [1. SUMMARY OF REPLIES TO SCHEDULES AND LETTERS, WITH EXCERPTS. A discussion of the replies to questions of the schedules permitting other than mere tabular treatment is presented in this section. Along with the excerpts from replies to schedules are given axcerpts from letters received in connection therewith. The object is to show specifically the opinions of American business and professional men on the various subjects of the inquiry and the competitive conditions actually met by Americans in foreign trade. Excerpts are given freely in order to indicate the varying character of the replies received. ADVANTAGES AND DISADVANTAGES OF COOPERATION IN EXPORT BUSINESS. (Manufacturers’ schedule, question 3: other schedules, questions 4, 5, and 6.) As viewed by manufacturers in their own business. In order to ascertain the views of American manufacturers and producers as to the advantages or disadvantages of participating in some form of cooperation for foreign trade the following question wae addressed to them Do you think it would be an advantage or a disadvantage to you in your business to participate in some form of combination or cooperative selling agency for oxport trade. and whv? Only 85, or 8 per cent of the total number reporting definitely, were of the opinion that combination or cooperation would be to their disadvantage. A large proportion of these are manufacturers of specialties or high-grade goods, whose products demand more individual attention than a common selling agency, they think, could give. Their general view, as expressed in the replies, is that goods which possess individuality, such as trade-marked goods, novelties, specialties in certain lines of manufacture, etc., can not be handled advantageously by a combination. 350 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. COMBINATION NOT ADVANTAGEOUS. In this connection some of the replies to this question are of interest. A manufacturer of carriage and automobile accessories replies as follows: - A disadvantage on account of our having a specialty to market that requires a great deal of work among a very limited number of prospects in any given Geld. A manufacturer of sheet metal is of the opinion that: While thoroughly indorsing the cooperative selling agency in principle, it would be of no advantage for this company to participate in one, for the reason that we are manufacturers of special grades of sheet metal and that all special products demand individual and not cooperative selling. Other replies of a similar nature are: Disadvantage. In a specialty business selling on quality, a salesman must thoroughly know his goods and his house. Our line is so large he could not know ours and some one’s else too. A disadvantage. Implements to become popular must possess individuality. [f so possessed they proceed faster by reason of specially directed effort and Individual demonstration, impossible to accord to a long, combined line of varied manufactyres. A disadvantage. Our product * * * is not a competitive article. We believe best results can be obtained by propagating our own campaign, disassociated from any other concern. We believe that in this way we get greater efficiency. Again, by associating ourselves with any other concern. should they be unsuccessful, it might react on ourselves. A different point of view is taken by a large manufacturer of slectrical specialties, who believes cooperation advantageous: Our lines are technical and should be handled by salesmen of engineering training. The volume of sales to be expected from the majority of points where business is at all possible is too small to justify devotion of entire time by a competent representative, who thus could handle parallel lines with mutually reduced expense. It can easily be seen that manufacturers who already have an established foreign business naturally would not favor any plan by which their competitors in this country would reap the benefits of their experience. A few thought cooperative selling agencies would operate to their disadvantage for this reason. Thus, a large lumber manufacturer, 60 per cent of whose product is now exported. answered as follows: There might be an advantage—still. we would not [cooperate] if we lost our dentitv. Another large lumber manufacturer, 75 or 80 per cent of whose product is now sold abroad, said: It would be a disadvantage in our business. We have been exporting for over 20 years and have our own selling agents in all important ports. If we were engaged in some other line of business. and in a small way, our answer might be verv different. A fountain-pen concern replied: To our disadvantage. The business race is to the swift, not the sluggard. The conservative or timid firm lacking in initiative should not benefit in any way, shape, or form through the efforts of their more enterprising competitors. A manufacturer of oakum said: There might be an advantage to us in cooperating with kindred lines, but not with our competing manufacturers. Why? Because we already have the ream of this business. REPLIES TO CARD AND SCHEDULE INQUIRIES. 351 A milling concern producing more than $25,000,000 worth of flour annually, much of which is exported, opposed cooperation in its line on the ground that it would increase the selling cost: United States flour has sold in the markets of the world for many years on a highly competitive basis and at the lowest possible selling price. No combination of United States millers can raise the price over the price of flour in export markets. Any cooperative selling agency would increase the cost of selling goods abroad, which is now very slight. COMBINATION ADVANTAGEOUS. On the other hand, another milling company, with annual sales between $1,000,000 and $5.000,000, spoke for cooperation as follows: Decidedly advantageous. A cooperative selling agency would prevent the various competing United States mills from entering into a cutthroat competition which would eliminate practically all legitimate profit for the advantage of the foreign buyer. In local district selling in the United States a mill has a certain local trade in which it usually has some advantage over mills in other parts of the United States—in transportation rates, in local favorable prejudice, In trade-marks, ete. On the other hand, in competing for foreign business, practically all mills of the United States are on nearly an equal basis. This gives the foreigner a much greater opportunity to play one American mill ngainst another. By this means he draws the manufactured product out of the country without paying the legitimate profit and interest to which operators are entitled. The Manufacturing Chemists’ Association of the United States, though strongly urging the advisability of freedom to experiment with export combinations, made the following statement regarding its uncertainty as to the advantage or disadvantage such combinations might prove to have: It would depend upon the question of whether this method of conducting business is an efficient and economic method and this question the association believes can not be answered until there has been a more universal experience. Many of the association’s members advance strong arguments in favor of such cooperative organizations, believing that they would (a) tend to open up the export trade to the smaller manufacturers, (b) reduce selling costs by eliminating useless duplication of expense, (¢) open up new foreign markets by utilizing the combined strength of American producers and eliminating wasteful competition, and (d) place American producers on equal terms with foreign competitors who are not subject to such restrictive antitrust laws, As shown in the table above, however, the great majority of the replies received were favorable to some plan of combination or cooperation. Many gave no reason for their answer, simply answering the question in the affirmative. Others thought such cooperation would be to their advantage in that the selling cost would be reduced, foreign competition would be overcome more easily because prices would be more stable, a basis for extending credit could be determined and established, and small manufacturers who individually are not able to bear the expense of introducing their products in foreign markets would thus be enabled to engage in foreign trade. The following reply of a lumber manufacturer is illustrative: An advantage. Avoids duplication of effort and consequent increase of sale cost. A salmon canner who exports more than one-third of his product replied : It would be a very great advantage because it would lessen the selling expense by several exporters combining in one selling agency and thereby enable 352 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, ns to make a lower price and maintain it because the selling expense would be reduced and there would be no price cutting in order to get established. There would be a standard price and both buyer and seller would be better satisfied, the buyer especially because he would always know what his goods would cost him. Also the manufactured product could be standardized by the selling agency finding out just what was wanted and ordering only just what was wanted. A manufacturer of wood parts for automobiles and wagons recites the following as advantages: Could get the benefit of a trained manager; handle large orders; keep in touch with markets; handle freight claims; divert shipments to other markets when conditions are unfavorable; and in various ways work to the advantage of the United States manufacturers. A Pacific coast lumber manufacturer answered the question as follows: A great advantage. We can advertise our own woods as against those of other countries and not depend upon commission men, who will sell the wood put of which they can make the most profit. A lumber creosoting concern thought the chief advantages would ba * To share the expense of developing distant markets, Insure uniformity of grades and prices. These last two considerations being of essential value both to seller and purchaser. Distant markets are unlikely to be developed by indiridual concerns in any industry, both by reason of the expense being greater than can be carried by one and the danger of market being made of little value by subsequent irresponsible competition taking advantage of efforts by others in developing the market. One of the important fruit jobbers’ associations said that there should be cooperation to the end that supplies in the various markets sould be reasonably regulated : Without such regulation, there is the constant danger of excessive supplies of articles that must be forced to immediate sale or be lost entirely, with a resultant scarcity immediately following when prices will advance, abnormal figures inducing a repetition of an oversupply. The result * * * jg disastrous to both buyer and seller and does not permit of a maximum of consumption of a perishable commodity. A small manufacturer of furniture thought that: It would be an advantage which would lessen cost or burden. This cost would be too great for a small or moderate sized firm to assume. Another furniture firm replied: Distinctly an advantage. Could operate to obtain lowest selling cost and at game time facilitate credit information. A structural-iron concern’s reply was: If there is any export business for us, it must be done with some other concerns dividing the expense. A cotton manufacturing firm’s answer was: Believe it advantageous to cooperate, because we are not strong enough to) work alone. A hosiery firm doing more than a quarter of a million dollars worth of business annually replied: Yes; cut down expenses and get higher grade represenfatives. This would increase the prestige of American goods. REPLIES TO CARD AND SCHEDULE INQUIRIES. 358 A manufacturer of electrical supplies stated: The advertising, introduction, and sale of goods could be better accomplished ander one head than by numerous companies having separate-departments. The pxpense of each would almost be the equivalent of the whole, were they combined in one. On account of having to compete with foreign labor, it is obviviously necessary to keep the selling expense as close to the minimum as possible. Others thought cooperation an advantage if composed only of related but noncompeting concerns. Thus, a large manufacturer of watches said: We do not think it would be any particular advantage for us to cooperate with any other watch company, but we do think it very desirable to cooperate with a watchcase company. The reply of a manufacturer of household specialties was of the same nature: We are not favorable to a cooperative selling agency for export trade, unless it should consist of merely a few manufacturers of noncompeting lines, who should pool their interests to reduce the cost of export advertising and traveling.expenses, and to send large consolidated shipments in one order, in the hope of securing favorable transportation rates. Aside from the largeness of the number who favor combination or cooperation, probably the most interesting feature of the replies received to this question is that so many small manufacturers believe that by this method they can either enter the foreign field for the first time or expand their present business in that direction. As viewed by exporters, domestic merchants, professional men. ete. In order to obtain information from others than manufacturers as to the advantages and disadvantages of export combinations three questions covering particular phases of the subject were sent to export commission houses, manufacturers’ export agents, export brokers, domestic merchants, importers, engineers, contractors, lawyers, economists, publicists, bankers, etc. The summary of replies to these questions follows. Export ComBINATIONS CoMparED WrTH INDIVIDUAL MANUFACTURERS OR EXPORTERS. The first of these questions (which is Question 4 on the schedule) 1s as follows:® What would be the advantages and disadvantages of export combinations or cooperative organizations of manufacturers or producers as compared with Individual manufacturers or producers exporting through commission houses. manufacturers’ export agents. etc.? Out of a total of 594 persons answering the schedules sent to others than manufacturers 511 replied to this query. The answers, however, did not confine themselves to a discussion of the relative merits and demerits of export organizations as compared with the commission house and export agent systems. The replies generally went further afield to consider the whole problem of combination as against unfettered competition, often ignoring the more specific questions applying to the existing mechanism of foreign trade. Most of the respondents favored export combinations of some kind or other. Many qualified their opinions by statements that the efficacy of such organizations would. depend on the particular com-97941°—p1 9—16— 93 354 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. modity handled; that commission houses and export associations might exist side by side; that the nature of the organization proposed must be known before an opinion as to its usefulness could be formed, etc. The majority of these noncommittal or qualified replies came from the exporters and commission men themselves. With these exceptions, the weight of the opinions expressed was that the disadvantages, if any, of export organizations would be small in comparison with the advantages. The advantages most frequently named may be classed as follows: (1) The patent advantages of large over small scale organizations, such as elimination of wasteful competition, etc. (2) A more efficient and less expensive mechanism of foreign trade. (8) Superior effectiveness in development of new foreign trade. The bulk of the favorable replies come under this head. The greater ability to sustain the temporary hardships and losses incident to the capture of new trade; the broader knowledge of conditions, and the better facilities for tempting and accommodating the foreign buyer are the benefits named most specifically. (4) The direct advantages over commission houses and export agents are recited by a great number of respondents. These advantages include a closer relation between producer and consumer, and especially a greater keenness of self-interest on the part of the exporter of the particular commodity. The disadvantages of export organizations generally stated were as follows: (1) The lack of that individual self-interest and direction necessary to enterprise in any field was repeatedly urged in objection to export organization. (2) The abuse of such organizations by cliques or larger producers or through mismanagernent and internal dissension was predicted by several respondents. (8) Other general economic objections appeared—that higher prices and restraint of trade at home would result; and that the spur to exports without a corresponding one to imports would disturb the economic balance of the country, etc. Objections of this kind were few in number. There seems to be considerable conflict of opinion as to whether an export organization or a commission house would better represent the individual interests of the producer who exports. A. ADVANTAGES. 1. GENERAL EFFICIENCY OF COMBINATION OVER COMPETITION.—On this point a teacher of economics writes: Competition is wasteful. There is almost endless duplication. These expenses could be saved. Centralization of control would be as advantageous here as in all other contests. Wasteful methods of advertising would be eliminated and great savings would result. A real estate dealer suggests that combinations would result in “ iniform packages, uniform brands, standardization on grading of products, honest dealing.” REPLIES TO CARD AND SCHEDULE INQUIRIES. 355 / A professor of political economy who has made a study of monopoly, declares: The chief advantages would be that they could regulate supply, prevent waste both of product and through competition, prevent duplication of salesmen, ete. In short, there would be many of the advantages peculiar to monopolies. } An exporter of 50 years’ experience says that advantages would be attained: * * * through the greater centralization, large capital, greater reaching powers, and greater number of efficient officers and salesmen. It is evident that a concern with millions for capital ean do much more in advertising, pushing the sales, employing efficient agents, ete., on a very much smaller percentage of expenses than one individual concern. 2. ADVANTAGES IN IMPROVED MECHANISM OF FOREIGN TRADE—ErLIM-INATION OF MIDDLEMAN.—The president of a bank, referring to export organization, asserts: It would tend to centralize the supply and centralize the demand, bringing customer and merchant together more quickly and more economically, My opinion is based somewhat on the operations of the Florida Citrus Exchange which is practically a combination of growers selling to the markets throughout the United States. The method has been a wonderful improvement over the old methods of dealing through commission merchants and is apparently better for both seller and consumer. Better transportation rates and facilities.~—In this regard an exporter states: Export combinations * * * would control an immense amount of tonnage and this tonnage, they could offer * * * to the railroads * * =* who would agree to take the best care of them. * * #* In addition to this such a combination would, of course, have a distinct advantage in dealing with steamship lines, as they can, in view of the immense amount of freight they would control, force better terms and rates, *- * * if they are unable to get proper terms and rates out of the steamship companies (they) would be big enough to charter their own steamers. Better handling of banking problems.—One reply suggests: The advantage would be * * * ability to handle the banking problems which are too large for a single manufacturer to cope with. Foreign bankers at present control the field and favor their own countries. Handling many lines at once—A professor of economics, who has made a special study of trusts, writes: The experience of the Steel Corporation proves the need that many lines of goods be offered at once. Collective action in large emergencies.—A professor of sociology and government declares there would be: * * * gall the advantages which generally come with organization, such as * * * prompt and decisive action in large emergencies. Better adjustment to conditions.—An attorney writes: : The larger organization would possess larger means at all times to be acquainted with the conditions of supply and demand in different parts of the world; would thus be able to avoid congestion of goods in some markets and scarcity in others; they would naturally be better informed and better advised than would the smaller concerns as to the requirements and desires of foreign buyers as to packing and method of shipment, and would be better acauainted with the sometimes eccentric requirements of the foreign purchaser. 356 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Constant attention to export trade—A consulting engineer who has worked abroad states: Manufacturers or producers devote themselves chiefly to the work of production and to the domestic trade, and only incidentally and when trade is dull at home to the foreign market. The foreign buyer is thus well served when domestic business is dull, and served ill or not at all when domestic business is rood ; he will not put up with these periods of neglect and goes elsewhere for his business. * * * Special organizations whose only interest is the foreign business would overcome this abuse. 3. ADVANTAGES IN DEVELOPMENT OF NEW FOREIGN TRADE— EDUCATIVE INFORMATION.—An exporter makes this suggestion in favor of export organization: It would also give the manufacturer or producer an inside (knowledge) of what the foreign trade demands and thereby help to establish their products on a strict business basis. * * * Manufacturers have not the least idea of what foreign trade demands. This applies to metric system, method of pack-Ing, * * * proper labeling. In fact, everything and anything to which foreign trade objects the American manufacturer of to-day persists in supplying, and otherwise will do no business with foreign trade. It would make him understand proper foreign conditions and study them to the benefit of his particular line and combination. Inasmuch as it would be cooperative, every manufacturer or producer would get this information at first hand and could draw his own conclusions. Adwvertisement—A lawyer states that export associations could make “a larger display and a more effective one.” Help small producer—This advantage was recited by a number of respondents. A professor of transportation and commerce expresses it thus: . Under present conditions large producers and manufacturers, like the Standard Oil Co. or the Steel Corporation; can go to the expense of building up a foreign trade in different parts of the world. However, a great number of manufacturers producing on a small scale are prevented from engaging in the foreign trade directly because of the expense of getting into foreign markets and building up business abroad. If manufacturers or small and medium sized pro-Jucers could unite in the maintenance of an export department, it would seent that they might thereby engage profitably in foreign trade and thus largely Increase: the commerce of the United States with other countries. A professor of political science points out another aid to the small producer: Advantages would be that it would prevent individual concerns with large capital from controlling small concerns. Similarly a lawyer writes: The small manufacturer and the new Institutions are especially injured and frequently forced into early bankruptcy by the too severe competition by the older houses interested in putting the new ones out of business. Continuity of I attorney who has studied foreign trade says in this regard: The individual who would have enough capital to build up an organization equal to the needs of the foreign trade would still lack the continuity of effort, owing to the uncertainty of human life, which a corporation could supply. ¢ = % The individual, therefore, might fall by the way in the midst of his plans, while the corporation would live and fight on. The individual might beconte discouraged by the impairment of his capital; the corporation, if adequately supplied with capital, might suffer dreadfully and yet be able to accomplish its purpose and recoup its losses. Or as an exporter briefly states it: The general effectiveness of concerted and sustained effort in creating a forolen demand for any certain class of American merchandise. « REPLIES TO CARD AND SCHEDULE INQUIRIES. 357 Aid to “seasonal” business—An exporter makes this interesting point : Many so-called * seasonal” businesses could greatly extend their season of yperations, especially if trade with the Antipodes were cultivated. 4. SPECIFIC ADVANTAGES OVER COMMISSION HOUSES AND EXPORT ageNTs.—Under this head the point most frequently made was that the interests of the manufacturer and the commission house do not run parallel. A commercial agent in Australia writes: . The millman gains little in his dealing through brokers; it makes no difference to the broker whether he makes a commission on the sale of a cargo of lumber sufficient to build 500 houses, or whether he makes the same commission on a shipment of cement sufficient to build the same number of houses. The broker has not the interest of the lumber producer at heart. A manufacturer of lumber who has made a special investigation asserts: Commission houses, etc, are very unsatisfactory in comparison. They really represent the foreign buyer and are competing among themselves for foreign business. They use prices quoted by one concern to obtain concessions from another until the lowest price level is obtained. ye . . . . } og. Ability to specialize.—In the opinion of a professor of political sclence— The greater advantage of export combinations is that the combination would represent more capital than the individual and therefore could specialize along many lines to meet the special needs of foreign trade; that is, one firm could produce one line of goods by agreement and another firm another line; morepver, a combination could keep in closer touch with the needs and demands of foreign trade. 5. (QUALIFIED REPLIES—NOT NECESSARY TO ELIMINATE COMMISSION HOUSE.—An exporter suggests: There Is no reason why such export combinations should not work in harmony with commission houses and even though a concern may be a member of such an organization there is nothing to prevent his employing an export agent to push his particular product. Several other respondents took this same attitude. Efficacy would depend on particular commodity.—This point was made by a great many exporters. One of them writes: It all depends on the article, on the nature and conditions of the particular market under consideration, and to what length and expense the producer is prepared to go in order to establish his goods in that market, Another exporter. who imports also, agrees: The advantages and disadvantages of combinations or exporting through commission houses, manufacturers’ export agents, etc. is all a matter of the commodity, and the question of economical distribution and selling. This is BR question that can hardly be handled correctly in the abstract. Similar expressions of opinion were received from the editor of an industrial publication and others. B. DISADVANTAGES. 1. LACK OF INDIVIDUAL SELF-INTEREST AND DIRECTION.—This was the chief disadvantage urged. (It will be noted that others made this same point against commission houses in favor of export organizations.) 358 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. An exporter writes: In practice I think it has been found that these combinations lack the painstaking and detailed care that the individual devotes to his business. The technical knowledge of the individual manufacturer is more likely to yield results, even through the medium of the commission merchant, than the scattered and sometimes desultory efforts of a combination. A “student of trusts and labor? concurs: No cooperative organization can compete with the individual manufacturer maintaining publicity system and especially trained sales organization backed up by knowledge of use and limitations of product. Enterprise, interest, and energy lacking, as success does not depend on one manufacturer's goods. Danger of red tape. Similar replies were received from a lawyer who has interested himself in the matter, from the editor of an industrial magazine, and others. 2. DANGER oF ABUSE—An accountant who has studied political economy mentions: The disadvantage of confining any particular trade to persons who should monopolize it to themselves through ownership of patent and similar rights. An assistant professor of history points out another possible abuse: Old experienced houses might not do so well absolutely as through the machinery they now use; possibility of greater loss through mismanagement of a large organization than of a small one. Several other dangers occur to an assistant professor of economics: It is always possible that in gn association a little group may get control and work things to their own advantage. The association might be apparently open to all on equal terms. The minority, or even the majority, in the face of a powerful minority well organized, might not secure fair treatment in the association, and yet might not be able to get along well without it. * * * the association method might actually result in some restraint on the vigorous and enterprising and so tend to check the development of the best and most efficient producers. 8. GENERAL ECONOMIC OBJECTIONS.— Would raise domestic prices.— An assistant professor of economics notes: Disadvantages: Maintenance of domestic prices above foreign prices, where the combination, protected by a tariff wall. is seeking to drive out competitors In foreign fields. Disturb economic balance.—This objection comes from a consulting engineer and economist: The disadvantages would be likely to be that such combinations would only work one way; that is to say, with relation to exports only, and not to imports as well, so that the economic balances of. our country and any other given country might be actually hurt rather than helped. Would involve. legalizing domestic combines—The reply of an assistant professor of economics is typical of the attitude of a number of respondents: If export combinations are given legal standing, how avoid some recognition to domestic combinations? Commission houses can be made effective—A professor of political science suggests: The answer would depend upon the organization of the commission houses, and whether the exporters held controlling interests in the commission houses, as I should try to do if I expected to export through them, REPLIES TO CARD AND SCHEDULE INQUIRIES. 359 Similarly a professor of economics writes: If a commission house should conform to certain requirements the practical difference between it and a special agency of a combination would be small. Export CoMBINATIONS AS AN A IN MEETING FOREIGN COMPETITION. Question No. 5, addressed to the same classes as question No. 4, was as follows: In what ways, if at all, could such export organizations meet the competition of foreign combinations or individual concerns in export trade any more successfully than individual manufacturers or producers could do? This question was answered by 502 members of these classes, out of a total of 594 who returned schedules. The majority of the replies favored export organization as an aid to meet competition of foreign combines or individuals. The advantages of combinations, as named in the replies, may be summarized under three heads: (1) The greater economy, uniformity, knowledge, and efficiency which would result from cooperative action. (2) The greater ability to meet and cope with the methods of foreign competition, combined or individual. Ability to cut prices and carry losses, to advertise extensively, to eliminate export competition by home concerns, to take risks, etc. Probably the majority of benefits recited would come under this classification. (8) The greater ability to tempt foreign buyers by offering better prices and goods, quicker deliveries, longer credits, larger assortments and quantities, and better adapted products. The study of foreign needs and tastes and the adaptation of products to those requirements instead of attempting (as now) to educate foreign consumers to the use of our products, was repeatedly mentioned. Several respondents gave qualified approval of export organizations, declaring that they were important for small producers but would be of no use to large ones. The disadvantages urged were as follows: (1) The general Snafeqny of export organizations to meet the situation. Sh replies declared our foreign trade is artificial and unnatural and can not be maintained or developed at present; others, that export organization would lack the keenness of individual interest and would be large and unwieldy. (2) The bad effect on home conditions was the theme of several other opponents of the idea. Lower wages, poor working conditions, and high prices were predicted as a result if the plan were put into operation. A. ADVANTAGES. 1. GREATER ECONOMY AND EFFICIENCY IN MECHANISM OF PRODUCING AND EXPORTING—L ower costs.—An economist wrote : Most manufacturing plants can increase their output by running at full or fuller capacity. This lessens the cost per unit because of the distribution of overhead charges. It follows that if an industry puts out enough to supply the home market only, the overhead charges are higher for each unit. If, in addition to this output, more be produced, the selling price may be lowered and with a profit, if only the added costs be taken into account. 360 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. An exporter mentions the elimination of the commission house: Direct business dealing, eliminating the commission house and agent when practicable, would only be possible in many cases through combination. Economy in shipping is the theme of a railroad secretary, who points out that a greater combination of capital would give— «+ * = the ability to charter a ship for whole cargoes, which would mean a lesser rate of expense than if individual shippers exported in smaller amounts. Greater uniformity —A professor of commerce and finance believes that— The new concerns could standardize and adapt products to the needs of the situation. The publisher of a trade journal suggests— * * * gdopting the metric system and standards of rules for general conduct of business. | Greater knowledge.—An accountant who has made a study of political economy says: Foreign competition must be met by studies of the different markets by properly organized bureaus of research maintained by and at the expense of the organized trades. A system of intercommunication among the different units of business for all possible economy in details and the avoidance of all duplications and unnecessary handling of merchandise, ete. should be established and under Government control. A number of replies emphasized the importance of being better informed on foreign conditions. The statement of a respondent, who is a farmer, nurseryman, and banker, is typical on this point. He suggests— + * * maintaining native United States representatives abroad who are loyal to such organizations and loyal to this country, who will keep them posted as to markets, prices, conditions, competition, and all other things of benefit to such organization and its various lines of business. Could employ men of greater competency and ability.—In this recard an exporter writes: A cooperative organization would be able to secure the services of men of greater competency and ability, the cost being prorated among a large number of manufacturers or producers. Distribution of the burden of opening trade in new fields—An assistant professor of economics writes: An export association would be In a better position to develop a market than competing producers would be. In the first place, such development is likely to involve considerable expense, and this expense should be divided. If one of them tries it alone it is likely that he will bear most of the expense, but will reap only a portion of the benefit. 9. SUPERIOR ABILITY TO MEET THE METHODS OF FOREIGN COMPETITORS, COMBINED OR INDIVIDUAL—ASssumption of risks—A teacher of history and social science points out: Successful entrance into a foreign field involves considerable expense and much risk. Many producers will not alone take such risk, while they would be willing to take chances in a joint enterprise. Besides, fresh capital could be attracted to such combination and the risk still further distributed. Better knowledge of foreign competitors.—This advantage appealed to a number of respondents. An assistant professor of economics expresses it thus: REPLIES TO CARD AND SCHEDULE INQUIRIES, 361 In addition, an association should be better able to meet foreign competition, hecause it will be in a better position to know what its competitors are doing than can individual concerns, unless they be very large themselves. ' Ability to buy and sell in best market and avoid others—From a professor of economics comes this suggestion: Each organization * * * would be able to take advantage of the most favorable opportunities to sell or buy, thus saving by buying or selling better; lo neutralize, partially at least, the effect of * dumping ” by avoiding the market in which the dumping was taking place. Ability to meet prices—A farmer and publisher declares: They would be in possession of the prevailing prices abroad and by the cooperative plan would largely cut the cost of production to meet the competition. Better facilities for display and introduction of goods.—A gentle~ man who has studied conditions in Mexico writes: Speaking broadly, it is my opinion that American products generally (except [n textiles) are superior to foreign-made goods in quality and attractiveness. What is needed is display and introduction. Lessening American competition abroad.—A professor of political economy believes export combinations could aid— By moderating competition among American producers in the foreign market and making more aggressive their combined competition against foreign producers. Prevent dumping in United States—From an official of the Carnegie companies comes this idea: It is also quite possible for such combinations to prevent the * dumping” of foreign products in the United States by announcing to the concern attempting such action, that any such move on their part will be met by an invasion of their home or foreign markets at prices that will preclude the possibility of their selling in same. Could overcome foreign combinations.—An exporter writes: Foreign sales combinations having a knowledge of the money power behind an American sales organization of any consequence would hesitate to adopt the highly aggressive tactics toward them that they might in driving individual Amnerican manufacturers from a market. The tendency * * * would pe toward profitable cooperation instead of prolonged and unprofitable trade warfare, General—A director of the North American Fruit Exchange ~rites Unless and until American exporters are allowed to combine in standardizing methods and, in some instances, prices, and to reduce the initial expense of entering new markets by establishing joint agencies abroad, they will be at a distinct disadvantage in competing with European countries. * * * Apart from the pains our competitors take to give their foreign customers what they want in quality, and especially in packing, they have a distinct advantage in their methods of financing their business. An ex-governor of New Mexico, who was formerly second secretary of the United States Embassy at Petrograd, says in regard to observations made during his three years’ residence in Russia: From such observations I should say unhesitatingly that some sort of copperative organizations among American manufacturers for export business would not only be wise, but that, in order to secure our share of foreign trade, especially in Russia, Manchuria, China, Japan, and the Far East generally, such organizations are absolutely essential. Our competitors in that trade, 362 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. especially the Germans, but to scarcely any less extent the English, are (or were) far ahead of us in every sort of practical measure looking toward the winning and holding of the trade of these eastern peoples. There seemed to be generally among American manufacturers a debonnaire unconcern as to the specific demands of the people there—demands not so much as to quality, but as to form, packages, color, etc.—specifications which Americans thought were finicky and frivolous, but which the Germans acquiesced in fully. Moreover, the Germans adapted themselves to the eastern customers—prejudices, if you will—as to payment, credit, warehouse receipts, etc, in a way that secured them the business. Only through effective cooperation of exporters employing experienced local agents in the various districts can, it seems to me, these drawbacks be overcome. , 3. SUPERIOR ABILITY TO TEMPT FOREIGN BUYERS.—An attorney declares one way of doing this is— By providing for larger aggregate quantities when required. Better goods and better adaptation to foreign demand.—A lawyer who has been interested in combinations for 30 years says: They would make and send better goods or better adapted to the proposed 1ses. Quicker deliveries—The secretary and treasurer of a railway prganization suggests: The association should maintain in the commercial centers of the world warehouses stocked with staple lines of goods according to the requirements of the country in which these warehouses are located, so that customers would be enabled to secure their staple stocks in much less time than it requires at present. . ' Longer credits—This was an advantage frequently named. An exporter writes: By having knowledge of the financial standing of the buyers in foreign countries so that American firms might with reasonable safety sell on time instead of their present * ironciad” “cash against bill of lading” terms, and thus meet the chief element in the success of the European merchant, Protection as to grade and quality—A broker of foreign and domestic securities believes— Cooperative export organizations should provide for grading products, wherever possible, according to their quality, which gradings should be rigidly enforced and the goods should be sold as of a stated quality. If this were done, it would seem that a foreign purchaser, knowing that this condition existed, would be more likely to buy goods manufactured by a member of this organization than he would from an independent dealer. Larger assortment to off er—~A stockbroker, who has been a manufacturer, declares— Agencies representing a combination of all concerns would have a much larger assortment to offer buyers. A banker who has studied the question agrees that— Variety of merchandise on the part of the combination would bring in the feature of convenience in many ways. Catalogues in foreign languages.—A professor of economics cites this special advantage: Many of our plants can not afford to print their catalogues and advertising In the language of the country they might hope to sell to, for individually the business is not large enough. REPLIES TO CARD AND SCHEDULE INQUIRIES. 363 Enable adaptation of product to the market.—The need of this was mentioned frequently and emphatically. A vocational adviser, who has studied Peruvian commerce and conditions, writes: The weakness of our foreign trade is found in the inability of our manufac. turers and producers to supply the demands of foreign customers. We have been trying to create American tastes in the Tropics, for example, instead of making goods to supply tropical tastes. One individual manufacturer can not supply all of these wants, but if all our producers of goods would work together there is no reason why the United States can not supply these markets as cheaply and as readily, if not more so, than any foreign competitor can do. An exporter points out the advantage of— * * * (discovering exactly the class and quality of goods desired in each particular country and catering thereto. If Brazil uses a million dollars’ worth of some piece of machinery in a year, differing slightly from any we make, let one factory of the combine exactly produce what she wants and devote its output to perfecting for her markets this article. 4. QUALIFIED ADVANTAGES— VALUABLE ONLY TO SMALL PRODUCER. — One who has studied foreign commerce says: I should regard it as of no importance in the case of great concerns like the Standard Oil Co. or the Steel Corporation but of great importance for the small producers who are now practically debarred from entering the foreign field at all in many cases. Similarly a mechanical engineer declares: These combinations would be more serviceable to concerns not handling large volumes of business in foreign countries. Manufacturers that already have ngencies established would not go into a combination unless they would be able to market their product at less expense. B. DISADVANTAGES. 1. GENERAL INEFFICACY TO MEET THE SITUATION.—An assistant professor of marketing, who was associated for six years with a private foreion trade bureau. writes: Most of the combinations engaged in export business from foreign countries are in the raw or staple materials. The combinations here suggested appear to be in manufactured finished products. I am inclined to think, therefore, that the usefulness of such associations in meeting foreign competition would be confined to a comparatively few lines. From a retired banker comes this assertion * Primarily we manufacture for home consumption, which has been so profitable in the past as to artificially stimulate production beyond the consuming power of the country. It is this surplus that we want to export. We really do not want, and are not fitted, to compete in the open market with other countries for foreign trade. A lawver suggests other objections: T do not think the tendency of such a combination would be to meet foreign competition. The organization would be too large and unwieldy. Foreign competition could be met more successfully by individual concerns. 2. EviL EFFECTS ON HOME MAREET.—One who has studied trusts and labor thinks that export combinations would operate— By selling below competitive level, by extending longer credit, or by dump-Ing.” All of these methods are opposed to public interest by developing trade which is not self-supporting and must rest on low wages, poor working conditions, or high price to the home consumer. 364 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A farmer and stock raiser who has made a study of prices paid producers in home and foreign markets voices this economic theory: If foreign competition can produce and market as cheaply and efficiently as we can, I see no object in trying to force any particular product on them at a loss to us. We had better turn our attention to things we can do best. Export COMBINATIONS A8 AN AID IN DEALING WITH COMBINATIONS OF ForeleN Buyers. Question No. 6, which was sent to the same classes as the two preceding questions, reads as follows: In what ways, if at all, could such export organizations deal more successfully with combinations of foreign buyers? Out of the total of 594 persons replying to these schedules 445 answered this query. With a few exceptions the replies consistently indorsed export organizations as a means of dealing with combinations of foreign buyers. The specific advantages and uses named may be classed under two heads, thus: 0) The advantages of size and unity in meeting the aggressions of foreign buyers. About half of the different finds of benefits described by the respondents come under this head. The quotation by foreign buyers of one American producer against another and the resultant price cutting appeared the most specific evil to be remedied by organization. (2) The advantages to the foreign buyer in being able to deal with a single organization. The buyer is of course a customer of the American manufacturer who is normally more concerned with the problem of pleasing him and tempting him than of fighting him. Conveniences to the buyer such as better credits, standards, fixed policy, etc., were cited as products of combined action. The objections to export organizations in dealing with foreign buyers were few in number and appear to have been evolved deductively from a general prejudice against any sort of combination. They may be classified thus: (1) The inefficacy of such organizations for forcing high prices or representing the real wishes of their members. (2) The lack of necessity for such associations, inasmuch as there are few, if any, combinations of buyers. This assertion came mainly from respondents whose experiences had been in South America. (8) Direct evils would result—intimidating the small manufacturer, control by cliques, ete. A digest of the replies received is given below in two groups— those that suggested the advantages offered by export combinations for dealing more successfully with combinations of foreign buyers, and those that suggested the disadvantages. A. ADVANTAGES. Those indorsing export combinations as an aid in dealing with unified foreign buying gave various reasons for their opinions. 1. BETTER ABILITY TO COPE WITH AGGRESSION OF FOREIGN BUYERS.— Collective bargaining.—A professor of economics declares: They would have more power in bargaining than the individual manufacturer. REPLIES TO CARD AND SCHEDULE INQUIRIES. 365 Prevent quotation of one producer against another.—A banker rives this illustration: If, as is claimed, the market for copper in Germany is under the control of a highly organized purchasing syndicate, the American exporter of copper is at a great disadvantage in securing even a fair price for his product; in fact it is my belief * * * that the American producer gets a considerably lower price for copper exported to Germany than for copper sold in this country, due to the fact that organized buying power is able to quote one producer against another and gain the full advantage of competitive selling without suffering the disadvantage of competitive buying. Could refuse to sell.—An attorney, who is an ex-credit man, suggests that export combinations might— # * * prefusetosell. * * * If a man wants a thing and the seller refuses Lo sell below a certain price, the man will pay it. Similarly, a teacher of economics thinks such combinations, might deal— * * * jp the same way as the United Shoe Machinery Co. has dealt with shoe manufacturers. i. e., undertake something in the nature of a trade boycott. Could withdraw from fields controlled by foreign buyers—A lawyer who has investments in manufacturing and mercantile corporations suggests: Such organizations could cover more territory than a single producer, and could, if necessary, seek fields not effectively dominated by such foreign combinations. Could sell direct to consumer.—This advantage appealed to a number of respondents. A professor of economics suggests that such organization might operate successfully— * * * by organizing local distributing agencies to compete with foreign huyers’ combinations. . Similarly, the general manager of a Milwaukee land company says: The combination of foreign buyers now absolutely controls the foreign market, We could, by organizing, have something to say about fixing the price of our commodities, whereas now we have nothing to say. We could distribute direct to the foreign consumer. The same idea appeals to another who imports and exports extensively: If the American combination, working through its appointed sales agent, should seek out the ultimate consumer, it should be able to overcome the buyers’ combination, provided, of course, the American manufacturers can make competitive prices against those of any foreign set of manufacturers who were trying to do the same thing as the American combination. and that is break up the cooperative buyers’ association. Could maintain adequate prices.—An attorney of wide economic repute suggests that export organizations could operate more successfully— * * = Dy establishing fixed prices above the cost of production. This reply is typical. Could gather information as to market conditions.—This benefit is frequently mentioned. An economist puts it thus: A large, well-organized combination of many firms will be better able to learn the market conditions of another country than any one firm, however large. A full knowledge of such conditions makes it possible to know the maximum price that might be secured. 366 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A professor of economics, who has made a special study of tariff and trust problems. says: They should be able to deal more successfully because of the greater value and abundance of detailed information they could give their members—information which it might be difficult or too expensive for individuals to obtain. 2. THE ABILITY TO TEMPT THE FOREIGN BUYER BY DOING MORE FOR BM. —Could ask lower prices—An economist, who was formerly professor of economics in a Chinese university, speaks of the advantage to be gained— * * * through the increased efficiency * * * and the consequent ability to lower prices and attract customers. Could offer a greater variety of goods.—A lawyer declares: They would have a much greater variety of products to offer for sale. Could standardize methods and products—This advantage is expressed thus by a respondent: It is probable that the needs of foreign buyers might be more easily ascertained, and standardized forms, qualities, methods of shipping, and credit arrangements could be adjusted so as better to meet such needs. Could give better information to buyers.—The secretary and treasarer of a railway organization, who has traveled in South America, declares: Such an association would have available information as to the general supply of raw materials and the general supply of manufactured products and the available supply of products of its members for export. In fact, the whole situation of the market in the United States could be presented to the combination ‘of foreign buyers without that combination being compelled to make individual inquiries among the hundreds of mills and manufacturers in the United States. Could maintain a fixed policy —A director of the Tax Payers’ Association of New Mexico writes: A single organization would become well known and would have a continuous and fixed policy upon which foreign buyers could depend. Could adjust credits to needs of buyers.—An exporter emphasizes this advantage: They would have greater facilities to extend credit to foreign customers, which end could be accomplished as well through our banks if they could be induced to establish foreign agencies. In the South [South America], Europe takes the trade away from us because they can offer long-time credits, sometimes even a year or more. An exporter of machinery agrees that— With greater capital than individuals [such an organization] could offer better credit conditions. B. DISADVANTAGES. 1. INEFFICACY TO MEET THE SITUATION.—A student of trusts and labor problems answers: Cooperative organizations could withhold supply and force high prices, but we can not develop markets by forcing unnaturally high prices. No foreign buyers’ combination can force price below cost of production. Unless price paid by foreign combination is reasonable, goods will not be supplied. The law of supply and demand is the best protection to the efficient producer. Another objection urged by an exporter is the difficulty any such combine would encounter in representing the wishes of all the different member manufacturers. REPLIES TO CARD AND SCHEDULE INQUIRIES. 367 2, LACK OF NECESSITY FOR SUCH ORGANIZATION.—There were a great many assertions that combinations of foreign buyers do not exist. An exporter and importer writes: Few, if any, combinations of foreign buyers exist. It is against the policy nf the foreign buyer to have anything to do with his competitors, and it stands to reason that he exploits the markets of the world for his benefit solely, and is not anxious to give advantages, his foresight and energy may accomplish, to aid his competitors. A retired banker with foreign financial interests insists that “ as a rule buyers do not combine.” ’ . An importer and manufacturer of 20 years’ experience declares: Combinations of foreign buyers do not exist in any line of business of which have knowledge. In the same vein an exporter states: The writer’s business brings him in contact with the South American marzets and he knows of no combinations of buyers there. 3. Direct EVIL EFFECTS.—A lawyer who has been interested in foreign trade for 40 years writes: Under free competition, I do not see how they could deal any more successfully with a foreign buyer, excepting that they could sell him the goods cheaper than a small concern or individual, because they could produce cheaper; the result would be that the individual or a small concern would be driven out of business; this, of course, is the natural result of ail trade combinations. OPINIONS AS TO WHETHER COMBINATIONS SOLELY FOR EXPORT BUSINESS ARE FOR OR AGAINST THE PUBLIC INTEREST. (Manufacturers’ schedule, question 4; other schedules, question 1.) A. GENERAL SUMMARY. Question No. 4 of the schedules sent to manufacturers and producers was as follows: Irrespective of your answer to question 1, please give the reasons why you think combinations or cooperative organizations, solely for export business, among American manufacturers or producers, by common selling agencies or by other means, are or are not in the public interest. The same inquiry appeared as question No. 1 of the schedules on foreign trade conditions sent to export commission houses, domestic merchants, publicists, lawyers, etc., reading as follows: Irrespective of your opinion as to whether the law does or does not prohibit combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies or by other means, please give the reasons why you think such organizations are or are not in the public interest. As shown in table, page 845, 1,740 direct replies were received, comprising, with very few exceptions, all those received up to January 15, 1916. The outstanding feature of these replies was the practical unanimity with which the writers expressed themselves that combinations among American manufacturers or producers are in the public interest. A total of 1,566, or 90 per cent of all, thus replied. This result was paralleled by the returns from the inquiry cards sent out November 4, 1915, containing, among others, the same question. About 7,700 replied to it in the affirmative, which was 83 per cent of all the post-card answers to the question. 368 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Of the nearly 1,600 affirmative schedule replies, only 80 made the condition that such combinations should be under Federal or other supervision, though it is to be noted that a very large number in answering another question of the schedule urged Federal supervision to prevent export combinations from restraining domestic trade. Thus a professor of economics wrote in part: LC If we so intensely desire to develop foreign trade that we are willing to run the risk of creating organizations of great efficiency and power, we must at the same time assume the responsibility of controlling them so as to protect the public interest, which would undoubtedly be jeopardized if these combinations were unregulated. A prominent Philadelphia attorney wrote: Centralization of power always leads to its abuse, consequently such agencies {export combinations), if permitted, should be closely scrutinized by governmental authority in a manner similar to the Federal banking system. A small number Tlie their affirmative in various ways, such as imiting it to combinations of noncompeting products, of staple products, or to those in which small manufacturers shall be allowed participation. Many, in approving the idea of combination, evidently had in mind only their own particular industry or a combination of noncompeting products. Only 174 thought that combinations for export trade are not in the public interest, including 13 who qualified their negative in various ways. Twelve expressed doubt, 2 were neutral, 8 thought the matter had no bearing on the public interest, 31 stated that they had no opinion or were not interested, and 211 failed to answer the question at all. These 264, of course, are additional to the 1,740 replies mentioned above. Practically all assume that the development of foreign trade is for the best interests of the country, although there are a few who contend that foreign trade would not be an advantage to this Nation. B. Export COMBINATIONS ARE IN THE PUBLIC INTEREST. Reduction in ewpenses.—The most prominent feature of the affirmative replies was the fact that about 625, or nearly 40 per cent, included among their reasons why combinations for foreign trade are in the public interest the reduction of overhead, selling, advertising, and other expenses resulting from their being shared among a numper of manufacturers or producers. Thus a professor of economics wrote: They are for economy of effort, cheapening of cost; and in so far as they promote foreign trade by this process they are in the public interest. A manufacturer of stoves doing only a small export business wrote: We must adopt every item of saving in costs and expense of doing business if we would compete with foreign nations. Combination gives us that saving which is necessary, and even with combination we will fail in many lines. Dnbridled competition is the most expensive method of doing business. In the stove business of this country there are 300 competitors, each sending traveling men in the same territory, and each spending vast sums in duplicate patterns lo meet competition. If one combination could control all the industry, stoves could be sold the consumer at a 10 to 15 per cent lower price, and the manufacturers make 10 to 15 per cent extra profit. REPLIES TO CARD AND SCHEDULE INQUIRIES. 369 The manager of a large cooperative export organization with extensive experience abroad wrote: Legitimate cooperation of manufacturers or jobbers, for the purpose of carefully and economically developing a market for their products in the export field, is most desirable, as many concerns, by this manner of operation, secure a satisfactory volume of business at a reasonable cost. Were each manufacturer obliged to stand the total expense of the development the cost would, in many cases, prevent the attempt and in other cases be too high for the volume of business obtainable. The large majority of those who answered the question under discussion gave more or less definite reasons why they thought combinations for export trade are or are not in the public interest. The principal reason assigned (speaking numerically), the reduction in expenses, has been treated above. The rest have been arranged as far as possible by groups for presentation. Inasmuch as most replies included more than one reason, a particular reply. may, of course, be counted in each of several groups. A small minority of replies assigned general reasons in addition bo specific reasons, such as that combinations are in the direction of industrial evolution, that they promote the general welfare, that concentration produces better results than individual effort, ete. Thus a middle western editor wrote: { believe it would be distinctly in the public interest, because the power of organization would make possible a greater impact upon the world’s markets than individual dealers could possibly make acting independently. A middle western jurist wrote in part as follows: If these combinations are economic, they will survive and deserve to, If they are not, they will be short lived. The people of this country are interested in seeing that manufacturers and producers prosper, and any economic measure which will enable them to sell their goods abroad in competition with the world ls desirable unless, as a result thereof, they may fasten a monopoly upon our own people, Efficiency— About 100 replies gave the reason that combinations are more efficient, render better service for their members than each can for himself (without specifying the service), are less liable to make mistakes than individuals, can better adapt their products to the needs of foreign markets, etc. Thus a Seattle attorney wrote: ft was the efficiency of combination to secure its end which resulted in the antitrust legislation, in protection of the consumer, who confessedly is not to be considered (except to get his business). in devising ways and means of increas-Ing export trade, A large manufacturer of canned goods, exporting one-third of his product, wrote: Whenever it can be arranged for one service of any description to do the work of many services, without in any way limiting individual enterprise, a material saving can be made while a better service is afforded, thus increasing the ¢ollective efficiency of the group. _ Ewport business increased. —The next group, nearly 450 in number, comprises those replies stating, among other reasons, that combinations are in the public interest, because thereby the volume of our export business can best be increased ; because combinations can best secure new business, develop new markets, stand the expense of creating a demand in foreign countries for our products, ete. 27941°—pr 2—16——924 8370 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Thus a small manufacturer of power hammers, exporting about 10 per cent of his product, wrote: We believe cooperation the only way to largely exploit export trade. Such an organization in the machinery trade, for instance, would.lead to largely increased exports. A large smelting and refining company wrote: Such combinations would reduce and distribute the cost of the export business ; would introduce new and greater facilities for carrying it on; would tend to create new markets and enlarge existing ones; would greatly increase the foreign trade of the whole country ; and would bring into the country additional wealth, furnishing means for new investments, greater employment, and more wages—all to the necessary benefit of the public as a whole. A large manufacturer of iron and steel wrote: Combinations of manufacturers can and would be justified in prorating losses on sales for export in order to gain a foothold in any foreign market, or at times, when domestic business was depressed, make forced sales abroad even at or below cost in order to employ idle capacity and labor, whereas an individual would not be in position to do so without greater sacrifice. A large manufacturer of locks and other hardware wrote: Such cooperative organizations are desirable: primarily in the interest of manufacturers, but if successful, they would be secondarily in the interest of the public because they would tend to secure for the United States business which otherwise would not or could not be obtained, and thereby benefit all interests contributing to. such business. If unsuccessful, all of the burden and loss would fall on the manufacturers, not on the public. A manufacturer of toys, exporting 20 per cent of his product, wrote * There are now many markets that we can not afford to exploit, because the volume of business in our particular line that might be developed would not warrant the outlay necessary to secure it, but might profitably be done in cooperation with other manufacturers of similar lines. Included in the above group of 450, but expressing a slightly different aspect of the same idea, are about 60 replies to the effect that combinations result in greater productivity, enable manufacturers to increase their output, and produce a greater development of the countrv’s resources. Thus a wholesale druggist wrote: We believe such organizations are in the public interest, as they will assist in developing American resources and employ American labor without, as far as we can see, doing any harm to American consuming interests. A vehicle manufacturer wrote: It would tend to more highly develop our manufacturers, by reason of the world competition in developing new methods and make a more highly developed class of workmen in addition to the large amount of money it would bring into the country, a large part of which would be distributed in wages. Participation of small concerns facilitated. —Another group includes nearly 800 replies assigning as a reason that cooperation makes it possible for smaller concerns to participate in foreign trade, places them on an equal footing in that respect with large corporations, enables them to participate in the handling of large orders, etc. Thus a Seattle banker wrote: I am of the opinion that combinations or cooperative organizations solely for export business should be permitted and legalized, if necessary to regulate them, for the reason that the smaller concerns, unable ordinarily to maintain foreign sales agencies or find the widest market for their wares would, under the.cooperative plan, be placed upon an equal basis with their stronger fellow merchants. REPLIES TO CARD AND SCHEDULE INQUIRIES. 371 A prominent hardwood lumber manufacturer of Memphis, exporting about 20 per cent of his product, wrote: It is quite possible that the larger manufacturers and producers in America could compete successfully with foreign producers and manufacturers, but we ilo not believe it is for the public interest that the business should be left in such shape that this large field can only be occupied by the largest concerns in this country, but we believe it is in the public interest that combinations should be permitted so that the smaller, as well as the larger manufacturers and producers, can share in the benefits of foreign trade. In short, we believe this is the only means by which this trade can be secured. A large manufacturer of photographic apparatus and supplies wrote In our opinion cooperative organization solely for export might be to the public interest, as through such organizations a number of small manufacturers combining could secure representation and business in territories where they are not now selling, bringing trade to our own manufacturers which had formerely gone to foreign manufacturers. A small coal producer wrote: Being what is known as one of the smaller producers of bituminous coal and coke, I believe I am at a distinct disadvantage in attempting to do any export business on our own account, but a cooperative selling agency, that had the product of several mines with the capacity that we have, would be able. to handle large contracts for export, which is not practical for the small concern, Securing market and- credit information.—About 190 replies assigned the reason that combinations facilitate the study of foreign trade conditions, the gathering of complete and detailed information regarding foreign markets at less cost, the exchange of ideas among members, and the securing of better credit information; and that they are able to give longer credit, make for greater security of payment, ste. About 75 replies out of the 190 have to do with the credit or payment ided. A prominent New York lawyer wrote in part: Through such selling agencies or organizations solely for export business it would be possible to build up a bureau of information of technical conditions of ‘rade in different parts of the world such as could not be developed by any Individual manufacturers, owing to the tremendous expense which would necessarily be involved; in other words, to learn minutely as to all countries and districts with which business is undertaken, particularly as to methods of delivery and credit which appeal to the possible purchaser in any such countries or districts and which, at the same time, will give safety to the seller. A well-known railroad financier wrote, in part: I think combinations or cooperative organizations for export business among American manufacturers and producers are desirable and in the public interest * * * because such associations can provide for their members better and cheaper information relative to markets, credit and selling facilities. than he individual can probably provide for himself. The president of a motor-truck company, exporting nearly onethird of its product. wrote : We believe cooperative institutions in foreign countries who could give us credit information concerning buyers, act as our financial agents in collections, and serve as distributing headauarters for advertising matter. would be of great astistance to us. Ability to meet foreign combinations.—Another group of about 180 replies includes those stating, in substance, that combinations are m the public interest, because they better enable Americans to compete against foreign combinations of either buyers or producers which are not subject to legal restrictions at home, in that they have oreater 872 ' REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. strength, control more capital and resources, can dictate terms, ete. About 15 of these replies did not specify whether the foreign competition mentioned represented a combination or not. Four mentioned unfair foreign competition in this connection. Thus, a prominent professor of political economy wrote: I think they would be in the public interest. In foreign markets American producers encounter several difficulties, among which not the least is aggressive competition on the part of foreign producers. Some of these, notably those of Germany, are organized into powerful combinations which are not only permitted by the laws of their Government but encouraged and assisted in important ways. Unless American producers are permitted to combine similarly, they will be at a disadvantage in two ways. First, competition among themselves will tend to discredit American products. Second, unless producers on a great scale, they will not have the necessary capital to push their separate products in foreign markets. So long as the combination is open on fair and equal terms to all American manufacturers who desire to share in its advantages, only good, so far as I can see, would result to American interests. An Ohio editor wrote: They are a practical instrument, being the only known method of mobilizing and concentrating all the skill and knowledge, all the financial, industrial, agricultural, commercial, and political resources of the United States for the purposes of international competition. Such competition exists, and while it continues the United States must be prepared to cope with it successfully if trade with foreign markets is desired. A small manufacturer of metal alloy, exporting 5 per cent of his product, wrote: Business is a great deal like war—you have to have as good a weapon as your opponent. If American business must compete with foreign selling comhinations, we should not only be permitted the same weapon. but should be assisted in its perfection and use. A large manufacturer and exporter of reinforcing steel wrote: The cooperative selling plan would enable American manufacturers to effectively meet the cooperative buying organizations of Europe which, by reason of their control of enormous orders for certain classes of commodities, have been one of the most potent factors in depressing prices of American products sold for export. Elimination of competition between American concerns.—Expressing what might be termed the complement of the above ideas, about 60 replies give in substance the reason that export combinations will eliminate competition between American firms both at home and abroad for foreign trade and enable them better to meet foreign competition. Thus a large manufacturer of electrical apparatus wrote: By cooperation * * * there would be less likelihood of destructive competition which is noneconomie from every viewpoint and detrimental to the interests of the whole country. It is sufficiently difficult to meet the competition of the foreign manufacturer without having the additional burden of competing with the domestic exporter. With reference to the larger corporations, at present they have a decided advantage over the smaller corporation by being able to know and reach the foreign market, but even with them, competition is such as to often reduce prices to a point which shows no profit, but merely helps cover overhead charges. A prominent Indiana milling concern wrote: Manufacturers of the raw products of the United States will secure therefor full value in foreign markets when there is eliminated the fierce competition for the foreign trade between manufacturers of the same product in this country. This in turn would * * * place the manufacturer in an economical position to pay more for his raw products and for his labor. REPLIES TO CARD AND SCHEDULE INQUIRIES. ‘3178 A large importer and exporter of crude base metals wrote: We consider cooperative organizations or combinations for the sale for export desirable in the public interest because we believe that, by eliminating competition in the foreign markets, articles exported can be sold to better advantage and the cost of sales could be reduced by handling the product through one instead of through many selling agents. It seems a pity that for products for which this country has practically a monopoly, it should be possible that the foreign markets can dictate prices to us, particularly if buyers in foreign countries are allowed to combine and we are not. Greater employment for capital and labor.— Another group is composed of over 170 replies stating that export combinations are in the public interest because thereby capital or labor will have greater and more permanent employment, labor will receive better wages, etc. Most of them refer only to benefits which will accrue to labor. Thus, a professor of political science wrote: The greatest benefit of foreign commerce can, however, only come when we shape the conditions in such a manner that manufacturers possessing an avernge capital will find it an advantage to seek foreign connections. It is only in this way that foreign trade, as a regulative of American labor conditions, can have its greatest effect. This is the way also in which at all times foreign trade may have its greatest influence in furnishing steady employment to labor. - A large manufacturer of heavy machinery, exporting 10 per cent of his product, wrote: Anything that will take the surplus that has now become a fact in 75 per cent of our factories will tend to make wages stable and prevent the necessity of discharging part of your force each year for part of the time. Unless our Government willigive us the same aid and assistance that is given by foreign Governments to their manufacturers, we shall go through periods of extreme depression accompanied by strikes and suffering of the workers. Competition of this sort is just the same and the effect is the same as unfair domestic competition. It may be unfortunate, but it is a fact that must be met; we have all developed our factories far beyond home demand, and in doing this have brought the workers from the country and from abroad to the towns, and I see no way that they can be sent back or returned to former ways of living. Therefore, the only remedy seems to be to stabilize work. A small manufacturer of electric motors and dynamos, exporting 15 per cent of his product, wrote: I believe combinations for foreign development to be for the best interest of the public because they will secure the largest amount of business at maximum prices, resulting in the greatest employment of labor at the highest wages. Resultant stability of demand.—Closely connected with the above group are about 85 replies assigning the reason that stability of demand will result from the increase of foreign trade effected by combination, that this will counteract the effect of periods of domestic depression, etc. Many of them are counted in the previous group because they also included in their reasons the resultant beneficial effect on labor conditions. Thus a prominent western railroad man wrote * I think combinations or cooperative organizations for export business among American manufacturers and producers are desirable and in the public interest * * * because it is decidedly in the public interest that our manufacturers and producers seek and obtain wider foreign markets for their products in order that they may stabilize and keep: their producing capacity employed during periods of domestic depression and Increase their ability to purchase raw materials and furnish continuous employment to labor at reinunerative wages. 374 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A manufacturer of wire nails and tacks, exporting a very small proportion of his product, wrote: The larger percentage of manufactured commodities in this country which are exported, the more stable our domestic business will become, and one of the most serious features of the present industrial situation is the rapid and wide fluctuation in general business conditions, An Ohio editor wrote: Breadth is prerequisite to stability; and broadened markets are the primary step toward ultimate stability in the demand for labor, capital, and commodities, just as wider international sympathies are the first stride toward that cosmopolitan attitude of mind that imparts steadiness to social progress and Armness to political ideals. Effect on prices—A group of about 150 replies has to do with the effect of export combinations on prices, foreign and domestic. About 100 thought that such combinations are in the public interest because thereby prices would be regulated, maintained, standardized, etc.; better prices could be secured and fluctuations prevented ; and combinations would hold up export prices and prevent American manufacturers from dumping their over production. This last reason was given by a number of lumber manufacturers. About 50, on the other hand, thought that combinations by increased production and cheapened costs would effect a reduction of prices both foreign and domestic and thereby make increased sales possible. Thus a manufacturer of industrial railway equipment wrote: Such combinations would be of much advantage on account of a uniform selling price being maintained, based on average cost of production plus a legitimate profit. Under present conditions the practice seems to be to sell to foreign markets at 5 to 10 per cent less than the home market, A large western lumber exporter wrote: It is without doubt to the interest of America that she receive the largest returns from her resources; her products of the forest and soil are her greatest resources, and her manufactures are made with those products; therefore, for shipment to foreign countries let producers and manufacturers sell without competition through a common selling agency at a fixed price that shows a reasonable profit, instead of cutting each others’ throats and often selling below cost of manufacture; namely, giving the benefit of America’s natural resources to the foreign buyer. A large manufacturer of reinforcing steel wrote: Under the cooperative plan, our producers of the large staple lines would benefit by pooling the expenses of securing export business and standing together in the matter of selling prices, so as to secure the highest prices consistent with conditions of competition in each territory. Such an arrangement would render the business secured at a given price far more profitable, on account of the market reduction in the overhead expenses. It would further insure higher prices being obtained in many cases, since prices would be made by the centralized selling organization with a view to meeting foreign competition only. A manufacturer of interior conduits, exporting 4 per cent of his product, wrote: 1 think that such cooperative organizations or combinations would be in the public interest, for the reason that the increase in the business would ultimately lead to reduced cost and to a lower price to the public in this country. A large manufacturer of canned goods, exporting 10 per cent of his product, wrote: If foreign business can be secured by cooperation it will enable those Interested in it to produce in larger volume and consequently reduce overhead REPLIES TO CARD AND SCHEDULE INQUIRIES, 375 1 expense. The less expense involved in manufacture, the lower the price. This will apply to goods that are sold on the home market. It will also mean an increase in labor which means increase in home consumption. Better selling methods.— Another group of about 140 replies predicates better selling methods of combinations; that they make direct selling possible, are able to pay better salaries and hence secure higher grade salesmen and better representation generally. Thus, a New Jersey headwear manufacturer, exporting 6 per cent of his product, wrote: Better salesmen and better sales forces could be obtained by a cooperative association; in fact, men would represent an association that the small manutacturer could never hope to take into his employ. The main drawback to ‘he small and medium sized manufacturer doing an export business has been the fact that he could not afford to maintain the proper foreign sales force, foreign advertising, and expensive clerical help with an intimate knowledge of foreign conditions. This handicap would be overcome, we believe, by cooperation. A targe manufacturer of furnaces wrote: We think that such combinations or cooperative organizations are desirable for the reason that such combinations would be able to command the services of high-class salesmen or representatives who would be a credit to the houses they represented and would get results, while an individual manufacturer would pot be warranted in going to the expense. A director of a Federal reserve bank wrote * The éstablishing of a foreign market for our goods and manufactures, the advantages of desirable financial and credit arrangements, the maintaining of sales agencies and agencies for promoting and advertising the products, and the determination of the needs and wants of foreign customers, both with respect to qualities and kinds of products and with respect to credits and financial nrrangements, all of which are required, are, to the extent necessary to sucwess, quite beyond the resources and powers of ordinary individual enterprise; whereas an organization or combination acting for numerous individual concerns and having behind it the combined resources of the entire membership, could effect large results for the benefit of all and could stimulate trade for pach in a large measure bevond what each could do for itself. Standardization of products.—A group of over 40 replies states that export combinations will better secure the standardization of the quality of American goods; that goods marketed by a combination will gain a certain reputation on that account, etc. Thus, a New York lawyer and economic student wrote: In no other way can the standardization of the quality of American goods in foreign markets be secured, to the end that *“ Made in U. S. A.” may be a guaranty of quality. An exporter of the Southwest wrote: Believe that combinations or cooperative organizations of American exporters would in many lines result in standardizing the qualities of such lines, giving a better name and more dependable reputation to such products; would lessen the expense and at the same time facilitate the marketing of such products abroad by bringing the American exporter in closer touch with the ultimate buyer or consumer, thereby facilitating exports and broadening the market for such products—which, "surely, in the final analysis. would be in the public interest. - Prestige of combinations—Over 25 replies state in substance that combinations are in the public interest on account of the increased influence which large organizations will have abroad; that they will give us a standing, will secure us a greater degree of respect and confidence, will increase our national prestige, etc. Thus, a large 376 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. manufacturer of printing equipment, exporting 3 or 4 per cent of his product, wrote in part: A combination joint agency commands more respect, prestige, and influence py reason of its size and importance and effectiveness than can be had by the representative of a single interest, unless one of vast resources and importance. A manufacturer of cork insert pulleys wrote: A combination of manufacturers would produce an organization of suificient importance to obtain a hearing on trade questions in foreign countries which the Individual manufacturer might not be abie to get. It would bring about gnanimity of action and would increase the influence which a large organization rains through a large volume of business with the people with whom it is dealing. Effect on ocean transportation.—Nearly 20 included in their answers reasons to the general effect that combinations could obtain better ocean freight rates, or lower marine insurance, or provide their own transportation. Thus a southern lumber manufacturer, exporting about 15 per cent of his product, wrote: We favor selling organizations composed of American manufacturers catering to foreign buyers. We believe such an organization would be in a position to facilitate and obtain more advantageous ocean freight rates, protect the manufacturer in the collection of accounts, be in a position to obtain lower insurance rates, cover 3 larger territory for distribution of products and help market and dispose of to better advantage distress shipments in our own as well as foreign ports. A large independent steel company wrote: On all heavy products, like iron and steel, where cargo freights are necessary, combination would enable manufacturers to obtain time charters on vessels for p, period of years, and would possibly justify in some cases purchasing steamships, operating similarly to-the United States Steel Corporation through its subsidiaries, the United States Steel Products Co., whereas independent steel companies are too small and their export operations too intermittent to make time charters, therefore regular sailing dates are difficult to arrange and minimum freights can not be obtained. Example of other nations.—About 15 gave as one of their reasons that combinations are in the publie interest because that was the way in which other countries, and Germany in particular, had developed their foreign trade; that foreign Governments encourage combinations; and that therefore we should. Thus a small furniture manufacturer wrote: The German system of developing foreign markets is in itself ample evidence of the benefit to be derived. A small Indiana manufacturer of canned foods wrote: It is our understanding many foreign Governments foster, encourage, and protect aggregated capital which gives them the advantage over us in that they, having the stronger business organizations, are in position to put us out of pusiness on piecemeal basis. In other words, I favor “fighting the devil with Are” or meeting competition with like weapons. Establishing of branch banks—Six gave as one of their reasons that combinations would facilitate the establishment of American branch banks abroad. Thus, a Chicago banker wrote in part: They would pave the way to the establishment eventually of American branch banks in foreign countries, as there can be no doubt that the established and assured business of, say, 50 or more first-class American firms would make an attractive appeal to our banking institutions. REPLIES TO CARD AND SCHEDULE INQUIRIES, 371 C. Export CoMBINATIONS ARE NoT IN TEE PuBLic INTEREST. About 175 replied to the question in the negative. On account of the relatively small number of these replies, no exact classification was made of them. The principal reasons they advanced why combinations solely for export business are no¢ in the public interest were that foreign trade itself is a danger rather than a benefit to the public; that export organizations would be used to restrain trade in the domestic market, would stifle competition, and would use their power when established to raise domestic prices; that competition is the life of trade and produces better results than combination; and that the interests of the small manufacturer would not properly be safeguarded by the larger members of an organization. A relatively large proportion of the replies received from export commission houses was in the negative. Foreign trade not an advantage but a danger—A statistician and economist wrote: Private monopoly in any form constitutes a danger to a democratic society 0 great that it is undesirable to admit the slightest advance in that direction. The advantage to a nation of developing a great foreign trade has been vastly overestimated. Foreign trade does build up the industries and commerce of a nation and does increase the wealth of its manufacturers and merchants. Its beneficiaries are, however, only a small proportion of the total population. The first care of the leaders of a nation should be to consider the welfare of the wage earners and farmers. The labor market is world-wide, and in the long run labor will not be benefited by artificially stimulating the foreign trade of any country. With the natural increase of population, agricultural resources of America will eventually be taxed to their utmost to provide for domestic needs. Another consideration of the utmost importance is that there is no more fruitful source of international disputes and war than the rivalry of nations for foreign markets. All the advantages that European nations have ever gained by artificially stimulating foreign trade have been overbalanced by the horrors of the past 17 months. Increased armaments and possible war which would follow increased commercial expansion of the United States would injure the country more than the trade would help it. Our nation has grown more marvelously than any other nation of the world, past or present, by following the wise policy of minding its own business and keeping out of the ousiness of others. Wise statesmanship will continue this policy and not yield to the selfish demands of organized capital. Effect of export combinations on domestic market.—The treasurer of one of the country’s big flour-milling concerns wrote : We can not anticipate that combinations or cooperative organizations devised in the first instance for export business could be confined in their activity, or at least in their influence, to the export trade, but belleve they would necessarily have an influence on the domestic trade, and that we would shortly find ourselves in the position of doing in the domestic trade acts which in our highly competitive trade as it stands to-day do not occur to us to do, and which acts might be forbidden under the Federal antitrust laws. A New York lawyer wrote: I believe that such organizations are not in the public interest, f - son that I do not believe that they would be eet in practice gt ostensible purposes of organization, as any person, who has been interested in public affairs and has from time to time been a confidant of persons in the different grades of the industrial scale must admit. While it is true that it would be impossible to prove this by legal evidence, as it has been impossible > pe ig Sinn wipes ong 37 Souminations dealing intrastate and ntra-Unite ates, the conclusion orced upon me tha would undoubtedly follow. Bo t the same result 378 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Effect on prices—A prominent squthern coal company took a different position, thus: Any combination or cooperative organization pushing the export of American roal would take out the present surplus and establish higher prices at home. This would, of course, be to the interest of the coal producer, but against the ronISUNMer. Danger of international combinations.—The president of a large New York exporting house wrote: To allow our great trusts to combine in this way would be dangerous; the monopoly would be world-wide. They would be enabled to form combinations with foreign trusts in the same lines and would dominate every market. The result would be high prices to the world’s consumers. * * * Territory would be divided, and the United States would suffer in common with other countries because foreigners would not seek our markets even if they could, as they would be given compensation for not doing so. As I have stated before, this is a grave question and a serious one, which must be looked at from many angles. It should be studied for a long time, and carefully, and investigations made abroad before anything is attempted. Foreign trade should not be treated differently from domestic trade—A New York exporter wrote: They are not in the public interest for identically the same reason that such combinations are not in the public interest for domestic commerce. They will stifle competition, which is the life of export trade, the same as it is of domestic trade. I see positively no reason for a law which would discriminate between domestic and foreign business methods. It would lead to all the evils in foreign business which such combinations are responsible for at home, and can not serve the purpose of developing foreign markets any better than exporters are now doing. A large manufacturer of hardware wrote: We are unconvinced of the soundness of the proposition that the Federal Government should take any attitude toward our export trade differing substantially from an equitable attitude toward our domestic trade. We venture the opinion that trade, either domestic or foreign, requires for its expansion opportunity and common-law protection (of contract, collection, ete.), rather than statutes for either restraint or license. This thought is particularly striking in connection with a republican form of government, where one political party may undo paternal or punitive measures of a previous administration, and in turn be undone by its successor, each with the best of intentions, and yet costly to that sensitive activity known as “trade,” and the cost reflected upon the people through the working out of unchangeable economic laws unaffected by legislation. Disadvantage to small manufacturers.—A manufacturer of shirts and waists wrote: We are a medium-sized concern, and if we threw our interest with a cooperative organization it appears to us that the larger interests would gain control of the organization directly or indirectly, and even put in competitive lines and sell these. It has happened before. The head of an important New York export concern wrote: The effect of such combinations would be of very slight benefit to the smaller manufacturer. Unless the combination was on a basis of percentage without reference to the volume of business passed to any one manufacturer, the combinations could hardly hold together. The manufacturer having few of the orders would be dissatisfied. Goods sold abroad are largely based on brands and reputation, and the manufacturer who introduced his goods either in this or in other ways, having once secured the market, would be difficult to dislodge. Therefore the aim of all manufacturers is to secure this footing, and it can hardly be done by combination. REPLIES TO CARD AND SCHEDULE INQUIRIES. 379 D. Rrpries Expressing Dousr. Twelve replies expressed doubt in the matter. Thus, an economist wrote I can see no serious objection to combinations or cooperative organizations, solely for export business, among American manufacturers or producers by common selling agencies, or by other means. I am very doubtful, however, about their advantage. In the first place, T am convinced that the fields in which they could accomplish really constructive work are somewhat limited ; and, in the second place, I think there would be serious danger of their reducing the emphasis on individual responsibility in connection with export operations. I feel quite positive that in the long run the development of American export manufactures will depend almost entirely upon the intelligence with which individual efforts are put forward. At a recent meeting of the National Association of Cotton Manufacturers I indicated some of the ways in which it seems to me associated effort might be of material advantage, but I think there is a serious danger in overlooking the fact that export trade, in quite as literal a sense as is true in the case of domestic trade, is individual rather than national. The national aspects of it arise mainly out of the sum of individual interests. Under proper restrictions therefore, there might be distinct advantage in permitting associations of this kind, but I am convinced that the field for their constructive usefulness is comparatively small and that they should not in any case be permitted to lessen the energy of individual effort. A prominent Chicago attorney wrote: Aside from these general considerations, which cover both domestic and foreign trade, it is true that foreign trade presents certain conditions which can be best met by a certain degree of cooperation, and if the law does not permit such cooperation, it should be amended so there may be no doubt. Personally I do not think there is the demand for such cooperation as others seem to think. Personally I have never come in contact with a combination to promote export trade. I have never heard of one formed, either prior to the passage of the Sherman law or during the many years when that law was supposed to be a dead letter, and when all sorts of combinations in domestic trade were in existence in every State. It seems to me if there were, or had been, any real demand for combinations in export trade they would have sprung up—as they did in the domestic trade—regardless of the law. My observation has been that export trade, in a particular line, has been built up by the energy of some one enterprising company, and for that company to cooperate with its less enterprising domestic competitors would be simply to give those competitors the benefits of its exceptional sagacity. Of course, times are rapidly changing, and in the near future the export trade of this country may become so large and be participated in by so many that it will present many of the keen competitive problems which the domestic trade presents. When that condition is reached, the necessity for cooperative effort will be in a measure as great in the export trade as it is in the domestic, and for precisely the same reasons. LIMITATION OF MEMBERSHIP IN EXPORT COMBINATIONS. (Manufacturers’ schedule, question 5; other schedules, question 2.) The schedules sent out by the Commission contained the following question: If you think export combinations desirable, please state your opinion, with your reasons, as to whether they should— (a) Be open to all manufacturers or producers in the United States in thelr respective lines, or have the right to exclude any concern at pleasure? (b) Be open to all American-owned concerns, but have the right to exclude any concerns that are controlled by foreign interests? (¢) Be restricted to trade in noncompeting products, or cover competing products also? 380 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. From the wording of the question it follows that replies would be received only from those who favor combinations. Of the total number giving information in answer to this question, many simply stated their opinions, without giving reasons. A. ApvisaBLITY oF A ComBINATION Brine PerMrrTep To CONTROL 178s MEMBERSHIP AT WILL, 1. TYPICAL REPLIES IN FAVOR OF MEMBERSHIP OPEN TO Arr. —There is a decided majority, especially of the publicists, economists, lawyers, bankers, engineers, contractors, etc., answering the general schedule, who believe that membership in export combinations should be open to all in their respective lines. They would have the members, however, meet certain business requirements which are deemed necessary for the welfare and success of a business organization of any kind. The majority of manufacturers, export commission houses, domestic merchants, etc., in addition to the above requirements, would also exclude all firms controlled by foreign interests. I'he reasons given are set out in the following typical replies: Open membership subject to rules for the good of all.—The following statement, made by a large merchant of 30 years’ experience with an extensive import and export trade, is typical of many other answers received by the Commission. He says: We believe that such export combinations and cooperative organizations should be open to all manufacturers or producers in the United States, In their respective lines, wherever such manufacturer or producer is ready and willing to accept his pro rata share in the expense or risk taken by such combination or organization and to abide by the rules and regulations as set by the majority in such combination. The reply of an export merchant of 22 years’ experience is practically the same. ~ We think that export combinations should be open to all manufacturers in the same lines and should not have the right to exclude any concern at pleasure, but we think that it would be highly desirable that rules should be adopted for the purpose of allowing for the exclusion of any concern which failed to live up to its agreement with the combination, or whose goods did not come up to a proper standard, or who might be guilty of uncommercial conduct at any time. Liberty of action essential.—A manufacturer of medicinal chemicals, who states that his exports are one-third more than last year, makes the following statement: Such combinations should be open to all American-owned concerns, but should exclude the foreign-owned. They should be allowed the very fullest liberty and cover competing products. My chief reason for this is that, to capture the foreign markets, we must have: the very greatest liberty of action, as the foreign concerns are all very well established, and now operate under combinations and in large units. Open to all limited by size of organization and reputation of members.—A member of a firm engaged in the wholesale importing business, with 41 years’ experience, says: The combination should be open to all of the producers or exporters in the trade up to a point where, from too large a number, it became unwieldly, in which case other smaller combinations could be formed. It should not be open to those whose methods are not honorable and straightforward. It should not be open to those whose actions would, in any way, compromise the reputation or name of the comhination. Many people have business methods that are honest REPLIES TO CARD AND SCHEDULE INQUIRIES. 381 legally, but are so disagreeable or disreputable that connection with them would hurt the entire group. I can see no reason why concerns in business in this country should not be admitted to the combinations provided they were working for the export of goods from this country, through which the country, its citizens, its workers would benefit. . Open to all limited by reputation of member, but not by size of prganization.—An export manager of a company dealing in steel products states that: They should be open to all manufacturers in the United States in their respective lines, regardless of size. No one concern should be excluded, unless “he standing of the concern, or its product, fail to come up to clearly defined standards of the organization, and liable to injure the interests of the whole, Open to all at discretion of Federal Trade Commission.—A prominent Chicago attorney proposes that such export combinations should be— So far as practicable, open to all manufacturers, but this ought not to be a statutory provision; the matter might properly be left to the discretion of the Federal Trade Commission. Reasonable regulations should govern—A fruit producer, exporting a large part of his products, answers: Don’t see any reason why such combinations should not be available to all manufacturers or producers who come within the requirements of reasonable regulations governing the manufacture and packing of the product, whatever It may be. If in a competitive line of goods, I would consider it all the more important to organize in order to develop our industries not for the purpose of raising prices but for the purpose of maintaining a fair margin, reducing the selling cost, or unnecessary margins that frequently exist, and to supply the trade at prices at which they can consume a maximum quantity. Open membership would control the ambitions of the few.—An exporter who has come in personal contact with buyers from the Eastern Hemisphere concludes .that— Such a combination should be open to all reliable manufacturers in their respective lines, and it should certainly not have the right to exclude any concern at its pleasure. If this were the case, the organization might soon be used to further the ambitions of a select few. Any reliable and go-ahead manufacturer should have the right to enjoy all the benefits of such an organization. Business honesty necessary to membership.—The export manager of a company engaged in the manufacture of men’s clothes, who has made a special study of conditions, circumstances, etc., in the different foreign markets, believes: Combinations should be open to all American manufacturers who operate properly, and treat their customers, foreign and domestic, honestly. The combination should not be allowed to refuse any manufacturer admission to the organization unless it could be shown that he could not or would not take care of his orders and obligations. By acts of omission or commission he might cause the organization to be poorly thought of. Business momentum would be gained.—An officer of a large concern manufacturing railway equipment points out that— Unrestricted participation by all manufacturers for export business would doubtless prove most beneficial for the reason that the greater the number that may be attracted, the more effective would be the campaign inaugurated to obtain such business. 2. TYPICAL REPLIES FAVORING EXCLUSION OF MEMBERS AT PLEASoRE.—About one-fifth in each of the different classes of informants favor combinations which have the right to exclude any concern at 382 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. pleasure. Their answers, however, are usually qualified. Typical replies follow: Awoid legal restrictions.—The president of a company manufacturing railroad supplies having a vast export field, says: Cooperation for export among manufacturers of competing products should be permitted without any restrictions. It should not be obligatory on the part of any cooperative export sales organization to take in all manufacturers of any one product. The best results can only be obtained if such organizations are formed on voluntary lines and are not obliged by law to take in other manufacturers of the same or other products. If the reverse is insisted upon, it would give undue advantage to the inefficient manufacturers and handicap the efficient ones, who, because of location, organization, and experience, are capable of successfully conducting export business. Should not be hampered by unbusinesslike legislation.—A manufacturer of farm machinery presents the following: I think combinations, cooperative associations, or other methods employed by all manufacturers and merchants not controlied by foreign interests should have an open field in devising methods of handling export trade and should not be hampered by legislation enacted by men ignorant of business requirements. People engaged in export trade naturally are better qualified to determine what is best for their interests than those gentlemen whose knowledge is confined to the abstract. Economy in shipping.—The officers of a large manufacturing concern suggesting a combination of such dissimilar products as iron or steel and cotton, write: We think that such export combinations as above should be wholly voluntary and that they should not be open to all manufacturers or producers, but that they should have the right to exclude any concern at pleasure, for the reason that they will be voluntary combinations for the promotion of mutual interests. If, for example, such a combination should be formed to promote export of steel products from this district, it might be desirable to include cotton producers, whose freight could be conveniently handled, occupying bulk and little weight in steamers carrying heavy steel, which is not bulky, but it would not be convenient to admit timber or coal producers to the same combination as their produets, including both bulk and weight, could not be conveniently harmonized with shipments of steel, and the way would open for dissensions and conflict of opinion in the management of such combinations as to what products should be shipped on each particular steamer. Voluntary grouping is logical and natural, and smaller concerns have to be considered.—A member of a large smelting firm discusses the question as follows: Such combinations must be voluntary to be workable.” ‘Being voluntary, they would be severally selective. They would group themselves of their own accord. Every concern would get into the combination in which it naturally belonged. The smaller concerns would have to be taken care of, for though they might be excluded from a foreign trade combination, they could not be pxcluded from the foreign trade. Acting independently in a field opened up by large concerns, they would have peculiar advantages. Diversity of business principles—One of the partners of a firm gga for 66 years in foreign trade expresses the following opinion based upon his 30 years of personal experience: Manufacturers in combination should have the right to exclude any concern at their pleasure because business principles and dealings of manufacturers differ. If a number of manufacturers combine who have the identical or similar business ideas, they should not be compelled to admit another who has different ideas, because it might harm their business. Impractical from a business and ethical standpoint to admit all.— The vice president of an establishment selling printing machinery REPLIES TO CARD AND SCHEDULE INQUIRIES, 383 and equipment in many foreign markets thus voices the firm’s opinion: ' We believe that it would be impracticable, and in some cases defeat success, to give every person or corporation the right to demand admittance, for many of the same reasons that it is not permitted for any person to demand inclusion in a business partnership. Commercial ethics are strongly upheld in the business world and safeguard commercial probity and integrity in many delicate ways that statutes can not reach. There are also business reasons why some scrutiny as to membership would be necessary, and as these joint associations are for mutual advantage, it is a good fundamental democratic principle, that control of such matters shall be left to the will of the people comprising the association. Also, it must be remembered that the relation between a member and the association is largely a matter of contract on such points as guaranty of sales, percentage of commissions, divided cost of advertising, etc, and each case is so different from all others that no general statutory rule can be wisely prescribed. Right to organize and exclude should be determined by mutuality of interests.—A company engaged in selling supplies and accessories used in concrete construction answers through its foreign manager as follows: Associations of allied producing interests for export trade will be formed only by and between those who have established their right to the confidence of their fellows in’ the integrity of their intentions and their products, in their ability to carry out their obligations to their foreign customers as undertaken by the combination, and in their resolve to continue to lend their support in bad times as well as good. This mutual confidence can not be inspired nor bestowed by any set of rules or regulations which may be enacted by any legislative body. It comes of a mutuality of aims and the respect engendered by long observation of one another. Such combinations must inevitably come about by a process of natural selection, and any legislation which is framed upon any other hypothesis will most certainly defeat its own object. Those abusing foreign trade should be excludéd.—A New York exporter of 15 years’ experience believes that— ¥ * * any merchants or manufacturers that have abused foreign trade through illegitimate or dishonorable means should, if possible, be barred from participating in export combinations. A question of policy.—The president of a large concern manufacturing pile fabrics concludes that— This is entirely a question of policy. In view of the fact that combinations are possible without limit, there is no reason why some combinations should not exclude undesirable (to them) participants, in view of the fact that it does not prevent such applicants from becoming part of other combinations. Argument on both sides of the question.—The export editor of a well-known lumber journal presents the following discussion: In our opinion this can not be answered categorically either way. A material degree of freedom in organization is essential to make such action a success, and yet it should not be so unrestricted as to permit a monopoly in this country of export trade. If made open to all producers, it should be subject to such regulations as will be sufficient to keep out concerns who would be an element of weakness rather than of strength; and we doubt that an organization which was required by law to admit all applicants would be practicable or that responsible firms would care to enter it. Our suggestion would be that they be permitted to be formed primarily along lines suggested by the views of their organizers, as to their community of interest, which would no doubt in many cases lead to a number of organizations in the same line of trade, or in some cases embracing more than one line. They should then be subjected to the supervision of the Commission with power to prevent abuses, such as shutting out any producer who is logically entitled to enter. 384 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, As a matter of fact, there is not a wide divergence between the answers of those who believe combinations should be open to all and those who believe that combinations should have the right to exclude a concern from membership at pleasure. In the first instance the answers are usually qualified by suggestions that membership shall be controlled by regulations that will be for the good of all. In the second instance while a number of respondents suggest that a concern shall only be excluded for good cause, many strongly emphasize the necessity of leaving business men free to choose those with whom they will cooperate. B. Snourp ComeinatioNs Have tue RieuT To ExcLupE CONCERNS CoNTROLLED BY FOREIGN INTERESTS ? 1. TYPICAL REPLIES FAVORING THE EXCLUSION OF FOREIGN-CONTROLLED iNTERESTS.—Of the total number answering this division of the question, about two-thirds were in favor of excluding firms controlled by foreign interests. One of the reasons advanced by those who favor excluding such foreign concerns is that the policy of such firms might be to some extent detrimental to American interests. It would be unwise, they think, to- allow other nationals to have access to the information gathered for the benefit of American industry. They contend also that to admit foreign interests might give such firms the double advantage of membership in both American and foreign combinations, which might work to the disadvantage of American firms. Other reasons for excluding foreign interests are also given below. Foreign concerns might play into the hands of other foreign interests.—It is the idea of a manufacturer of acetylene lighting plants that the organization should-—— * * * he open to all American-owned concerns and exclude all controlled hy foreign interests, because foreign-controlled concerns might be inclined to play into the hands of other foreign interests with which they might be affiliated, to the serious detriment of American concerns interested. The policy of Germany, England, and other countries is to protect, foster, -and encourage their own trade exclusively, and we should adopt the same policy. A firm engaged for over half a century in exporting and importing replies as follows: Concerns controlled by fereign interests should be excluded. because their policy may be subservient to foreign interests. Would give foreign interests superior advantages, not reciprocal. — The president of a railway-supply company answers: Tt should be open to all American-owned concerns, having the right to exclude any concerns that are controlled by foreign interests. The latter would otherwise clearly have an advantage in having a knowledge of the efforts of a United States export combination, while the corresponding privilege could not be enjoyed by an American-owned corporation in a foreign combination. Danger of foreign control.—A specialist in international law, who is also a manufacturer of plows, contributes the following: The privilege to exclude foreign owned or controlled concerns should be granted if we are to avoid the possibility of foreign control of our export business. else it were better for the individual to proceed as at present, REPLIES TO CARD AND SCHEDULE INQUIRIES. 385 Foreign interests might bring American associations into disrepute.—A manufacturing company exporting men’s clothing to many parts of the world observes that— The combination should be allowed to exclude any foreign-controlled company, otherwise foreign manufacturers might induce some of their compatriots manufacturing similar goods in this country to enter combinations with the idea of throwing into disrepute the said combination of manufacturers. Companies that are owned wholly by foreigners should not be given the benefit of the constructive work which the United States Government or American associations might be able to do. Invariably we find that similar associations in foreign countries not only limit their assistance to manufacturers in their own country but they actively and persistently hamper every effort of our own manufacturers to break into any market. We should, therefore, combat their campaigns with exactly the same weapons and same methods, provided, of course, we,can do so without sacrificing our integrity. If their practices, however, are unethical, we should coerce them into observing the proper rules of the game, Competition would require exclusion of foreign interests.—From personal contact with buyers across the Atlantic an exporter formed this opinion: It should be open to all American-owned concerns and should certainly have the right to exclude any concern that is controlled by foreign interests, as such foreign-controlled concern would more than likely sooner or later be used for the purpose of. setting up such keen competition with its neighbors as to put them all out of business, thus leaving certain fields to the enjoyment of the parent company. Such things as this have heen done right here in our own country. Prior domicile a condition of admission.—An exporter engaged in foreign trade for 25 years specifies that the organization shall be open— *# * * only to American concerns, with the possible exception of foreign firms which had been actually domiciled in the United States for one year prior to. sav. November 1, 1915. Let American interests decide—The sales manager of a large soap concern is of the opinion that we should— # * = oxclude any whom a majority of the combination considers undesirable. A prominent Chicago attorneys says: = ° This is not a matter to be regulated by statute, but may be safely left to the parties concerned. If an American-owned concern is willing to cooperate with an American company controlled by foreign interests, why should it not be permitted to do so? The question of exclusion debatable—A paper devoted to the lumber trade answers through its export editor as follows: While we would not go so far as to favor discrimination against concerns controlled by foreign interests, we believe that as a purely commercial proposition their relations abroad make them to a large extent independent, and their pdvantage in this respect would perhaps be increased by being admitted to an export organization, and from this point of view we believe their exclusion is justifiable. A matter of reciprocity—A manufacturer of printing presses replies: This thould be a matter of reciprocity. If foreign country of which owner is a citizen extends like privileges to United Stotes citizens. then United States should do likewise. 92. TYPICAL REPLIES FAVORING THE ADMISSION OF FOREIGN-CONTROLLED INTERESTS.—About one-third of those answering favor allowing 97941°—p1 2—18——28 386 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, concerns controlled by foreign interests to become members of the American combinations. They believe, among other things, that the brains and capital from abroad will be of great assistance to American interests engaged in foreign trade. They contend that there should be other reasons for exclusion besides the mere fact that the interests are foreign. Others favor allowing foreign-controlled concerns to become members of American export organizations on the ground that their goods are American made; that they use American products, employ American labor, and pay taxes in this country; others on the ground that attempts to place such a limitation on combinations will result only in deceit and evasion or in irritation of foreign countries. Some favor including foreign concerns whose Governments accord to Americans like privileges; others would have this question left to constituent concerns to determine. At least one favors allowing such combinations to be open to foreign as well as American concerns if the Federal Government has supervision to strictly regulate prices. Some typical replies follow. Prosperity of foreign firms beneficial to commercial interests of United States—A representative of a company manufacturing furnaces and accessories believes that— * * * foreign-owned concerns should be admitted. The prosperity of their concern is just as beneficial to the United States as any other except for the small amount of dividends which go abroad. The vice president of a concern handling motor-driven labor-saving devices sees—. * * no reason why foreign-controlled American concerns should be excluded. So long as the goods are produced in this country the benefits from increased export business seem to us almost as great as if the profits of the business were distributed to American stockholders. To exclude would make our foreign trade more difficult—A professsor of Latin American history in a prominent American university, who has studied conditions in the commercial world, observes: I do not believe this should be limited to American-owned concerns, because { feel that such a limitation would only serve to irritate foreign countries and make it more difficult for us to do business abroad. There are coming to be an Increasing number of American concerns operating in foreign countries; to the people governing those countries such concerns are properly classed as being controlled by foreign interests. We are proud of their existence; we want them to prosper. If we legislate against concerns controlled by foreign interests In this country, we may expect our own increasing interests in foreign countries to suffer accordingly. Admission brings capital to the United States.—The secretary of a concern manufacturing and exporting heating apparatus thinks that American organizations should be— * * * gpen to all, for the reason that the investment of foreign capital in American industries should not be discouraged in any way. Mutuality of interests as determined by the products will be a deciding factor.—An official of a company dealing in concrete building accessories observes— &« * * that it would be unwise to make any exception in the case of foreignowned concerns, since it may easily occur that a community of interests as between American and foreign producers of certain commodities would serve to REPLIES TO CARD AND SCHEDULE INQUIRIES. 387 stabilize foreign markets to our direct and very material benefit. In the case of copper, for instance, the benefits accruing to American industry might readily be greatly enhanced by a suitable werking arrangement for the marketing of the surplus of copper of each producing country to the consumers in nonproducing countries. An officer of a concern that has been manufacturing and exporting printing machinery for 25 years makes this statement along the same line: * * * Do not think it necessary to forbid association of or connection with concerns of foreign ownership or interest. In some cases the nse of American goods is inseparably or beneficially connected with some foreign product or patent rights in the countries of foreign markets that may be held by foreigners. Naturally the association with American concerns would be preferred and we think that a safe reliance. Further, the difficulty, in many cases, of accurately tracing or determining foreign ownership or control, particularly of corporations, would entail much trouble and confusion. We do not think American national interests require any such protection. Admitting foreign interests would benefit American labor.—The head of a concern manufacturing cloth and fabric headwear states that— + * * export combinations should be open to all manufacturers or producers in the United States in their respective lines. While patriotism might at first thought make it seem desirable that American-owned concerns only should participate, it must be borne in mind that concerns controlled hy foreign Interests operating in the United States employ, as a rule, American labor, and, Inasmuch as this labor would benefit by expansion of trade, we believe that concerns controlled by foreign interests should be allowed to enter into these rombinations. The president of an establishment manufacturing corrugated packing materials believes that— * % * goods manufactured in this country by American labor have contributed to the general prosperity and should be given equal opportunity without prejudice on account of foreign ownership. ‘Admitting foreign interests would be a protective measure.—A coal operator says: It is evident that if a foreign-controlled concern were not allowed to get into the combination, they might be of sufficient size to interfere with the operations of the combination in foreign countries. Ewclusion might reduce demand for American goods.—A New York export house engaged in foreign trade for the last 15 years answers by one of its officers: In many cases, excluding firms controlled by foreign interests might mean a reduction in the demand or sale for goods made by others. In riost cases the increase in sale of one line, depends largely on the increase in business on another line; and this in many cases in the foreign trade may be a line that could only be sold abroad when made by firms controlled by foreign interests. Should admit foreign interests to be consistent.—The secretary of a company dealing in athletic specialties reasons that— As long as we permit the employment of foreign capital in the domestic markets of this country, it would be decidedly inconsistent to exclude such concerns from handling foreign business. The value to this country lies in the labor and raw material items, not in the eventual disposition of the profits, Membership should be conditioned on efficiency and economy to American interests—A manufacturer of baking powder and flavor- 388 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, ing extracts exporting to. Pacific Ocean markets thinks that the organization should be— ¢ * open to either American owned or foreign interests in noncompeting lines when cooperation will promote efficiency and economy in extending markets. Such combinations must be voluntary, and must be mutually advantageous, or they will of themselves fall to pieces. Admission of foreign interests should be conditioned on their not being in the same business at home—A high official in a company manufacturing and exporting steel products for 50 years reaches this decision: I would not exclude a foreign-owned concern provided the concern did not maintain a foreign producing plant, but confined their producing energy to America. & The replies to this second division of question 5 reveal the fact that the recommendations as to the admission or exclusion of foreign concerns depend upon varying conditions. The opposing views taken by prominent men of much experience in export business indicate that the question is one not easy to decide. C. Smourp MemBersaIP IN CoMBINATIONS INCLUDE COMPETING AS WELL As NoNCOMPETING Propucrs, ok BE RestricTED T0 NoONcoMPETING ONLY ? 1. TYPICAL REPLIES IN FAVOR OF BOTH COMPETING AND NONCOMPETING prODUCTS.—A pproximately seven-eighths of those replying think that it would be advisable for the membership of American export organizations to be unrestricted in respect to the products they handle. That business must be up to the minute to meet changing conditions in the sale of its products is brought out by one manufacturer in this epigrammatic sentence, “ What are noncompeting products to-day may be competing products to-morrow.” i Other replies given below go into the question in a more detailed way. Difficulty in determining the status of competing and noncompeting products.—This opinion is from the president of a company selling electrical measuring appliances: Vexatious disputes and delays could, for example, otherwise arise in determining in each instance just what actually constitutes a noncompeting product. Again, a given manufacturer might, as in our case, turn out more than one line of product. To be obliged to join a plurality of combinations—each for one— for the sake of avoiding a legal restriction would defeat the purposes of combination for export trade by multiplying complications and expense just that many fold. A lumber trade paper gives this réply along the same line: The difficulty as to this appears to be in formulating a classification to distinguish between competing and noncompeting products. Most produets in any class are competitive among themselves, and as to many of them too fine distinctions might limit the field of cooperation to ineffective proportions. It would be practicable, and no doubt desirable, to differentiate between competitive and noncompetitive products as to standard articles moving in large volume, but as to the larger variety of products the restriction appears impracticable; and the natural competition, even under organization, of different brands or varieties of the same general class of goods would be sufficient to insure against undesirable results. BEPLIES TO CARD AND SCHEDULE INQUIRIES. 889 A partner of a company dealing in broad silks thinks that the combination— ¢ * * gshould not be restricted to noncompeting products, as it is difficult, probably impossible—in textiles, for instance—to differentiate between noncompeting and competing products, and well-nigh impossible to organize combinations which will not at sometime or other handle products somehow or other competing. One product makes ” for the shortcomings of the other—A dealer in sweaters and athletic specialties contributes the following: Both competing and noncompeting products should be freely admitted because no one house can cover it all, and the very essence of cooperation is that each makes up’ for the shortcomings of the other. If orders come piling in, give several competing plants an opportunity to share, instead of pushing one plant to the breaking point. A sudden slackening of the demand would not then be felt as acutely as in a.case where all the business is centralized in pne plant. Restriction would tend to give some manufacturers greater advantages than others.—An officer of an export establishment, who has spent his entire commercial career in selling export goods for American manufacturers, presents this line of reasoning: In view of the fact there are more manufacturers in some lines than in others, I dc not believe it would be well to restrict to trade in noncompeting products, for this would tend to give one manufacturer an advantage over another. The demand in a certain line might be such as to require more than the output of one factory to handle the business, and if restricted to noncompeting manufacturers, the trade might fall into the hands of a few, due to the fact that some manufacturers could not join such organization, being prevented from doing so by the fact that one of their competitors might already have been in each such organization. Good salesmen would be developed.—A New York exporter of many years’ experience says: We think that, to be of value, the export combinations should cover competing products, as by that method a much larger volume of business could be done, for the reason that it would require a relatively larger sales force for each combination to handle a wide variety of products; the best salesmen are those who specialize along certain lines, and in order to secure high-class men. it would be necessary to offer a large volume of commodities to sell Would tend to create greater efficiency.—In expressing his ideas on this question, a summer clothing manufacturer says: The trade should not be restricted in any form whatever, either in competing or noncompeting products. It should be a survival of the fittest. It will tend lo create greater efficiency amongst those who are backward in competition. Freedom of action is necessary in business.—A professor of South American history replies: I do not believe such export combinations should be restricted to trade in noncompeting products, but that each combination should be allowed to make its own rules. I believe that this would be best because too much supervision and regulation will hamper us along lines where the greatest freedom of action 8 necessary in order to meet new and unforeseen contingencies. The problem of monopolistic control a factor—A member of a large exporting house with many years’ experience writes: Combinations should be allowed for both competing and noncompeting prodacts (although the former is not likely to occur) so long as no monopoly or control of a product is created. 390 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Some lines call for sale of both.—The secretary and manager of a company manufacturing machinery for grinding tools, dies, ete. explains that, in his line of business— * * competing machines overlap to such an extent that it is very difficult to find a high grade line that doesn’t compete at some point or other with other lines. We don’t compete with one concern in their particular line, but they do make a machine which competes with one of ours. Another one doesn’t compete in that machine, but it does compete in some other machine. In our three principal lines we would therefore compete to a certain extent with at least one-half of the really high-grade American machine-tool builders. Therefore, we again say that the only way in which the matter can be handled, with any degree of satisfaction, is to allow only combinations to be made as the individual businesses and the conditions in those individual businesses demand. Depends somewhat on the product—A company manufacturing steel products answers by its vice president as follows: In certain cases competing products could be successfully handled by one selling society—different kinds of canned goods that vary in price and are sold distinctively under brand. I do not believe competing articles made to specifications, such as rails, bridge work, copper, and standard types of machinery of the same price, etc., would go well together. I am, in general, not in favor of cooperative selling in articles that have a wide market, but it would be good in classes of goods whose use is restricted and alone would not warrant the expense connected with foreign introduction. I believe that Americans, selling their goods in competition with each other, should act in a cooperative manner, in that it would call attention to American products. Requires competing products also to meet foreign trade methods. — A member of a smelting company contends that— Unless competing products are covered, the whole difficulty would be ignored. An export combination restricted to trade in noncompeting products would represent only an insignificant portion of the export trade, and in any case would be a negligible factor in such trade. Any particular products covered by such a combination would fare no better against a combination of buyers of that product simply because sold by an organization selling noncompeting products also. Power in cooperation—An official of a company manufacturing vehicle equipment affording protection against the weather says: The development of the sale of a given American product abroad can certainly be most advantageously nurtured by the combined brains and skill of all the neople concerned in that industry. Would tend to consolidate American export interests—A soap manufacturer states that the combination should— « * =* include competing articles so that American firms in same line won't be cutting each other’s throats in export business but collectively will go after the other fellow’s. Products should be grouped and classified. —A merchant importing linen goods for nearly half a century thinks that— A combination made of noncompeting products would in 'a way be a jack of all trades and a master of none. It is well to specialize. It would be better to have the group competing products, or products that could be sold in conjunction with competing products to the same line of trade. Thus various textiles of different fibers and styles could be in one group, as linens, cottous, woolens, silks; various kinds of iron manufactures and other metals in another group. - Jt would be a matter of intelligence to properly classify the different gToUDS. REPLIES TO CARD AND SCHEDULE INQUIRIES. 391 Two methods presented, one better than the other—The export manager of a large rolling-mill company states the following: These would be two distinct schemes. The first would imply merely a joint selling organization (not really a combination) with certain limited advantages over isolated individual effort. The second would mean a combination with advantages covering the object directly in view, namely, meeting foreign sompetition, and coordinating the export activities from the ground up—(1) production, (2) selling, and (3) delivery. Leave the decision to the business interests.—A high official of a company engaged in selling printers’ supplies presents the following discussion : We think it may be safely left to the business associates whether competing products shall be admitted. It is often difficult to determine whether different products do compete and, if so, whether the competition is only in certain features or In certain classes of work or under certain conditions. Further, t is often advantageous to both seller and buyer to be able to offer a selection between different competing products, and, at times, the sale of a nonompeting product depends on the ability to sell some attachment or allied product which does compete with some other. We do not think that restriction s necessary. And abstractly it may be asked why a trade policy avowedly lor the purpose, among others, of protecting competition should deny an opporunity for competition. This reply was received from the president of a firm selling timerecording machinery: The question of competition can safely be left to the men engaged in the anterprise. The public can not suffer even if American-made goods of a competitive character are exported jointly and in large volume. Make no distinction by law unless a conspiracy—A prominent Chicago attorney states that— The law should make no distinction between noncompeting and competing products, providing always the combination, whether to promote export or domestic trade, does not amount to & conspiracy. 2. TYPICAL REPLIES IN FAVOR OF LIMITING MEMBERSHIP TO NONCOM-PETING PRODUCTS.—Less than 13 per cent of the total number giving information in answer to this last division of the question believe that membership in export combinations should be restricted to dealers in noncompeting products. Those who hold this belief present the following reasons in support of it. Control by the few.—An exporter of tobacco who has had 15 years’ experience replies: We believe that the combination or cooperative organization should be restricted to trade in noncompeting products, for if competing concerns were members of this organization, it would not be long, in our opinion, until one or two of them had all the business and used the organization to the detriment of other competing concerns. Restraint of trade—One of the partners of an exporting house thinks that the organization—-* * * ghould be restricted to noncompeting lines, otherwise it would create # combination in restraint of trade. Cooperation impossible between dealers in other than noncompeting products—A manufacturers’ export agent concludes that membership should be restricted to— * * * poncompeting products, because you could never get proper coopera. tion on any other conditions. Say there are two competitive concerns in the 392 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. same organization and one happens to develop his export trade much faster than the other one. He would naturally not care to give the secret of his success over to his competitor. Rather would I have several organizations in one town than have competitive concerns in one organization. Antagonistic products could not be handled together—A dealer in elastic goods selling in many foreign markets contends that he does— « * * pot think it would be practical for combinations to be open to all lines. Why not organize several different combinations—one each for kindred lines? One organization, we contend, could not handle successfully machinery or lumber together with suspenders and drygoods, whereas it would be practical to handle suspenders, garters, neckwear, underwear, hosiery, and all kinds of men’s furnishings, ete. Must not abandon competition—A baking powder manufacturer avows that membership— * * x ghsolutely must be restricted to noncompeting lines. Any other conception would necessarily imply pooling of results, or other prearrangement Involving the abandonment of competition between producers and manufac-Lurers of any single commodity. Could not get full value out of such an arrangement.—A member of a clothing firm gives this answer: I would limit these combinations to noncompeting products. It would not do, I think, to have a selling combination contain two or more members who were competitors of each other. No one of them could get full value out of the arrangement. The vice president of a concern handling refrigerating machines says that export combinations should— # *= » he restricted to trade in noncompeting products, otherwise neither the interests of buyer or seller can be intelligently conserved. REASONS WHY MANUFACTURIBS 20 NOT ENGAGE IN FOREIGN (Manufacturers®' schedule, question No. 8.) Question 8 in the schedule sent to manufacturers was as follows: If you do not engage in foreign trade, please explain what conditions have determined your policy in this respect. Out of 1,410 replies received from manufacturers, 1,110, or 79 per cent, stated that they were engaged in foreign trade, 238, or 17 per cent, that they were not so engaged, and the remaining 62, or 4 per vent, were noncommittal. These replies show that a number of important conditions exist that have prevented many manufacturers from engaging in foreign trade. The majority of the replies are to the effect that the small size of their concern is the principal reason. Many of these add that they could do so profitably if they were permitted to become a member of a combination of some kind orgagized for the purpose of engaging in foreign trade. The reason next in importance, as evidenced by the replies bearing on the point, is the character of the foreign competition. These replies indicate that the principal reasons for the difficulty in meeting foreign competition are that foreign labor is paid low wages; that the cost of material is lower abroad; and that encouragement is given by the foreign Governments to concerns doing an export business. This encouragement is attributed fo their laws in general. REPLIES TO CARD AND SCHEDULE INQUIRIES. 393 The subject of credits and terms is also found to be important. The fact that long-time credit and terms must be given has kept many from engaging In export business. It seems that the American manufacturer has not been able to meet foreign competition successfully on this account. Other important reasons given for not engaging in foreign trade are difficulties with respect to various conditions, as follows: Ocean transportation ; existing laws of the United States; tariff of foreign countries; methods of export houses; foreign language ; requirements as to packing; high cost of selling; inability to supply the domestic demand; differences in weights and measures; railway rates to American ports, etc. INABILITY OF SMALL CONCERNS TO GO INTO FOREIGN TRADE.—The reason most frequently advanced by manufacturers for not engaging in foreign trade is that their company is not large enough to justify the attempt to build up a trade in foreign countries. A manufacturer of belts writes: We have not capital enough or a line of goods large enough to warrant our going after the trade direct ourselves. A concern engaged in the canning of corn and peas says: Our organization is not big enough to attempt it. Another firm engaged in the canning industry says: The selling expenses are prohibitive to the smaller manufacturer, From a manufacturer of corn cultivators: We have not attempted to go after foreign trade on account of the large expense in connection with our short line and limited field. : A manufacturer of cement writes: The concern in which I am interested has not participated in foreign trade, particularly because of the expense entailed in making proper investigations and the high cost of sales and collection. A manufacturer of embroidery states that he has been deterred by a— * * = rpeglization of the almost hopeless task of a small fmanufacturer with limited capital trying to invade a field fraught with difficulties too tremendous for an individual to overcome. A manufacturer of glass bottles says: We have not engaged in foreign trade to any extent because the cost of mainlaining a selling agency was prohibitive, the amount of goods that we have to dispose of being too small. A manufacturer of pumps writes: We have not engaged in foreign trade to any great extent mainly for the reason that the expenses incident thereto when borne by an individual are too ereat for the results obtained. A scale manufacturer states: : We do not export direct for the reason that the advertising and selling costs are two high, and, furthermore, the small concern can not carry accounts for such long terms as are required in most foreign countries. A manufacturer of cement and lime states: We have not engaged in foreign trade because, being a relatively small concern, we have not been able to see how we could afford an expensive export preganization. 394 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A manufacturer of machinery writes: Our only export business thus far has been to Canada. Have tried at odd times to enter other foreign fields, but have found it impossible to do so without any representatives in the field or some suitable method of getting actively In touch with the foreign trade. A firm of our size can not afford to employ a foreign representative for its exclusive representation. A manufacturer of steel castings writes: Can not afford to develop the market alone. ComBiNaTION NEEDED.—There is a desire among many manufacturers for cooperation among themselves for the purpose of securing foreign trade. This is shown by the many replies to this effect. A manufacturer of fancy cotton and silk goods, after telling of the different methods he had tried in order to gain the Argentina trade and of his poor results, says: Went to considerable expense to develop trade with Argentina, both by send-Ing out samples, by letter, by conversation in New York, and with what slight nssistance the National Association of Manufacturers could give, and it proved that the only way that our trade could be developed would be by being a member in a combination of industries large enough to have their own personal representative go to Argentina. Would have to be a member of an organization with strong financial backing. A manufacturer of belts states the point as follows: As we understand the law, it prohibits a combination of small manufacturers which to our mind might solve the problem. A large manufacturer of supplies for the shoe manufacturing business states: We do engage somewhat in foreign trade, and would undoubtedly extend our Interests in that direction if the percentage of cost of reaching the trade could pe brought within reasonable limits, and cooperation would be very helpful lo us. A manufacturer of cottonseed products says: It is hard for a small mill to take on foreign contracts of any size, and the only way to handle &he business now is to sell from 100 to 500 tons of cake or a few hundred bales of linters to some exporter who assembles the shipments, engages his freight Yoom, and sells direct to the consumer on the other side. A proper cooperation would eliminate the middle man and enable the small mill to get the same prices for his product as the large mill. The policy of the mills now is to sell for export when they can get approximately the same price for their goods as they can for domestic use, but there are some large concerns who sell a certain proportion of their product every year for export, usually for fall shipment, which is the time when there is least domestic demand for cake and meal. A manufacturer of vulcanized fiber says: We have some foreign trade, but everything we sell in Europe is sold either at cost or below, simply to keep our mill going. Our foreign trade is simply a dumping ground for our surplus product, and there is no profit in it. If we were permitted to consolidate with a number of our small competitors we could then produce our goods cheaply enough to sell in the foreign market at present prices with a profit. A manufacturer and producer of pig iron, coal, and coke states: The volume of our business is quite large, but it is not large enough for us to enter the foreign field. We must either become one of the units in a combination or sell at low prices to agents for foreign buvers. REPLIES TO CARD AND SCHEDULE INQUIRIES. 395 A manufacturer of bar iron, screws, bolts, etc., states: Have not engaged in foreign trade, except to a small extent with Mexico and (*anada, as cost of doing business on the amount of materials we could supply under present conditions, is not sufficient to become competitive unless in cooperation with others. A manufacturer of iron writes: Our foreign trade opportunity came to us as a result of the war. We did not seek it because we were unwilling to spend money to obtain a trade we did not think we could hold after the conclusion of the war, and without better * organized means” than now exist, foreign trade can not be held by such a concern AS Ours. A large manufacturer of furnaces and steam-saving devices writes: We have never made any effort to do an export business on account of the expense attached under existing methods. Our interest in the matter is largely patriotic, but we should undoubtedly arrange to experiment with the trade if combinations were possible and approved. An establishment engaged in canning sweet corn writes: By combining on export orders, canners could work to advantage. Another establishment engaged in the corn-canning industry states We consider our business too small to go out after what little export trade we could handle in addition to our domestic business. We believe that with B central organization to handle foreign sales, credits, etc, the small producer would be better able to handle export business than at present. A large manufacturer of fiber-board shipping cases and boxes writes: We believe we could do a foreign business if we could sell through some good organization at a price competitive with the open markets, were properly posted on conditions, and had a price agreement based on a plan of competing on losses with other foreign manufacturers. A manufacturer of toilet paper and towels writes: We do not engage in foreign trade and the reason is that we have been unable to get orders for carloads for export. We have not felt that we could afford to spend the time and money investigating and working up this business. The proposed common selling agency would take care of this part for us. A manufacturer of paper boards, tags, etc., stated that he had received some foreign trade since the war started, and, with the experience gained, he would be able to hold a portion of it after the war, but, to accomplish results, the cooperation of the Federal Government would be essential, and the cooperation of the manufacturers among themselves would be absolutely necessary. A manufacturer of electric clocks gives as his reason: Have no foreign trade on account of the expense of promoting our line singly. Think, with noncompetitive combinations permissible and encouraged, we could do an export business in considerable volume, which added volume would lessen the cost here, insure a more steady demand. and lower the cost to the United States consumer. From a manufacturer of cement * We do but little export business. We carefully investigated the matter and came to the conclusion that as a company we could not afford to spend what is necessary to properly work the Central and South American markets, whereas we feel we can afford our pro rata share of a cooperative campaign, as we are convinced it would bring us real results. 396 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A large manufacturer of automobiles writes: . Our foreign trade is limited, due to the fact that specifications of our product do not altogether meet foreign requirements, and the domestic demand has practically used up our capacity. Also extreme difficulty is experienced in establishing satisfactory foreign relations, due to limited business. This condition would, of course, be overcome by forming cooperative selling agencies. Low COSTS AND PRICES OF FOREIGN COMPETITORS AN IMPORTANT DIFFIcuLTY.— That the low costs and prices of foreign competitors are two of the chief difficulties met by American manufacturers and that many have not been able to overcome this, is indicated by a large number of the replies. A producer of pig iron and coke writes: We have not engaged in the foreign pig-iron trade because our labor, material, and freights have been too high to compete with the foreign pig-iron manufacturers. A manufacturer of open-side metal planes says: Previous to the war German machines of similar design were offered in competition with us at prices which were but slightly in advance of our bare material cost, which absolutely shut us out of the market. A manufacturer of wire goods writes: We do very little export business on account of not being able to meet prices made by foreign manufacturers. . From a manufacturer of auto springs and heaters: We did not engage in foreign trade until after the European war broke out, for the reason that we could not compete in price because our men live up to a higher standard than foreign workmen engaged in the same line of business. The decreased production due to labor shortage in Europe since the war has permitted us to secure some business up to the time that England and France raised their tariff. We have no hope of securing further business in the near future. due to the high protective-tariff wall set up by these countries. From a manufacturer of mica and gas goods: We sold some of our product abroad up to several years ago, when German competition arrived and we did not care to meet it. Ad A manufacturer of soap says: Our products can be made as cheaply or more cheaply in many foreign countries than in the United States of ‘America. One manufacturer of writing paper expresses himself briefly as follows: We have found that we could not compete in price with foreign-made goods. An expression from a manufacturer of textile materials: We have no Interest in seeking foreign trade for the reason that it is absolutely impossible for us to compete with any foreign country manufacturing fine cotton fabrics, for the following reasons, viz: Wages—we pay from 50 to BOO per cent higher wages * #* *; cost of plant—50 to 100 per cent higher in the United States; supplies, much higher here, with the exception of cotton. When the times are normal, cotton can be landed in Liverpool or Manchester at about the same cost as at our northern mills, A manufacturer of woolen goods says: Never saw any woolen goods that we could make to compete with foreign producers under normal conditions. REPLIES TO CARD AND SCHEDULE INQUIRIES, 391 From a large manufacturer of rugs and carpets: We can not sell our fabrics abroad, we are so greatly handicapped by the cost. Our wages average double English cost and three times German, Austrian, Belgian, and French costs. This refers to five or six years ago. The abnormal conditions abroad bave no doubt greatly changed this for the present. A manufacturer of slippers states: Do not have any opportunity to sell articles of our own country, as England and Germany can produce similar goods at 35 per cent, more or less, below my cost. Part of this is cheaper labor abroad, less labor laws in restricting female help, and much cheaper materials. Our product is largely felt slippers, and the English and German felts before the war just about equaled the sale price in this country after paying 85 per cent import duty on same. Creprts.—The replies bearing on “ terms and credits ” indicate that great difficulty is being encountered by exporters in this regard and that this is one of the main factors keeping many Americans from engaging in foreign trade. A manufacturer of stoves says: We, being a small concern, can not afford to give credit to foreign customers, It takes too long a time to collect for the merchandise. We had no means of knowing the credit of foreign customers and at what price we might sell our goods abroad. That a manufacturer of sewer appliances is experiencing the same difficulty is shown by the following extract: We do have a small and scattering foreign business, which we earnestly desire to enlarge, but the expense of introduction, the question of payment of accounts, the lack of credit facilities and the lack of information as to technical requirements of foreign buyers, combined, render foreign business in our line nnattractive. A manufacturer of scales gives among other reasons the following: It is almost impossible to get correct and up-to-the-minute information as to the importer’s financial standing. A manufacturer of gaskets and portable houses writes: Credit and banking conditions hinder us much. That the same trouble is experienced by members of the textile industries is shown by a number of replies. A manufacturer of knit proods savs: South Americans were used to doing business on long terms, and our capital would not permit of that, and banking facilities were lacking to take the burden off us. A manufacturer of bathing suits writes: The difficulty of starting a trade in totally new territory with firms of whose credit standing we know little or nothing has hitherto deterred us. A manufacturer of tents and waterproof ducks says briefly and tothe point: Credits demanded In Argentina have kept us out. A manufacturer of bags and burlap bagging says: Foreign buyers generally buy their goods on very long terms. Together with time it requires to manufacture and export the merchandise, it would probably take a year before payments are received for same. The European merchants have the advantage of the American dealers, as their banks are more liberal in extending credits at low rates of interest to their customers. This 3908 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. gives them an opportunity to buy their products on long terms—they sometimes have as long as 12 months to pay for their goods—while manufacturers in this country have to pay, in most instances, in 10 days, and, besides, their banks are not as liberal in extending credit, and when they do, they’ have to pay from 6 to 8 per cent and sometimes more for their money. A manufacturer of paper states that he has not engaged in foreign trade on account of— ¢ * =* price competition and long-time credits extended by German and English shippers. A manufacturer of writing paper gives as his reason— #¢ * =* the long credits asked for in the South American countries, A producer of lubricating grease speaks of — # * * foar of selling to people who will not pay and the long-time credits. A manufacturer of oils, grease, soap, polish, and paints briefly states his experience as follows: Not in the foreign trade up to this time on account of credit risk. A lumber manufacturer says: Our objection to direct sale is the difficulty of learning the credit standing and reputation of the buyer. A manufacturer of electrical goods writes: A good many of the accounts which we have taken abroad have never been paid, and for this reason we have not pushed foreign business, A manufacturer of soda-fountain supplies writes: Our great difficulty has been inability to obtain satisfactory credit information and the difficulty of collecting foreign accounts. OCEAN TRANSPORTATION (see also replies to questions 7 and 11, manufacturers’ schedule).—Poor service together with high rates in ocean transportation is another reason advanced by manufacturers as to why they do not engage in foreign trade. Not so many assign this as their reason, but those who do assign it think it is one of primary importance. A manufacturer of steel wool and steel shavings writes: The charges on small shipments are prohibitive. A large manufacturer of shoe dressing writes: Have many unfilled orders awaiting the opportunity to ship. Either no gervice or no available shipping space. A manufacturer of cotton goods writes: The biggest impediment is that shipping room Is scarce and ocean freights high. From a coal producers We are doing some business in Italy, South America, and could do a great deal more if we could get ships to carry our coal at reasonable rates. A manufacturer of fruit products says: Found it difficult to get and to hold such trade, as in past years steamer service was unreliable. Germany and Great Britain got the business. A manufacturer of paper and pulp says: Primarily lack of cheap ocean freights and prompt delivery by direct vessels to the principal ports have deterred us. REPLIES TO CARD AND SCHEDULE INQUIRIES. 399 DzererreNT EFFECT OF UNITED STATES LAWS.—Several manufacturers state that the present law, or their interpretation thereof, has kept them from entering the foreign markets, inasmuch as they understand it to prohibit cooperation for the purpose of engaging in foreign trade.-A manufacturer of cast-iron pipe writes: Our efforts have not been wholly successful owing to American legislation which prevents cheap shipping rates and prohibits such combinations as might result in lessening cost. From a lumber manufacturer; We have only been able to engage to a small extent in foreign trade on actount of our operations not being large enough to justify us having representatives in foreign countries, and the fear that if we cooperated with other manutacturers in the handling of our products we would be prosecuted by the Federal authorities. A manufacturer.of writing paper writes: Have never joined any combination or syndicate, not being informed as to what the law provided in this respect. TARIFFS IN FOREIGN COUNTRIES.—A number of replies state that certain foreign Governments are fostering trade for their own merchants in the way of preferential tariffs which make competition difficult or impossible for American merchants. A manufacturer of plaster boards says: As soon as a good business was built up in Australia preferential tariffs were mtroduced which made it impossible to compete with English manufacturers. A large manufacturer of wagons and motor trucks writes: Prior. to five or six years ago we had a large business in South Africa. An import duty of 25 per cent and a 100 per cent differential in freights in Africa in favor of local manufacturers made it impossible for us to compete, and so lost the business. A manufacturer of men’s clothing makes the statement * We do not get into certain markets, such as the Argentine Republic, because ‘hat country charges a duty of 42 per cent gross on a minimum unit of $17.50 per suit. This is. and is obviously meant to be, prohibitive, A canner of oysters and shrimps says: Have tried to export to South and Central America, but customs duties and regulations’ prevent. A company engaged in the vegetable canning industry writes: fixcept for present excessive import duties. trade might be secured in South America. Export commission HoUsEs BLAMED.— That, in some instances, export commission houses may be to blame in keeping manufacturers from entering foreign trade is shown by a few replies. A manufacturer of envelopes writes: [ have found American export agencies want so much cash without guaranteeing any return it was merely advertising with no results. I tried it once and had mv lesson. From a manufacturer of book paper: Have not engaged in foreign trade because it is not satisfactory to deal through brokers. 400 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. From the schedule of a manufacturer of electrical supplies: Our foreign trade is limited, due to the fact that our line is handled by a few export agents, who usually “peddle prices” and who usually obtain the larger profit, leaving little or no profit for the manufacturer. One manufacturer of belts writes: Have tried it through commission men and dealers, but they have all proven failures. A manufacturer engaged in the production of leather belting writes * Our experience in the export business in the past has been that brokers have handled the proposition and bought where they could buy the cheapest and pushed our [that is, American] goods that were not the best manufactured In the United States, and in that way proved detrimental to the manufacturer. A lumberman writes: ’ Are not big enough to send agents abroad. Dealing through local exporters generally robs the business of any profit. AMERICAN COMPETITION FOR FOREIGN TRADE.—A number of replies state that the result of American competition in certain lines of foreign trade is so keen that little or no profit is made, and that this has kept some manufacturers from engaging therein. A manufacturer of oils, waxes, and greases gives as his reason: The probability that the competition of the large producers of the goods that we handle would make any effort fruitless. A manufacturer of flour states that the fendency of exporters and commission houses— # » * {pn their endeavor to use one manufacturer against the other in mak-Ing prices * * * to their own gain over and above what would be a legitimate margin of profit has made the business undesirable. Otter pIFFIcULTIES.—The replies, as a whole, do not show that the difficulty as to language has been such an obstacle as is generally supposed. However, a few mentioned this in their replies. A few manufacturers state that the careful packing that is reuired has kept them from engaging in the foreign trade. A manufacturer of machinery writes that “the trouble of boxing without any compensation” Lr same has kept him from going into the foreign trade. In several reports manufacturers state that the lack of knowledge of foreign languages, customs, requirements. etc.. has kept them from getting foreign business. A manufacturer of bank fixtures, files, and furniture gives his past experience as follows, in regard to language and conditions in oeneral : We have in the past shipped goods to Mexico and Hungary, but could never follow these sales up, owing to our ignorance of these languages, the difficultes incident to securing proper translations. and our unfamiliarity with the local conditions. A manufacturer engaged in the canning industry states: Our business being canned foods, we need information concerning quantity shipments, package requirements, quality of goods wanted, peculiar requirements of the people whom we are trying to reach, knowledge of laws governing credits and collections of the particular country or section we might be trying to reach. and shipping facilities and time required to deliver shipments. REPLIES TO CARD AND SCHEDULE INQUIRIES. 401 A manufacturer of various kinds of oil, wax, and grease writes that “the lack of information as to methods of procedure, terms, rates of exchange, weights, and measures” has kept him out of the foreign field. } Several of the replies bear directly on many points germane to the question. Thus, a manufacturer of biscuits, cakes, and crackers states: English and German biscuit works have made a specialty of export trade and have departments for that exclusive trade and representatives who speak and write the native language and understand thoroughly the requirements of the various countries where they sell goods; pack goods better and in more suitable packages than American bakers and are more liberal with their terms of credit; also we understand have agreements among the large manufacturers in regard to commissions, terms, discounts, etc., and those terms are lived up to. A producer of structural steel writes: We have not engaged in foreign trade because we have usually been able to sell all of our product locally, and besides we have no direct knowledge of foreign requirements, no staff trained in foreign salesmanship, exchange, transportation, marine insurance, and other essentials necessary for successful foreign distribution. FOREIGN COMBINATIONS COMPETING WITH AMERICAN EXPORT TRADE. , (Manufacturers’ schedule, question 9; exporters’ schedule, question 8; other schedules, question 7.) Question 9 of the manufacturers’ schedule, question 8 of the export commission house schedule, and question 7 of the other schedules read as follows: Please give briefly any facts you may ‘have concerning foreign cartels, syndicates, or combinations in any form whose competition (you or other) Americans encounter in export business. In general, the replies indicate the belief that the American exporter is greatly handicapped by the laws of the United States and by the attitude of the Government in respect to combinations. Many statements were made to the effect that in Europe, particularly. Germany, combinations which are, in nearly every line of trade, permitted, and sometimes even fostered, by the Government, have control of the export trade and enable the manufacturer to export with facility, and at low prices. Competition from these combinations is felt by American manufacturers, both in selling to the countries in which these combinations exist and in other.countries to which these combinations or their members export. Replies to the schedules were received from about 2.000 persons or companies. Of these, 517 (representing 40 export commission houses, 13 domestic merchants and importers, 57 publicists, economists, lawyers, and others, and 407 manufacturers) reported some knowledge of foreign cartels, syndicates, or combinations whose competition is encountered by Americans in their export business. The remainder did not answer this particular inquiry or reported that they had no facts to offer, the statement ofter being made to the effect that the person answering believed or has understood such cartels end combinations existed, but that he had no specific facts to substantiate his belief. 27241°—pPT 2—16———268 402 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A manufacturer of metal balls said :-‘We have none [i. e., no information] definite enough to give, but we know that there are strong ones [cartels] in Germary, Austria, etc, as we have come in contact with them in business, Many replies seem to indicate that while the respondents know of no particular cartels or combinations in -their line, they believe that certain competition which they have met may be due to some such combinations. Thus, a manufacturer of electrical specialties said: I have no specific facts or details, but understand German manufacturers have combines in competing lines of trade and successfully (apparently) market their goods abroad. In our own line of trade it would appear that they have been so combined, but I have no facts to support this—only my own inference from conditions prevailing. Few of those replying make the claim that they have never encountered or felt any competition from foreign combinations, and the majority of these believe that, though they have never met cometition in their own line, it does exist in other lines. Some state, Pane: that foreign combinations whose competition is felt are limited to manufacturers of staple lines. GENERAL CHARACTER OF FOREIGN COMBINATIONS.—While a great many state that they have encountered competition from foreign combinations in Europe, South America, Japan, and elsewhere, a large roportion reply very generally. Since the question asked merely bor a “brief ” statement, the replies naturally do not give any detail as to the character of this competition, and do not state in just what way it has affected the individual or.concern in its export trade. A number of the replies received, without giving particulars regarding individual cartels, give an idea of the general character of the cartels, syndicates, or combinations which are being encountered by Americans, their strength and importance, and how they operate. A large manufacturer engaged in a considerable export trade is quoted : We. encounter in South America, Cuba, and nearly all the other countries, combinations in the German trade in particular. They have made a specialty of working together, regardless of their diversified interests, They are assisted by the Government, steamship lines, and banks. and it makes a very strong combination against our trade. A large manufacturer of steel products refers to the German competition as follows: We encounter many of the combinations mentioned in export business, but will cite only the case of the most successful, namely, Germany : First. The export business is secured not for any particular manufacturer or group of manufacturers but for Germany. There is no competition among the various manufacturers, but, with the sanction or rather by the orders of the Government, a combination is formed among the manufacturers of similar articles. The business is secured by one of these and then divided as the conditions may demand. Second. The matter of cost is not considered when making the selling price In other countries. The capable and efficient agents of the German manufacturer ascertain the price necessary to secure the business and quote accordingly. This price may have been driven by ruinous competition each time of bidding to figures below cost. They then grant long credits which the branches of the German banks must carry. The Government directs investments be made in the properties with the provision that on equal terms the business be given Germany, knowing the terms offered will be better than offered by other countries. It must be understood that with Germany’s efficient methods REPLIES TO CARD AND SCHEDULE INQUIRIES. 403 these investments are not made indiscriminately, but only to worthy buyers such as we would seek. Third. After the business is acquired and awarded to one or more manufacturers, he is permitted to make 10 per cent, or some other predetermined profit on the transaction, regardless of the selling price. The following from a manufacturer of safes is also in line: We can not compete with the German cartel system. (1) They have greater afficiency in an expert sales organization; (2) arrangement of foreign credits; (8) discount of foreign paper; (4) the best and most complete information ‘from a man on the spot) of special trade requirements. . These cartels or combinations, especially in Germany, are stated, in many Instances, to control the export trade. A large manufacturer of lime phosphate says: The export trade of Germany is almost entirely controlled by cartels with the sanction and aid of the Government and in consequence of this, the export trade of Germany has increased enormously to the great advantage of that country. We can not recall any country, other than the United States, in which export trade is not eagerly sought for and encouraged by the Government or where its development and progress is obstructed or impeded by law, Their effect on competitive conditions is discussed by a number of respondents. It is frequently maintained that these combinations set uniform prices on various commodities or manufactures. A manufacturer of lead pencils says: Germany, Austria, Switzerland, and other countries maintain syndicates whose function it is to encourage foreign trade. They set uniform prices on various commodities or manufactures which are absolute. A deviation from these prices on the part of a manufacturer will subject him to heavy penalties, Again, various replies assert that through combination of interest they are able to sell at low prices; that instead of competing with one unother the members of the combinations apportion the business; and that they succeed in preventing the small dealer from purchasing other goods than their own. A piano manufacturer: We find that by the cartel system, the manufacturers are able to present their goods through the combination of interests at the least possible expense in selling, freight, finance, and in practically every conceivable direction. We would state that it has come to our knowledge that goods are sold through this combination arrangement at very low prices in order to get the trade, and they are able to do this, owing to the different concerns in the combination, each taking a share of the proportionate loss, if there be a loss. A company that is one of the very large makers of locomotives speaks of the cartels as an aid to Germany’s success in exporting: It is a well-known fact that manufacturers of competing praducts in France and Germany have for many years operated in the foreign market through joint agencies, cartels, or other syndicates which placed them in a position to compete nore successfully with foreign manufacturers, not only through more efficient representation but by preventing competition among themselves for export trade, and through the apportionment of the foreign business available, to satisfy small and large manufacturers engaged in foreign trade. A very important manufacturer of electrical goods: Foreign competitors have, In many cases, divided their export territory among their manufacturers in order to limit the selling expenses to the respective fields nf activity of the various manufacturers. A student: In the French colonies, French (and sometimes German) syndi expor » = cates or ex t pzents successfully oppose the purchase . y Opp D by the small dealer of goods not handled 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: REPLIES TO CARD AND SCHEDULE INQUIRIES. 405 Our work brings us chiefly in contact with manufacturers of specialized lines sold under brands and trade-marks. Hence we have little or no knowledge of the European cartel system, which we understand to be employed chiefly in basic industries, making manufactures for further use in manufaecturing. It would appear, however, that the European legal attitude toward competition is radically different from the American. Europe appears to hold that reasonable price agreements, especially when competition in quality and service continue, prevent, rather than foster, monopolies. That cut-throat competition, unrestrained, results in the extinction of all but the strongest and thus leads to monopoly Furthermore, price agreements In themselves, or pooling of profits, even, are not looked upon in themselves as either illegal or contrary to public interest. Another respondent adds: . The knowledge on the part of foreign competition and also on the part of foreign carriers, handlers, merchandisers, and buyers of the competitive situarion necessarily existing in the United States under the law, is sufficient for them to take advantage of the opportunity of securing, by combination, prices and creating conditions that could not be so easily and successfully accomplished if oppesed by conditions naturally ensuing through combination should restriction be removed. An importer of linens states: It is well known that cartels or combinations have existed in Germany and in Belgium, where the Government has given very able and direct assistance In advice through the machinery of the Government, and frequently, has had members of its Government attend all of the meetings and aid and abet plans of syndicates or combinations in every way that the Government machinery can be of assistance. This has been of tremendous importance. The Governments are not inclined to hamper these cartels with red tape or with circumlocution but have been of active, businesslike assistance. . Foreign Governments assist private banking corporations to establish themselves in foreign countries. This assists in financial settlements; also gives a method of obtaining necessary reports regarding financial standing of buyers. in the writer’s experience. The German Government sent chemists to Belfast to discover what dyes were needed and give exhibition of dyes and their uses. After learning what was needed and reporting to manufacturing chemists in Germany. these Government agents were followed by selling representatives of German manufacturers, who came equipped with exactly the right materials to meet the demand, and large sales resulted. The Japanese Government is also stated to give similar aid. A manufacturer of cotton goods who exports half his product says: The Japanese combination, fostered by that Government, has seriously interfered with our business in China and has practically supplanted us in that market. The importance and character of Government aid to these combinations is described in the following excerpts from replies received, the first being from a mannfacturer of corn products: A foreign Government will permit a price to be fixed on a manufactured article which will yield the capital employed in the business a fair return. That income being assured, the manufacturers may offer their goods in foreign markets at cost or below, until they have driven competition out. Then they may advance their prices to cover what they have lost and interest thereon and as much more as the buyer can stand. Most manufacturers reason that under ordinary conditions, the greater the output, the lower the cost of production should be and the better the quality, because great businesses are in position to engage the services of better men at a less cost per unit. There being a more severe struggle for existence in the older countries, their manufacturers and merchants are forced to be skillful and careful, and they are backed up by their Government as a rule. 406. REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, The German system is positively and progressively absorbing business from nother countries, so I would favor cartels, syndicates, or combinations, providing they were properly controlled, so that the stockholders would be assured of a fair return and no more. Any business which develops by patent or secret process should be further protected and given part of the extra profit accruing therefrom. As to foreign trade, we must be selfish and set our sails to the wind. A manufacturer of steel wool: We understand that in our and kindred lines German houses received, besides being favored in freight rates, a bonus on export shipments and were favored otherwise, but as this is hard to prove, we, for this reason, have not brought this matter up in former customhouse litigations to which we were called as witnesses for the United States Government, It is very difficult for small American manufacturers to combat conditions of this kind in normal times, and equally difficult to go into and make assertions which are an open secret but can not be proved. To give an instance, one of our competitors shipped steel wool several years ago from Antwerp to Chicago, via Boston, and their rate was 82 cents per 100 pounds, while our rate from New York to Chicago was 75 cents per 100 pounds. We went before the eastern freight classification without any result. whatever; we tried again with same result, and are sure, were we.in Germany, such a Just complaint would be well considered by the authorities. A well-known leather concern of the Middle West: Before the recent war German manufacturers were protected by their Government and allowed to fix prices for domestic market, thus enabling them to andersell their surplus stocks abroad in competition with United States manufacturers. COMBINATIONS IN PARTICULAR INDUSTRIES.—More important, perhaps, than the rather general replies quoted thus far, are the replies that cite specific industries in which competition has been encountered from foreign cartels, syndicates, or combinations. The majority of these replies are from persons who actually engage in export trade, and their statements represent their personal experience in seeking to extend their trade in foreign countries. Cartels and syndicates are often referred to by name. The principal industries in which cartels are thus described with some particularity in the answersare: Chemicals and dyestuffs; coal; fertilizer, including potash; and iron and steel, including various kinds of machinery. Some of the more specific replies reporting competition with foreign combinations, arranged alphabetically by industries, follow: BacoX (DENMARK). We know of none except the Danish Bacon Co. (Ltd.), with which we actually compete in Great Britain. This is a cooperative organization composed of Danish farmers and hog raisers who operate along cooperative lines and, we understand, under certain agreements among themselves as to prices and production. They are represented in London, where they maintain an office for the sale and distribution of their product. The supply of Danish bacon and the prices that they maintain are important competitive factors in that market. (From the vice president of a large packing house that exports one-third of its product.) Butter (DENMARK AND ENGLAND). The writer knows personally of the combination of Danish tinned-butter packers, which practically controls the world’s trade in tinned butter. This combination sees to it that only the best grade of butter is packed, properly preserved for warm climates, and that the price is kept at a uniformly moderate level throughout each year. The advantage of this combination to the butter trade of Denmark is very great. By insisting upen a high standard of quality Fl Sn . 7 Unigorpal 2 Kiel the reputation of Danish butter has been maintained for many iyes#rs, while, by maintaining a fair price, the various packers have no incentivewo wer the guality of their goods to meet cutthroat competition. That the SK} Cage Sh this combination does not lead to extravagant prices is shown by the “that at present the price of tinned butter for export is lower than that of Danis butter consigned for sale to near-by open markets, where the price is made by the competition of buyers. (From an export commission house.) In our line of business (butter exporting) dealers on British markets are well organized, being in a position to contract for immense amounts, insisting upon payment in pounds sterling and c. i. f. their ports. (From a manufacturer of dairy products.) CarBoN PropucTs (GERMANY). It is quite difficult to get at the actual facts, but it is pretty generally understood that the three principal carbon companies in Germany have entered into a working agreement. They in this way dominate and control the prices of all kinds of carbons and carbon products for consumption in Germany, as well as for export. In a recent interview with a native of South America, who is very much interested in carbons, he stated that he learned while in Germany a few months ago that the carbon works at Berlin owned and operated by Gebr. Siemens also held the controlling interest in the Conradty Works at Nuremberg and the Plania-Werke at Ratibor. We dp not know that the Austrian factories are in this combination, but they nave in the past followed the prices and methods established by the German factories. (From a manufacturer of electrical carbons.) CEMENT (ENGLAND, GERMANY, FRANCE, AND BELGIUM). . Prior to the present war we were in competition with English, German, French, and Belgian cement manufacturers. We are at a distinct disadvantage In such competition because such foreign manufacturers are permitted to form export combinations, and, in some instances, combinations in domestic trade. After the termination of this war we will, of course, again encounter such competition. (From a manufacturer of cement.) The cement trade to South America was virtually closed to us, despite the differential taxation passed by Brazil, for example, when the European shipping combination of vessels, steaming from the United States to Brazil, raised Lheir rates to overcome that differential tax. In this way, Germany, England, France, etc, in times of peace, retained their cement trade to South America. (From a prominent Baltimore man.) CHEMICALS AND DYESTUFFS (GERMANY). We meet the German trade combinations in the chemical line in South America, China, Japan, and India, particularly such combinations as that of the quinine manufacturers and growers, who practically control the quinine production. (From a manufacturer of chemicals.) Most of the heavy chemicals produced in Europe are sold through selling combinations. Quinine sulphate abroad is absolutely controlled by a German syndicate. However, we encounter these in buying, not in selling. In our line we encounter no combinations in selling anywhere in the world. (From a | manufacturer of pharmaceuticals.) We have only the general knowledge that, in the dyestuffs derived from coal tar, the Germans have, in the past, sold their products in the United States very much below the prices elsewhere and supposedly below the cost of production in order to drive out of the business United States firms which had started making certain dyestuffs. It is well understood that the dyestuff industry in Germany is controlled by a convention or by a combination of the six large manufacturers and by this means they control the trade of the world. (From a manufacturer of woolen goods.) CHINAWARE AND EMBROIDERY (FRANCE AND SWITZERLAND), ‘We understand that there is a combination of dealers in chinaware at Limoges, and a combination of embroidery manufacturers at St. Gdll. (From a dry-goods merchant). 408 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, CoaL (GERMANY AND ENGLAND). The German coal-and-coke syndicate, which we have encountered in France, [taly, and South America, is one organized at the instance of the German Government, and it is backed by that Government, and it has been the means— prior to the war—of making tremendous strides in developing new foreign markets for the German coal-and-coke trade. (From an important coal producing and exporting company.) A large number of coal buyers, especially in South America, are controlled by the English and German coal producers, and the American producer is compelled to have his representative and facilities on the ground if he expects to secure any permanent business. A large number of consumers in foreign countries are owned by foreign capital; consequentiy—on an even basis—they will buy coal from their own country. Cooperative selling agencies from this country, properly handled, could, to a certain extent, secure business of this kind where probably individuals could not. (From a producer and exporter of ‘coal.) ELECTRICAL MACHINERY AND APPARATUS (GERMANY, PRINCIPALLY). Without naming the various cartels and syndicates of national and international importance, encouraged and even in some cases, as in Germany, mandatory, * * * reference is here made to the added competition which the electrical export business encounters because of the combination of the large German concerns, particularly in respect to joint action in the financing of publie utilities in foreign countries. (From a man connected with a prominent electrical company.) FertiLizers (EUrorPE). The fertilizer industries of Europe are in some cases highly organized under Government supervision. (From a man holding a very responsible position in ihe financial world.) Frou (GEEMANY AND FRANCE). Have no specific knowledge of that kind. Know in general way of German rartels and do know how German Government gives flour mills assistance in export business by drawback of import duties. Such cartels as above mentioned apply very little as restriction on flour trade. (From a southwestern flour milling company.) The French and German Governments have export bounties, or the equivalent, which permits theiy millers to send at some times, if not all times, certain qualities of flour tolforeign markets and compete against our flours on a basis which it is impossible for us to meet. (From a flour milling concern in the Middle West.) HARDWARE—PLIFRS AND NIPPERS (GERMANY). ? In reply would say that we are up against a very powerful combination owing to the fact that pliers are a line of goods made abroad by a man who will take a contract to deliver a certain number of tools and then go up into the country districts of Switzerland, Germany, or France and sublet the different contracts to people who work part of the time for wages which will barely keep body and soul together, the rest of the time they work their little farms tp make up the difference. The importers in New York take the American line of pliers no matter at what price they are and send them to Germany and duplicate them for less money than we can make them here in America. (From a manufacturer of pliers and nippers.) TRON AND STEEL (GERMANY, PRINCIPALLY). In sur line (steel and iron) the only such organized, and therefore the most formidable competition, is encountered from the German Stahlverband [Stahlwerksverband], fortunately, however, successfully combated at their own game by the United States Steel Products organization. But this is quite an exceptional case, 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.) 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.) BEPLIES TO CARD AND SCHEDULE INQUIRIES. 411 MeTALS OTHER THAN IRON AND STEEL (EUROPE). Prior to the outbreak of the present war we had for a number of years exported oxide of zinc. We were able to do so largely because one of the ore Jeposits owned by the company enabled it to produce an oxide of zinc of a quality different from that produced by the foreign manufacturers. On account of the character of this ore we were also able to export some of the concentrates. Metallic zinc or spelter could not be exported to any considerable pxtent on account of a European convention called the International Spelter Convention that existed and covered the plants in all the principal European pountries. Zinc is most largely produced in the Silesian and Rheinland districts of Germany, and in the Valley of the Meuse in Belgium, all of which have been in the hands of the Germans since early in August, 1914, and naturally, therefore, not available to a considerable portion of their regular trade, which has had to turn to this country for its supply. The facilities for production in this country have been largely increased, and after the war is over, the probabilities are that we will be confronted by a strong European convention, with the result that our foreign markets will entirely disappear, unless we are able to meet the competition with a strong organization. (From a manufacturer of zinc ore, spelter, ete.) MUSICAL INSTRUMENTS. We find that by the cartel system the manufacturers are able to present their goods through the combination of interests at the least possible expense in selling, freight, finance, and in practically every conceivable direction. (From a manufacturer of musical instruments.) O11.8. MINERAL. The Royal Dutch Shell Combine has an estimated Investment of $25,000,000 in American oil properties in California and, through the Roxana Petroleum Co., in Oklahoma and Texas. The California Oil Fields, Ltd., a subsidiary, is an English concern and owns 7,040 acres, of which 4,960 are oil bearing. Production in 1912 was 4,248,849 barrels, and profits were $659.000. (From a business statistician.) Speaking of oil, had the present European war not arrived, Germany undoubtedly would have had official monopoly, operated by the Government on burning oil. This was ostensibly directed against the Standard Oil Co. During he preliminary work in bringing about this combination, Germany was cultivating the independent oil interests of this country, and many thought. that on the culmination of the monopoly by the Government, Germany would give enough business to the independents in order to keep them as a club against the Standard Oil Co., although, at the same time, the German Government would not lose sight of any advantage in point of price which the Standard might be willing to give. Had this monopoly gone into effect, all burning oil sold in Germany would have been handled by the Government. There are only two interests of great importance in oil abroad. One is that controlled by. the Standard Oil Co. and the other is the so-called Shell-Royal Dutch-Asiatic-Rothschild interests, which is a peculiar and ingenious combination of large financial interests at London, Paris, Berlin, Russia, Austria, apd heavens knows where else. This combination Is brought about by an sxchange of directors, of stock interests of oil, and various other matters, perhaps some pertaining to oil and some pertaining to other matters of finance. (From an editor of a petroleum journal.) OPTICAL Goops (GERMANY AND ENGLAND). The only foreign competition which we have experienced has been German, Our manufacturing is restricted to the metal end of the business, and we have found that in order to supply foreign markets, it is not sufficient to ship them the frames and mountings and allow them to insert such lenses as may be necessary, but that we must ship them the frames and mountings already supplied with lenses. The Geman manufacturers have formed combinations, sither between different manufacturers or as single concerns, so that foreign rade could be supplied with the frames and lenses complete. Some of the 412 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. largest manufacturers in this country are producing both the metal and the glass, and unless the smaller manufacturers are allowed to work in combination tu this end, we can only enter the foreign market to a small extent. We understand that the English, who have imported practically all of their optical goods, are organizing one or two large companies to produce the goods which have heretofore been imported, and also to take over such portions of the foreign trade as they can obtain, In fact we received a report of a meeting which was held at the organization of one of these companies and at which the Lord Mayor of London spoke, and offered the active cooperation and support of the city government toward making the organization a success. We might mention that this is considerably different from the support and encouragement which the manufacturer in this country has recently been receiving from this Government, (From a manufacturer of metal optical goods.) PAPER. We do not know positively, but understand that foreign Governments—German, French, and Austrian—have in the past encouraged syndicates or cooperative organizations of exporters to increase their foreign business by rebates on freight on Government-controlled railroads, encouraged: the Government banks, such as the Bank of France, Bank of England, Deutsche Bank, etc., to discount long-term Rotes or acceptances; and encouraged said banks to operate branches and to become interested in their branch banks in foreign countries; all of which help along the industry of their own country. We know that Germany and Sweden, both large exporters of paper, have syndicates of manufacturers who control the selling prices of each grade of paper; that they had lower prices for export than for domestic use, and the rustoms authorities at the port of New York caused trouble to every importer of paper by insisting that duty be paid at the prevailing market price in the producer’s country, which was anywhere from 5 to 20 per cent higher. Furthermore, we know, that the latter part of 1914, a Canadian mill begged us to take their surplus production of tissue wrapping paper at a price 40 per cent below the prevailing market price in Canada, due to dull conditions in Canada on account of the war. The New York customs authorities would not permit it. We can furnish you with many other instances. (From a manufacturer of paper products.) We buy from foreign manufacturers who are members of trade associations and who, we know, agree among themselves (not published) as to what prices ghall be maintained for export and domestic consumption. (From a paper merchant.) The Verband Deutscher Druckpapier-Fabriken, of Berlin, Germany, composed of a selling organization representing, we understand, about 85 per cent of the news-paper manufacturers in Germany, supplied, prior to August, 1914, their home market at a price of about $2.25 per hundred pounds, while their foreign trade, which was large, was done at an average of approximately $1.85 per hundred pounds f. o. b. port of shipment. (From a dealer in paper who exports over half his product.) From direct knowledge, none, but we have understood that a selling organization in Germany (the Verband Deutscher Druckpapier-Fabriken, of Berlin), which represents about 85 per cent of the news mills in Germany, sells in the home market at a price approximately 40 cents higher than it quotes and sells in the foreign market. (From a manufacturer of wrapping papers.) Porter (ENGLAND). ] The only information that we have is that, three years ago in England, I discovered that in the manufacturing of pottery there were pools and combinations and restricted output, and that they fixed a price both for domestic and export business. (From a manufacturer of porcelain ware.) Sk RmBBONS (GERMANY). We know, for Instance, that in our line of goods there is a combination of manufacturers In Germany on domestic business only, leaving the foreign business to open competition, which enables these manufacturers to sell cheaper Wh foreign countries than for home consumption. (From a manufacturer of ribbons. REPLTES TO CARD AND SCHEDULE INQUIRIES, 413 Spoor. CoTToN (SCOTLAND), ‘ The *“spool-cotton” business is practically controlled in Paisley, Scotland. by J. & P. Coats Co., despite the legal dissolution of the American Thread Co. by the United States courts. ‘This Scottish firm controls the English Sewing Cotton Co., Ltd., which in turn controls the American Thread Co. (From a man prominently identified with the cotton-manufacturing industry.) Toracco (GREAT BRITAIN, FRANCE, ITALY, AUSTRIA, SPAIN). We meet the active competition of the British-American Tobacco Co. and of the Tobacco Rehandling Co., Ltd, of England, composed of a combination of W. S. Matthews & Sons, until three or four years ago a component part of the British-American Tobacco Co., with certain other English companies. (From a tobacco manufacturer.) In England they have a tobacco trust, in which also some American capital Is interested. This company has its own buyers in American markets and other independent buyers can not sell to them. In other countries like France, Italy, Austria, Spain, etc.. the Government owns the tobacco factories and at the end of this war, without doubt, most every other country will adopt or confiscate this business. (From a tobacco merchant.) Toys (GERMANY). A few years ago in Germany the German manufacturers copied our line and then that Government shoved up the tariff so as to practically exclude our line. We understood this was done by one of the trade associations. (From a manufacturer of toys.) VELVET (GERMANY, FRANCE, AUSTRIA). The most serious handicap, we have to deal with, is the syndicate of foreign manufacturers, which has heretofore existed, covering all the velvet and plush products made on the European Continent. The pile-fabric. manufacturers, doth of Germany and France, have had a definite and signed agreement covering the distribution and production of merchandise, allotting the same to the various members of the manufacturing industries (including practically the entire plants of Germany, France, and Austria) and having an understanding, though not a written agreement, even with the English manufacturers on the same line. These agreements demanded of the purchaser that he limit his purchases in these products to only the members of the syndicate, and in case he complied with this request, he was granted a very large rebate, amounting to about 20 per cent. This he forfeited if he undertook to buy from anyone else the products which were obtainable by buying them from the members of the syndicate. This syndicate still exists among the manufacturers of France and among the manufacturers of Germany, though there is now, of course, no combination between the two groups of manufacturers. Likewise, there is an understanding between the dyers and spinners of raw materials, assisting the syndicate in carrying out its plan by denying advantages to those requiring the products of these institutions who may not be members of the * * * gyndicate. (From a manufacturer of plushes, etc.) Wire CrotH (GERMANY). The wire [manufacturers] (brass screen cloth for paper machines) have a selling organization in Germany. (From a manufacturer of paper.) The only competition we really have had in foreign countries has been German-made cloth. Their quality is inferior to American goods, but their prices are lower. We have been able, however, to sell our goods at higher prices because of quality, but in many of the countries, they consider price only. The German Government has aided the German manufacturers to such an extent that they have many advantages in tariffs, banking, and shipping facilities. (From a manufacturer of wire cloth.) SPRUCE, HEMLOCK, AND SOFT Woops (AUSTRIA, ROUMANIA, AND BOSNIA). For a number of years prior to the war in Europe, several of the largest manufacturers of spruce, hemlock, and other soft woods in the eastern States 414 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, of Europe, by which I mean Austria-Hungary, Roumania, Bosnia, etec., operated under a cooperative association known as the Accordat. These manufacturers manufactured, marketed, and sold somewhere in the neighborhood of 4,000,-000,000 feet of lumber a year. Their plants were located in different parts of Austria-Hungary and the other States named within reasonable distance of the Danube. This Accordat had its headquarters in Vienna. I think there were five or six managing directors. They also owned and operated a line of something like 20 steamers, and some of the individual factors in the Accordat also owned a number of vessels. The managing directors of this Accordat practically had control of the business of the organization. They made sales and made terms and shipments. As an illustration, the prices that were made by the Accordat in Alexandria, Egypt, or in Constantinople were not necessarily the same, and were as a rule considerably higher for the same material delivered at Liverpool or any of the ports in France. There was competition at the western ports and there was no competition in Egypt or Turkey, or, as a matter of fact, in Trieste. This organization met competitive conditions where it was absolutely necessary. Very naturally, when they delivered goods at Liverpool or at Hamburg they had to meet the competition from Sweden, Norway, Russia. United States, Siberia, and Canada. Everything considered, this Accordat did not in any cause ask an unreasonable price. Their average f. o. b. mill realization ranged from $15 to $17.50. Their vessels were, as a rule, from 7,000 to 10,000 tons, and so arranged that they could carry grain from the wonderful producing sections of Hungary and other States in the hold of these boats and the lumber could be decked. In other words, the freight on the wheat just about paid for the expense of the trip and the lumber was carried at an exceedingly low freight rate. As a matter of fact, some of these very same boats during the time of the Servian-Bulgarian war some years ago were used In transporting lumber and other products from our southern ports to France and England. For the time being they could not be used on the Danube and their owners wanted to keep them in commission. (From a journalist.) LuMBER (GERMANY, Brrarum, AND CaNADpA). Previous to the war in Europe there were associations and organizations in Germany and Belgium of operators, but many of their policies were unknown to us. There are associations and organizations in other countries, but we are not familiar with the details of the same. (From a manufacturer of lumber.) No facts—only Kearsay—that Canadian lumber is handled through agreed combinations. (From a manufacturer of lumber.) CrAIRS (AUSTRIA). Our competition In the foreign markets (we being chair manufacturers) in chairs of Austrian bent wood, and the imitations of same, marufactured in Germany and Spain. To the best of our knowledge, the manufacturers in all three countries work together on a selling agreement, and Germany and Austria receive reductions on freight from place of manufacture to port of shipment ; besides this, bonuses from the large German shipping companies, which bonuses, as a rule, they split with the importers to whom they ship in large guantities. (From a manufacturer of chairs.) BepsTEADS (ENGLAND). Know of only the British arrangement among nearly all bedstead manufacturers to give a yearly deferred 10 per cent back to any customer who byys from no one outside their list of factories any bedsteads or springs. This 10 per cent held back and called a deferred rebate acts as a club to keep them from other markets. (From a manufacturer of bedsteads.) WoveEN WALL COVERINGS (SCOTLAND). Only competition met has been from manufacturers of woven wall coverings In Scotland. We understand these different manufacturers have an understanding among themselves for stability of prices, (From a manufactuver of cloth.) REPLIES TO CARD AND SCHEDULE INQUIRIES. 415 EFFECTS ON AMERICAN EXPORTS OF COMBINATIONS OF BUYERS ABROAD. {Manufacturers’ schedule, question 10; exporters’, question 9; other schedules, question 8.) The following question was in all the schedules sent out: Please give briefly any facts you may have concerning any combinations of buyers of your exports abroad, such as organizations of importers, jobbers, retailers or consumers. This question was answered in 585 schedules and not answered in 1419; i. e., 29 per cent answered the question. Those who answered were for the most part manufacturers. The schedules from the other classes may, ly be briefly disposed of. Among the domestic merchants and importers there is indicated an almost total lack of information on this subject, the only specific replies being from a dealer in buttons, who says, “ No buying organization in this line,” and a similar answer from a dealer in forest products. Another. a lumber dealer, in answer to this question, says: In the lumber business In Liverpool, London, and Glasgow, these are local combinations, and generally exist only for shipments by one steamer, which pre sent to the market “ on consignment,” to be sold by commission men to best advantage. The export commission houses, manufacturers’ export agents, ete., who come more directly in contact with foreign buying combinations than any other class, also furnish practically no information on the subject. One of them says: During a long experience promoting the sale of manufactured goods in many countries, we have not found such conditions which worked any hardship. In certain raw materials this might apply, but doubtful, to any extent. A cotton exporter says: The only combinations we meet are such as the Liverpool Cotton Association and similar organizations on the Continent. There is one organization nf Austrian spinning mills who have their own buyer in the United States. Another exporter says: The large buyers of canned salmon in London apparently exchange views and act very much in harmony. The publicists, economists, lawyers, and bankers rarely give much specific information under this head. A banker, however, states: A combination of German merchants at Hamburg bought large quantities of American goods and stored them in a warehouse in the free port at Hamburg, for resale to the northern countries, particularly Russia. Practically all of the trade in American goods into Russia through Riga is traceable to this source. The sale to Italy of large quantities of semolina from the northwest, and particularly northwestern Canada is handled through a combination or syndicate of Italian bankers. - . A writer on economic subjects states comprehensively that— The syndicates of France and other European countries buy a large quantity of American fertilizers, feeding stuffs, farm implements, and machinery which they retail to their members at the lowest possible prices. * * * It is possible * * * that these syndicates have an effect in reducing the profits of a large line of American trade. The manufacturers’ schedules afford practically the only specific information as to combinations among buyers of American products 416 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. abroad. The makers of special brands or other highly specialized roods often state that these combinations do not exist in their particular lines, but it is more frequently .said that nothing is known of such combinations. In many staple articles, too, it is asserted that the foreign market is not controlled by any buying combination. A large lumber manufacturer, exporting 25 per cent of his product, says: Qo far as we know, hardwood lumber is sold absolutely on an open market. The same is true of flour and wheat products; also in many lines of machinery and tools. But combinations, in local markets abroad, are found in the general lumber trade and in other industries. One manufacturer considers the cooperative societies in most of the countries of Europe as desirable customers, instead of objecting to them as buying combinations. He says: There are cooperative societies in most of the countries of Europe, both retailers and consumers. The plan was established in England as far back as 1843, and in some sections of the United Kingdom, it has proved quite successful. The same Is true in France and Denmark as far back as 1878. There is also the Russian Zemstvos, who, in addition to the administration of important local economic affairs, buy and sell everything from land, agricultural ‘mplements, and seeds, supplies of all kinds, and do general banking, who in the thinly settled parts of Russia, practically control all trading, very advantageously. But in no other case do these cooperative societies control all business in any line, and these societies under whatever name, are simply to he considered as desirable customers for the manufacturers or distributors. An examination of all the replies to this question brings out two points, which the informants make with almost equal force: First, that with regard to the great majority of the industries of this county the combination of buyers abroad is a matter in which those who are concerned in our foreign trade have taken but little interest. Second, that with respect to the producers of certain crude or partially manufactured materials, combinations of foreign buyers are of primary consequence, because they compete in world markets and in products of universal necessity and of restricted sources of supply. The most important are in the metal industries, and, on account of the large production and great importance in the arts of silver, copper, and zinc, combinations of buyers of these metals receive special mention. It is further noticeable that foreign combinations of buyers are thought to be prejudicial to the interests of American producers in a number of industries where there is a high degree of centralization in domestic production and an effective control of domestic markets. BUYING COMBINATIONS IN PARTICULAR INDUSTRIES.—The more important industries in which the schedule replies indicate that foreign buying combinations affect the American export trade are as follows (arranged alphabetically) : hemicals, fertilizers, etc—A manufacturer of acid phosphate, exporting 20 per cent of his product, says that German buyers of phosphatic material have an association form of contract which American sellers are obliged to use in dealing with them. REPLIES TO CARD AND SCHEDULE INQUIRIES. 411 Coal —A coal operator whose output is worth over a quarter of a million dollars, but who exports only a small part of it, says that coal buyers in South America are controlled by English and German coal producers. Cotton.—The exchanges of Liverpool, Bremen, and to a less extent Havre, are the principal markets for American cotton abroad. Quotations are made there just as in the exchanges at New York or New Orleans. A buying combination, however, exists on a large scale among the cotton mills of Austria. This organization has a resident representative at New Orleans, and its president is Arthur Kuffler, of Vienna. It uses about a quarter of a million bales yearly, and its buyers shave market prices by purchasing directly from dealers throughout the Southern States. On the Liverpool Exchange there is said to be at present a boycott against Americans who have sold cotton to Germany and Austria. Besides being clearly a consequence of war conditions, it is no less manifestly a personal and not a commodity discrimination. Cottonseed products.—A concern manufacturing cottonseed products and exporting from a quarter of a million to a million dollars’ worth, says: In Denmark and Germany it is common to have cooperative societies for the purchase of oil, cake, etc., to be used directly by the consumer. These societies, however, usually buy through middlemen. If they could be turned to purchase direct from a cooperative association of American manufacturers, it would be to our distinct advantage. Another large exporter of cottonseed meal and cake says: All countries with whom we do business have their combinations in the name of associations or exchanges which act in unison, thus forcing the Ameri-«an to conform to any and all terms they may dictate. Our principal competitor 18 a Danish combination (the Danish Korn og Fodderstuff of Aarhus, Denmark), which controls the Danish market and operates a buying branch in America. Other competitors are the Seeds Oil Association of Liverpool and the Hamburg & German Importers’ Association. The latter requires us to sign an agreement to confine our business to its members. That the manufacturers of these products find combinations abroad that control their markets is clearly shown. One of them says that the Rotterdam butterine makers “act as one” through private agreements in buying cottonseed oil; that the same is true of soap makers in England; and that there is an association of farmers in Denmark, who buy cottonseed cake. An exporter of cottonseed products says that, in Hamburg, a number of importers of cottonseed cake TL meal have formed an association. which practically shuts out all outsiders from the import business. American exporters can not sell to the members of the Hamburg association without signing an agreement not to sell to any German buyers outside the association. Showing that this is nothing new, another manufacturer says that 40 years ago a ring of buyers in Liverpool controlled the price of American linseed and cottonseed cakes, and were known as “The Forty Thieves.” Foodstuffs.—There is some evidence of combination among buyers abroad in the purchase of foodstuffs in Germany, certain well-known firms, principally in Hamburg and Frankfort, quoting a common price to American manufacturers. The uniformity of bids appears. however, to result from private understanding among dealers and 7941 °—pT 2—16—r--2" 418 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, not from the usual form of syndicate organization. As a consequence of this and also owing to the fact that sales are generally made through personal solicitation of brokers, very little in the way of documentary evidence is available. Leathers, manufactures of —A large manufacturer of sole leather says that in England the tanners have a central committee for exchange of information, etc., which blacklists anyone failing to keep a contract with one of the members, but a large manufacturer of shoe leather, exporting 5 per cent of his product, says in answer to this same question: To our knowledge they [combinations of buyers] do not exist in our line. Another manufacturer exporting $50,000 worth of leather says, specifically : We have no combination of buyers abroad. Lumber and manufactures of wood.—One lumber manufacturer says a large quantity of Pacific coast lumber sold to Japan and China is. bought by representatives sent over by combinations of various concerns in those countries; and another says there is a combination of buyers of lumber in England “to a certain extent,” one concern getting all the orders for lumber bought for the British possessions. Another manufacturer, who is more specific, gives the following list of organizations of importers existing before the war: : 1. Syndicate of Lumber Importers of Belgium, 2. South German Lumber Importers of Mannheim. 3. Association of Hamburg Importers. 4. In Italy, one syndicate buys for large proportion of big importers. A lumber manufacturer who exports his whole product says: To the best of our knowledge and belief there is a combination of importers of lumber in Australia; also a combination of retailers. The retailers only buy from the importers in the combination, and the importers in the combination only sell to the retailers in the combination. All retailers are in the combination, and the question of the price of lumber at this end cuts very little figure in connection with the selling price in Australia. It is absolutely essential for the Australian merchants to form such a combination to protect themselves against the continual fluctuations of the price of lumber in the producing market. Naturally the importers buy as cheaply as possible and put all exporters here into competition with each other. So far as redwood is concerned, it does not do them any good, as there is a common selling ageney for these producers and manufacturers, but so far as Oregon pine is concerned, such combinations in Australia naturally work to the benefit of the Australian buyer and to the detriment of the American manufacturer. A manufacturer of lumber, who exports 30 per cent of his output, says: We believe there is in England to-day a combination of certain importing interests that has a governmental connection, working in conjunction with two or more American exporting firms to the detriment of the pitch-pine manufacturers. In addition to this, there is a Spanish interest, having offices in America, who is seeking to supply all the markets of Spain by acquiring control of the entire merchant marine operating from Gulf ports to Spanish ports. A cooperage firm doing a large export business (two-thirds of its output) says: For years the French Stave Trust, commonly known as the “Trio,” with its headquarters at Bordeaux, controlled the French stave market. A manufacturer of lasts and last blocks says * there are no such combinations,” and this is true, generally, of other highly specialized products. REPLIES TO CARD AND SCHEDULE INQUIRIES, 419 Machinery.—Although it is generally stated that there are no combinations of buyers of machinery abroad, one large manufacturer of harvesting machinery mentions, as among his customers, farmers’ associations in Austria-Hungary, Russia, and Siberia, which control large districts. Meat products.—The vice president of a large packing house that exports one-third of its product says: We know of no combination of buyers of our products abroad other than the cooperative societies of Great Britain, foremost among which is the Cooperative Wholesale Society (Litd.). which operates in practically every corner of England nn CO he Metals.—The producers of iron, steel, copper, and other metals not only are fully aware of the existence of foreign buying combinations in this line but describe their methods of operation. The following is a typical answer regarding buying ¢ombinations in copper and other metals: In Europe, and more particularly in Germany, not only are there no legal restrictions to “ big business,” but combinations or other means to foster * big business ” are actually encouraged by the Government. Through these cartels or combinations of manufacturers of metals, not only are their manufacturing profits protected, but for many years the manufacturers as well as dealers sought to manipulate the markets for copper and other metals by acting in concert, first depressing the market by abstaining from buying for a period of about a month or longer, and then when the price was brought down to a sufficiently low level, they would buy in large quantities, starting at the lowest level, Then the market would naturally advance after they had made most of their purchases, thus realizing them substantial profits at the expense of the American producer. The domestic manufacturer, ignorant of the * game that was being played,” usually came into the market too late to get the benefit of the low prices, and the result has often been that the American manufacturer actually paid higher prices for the products of his own country than did his European competitor. During the periods of abstention from the market by the European buyers, stocks would accumulate here, with the resultant demoralization of prices, which would sometimes even force a curtailment of production. There is no secret about these manipulations; they are well known to everybody in the metal trade, and the producers here, without any cooperation, were helpless to counteract them. A large smelting and refining company replied as follows: In Germany, at the beginning of the war, a combination of all the large German consumers and metal merchants was made, known as the Kriegsmetall Gesellschaft. This combination has assembled and distributed the copper supply of the country. This is recognized as an incident of the war, but we are now informed that it is proposed to continue this combination after the war is over. It would thoroughly and effectively combine all of the large tonnage of copper which has heretofore been purchased in this country and place the American producers at a tremendous disadvantage. In Germany there are interlocking directorates, with large financial interests holding shares in the companies that are the largest consumers of copper, which enables the management of the respective companies to act jointly in purchasing their requirements of copper In this country. The United States has heretofore supplied most of the copper ased in Germany, and Germany has been the largest consumer in Europe. This company [the informant] refines approximately 85,000,000 ounces of silver yearly, which is considerably in excess of the entire production of American mines. However, a large proportion, doubtless more than one-half, of our production of silver is derived from the smelting and refining of imported material. Of our total production.of fine silver seven-tenths is exported to London. The average amount of fine silver imported into England yearly is approximately 100,000,000 ounces, so that this company is exporting to London more than onehalf of all of the silver received in London. Fully 75 per cent, under normal circumstances, of all of the silver received in London is exported to India and China. It will be seen, therefore, that more than all of the silver, say 60,000.000 420 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ounces, shipped by this company to London is simply forwarded from London to India. Under the circumstances this company has felt that it should deal and was entitled to deal directly with the consumers in India. Our endeavors, however, to do business directly with consumers in India have been blocked and prevented by the combination of brokerage and banking arrangements in London. The price of silver is fixed in London by what is termed publicly the “ Fixing Board,” which consists of four banking or brokerage houses dealing in silver and eastern exchange. This Board of four representatives meets at a guarter past 2 every afternoon. This permits prices to be made in New York at the opening of business here, on account of the difference in time. Since virtually the entire silver business of London is in connection with exportations from the United States, it will be seen that the meeting time in London is after the members of the Fixing Board know the full receipts and demands in London, but before business opens in New York. All silver in London is sold through these four members of the Fixing Board. The distribution of silver in London is, as stated above, approximately 75 per cent for shipment to the East, which is sold entirely to eastern banking representatives, and the 75 per cent is sold very largely to Government representatives, both English and continental, for coinage purposes, and, to a minor extent, to the manufacturers of silver. The eastern banks and the Government representatives will not buy through uny one except the members of the Fixing Board and at the fixed prices, because if they do otherwise they take a responsibility which they do not seem to be willing to take. In fact, if they should buy in any quantity from other parties, the Fixing Board would probably fix a price that would make their purchase open to criticism. These four brokers therefore have the ability, and exercise it, to absolutely fix every day the price at which the entire production of the mines of the United States in silver has to be sold. Such a large proportion of the production of this country is necessarily exported to London that the price obtained for the London exportations absolutely fixes the price at which the balance of the silver production, which is consumed in this country, is sold. This Fixing Board has, however, a much greater power than that covered by the actual transactions in fine silver, for the reason that the commerce of the East, India, the Straits Settlements, and China is expressed in silver; in other words, the entire exchange transactions of London, covering the entire commerce between the Continent of Europe and India, is expressed in silver values, and the price of silver is the price of exchange. These exchange transactions are at least 10 times as great as the total value of silver purchased and sold in London. The great eastern banks are the great buyers not only of silver for exportation to the Hast but also of the exchange covering the commerce with the East. The silver value of the American mines, therefore, is dominated not only by the London situation as to silver but also the London situation as to their commerce with the East, and the whole situation is dominated by four brokers designated as a Fixing Board. This company at one time made a very considerable effort to do business directly with India and established an agency in Bombay for this purpose. It is impossible, however, for offers to be made from New York to Bombay and receive an answer the same day. The business, therefore, has to be transacted by an offer one day to be accepted the next day. We found that when London advanced the next day, buyers in London regularly accepted our offers; when London declined the next day, they regularly declined our offers. Our business therefore with India showed constantly a loss, in comparison with doing a daily business with London. Furthermore, our offers to London became known, naturally, to the eastern banking representatives in London, who immediately cabled the same to London; and the London buyers were therefore in possession of all of the facts as to our business in India and would establish their price accordingly. After continuing this agency for some time, until our loss was so constant and apparently so inevitable, we closed our agency and have ever since continued the dealings direct with London. Since the London silver market is absolutely dependent upon the exportation of silver from this country, it does seem quite ignominious to acknowledge that the producers of this country are not allowed to have any influence whatever upon the silver market in London, which absolutely dominates the silver values to be obtained by American producers, yet such is the fact, . This company is at the present time refining approximately 60,000,000 pounds of copper monthly. About 60 per cent of this production is exported to European countries, and, prior to the war, fully one-half of all of the exportation was made to Germany. Prices established by the Metal Exchange In London, which seldom deals in more than 5,000,000 pounds daily, estab- REPLIES TO CARD AND SCHEDULE INQUIRIES, 421 lishes, to a very large extent, fluctuations of price at which our copper can be sold for exportation to any port of Europe or Great Britain, and consequently has a dominant effect upon the value of copper in this country. This company at one time opened an office in London, and its representatives applied for membership on the London Metal Exchange. There was a hurried meeting of the governors, and an order in council, so to speak, was passed which restricted the membership of the Metal Exchange to English citizens, and ever since that period, which was some 15 years ago, no one can become a member of the Metal Exchange unless he is an English citizen. There being no tariff on copper, and large amounts of copper being both imported and exported from this country, the markets of the world are on a close parity, varying with freight costs. Furthermore, there is a very close community of feeling, or was prior to the war, between prominent members of the London Metal Exchange and prominent metal houses or metal consumers in Germany. The German consumption was such a large proportion of the total amount of copper exported that German buyers had more influence in fixing the value of copper than the English buyers. It was very evident to this company that the buyers of Germany at least worked as a unit. They would repeatedly remain out of the market for weeks at a time and would not accept any offer made, during which time the American sellers would accumulate such amounts of copper that they would be obliged to reduce their offers. The German buyer would wait until the offers were reduced sufficiently and then would come in again as the unit and buy in very large guantities. This process of buying at the lowest and refusing to buy at the highest price, which was naturally stimulated by their very heavy buying at the low price, resulted in the average price of export copper being considerably lower than the average price at which the American buyer, who bought more regularly and was more inclined to buy at the panic high prices, could buy. The result is, so far as the sales of this country are concerned, and we believe that there is a similar condition on the part of other sellers of copper for exportation, that the average export price is considerably lower than the average price obtained from the Amerisan consumers. This difference arises entirely from the selection as to the time of buying, and not from the holding of a price at any one time by this company to American consumers above that offered to consumers abroad. ‘While this company is, to a considerable extent, or has been, an exporter of pig ‘lead, this pig lead has been made almost entirely from material imported and worked in bond, due to the high duty on the importation of lead up to the time when European prices were very largely influenced by the preparation for war and seemed to be influenced by the restricted production of Mexico, Jue to revolutions in that country. It is not possible, therefore, for this company to make a comparison of prices between Europe and the United States, as the two markets are on a radically different basis, due to the tariff. Such lead, however, as we do export, which, in normal times, amounts to 12,000,000 to 15,000,000 pounds monthly, is sold, even if sold on the Continent of Europe, at the daily price fixed by the London Metal Exchange. As is well known, the banking credit effected through acceptances of 90-day drafts on London has dominated the commerce of the world. In the early part of the war, when Italy was preparing herself so that she could enter inte the conflict if she desired, or defend herself if she did not desire, there was a very large demand for copper in Italy. We sent the representative of this company to Italy and consigned considerable quantities of copper to the order of our representative, in order that spot copper might be on the ground to take advantage of the increased demand in that country. The steamer on which our representative sailed, and which held a considerable quantity of the copper of this company, still owned by this company, and not sold, was held up at Gibraltar, detained there for nearly 10 days, and the entire amount of copper unloaded at Gibraltar before the American line steamer was permitted to proceed to Italian ports. Furthermore, even the passengers aboard the American steamer were not permitted to land for nearly a week, and were not permitted to even be transferred to an Italian steamer going forward to Italy. When our representative arrived in Italy, he found that every Italian bank had been instructed from London that if they should draw their B0 day acceptances on London in favor of any American metal house, their acceptances would not be acknowledged in London. That move alone made it absolutely impossible for any American exporting metal house to sell a pound of copper in Italy, This is an illustration of the power of concentra- 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- REPLIES TO CARD AND SOHEDULE INQUIRIES, 423 ciation in Germany, a permission which seems to have been refused. The penalty for buying outside of the combine is the cancellation of a bonus distributed from time to time among the members. FURTHER STATEMENTS CONCERNING COMPETITIVE CONDITIONS AND ADDITIONAL SUGGESTIONS FOR DEVELOPING FOREIGN [ Manufacturers’ schedule, questions 7 and 11; exporters’ schedule, questions 7 and 10: other schedules, question 9.) In the schedules sent to manufacturers and producers, and to export commission merchants, export brokers, etc., the following question was asked: Have you any further suggestions as to what is needed to help you develop foreign trade? All of the schedules requested the following information: Please give briefly any specific information you may have concerning any other 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. discrimination in banking or transportation facilities. the activities of foreign Governments. ete. The difference between the two questions quoted above is that the first is personal, information being desired as to what is needed by each manufacturer or exporter individually, and what in his opinion would be beneficial in improving his foreign trade, while the other is general and relates to any definite information as to what has enabled oreign concerns to build up their export trade. A. NEED oF BANKING FACILITIES ABROAD. The majonity of those answering the above questions seem to think that the most necessary Soveloprionis should be in our banking facilities abroad. On account of the many branch banks of foreign countries, closely allied to the different industries of those countries and located in the markets where they are seeking to prcmote trade, it is‘ possible for them, notably those of Germany, to give long credits—sometimes as long as a year. 'For the reason that our manufacturers pay a higher rate of wages and are used to a quick turnover of their capital invested, also on account of a large amount of loss caused by extending long credits, many feel that it does not pay to engage in foreign trade. Concerning the need for the development of American banking facilities abroad, a large manufacturer and exporter writes: “ We always find our foreign competitors in neutral markets haying a decided advantage on account of their banking connections.” This is a typical reply of those who understand this businzss handicap, but apparently do not understand how the means for overcoming it can be developed. While many merely make the bare statement that American branch banks a are needed, there are others who go into the subject in a more detailed way. Long credits necessary—A New York exporter replies that— The question of credits is the most important of all items. The markets that need our goods the most are as a rule the ones that are short of cash. They 424 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. are honest people but slow in paying, and at present this question of credits amounts to fully 75 per cent of the possibility for exports, or the failure to close a deal. It has therefore come down to the point where the nation that can give the longest credits secures the business. This might very well be looked upon as unsound principles from nations that have, for general practice, to meet their bills on 30 days, but nevertheless habit is second nature and those people that have done their business with long credits for ages past consider that to be sound, and just who is right is more a matter of opinion than of actual facts. Now there are nations that will advance money on goods exported at as low rates as 8 and 4 per cent, and if we could have such arrangements in our country, it would take the biggest burden from our export trading, If our Government ever thought of helping us to that extent, I am sure it could readily model that organization after German principles, which have in the past worked admirably. A member of a New York exporting firm replies to the same effect that— Longer selling terms and large credits are necessary to develop export business. The 10 or 60 days’ terms of American manufacturers are altogether too short, and foreign buyers have to make arrangements with private banking houses that conduct a commission department to meet payments, as in most cases they can not make remittances within the time limit from their respective countries. Those banking houses charge them a commission and control as a rule all their business in this country. Better banking facilities, to allow small American manufacturers to give longer terms and larger credit, are necessary. The general manager of a concern engaged in exporting lumber explains: I visited South America five years ago, and found that almost their entire “lumber” supply came from the United States; and on account of the superior banking facilities of England, which permitted long credits and discounting of bills of lading, and for lack of cooperation on the part of American manufacturers, that nearly the entire lumber supply came through English brokers. Credits and wages—A large manufacturer of watch movements considers the credit system to be the principal obstacle encountered in export trade. The labor question, also, he considers of vital imporing, His statement, which is typical of many others received y the Commission, is as follows: We believe the principal difficulty encountered in export trade is the credit system. Most American manufacturers have been in the habit of doing their business on a cash basis, or at least not exceeding a 60-day basis, while most of the export business is done od a 6-month basis and a considerable part of the export business is done on a year’s time. Now, our manufacturers have not the cash capital to handle business in this way and most of them do not believe it is profitable. Most of the articles manufactured in this country have to compete with articles manufactured abroad where the standard of living is lower and the scale of wages is very much less. As far as we ourselves are concerned, we can not possibly meet the prices and take the chance of losses and make any money at all. In our line of trade the most skilled watchmakers get from $4 to $5 per day, while in Switzerland the same grade of labor gets from $1.25 to $1.75 a day. It is true we have machinery whereby we can use semiskilled labor, but even then, with our wage scale averaging around $2.65 per day throughout the entire factory, we have to compete with a similar wage scale in Switzerland of not over 90 cents per day. We can not do it and make any money in export trade if we also have to face a large amount of losses from long credits. Securities could be handled to better advantage.—An exporter who has been engaged in foreign trade for 25 years gives the following explanation in regard to the handling of loans and securities in the export business: REPLIES TO CARD AND SCHEDULE INQUIRIES. 425 The European banks, notably the British and German banks and bankers, furnish the money. They do so to the merchant, not so much because of his financial responsibility, but because he knows his business abroad and is a judge of credits himself. As long as our banks take hardly any interest in sxport trade and loan money almost only on stock-exchange collateral, we will not be able to increase our export business materially in fields where the foreign-credit system is established. Prior to the present’ European war the majority of our export business was financed by banks in Europe and the foreign-exchange bankers bought our paper. The war has stopped this, for no Ruropean nation is now in a position to extend credits to merchants abroad. If our Government can help in the establishment of purely commercial banks for the development of overseas trade, it will have solved nine-tenths of the problem. Producers’ capital must be divided into three parts—An exporter who has been engaged in foreign trade for 50 years replies that— Our bankers and our manufacturers must remember that in most all of the Spanish-American countries an importing merchant needs to have three capitals to handle his business. One for the payment of his accounts when they become due; another one for the payment of duties, which invariably are in cash and usually about 100 per cent of the cost of the goods; and another one to trust his customers. The average merchant has to sell to the consumers, i. e,, the planters, and give them time, for the simple reason that they have very little available cash and usually pay with the proceeds of their crops. Comparison of credit terms between Europe and America—A partner of an exporting firm shipping goods to South America says that— Our greatest need is to have our banks establish agencies and connections In foreign countries, so that they can ascertain if a certain customer deserves credit, and by discounting shipping documents, assist the exporter to offer eredit. This is the system followed by the European. Our banks should establish such agencies and then assist the exporter to give credit on all legitimate business. . What chance has America, when our exporters demand cash against shipping documents at dock in this country, when Europe offers goods at same or better prices and, in addition, is willing to allow 90 days’ credit, and often much longer? In South America they are willing to pay 2 per cent, 8 per cent, or even 5 per cent more, if they can get 60 to 90 days’ credit. This should be good business for the banks if they organize to handle it. Also, the foreign exporter knows his country will stand back of him in all legitimate claims. There are few Americans who feel this safeguard. Credit information could be furnished by consuls—A southern exporting firm of 15 years’ experience replies: We think the American Consular Service should be encouraged to give credit information and, if necessary, to charge for it. The greatest obstacle to the development of our commerce is the difficulty of estimating the foreigner’s responsibility. He frequently wishes our goods but can not buy for all cash in advance, yet he may be entirely reputable and, if we knew it, would be an excellent prospect for us. How branch banks should operate.—The president of an exporting house who has been engaged in foreign trade for 40 years is of the opinion that— The way to encourage foreign trade is to create American banking facilities at all the principal world’s ports, pass laws regulating the banks, and, in a just way, force them to buy foreign bills on a fair basis. Some system should be adopted as soon as possible to place the responsibility of the credit on the banker, so that Americar. exporters and merchants could sell their bills on foreign buyers without recourse on the seller. Bankers say this is not feasible because they wish no risk, but if exporters can buy such bills to the 426 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. extent of millions a year with safety, bankers can do it far more readily. It should be done under a system of cooperation between banks to meet the losses, if any, and a small charge should be made, not exceeding 1 per cent. A member of an exporting house which has been engaged in foreign trade for 28 years also replies that we should have— * * * American banks with their own branches or agencies in the various foreign countries, so that it will not be necessary to work through the Europeancontrolled banks. These banks, however, not to engage in loaning money or accepting deposits in foreign countries, but only to exclusively handle the business of American shippers and importers; that is, not only to purchase and collect for the goods which are sold by the American exporters to the foreign countries, but also to negotiate the paper covering the purchases made by American importers in these countries. Reciprocity agreements, by which American goods may receive a favored treatment, will also help to create and develop our trade. Patriotic cooperation of German bankers.—To illustrate the point he makes, a paper manufacturer narrates the experience a friend of his had a few years ago in the matter of an inquiry from Germany for street cars to be delivered to South America. As soon as he secured the contract— He immediately asked his New York bankers to inquire into the standing of the buyer, who had given as reference the Deutsche Bank of Berlin. The New York banker cabled the Deutsche Bank, who replied that the buyer was good for all that he would buy. The German bank sent for the buyer, told him they had received inquiry from the United States, and ssked the cause of it. He told them that he had placed an order for some tramcars in the United States for delivery to South America. He was asked why he had done it. He said because price, delivery; finish, and style of product were all that could be desired, to which the German banker replied, “ But don’t you know that your company is financed by German money and German money can only be spent in Germany? It is your duty to immediately cancel the order that you have placed in the United States or your credit will be withdrawn.” This is an evidence of the cooperation of foreign bankers who are very close to the foreign Governments. Suggestions for Government cooperation.—A prominent consulting engineer suggests that the Government could cooperate by— * * x the granting of rights and facilities to American bankers for the establishment of branches in foreign countries, under laws and conditions equal to those under which other foreign banks operate. In South and Central America our Government might consider the possibility of taking loans of Central and South American Governments into our Treasury, after proper investigations and protective measures, and issuing to American investors our own Government certificates of deposit against such foreign Government securities held in our Treasury. This would make a market in this country, in a safe way to the investor, and the difference in the rate of interest would be a profit to our Government for its services. Banking and business develop each other—The vice president of a national bank, who is greatly interested in the extension of our foreign trade, replies that— South American banking, for instance, will fall into the hands of our new branches, being established down there, much more easily if our manufacturers are allowed to combine and make a business of developing that country. They will work hand in hand with our banking facilities there, and each will develop the other. Suggestions in regard to our banking laws.—The manager of the foreign department of a national bank replies that the securing of— * * * Increased trade—both domestic and foreign—very logically brings #bout a corresponding demand for credits, and while the Federal Reserve Act permits member banks to accept bills of exchange, they are not at present BEPLIES TO OARD AND SCHEDULE INQUIRIES. . 427 nuthorized to extend such facilities to clients for the acceptance of drafts covering domestic transactions, although the State banking law in New York gives permission to State banks and trust companies of extending these facilities. for both foreign and domestic transactions. This is likewise the case ‘in Maryland, Utah, Vermont, and Texas—the latter restricted to foreign acceptances only; but the laws of other States carry no provision for banks extending to their customers the use of its credit in the development of commercial relations, and it would seem apparent that State bank legislation throughout the United States be amended to harmoniously conform to the new and better system, It is opined that we as a Nation can not successfully develop our foreign trade so long as it is necessary for us to operate through banking institutions of competing countries, and while the Federal reserve act provides for the establishment of branches by member banks in foreign countries, it is felt that few banks care to assume the risk separately. Jointly owned foreign sanks would appear to best serve the requirements of the country as a whole. Cooperation thrives best where action through association is legally possible and practically safe. B. Conprrions AND NEEDS OF AMERICAN SHIPPING. A large proportion of the remainder of those answering these questions expressed the idea that there is a great need for a merchant marine. It seems to them essential that we have better transportation facilities of our own. It is generally urged that the Government cooperate to make it Zone for shipowners of this country to compete with those of foreign countries on an equal basis. Suggested methods for developing an American merchant marine.—The head of a hop-growing concern presents the subject and gives his ideas as follows: i. America should increase its merchant marine. 2. The American merchant marine should be American in the fullest sense of the name. 3. The American merchant marine should be built in America bx American laborers and owned by Americans. The vessels should be built of American material and they should be manned by American officers and crew. 4. The American merchant marine should have proper advantages either by way of subsidy or preference or other advantages to make it pay America to increase its merchant marine. 5. If it is determined to allow subsidies, they might be made to apply only when the vessels can not otherwise be operated at a fair profit. There is no sense in paying subsidies when shipowners are making fabulous profits, as at present, 6. The relations between an American vessel and the American Government and the many advantages of such relationship should be made mutually reciprocal, 7. When a vessel has received any protection or any subsidy or any other advantage by reason of being under the American flag, it should never be allowed to change its flag. 8. There should be a merchant marine commission with power to regulate scean rates and shipping regulations. Such commission would, however, need allow greater latitude in rates, etc., to ocean carriers than the Interstate Commerce Commission allows to rail carriers. 9. The monopoly that American vessels have on American coastwise and lake traffic makes subsidy, etc., in such business unnecessary. 10. Subsidies or special advantages should be limite. to foreign business of American vessels, and should be so arranged to give special consideration to American vessels on regular routes. This plan would cause American vessels to go on regular runs and foreign vessels to take the irregular or tramp traffic. 11. When all practicable regular runs are covered by American vessels, a condition which will take many years to reach, it may then be advisable to give subsidies or special advantages to tramp vessels. . 12. Subsidies and special advantages should be as far as practicable fixed on export traffic instead of both export and import, because it is the export trade that should be developed. while imports should be discouraged. 198 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, A member of a firm exporting and importing products to and from the islands of the south Pacific expresses the opinion that we can build up an American. merchant marine for foreign trade through the following means: 1. Let American capital purchase ships wherever they can be bought on the most favorable terms, either at home or in foreign markets. 2. Let the owners man these ships with the same men that have been in charge of them previously and who have complied with the requirements of other first-class nations in gaining certificates of competency. Allow this privilege for at least five years. 3. Adopt, in total, the English laws and regulations that pertain to equipment and inspection. 4. Assist American owners to obtain sufficient insurance in all of its branches by cooperation with American underwriters. ; 5. Give American owners substantial assurance that ships under the American flag will have adequate protection throughout the world. 6. Let it be kept in mind that the labor unions and allied organizations are not the ones that produce the capital for investments in ships; that if Americans are to be induced to invest their money in the ownership of vessels and be held responsible for their successful operation, they must have a few of the rights guaranteed by the Constitution of the United States. As regards the coastwise trade, we have no objection to retaining this for American-built ships. They cost so much more than foreign-built vessels that they would be completely outclassed in foreign-trade competition under normal conditions.” They would have to start with a handicap that could never be overcome. If the coastwise trade is reserved to American-built ships, our owners can afford to patronize American shipyards. An observer of American and foreign business for the past 30 years states that— A merchant marine of the most modern type built to be suitable to carry merchandise and passengers in time of peace, and in time of war to be available to the Government as quickly as needed, is one of our great needs. The Government should build such ships. Through the Department of Commerce it can organize companies with capital sufficient to conduct the business and pay fair returns to the Government for its investment. The companies can also create from the earnings a sinking fund to reimburse the Government in a fixed period of time for the funds so invested. This method would bring actual life into the export of American-made products, because service could be established or discontinued to any country to accommodate the export trade. Freight rates could never become prohibitive and goods could be shipped on dependable dates. At present we not only have to pay exorbitant rates for freight, but are also confronted with the difficulties arising from the fact that the present steamship companies are controlled by the respective Governments in which the companies have their home, because these Governments are part owners. The shipper is now made to believe that his goods will be promptly shipped to destination, whereas in practice it is found to be different. The many complaints made that Americans do not know how to pack goods for export and that the goods therefore reach their destination in such deplorable condition that they are either rejected or settled for at the mercy of the consignee, are svils due to other causes and agencies. These occurrences would never take place in American ships. Worst of all, however, the American manufacturer, under present conditions, by utilizing foreign ships to carry his goods, furnishes unknowingly into the hands of his competitors in the country where the ship belongs, the weapon with which to kill his trade. A prominent investigator of financial conditions in South Ameriea is of the opinion that— An association * * * could very readily join with similar associations in the building up of a merchant marine of the United States, but such merchant marine should be wholly and entirely financed and operated without subsidy of any character whatsoever. I would also confine the political activi- REPLIES TO CARD AND SCHEDULE INQUIRIES. 429 Hes of the association to the furnishing of unbiased and truthful information to Congress, with a view of enacting laws which would make it possible for such associations to operate successfully a merchant marine under the American flag. An association as outlined could control the cable lines to the principal foreign countries and could thereby assure itself and its members the only prompt and accurate form of transmission of information, ete. An officer of an organization working for the general welfare of American foreign trade suggests another method by which an American merchant marine may be adequately developed through private enterprise. He says: The Council finds this is possible only by first removing all unnecessary legisative burdens and restrictions, and, secondly, by the businesslike and accurate determination of the policy necessary to place American vessels on an equal footing with their competitors in the conditions which may be expected to prevail after the war. As an agency to this end, the Council has recommended the establishment of a permanent Government shipping board composed of men experienced in shipping in foreign trade. It is believed that such a board could recommend a policy which would command general approval and support. A prominent consulting engineer thinks it should be left to— ¢ * the Government to do the necessary things to immediately start and to develop as quickly as possible an American merchant marine on economical ines. If necessary, the first vessels ought to be owned by the Government, subject to withdrawal for naval purposes in case of war, but to be operated by private shipping companies under a lease that will insure low shipping rates to all American products and a guaranteed minimum operating return to the operating company, or under some basis equivalent to the large subsidies and the advantages of cheap labor and operation now enjoyed by all foreign steamship lines. A shipping combination.—An officer of a cement company cites the European shipping combination and its methods: Is there any better type for our purpose than the North Atlantic steamship ombination 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 “ oartel ”, is open to any trade interests seeking to worst our similar trade. The cement trade to South America was virtually closed to us despite the differential taxation passed by Brazil, for example, when the European shipping combination vessels steaming from the United States to Brazil raised their rates to overcome that differential tax. In this way, Germany, England, France, ete., in times of peace, retained their cement trade to South America. American ship registry important.—A firm of 66 years’ experience in exporting answers through one of its partners that— American steamship lines or steamers running under the flag of the country for which the merchandise is intended are very important. Foreign steamship lines between this and other but European countries, but ander a European flag, are apt to be run in the interest of European lines. Even steamship lines running under the American flag, but in which the controlling capital interests are European, are not desirable for the same reason. The sales manager of a coal company also replies that American ship registry is a matter of importance. He says: The principal difficulty coal producers have in entering the foreign trade from the Gulf ports is vessel tonnage. It is very difficult to get foreign vessels to come to Gulf ports for coal cargoes. If the companies owned their own vessels, it would be necessary to begin with, at least, to operate under the American flag, so they could take care of coastwise and foreign trade both. Under our present marine laws we can not operate under the American flag and compete with foreign vessels. 430 REPORT. ON COOPERATION IN AMERICAN EXPORT TRADE. Operations of the shipping conferences and pools.—The reply of the president of a large bank throws light on the operations of the shipping combinations: The various shipping conferences and pools are reported in an investigation of the shipping combinations to have given preference to foreign goods indirectly by making payments to merchants in the way of salaries for acting as agents and by giving rebates on freights in certain sections, as, for instance, the Straits Settlements, in the Far East, to enable merchants of the countries of the shipping pool to keep Americar goods out of the markets. Need of facilities for securing reliable information—A New York exporter replies that his suggestion on this question would be about as follows: It would be highly desirable if the Government could arrange bureaus or departments for information of just how it would be easiest and most economical to arrange shipments all over the world. It is a fact that when we get a few miles away from our shores there are practically no ways or means, and absolutely no library or collection of data, by which it is possible for an exporter to figure a price for the goods delivered at the place desired. This is a very important item in export trading, and anything that can be done to help us in that respect would in my opinion be a step in the right direction. This bureau or rate investigating establishment should also give absolutely reliable reports to our Government, giving comparative figures of costs of shipments from our country, and how much it costs for manufacturers and exporters of other nations to lay their goods down at the point of competition, in that way enabling our Government to judge just how desirable it would be to arrange for new ways and means of communication and new rates more or less directly controlled by our Government, and assisting in the completion of such arrangements. Bonded warehouses and the German system.—The establishment of bonded warehouses in Latin America is suggested by a member of an export bureau as a means to overcome some of the above obstacles encountered by those seeking to promote foreign trade. The follow-Ing suggestion is made: If bonded warehouses could be established in five. centers in Latin America from which the local merchants could draw merchandise as they required it, and the manufacturers of the United States of America could, upon some form of certificate of deposit of the goods in these warehouses, obtain money at a low rate, a cure of overstocking by the Latin American merchant and long-time credits might be arrived at, and this might supply a slight relief to the nowcomplained-of slow merchandise transportation between the Americas. The head of a concern selling confectionery abroad states that— The absence, as a rule, of American importing houses in the foreign field is a further drawback to the American manufacturer in securing foreign trade, We might cite Maracaibo, Venezuela, as an example. There, the import trade and, for that matter, the export trade is practically in the hands of Germans, who also do a certain amount of banking business as well as merchandise trade, Their salesmen scour the interior and do not object to taking trips of from six to nine months, which in the absence of railroads must be done partially with small boats or on muleback, burros carrying the samples. In some instances, in the interior, a salesman is compelled to camp out of doors, or chooses that in preference to the miserable hotel accommodations. The system is perfection itself. The home office in Hamburg or elsewhere sends out one or two of its most likely young men from time to time, and they are placed on trial from three to five years. If they make good, they are given a six months’ holiday to return home and recuperate from the trials of the climate. They are advanced periodically and in about 20 years’ time usually become the managers of the business, with an interest, those before them retiring to Germany. Thus is created a machine which moves along irresistibly, and the young man knows there is a positive future for him. Naturally, Germany and German goods are constantly in mind, and there is always the opportunity to acquire interests in local industries and franchises. 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 432 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Jamaica and some of the other West Indian possessions of Great Britain, where a preferential duty of 25 cents a barrel is given Canadian flours, and in British South Africa, where the duty in favor of Canada is $1.20 a barrel. A manufacturer of pharmaceutical products makes the following statement along the same line: In France no pharmaceutical can be manufactured or sold unless it is owned outright by a French pharmacist. An American pharmaceutical is therefore practically prohibited. This is unfair, and we think the United States should, by treaty arrangements, attempt to mend conditions so that pharmaceuticals can be manufactured and sold in that country whether owned by French pharmacists or by American capital. We see no reason why French pharmaceuticals should be. permitted to come into this country in great volume, as they now do, with no restrictions, and also to be manufactured here, and, at the same time, permit France to exclude our preparations. It is almost impossible to do business in Brazil unless you manufacture in that country. The duty is prohibitive. Some manufacturers have succeeded by putting up their own plants in Brazil. We believe this matter should be arranged by treaty. South American countries have very high duties on pharmaceuticals. These should be reduced. Government cooperation.—According to a small manufacturer, who exports about 10 per cent of his product, active cooperation and support by the Government exists in England. He says: We understand that the English, who have imported practically all of their optical goods, are organizing one or two large companies to produce the goods which have heretofore been imported, and also to take over such portions of the foreign trade as they can obtain. In fact, we received a report of a meeting which was held at the organization of one of these companies and st which the Lord Mayor of London spoke and offered the active cooperation and support of the city government toward making the organization a success. The sales manager of a manufacturing concern also states that among other things we need— * * #* cooperation backed by our Government for the purpose of advertising, selling, and establishing credits of foreign customers. A prominent consulting engineer also makes the following suggestions relative to the qualifications of cooperating officials: The selection of consuls for appointment from business concerns, particularly those familiar with foreign trade conditions. The requirement that consuls should speak the language of the country to which they are sent. Placing the consular service upon civil-service basis, so that the appointment is for life, with retirement at certain ages and pensions, and with a salary and Government residency to secure first-class men without their engagement in trade. The Government to furnish prominent display facilities in all of the principal countries for American products where reliable information could be disseminated. Customs of the country in which sales are to be made—A commission merchant who has spent 30 years studying foreign trade for various chambers of commerce replies that— * To be successful in the export business it is, before all, necessary to know thoroughly the conditions, customs, and likes or dislikes of the country and the people with whom one wishes to deal. Unless an American has lived in that particular country for a great many years, it will be utterly impossible to judge as to all these conditions. Even if he thinks that he can do it after he has visited that particular country twice or three times, he will find, in the long tun, that he is mistaken. For this reason, the most successful exporters are those who employ as their selling agents in the various countries natives of that particular country, but it would be a great mistake to leave the entire management to those parties REPLIES TO CARD AND SCHEDULE INQUIRIES, 433 engaged for that purpose. It is absolutely necessary and essential that the American exporter visit his agent from time to time, the oftener the better, see the trade with him, talk matters over, form his own conclusion as to conditions, and he will find that every time, he has made a call there, that he will come back with new ideas how to improve and how to increase his trade. This Is the exporter who will be successful. Necessary to cater to the desires of foreign customers—A lawyer who was recently sent to Mexico to study political, social, economic, and industrial conditions, replies: All of the conditions suggested by this question have operated against us in Mexico. Nevertheless, American wares, particularly in the lines of machinery, implements, sewing machines, and drugs, virtually control the Mexican market, This, of course, is, in a measure, due to the nearness of the market and the facilities for transportation. In the drug business it is largely due to the fact that our big drug houses are putting up their products as the Mexicans want them put up. They are labeled and advertised in Spanish. All doses and bottles are put up and graduated according to the metric system, which makes It practicable for the Mexican physician to use them intelligently. Packing of goods.—An exporter who has engaged in foreign trade for 50 years gives this information in regard to packing of goods: When an order is given for goods to be packed in the proper condition to be carried on mule back, possibly hundreds of miles, over mountains and other difficulties, the average manufacturer accustomed to pack otherwise considers this a nuisance; he can not understand it, and some of them will simply refuse to do it. I can mention two or three firms, and very well known ones, in proof of this, and yet if the goods are not packed and sent away in the manner in which they are called for, it becomes impossible to handle them at their destination. Miscellaneous.—One of the members of a firm exporting to South America states broadly that— There is no mystery about foreign trade. The same broad, practical rules of efficiency that spell success in domestic trade will yield results in foreign trade. Nf course, a knowledge of the language of the customer is essential, some insight into the habits of his mind which only contact and experience can give, and a vast stock of patience and an occasional willingness to subordinate immediate results to ultimate and permanent advantage. The European shipper is prepared to extend considerable credit facilities to the foreign buyer, and here, the American exporter is reluctant to follow. The foreign buyer, especially in South America, is very prone to buy where he can get ample credit facilities. An indiscriminate extension of credit is, of course, inadvisable anywhere, and the matter must be handled with care and prudence. [ find, however, that the American is inclined to err on the side of too great caution where foreign trade is concerned. And the publisher of a business magazine, speaking along the same line, savs that— Our manufacturers must discard the proverbial Yankee stubbornness and meet the foreign buyer at least half, if not all, of the way in the matter of his wishes respecting the style of manufacture, brands, crating, shipping, billing, and the minor details that seem to us to be of little moment and yet which are of prime importance to the house receiving the goods. It is high time that the American manufacturer realizes that he can not instantly find a fully developed wishbone in the egg of foreign trade, but must give the chicken a chance to hatch and content himself with undertaking to build his business in foreign lands by the same assiduous, intelligent application that he bestows on local trade. A large manufacturer of locks and other hardware suggests: Commercial treaties with Russia and other countries where they are not now in effect. 27941° pr 2—16— 134 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. An international classifcation for the turiff c¢f all countries, so that, for example, a cheap padlock with spring shackle (American construction) should not be subject to a higher duty than a bigh-grade padleck Laving a shackle without spring (German construction). At present, while the tariff rate may be the same for the products of all countries, the classification, in some countries, discriminates in favor of German or other manufacturers against those of the United States, or other countries, because of differences in style of construction, as in the case above referred to. In Venezuela, request the repeal ¢f laws relating to the sending of advertising matter with goods or separately. By making an exorbitant charge on such printed matter, business is frequently restricted or prohibited. In Australia, request the repeal of laws requiring duty to be paid on catalogs and printed matter. The extension of the parcel-post service to countries where not now in effect. Lower postage (2 cents if possible) to all foreign countries. The encouragement of loans by American capital to foreign countries. The investment of American capital in, undertakings in foreign countries, aspecially those relating to public utilities. The encouragement of American banks to establish branches in foreign countries. The development of marine insurance by American companies. Batter office accommodations for foreign consuls. The enlargement of the office force to relieve the consul himself from routine work. The payment of salaries sufficiently large to secure competent men. Permanent employment and promotion by merit. The upbuilding of an American merchant marine. The repeal of the present seamen’s law and the enactment of laws tending te promote the upbuilding of our merchant marine. PROBABLE EFFECT OF EXPORT COMBINATIONS ON DOMESTIC TRADE. (Manufacturers’ schedule, question 6: other schedules, question 3.) Do you think such export organizations of manufacturers or producers as you have indicated in your answer to the preceding questions would be used to restrain trade in the domestic market? Please give the reasons for your answer, How would you prevent their being so used? This question was included in the schedules sent to manufacturers, export commission houses, domestic merchants and importers, publicists, economists, lawyers, bankers, etc. This particular question was answered on more than 1.600 schedules, or 80 per cent of those received. Of the 1,632 respondents replying in a direct manner to this question, there were 148 who, according to their replies to the preceding question, had in mind combinations for the export of noncompeting products. These naturally in most cases would say that such combinations would not restrain trade, and one finds that about threeuarters of these so replied. The ratio differed but little, however, in the case of the 1,103 respondents who were speaking of combinations covering competing products, 839, or about three-quarters, believing no restraint of domestic trade would result while 264 believe the opposite. A number did not reply to the preceding question or were noncommittal. In view of the frequent statement that one of the effects of such cooperative organizations would be to crush or drive out small competitors, it is of interest to compare the replies of the large and the small concerns on this question of restraint of trade. About 82 per cent of the manufacturers and producers, whose gross sales amounted to more than $1,000,000, thought that restraint of domestic trade REPLIES TO CARD AND SCHEDULE INQUIRIES. 435 would not result, and about 79 per cent of the concerns whose business amounted to less than $1,000,000 took the same view. On this showing, the great majority of smaller concerns seem to have little fear that their trade will be interfered with. In answering this question, some also had in mind the qualification given in their reply to the preceding question that such export organizations be open to all and not have the right to exclude any concern at pleasure. Thus, a student of political economy wrote: They could and probably would be used to restrain trade in the domestic market if— (e¢) Permitted to exclude any concern from membership at pleasure. (b) Organized and controlled upon a capitalistic basis instead of as purely cooperative associations. Cooperative control, as distinguished from capitalistic, means that each member of the organization has an equal voice in it, irrespective of its wealth or capital or the amount of its contribution to the marketing organization, and is given a full opportunity to register its voice upon all matters affecting the conduct of the association. A. Berier THAT Export CooPERATION WoULD RESULT IN RESTRAINT oF DoMmestiC TRADE. In stating a belief that cooperative organizations for export business would result in restraint of domestic trade, many respondents evidently did not think of such organizations as subject to Federal regulation. The principal reasons advanced by those who foresaw danger of restraint of domestic trade are illustrated by excerpts from typical replies received. Various manufacturers believe that foreign business and domestic business are so closely associated and interrelated that it would be impossible to consider one without the other. Thus, a very large manufacturer of watch movements said: We doubt whether you can differentiate between foreign and domestic business when it comes to the question of cooperation. Some think that combinations, in themselves, are dangerous. Others say that restraint of trade in the domestic market would result as a natural outgrowth of the intimate relations which would exist among the manufacturers who are members of these export organizations. Thus, an economist wrote: Firms accustomed to work together in foreign trade would be disposed to nnderstand each other at home. Many suggested that, with the right to fix prices for export, these organizations would be able, very easily to make and conceal price agreements as to domestic trade. Thus a professor of economics said * Such export organizations might be used to restrain trade in the domestic market if no means were taken to prevent such a result, since it would be very easy to cover up an agreement to fix domestic prices on the ground that the aoreement covered foreign prices only. A number of respondents point out that, with a foreign market to absorb the surplus, these organizations might cause an artificial shortage in the domestic market and raise or lower prices to suit. Thus, a manufacturer of motor-vehicle horns wrote: We believe that such an export organization could be used to restrain trade in the domestic market by diverting a certain per cent of the products to the foreign markets, thereby shortening the domestic supply. 436 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Many who apparently contemplated no governmental control of export combinations believe that by cutting prices and other unfair competition these organizations would be able to crush and drive out of business small competitors. Thus, a manufacturer of cooking and heating stoves wrote at length: Such powerful combinations, say, of manufacturers of analogous but nonconflicting lines, finding other types of goods commanding a large sale abroad, une or more among them, could go into the manufacture of close imitations, and with the general selling expense already covered by the profits on their own zoods, undersell the smaller makers and drive them from the export trade. This would have the effect of restraining their trade in the domestic market, both by the increase of overhead expenses, due to reduction of output, and by adding another competitor at home qualified to undersell them. Similar combinations would be susceptible of the development of injury to one concern in the combination if, at the expiration of a limited selling agreement, the others formed a separate combination, leaving him out, and made his export trade an object of attack with goods they made especially to compete against him. B. BeLier THAT Export CoopEraTION WOULD NoT RESULT IN ReE-STRAINT OF DOMESTIC TRADE. As shown already, about 75 per cent of those who replied to this question directly expressed the belief that cooperation for export trade would not have a tendency to restrain trade in the domestic market. The relatively few who were speaking of organizations of manufacturers dealing only in noncompeting products believed generally that this restriction, in itself, would prevent the possibility of restraint of trade. Thus, a manufacturer of uniforms and clothing, with important sales, states that he does not see how an export organization composed of noncompeting concerns “ could restrain trade in the domestic market.” Again, a manufacturer of corsets, whose product is an important factor in the domestic market and is largely sold abroad. states: If we, as a corset maker, should combine with a shoemaker, or a hat maker, or a shirt-waist maker, for export development, we can see no possible connection between such a combination and any restraint of trade in this country. Another respondent, a small manufacturer, said: As we have stated before, we think that each organization should consist of members manufacturing noncompeting lines as far as price and quality are roncerned. If this is the case, competition would be unimpaired in the local markets as the firms not in the export organization would enter into a still keener competition with the members of the organization in the trade in the local markets. If noncompeting firms are members of this organization, we can not conceive that it shuld be necessary or required to prevent them from restraining domestic rade. On the other hand, some of the many who believed that membership in export organizations should be open to all, i. e., competitors, maintained that this fact, in itself, would prevent any restraint. Thus, a manufacturer of doors wrote: If all manufacturers in particular industries could be members of the respective combinations, the interests would be too widespread and divergent to permit of restraints. The freedom to combine would naturally demand the freedom to expand at will. REPLIES TO CARD AND SCHEDULE INQUIRIES. 437 The secretary of a trade association wrote: In open cooperation, there can be no such acts as secret arrangements, private agreements, compacts, nor conspiracies. All such partake of the nature of an “armed truce” and have long since been abandoned by trade organizations as Impossible of good, and are now well recognized as unlawful. It is extremely difficult to see how trade can be restrained without some such compact. The reasons and suggestions advanced by the majority of those believing that the domestic market would not be adversely affected by authorized export combinations, are numerous and vary considerably. Excerpts from a number of the replies have been arranged under general headings, in order to set forth these reasons clearly. Export and domestic trade unrelated.—The replies from a large number of informants are to the effect that there 1s no possibility of export organizations restraining trade in the domestic market, because foreign and domestic trade are entirely separate in every way. Many illustrate by giving the conditions in their specific industry. A manufacturer of agricultural implements, exporting 30 per cent of the output, replied: The two lines of trade are subject to very different conditions. Even with the same goods, differences in specifications, packing, shipping, selling, terms, and collections make it practically a separate business. A manufacturer of furniture, exporting 50 per cent of his output wrote: The foreign markets require a different product than the domestic in style, quality, and price. The business is very distinct from the domestic, even to the packing of the finished product. It weans practically two distinct organizations. A producer of lumber wrote: The best illustration and reason we can give is the present export company which sells its goods at one price for export and all of whose members compete in the domestic market for business. It must be borne in mind that the common selling agency for export business deals only with exporters, takes their orders, and divides these orders amongst manufacturers or producers. This common selling agency does not do any business in the domestic market, and the manufacturer has no dealing with the common selling agency other than to receive their pro rata of the orders placed and payment therefor from said common selling agency. For this reason, domestic business does not come within the province at all of such common selling agency. A manufacturer of mechanics’ tools and hardware wrote: Our export department is maintained entirely separate from our domestic business, handled by a separate staff, and peculiarly fitted by knowledge and experience to look after it, with promotive, sales, and collection work exclusively applicable to the export business. This policy, we understand, is followed generally by representative manufacturers of the United States. A manufacturer of railroad wheels, tires, and springs wrote: In our experience, it has been found that the specifications of many materials ased in. foreign countries differ widely from those applicable to the requirements for the United States, whose standards can not be readily adapted to foreign consumption, thus necessitating different treatment and methods of manufacture. To educate ‘the foreigner to accept United States standards is practically impossible, and, therefore, the American manufacturers must strictly conform to foreign specifications in every detail to receive any consideration. Special facilities must be provided to cater to the foreign trade, and inasmuch as the material thereby produced is not available for home consumption, there would be no incentive to restrain trade in the domestic market. Domestic market more important.— Another large group make the point that the domestic market is of much greater importance to the 438 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. American manufacturer and producer and that foreign trade is of secondary importance. Domestic trade would be sought first, because of its many advantages. Under such conditions, they assert there would be small chance of any restraint of domestic trade by these export organizations. | An industrial engineer wrote: It would always be easier to sell in domestic markets than foreign ones. Trade naturally follows the lines of least resistance. Under normal conditions, selling in domestic territory should be more profitable than in foreign realms. A manufacturer of cotton braids said: No manufacturer would export if a demand for the merchandise existed in the domestic markets, there being considerably more detail work to export irade than is required with home trade. A producer of pig iron wrote: I do not think such combinations would act at all in the way of restraint of trade in this country, because the cost of transportation in the export business would be so much higher than the transportation cost in the domestic market. Competition from outside concerns would prevent.—It is asserted that there are a number of concerns in almost every industry that confine their trade to the domestic market, and that these would not join these export organizations. It is thought that the competition from these concerns would prevent any restraint of trade in the domestic market. A manufacturer of cotton yarn stated: There are too many mills for all of them to be brought into one combination. There are more cotton spindles in the United States than are needed to produce the yarn consumed, when such spindles are running full time. Therefore, the various mills would compete for domestic business. A publisher of a trade journal wrote: There are enough independent concerns to keep any combinations within pounds without any further laws than we now have. A boot and shoe manufacturer said: In the shoe-manufacturing industry, the manufacturers are at the present so widely scattered, and competition is so general, that no combinations among them, that would restrain trade in this country, seems likely or even possible. Competition from new concerns would prevent.—Closely analogous to the above replies are a number that express the belief that if restraint of domestic trade were attempted, new concerns would start into business and compete, thus preventing such attempt at restraint. A manufacturer of vulcanized fiber wrote: The day has passed, however, when any combinations of interests can advance prices above a reasonable amount, because it is so easy to get capital interested in a profitable proposition that anything like a trust would, very soon, have new competition which would force their prices down to a reasonable figure, A manufacturer of paper and felt products wrote: As soon as the particular firms made, or seemed to make, excessive profits, other capital would be diverted to their line, and competition would keep down domestic prices. An editor of a magazine devoted to the coal industry wrote: Any organization devised for the essential purpose of exporting coal could pnly draw their production from certain restricted districts contiguous to the loading ports. Their sphere of influence would, thus, be relatively limited and REPLIES TO CARD AND SCHEDULE INQUIRIES. 439 should an attempt be made to reguldte prices within this zone, the combination would immediately be facing competition with coals from adjoining districts, even though these latter were not able to reach. the seaboard market. The coal industry occupies a unique position in this respect, the channels of trade being very delicately adjusted by transportation charges, and any variation tending to disrupt existing price differentials will immediately divert the usual coal from or to the affected area, as the case may be. Effect on prices would be natural and not artificial. —It is claimed by many that the economic laws of supply and demand would naturally adjust prices and prevent any restraint of trade by price fixing on the part of export combinations. In many cases, it 1s agreed that export business would have the effect of stabilizing and stimulating the domestic market. A large dealer in metals answers: Aside from legal safeguards * * * there would be the fact that prices would inexorably be fixed by “demand and supply,” and not only is there no suggestion, even, that production be restricted, but it can not be so long as increased production accompanies increased prices. Another respondent replied: It would have a tendency to steady prices to a profitable basis, but not beyond that- point, because competition would arise if profits became abnormal. Abnormal profits follow a period of extreme price cutting, which eliminates rompetition. By providing a steady and fair export market, It would be difficult to drive competitors out of business by price cutting, and so a monopoly could not be formed. A manufacturer of metal specialties wrote: We believe it would stabilize the domestic market in affording an immense outlet for surplus product, assuring increased production and lower production costs, and a share of the resulting profit would, by the result of normal domestic competition. be shared with the domestic consumer. Others contend that any change in domestic prices would not be artificial but a natural result of the opening of a new market, and that, in any case, increased production would prevent any tendency toward abnormal prices. A manufacturer of machinery wrote:. We see no reason why it would restrain trade in this country; except as any foreign-trade outlet by affording more markets would have a tendency that way, but the increased production would soon correct that. ’ A business man said: Shipments are sometimes made abroad with the effect of reducing the home supply and, consequently, steadying or raising prices. If combinations are permitted in connection with foreign trade, it may be that, thereby, the home market will be affected to some extent, but I think that the benefits which may he expected to follow an increase in the total amount of business will more than offset the disadvantages. A canner of peas wrote: Manufacturers desire these selling combinations to take care of the surplus, If the demand at home would equal the supply, there would be no necessity of extending our markets; but the manufacturing of the United States has progressed faster than the consumption, and instead of such combinations restraining trade in this country, they would be a benefit for the manufacturer and the laborer, the laborers here being the consumers. A manufacturer of cloth and fabric headwear wrote: We base our reasons for this belief on the fact that most manufacturers at certain periods of the year, especially when manufacturing season merchan- 440 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. dise, have their dull periods. During these periods the export business would be very welcome; but we do not believe that the export business would be more desirable than the domestic. Public sentiment and a desire to comply with the law would prevent.—There are some who maintain that public sentiment and the desire to comply with the law would prevent such organizations from attempting to restrain trade. To some extent this is in opposition to the views of those who believe that it is human nature for such organizations to attempt to restrain trade in the domestic market. Thus, a journalist, who has made a study of trade conditions abroad, said: Public sentiment and the desire of the manufacturers to be in accord with it would have a moral influence in restraining any tendency of this kind. A producer of structural steel wrote: Cooperative organizations would likely be composed of established manufacturers and producers, and it is not believed that the wisdom of the members would permit such a breach as restraint of trade in domestic commerce. Besides, American manufacturers, not joining in the export organization, would be sufficiently alert to expose and disparage such action if attempted. Another respondent, who is a member of several cooperative associations, stated: It [restraint of trade] would be a violation of the law. A vast majority of business men are honest and law-abiding, and realize that they are suffering to-day for the misdoings of a few. They know that relief from present conditions of destructive competition, which is making for monopoly, must come through cooperation ; that any cooperation affecting prices is now illegal. Their sole hope of relief lies in whole-hearted cooperation with the Federal Government. Any act which would in the slightest degree retard the growing confldence between the Federal Government and business men and renew the mutual suspicion which, so long, existed would be suicidal. No greater danger than from present organizations.—It is contended that such export organizations, if permitted, would have no more power in the direction of restraint of domestic trade than present large combinations already have. This is in answer to the contention that any large combination, in itself, menaces domestic trade. . . A manufacturer of steam and ail separators said: We do not believe that such an organization would necessarily be used to restrain trade in the domestic markets. The organizations would, certainly, tend to promote friendly feeling between competitors, if competitors were allowed in the same organization; but with the numerous organizations, at present, in the country where competitors meet to discuss their mutual interests, everything can be accomplished that could be accomplished in such a combination. A manufacturer of tools wrote: Trade in the domestic market is now under the control of a comparatively few. combinations of capital, and we do not believe any combination could affect the existing conditions in our country, except as the tendency is toward bigger and still bigger business, Intimate relationships established would not tend to restrain domestic trade—In answer to the argument that close relations necessarily established between the various members of these export organizations would naturally lead them to get together to discuss trade REPLIES TO CARD AND SCHEDULE INQUIRIES. 441 in the domestic market also, it is declared by some that such mutual understandings would be ‘beneficial to the public and would not restrain trade. A manufacturer of metal specialties wrote: We can not see how such organizations would tend to restrain domestie trade, since the organization would be specifically for foreign trade. On the other hand. it is possible that such organizations for foreign trade might mean a better acquaintance of the members and a better knowledge of their products, which might tend to lead to competition between them on a more friendly basis, as opposed to destructive competition. Again, a producer of flour said: The association of a number of manufacturers whose purpose initially was to regulate prices, terms, etc., to the export trade would lead to a better understanding between them, and, no doubt, they would discuss matters of common Interest in the domestic markets—prices, terms, ete. This would not be harm-Ful to the consumer, but would result in his benefit. The discussion of prices, terms, etc., between manufacturers would lead to a uniform price on a reasonable basis to the consumer and would eliminate the ruthless, wasteful competilion which is now apparent. An officer of a chemists’ association stated : It can not be denied that if manufacturers A, B, C, etc, are permitted to cooperate for the export trade, it necessarily follows that A, B, and C must pach disclose to the other a certain amount of trade information which may tend to bring about mutual understandings. It does not follow that abuses will result nor lawful domestic trade be restrained. A manufacturer of excavating machinery wrote: In most lines, it is probable, however, that a combination for export trade would have some reflected influence on competition in domestic trade. For example, in domestic trade, the condition is, sometimes, found that a contract for £1,500 worth of machinery will be sought for by 10 visiting salesmen from 10 competing concerns, representing an aggregate outlay for services and expenses of salesmen at least equal to the whole amount of the contract. This is an incidental evil of some lines of business as now conducted, and it has the eventual tendency—if combination or cooperation are forbidden—to drive capital out of such lines of industry and, similarly, to drive out the employment of lahor therein. The fact that such capital may find employment elsewhere and that such labor may find employment elsewhere, does not alter the fact that, incident thereto, there is a waste of capital and of labor and its capital. In the event of foreign combinations being permitted, it is not unlikely that such situations as described would be modified to the advantage of both the buyer and the seller. Another reply was: In fact, rather than restrain trade in the home market—in the sense that “ pestraint of trade” is understood at present—it would seem that the amount of information that the different producers would gain about one another’s/af-Pairs, through association in the export combination, would lead to keener, more intellicent. and cleaner competition at home. In contrast to those who state that the effect of export combinations would be to crush the small competitors and drive them out of business, one of the respondents believes it would be beneficial to them : We do not believe that export organization would be used to restrain trade in the domestic market. We believe such organizations might be the means of sliminating some of the unfair competitive conditions that now prevail in the domestic market, in other words, it would help to bring about a spirit of cooperation which tends to maintain and develop the smaller and weaker competitors. 449 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. C. Svceestions For PREVENTING Export COMBINATIONS FROM RE-STRAINING TRADE IN THE DotesTic MARKET. Many suggestions were offered in reply to the second part of the question: How to prevent export organizations from being used to restrain trade in the domestic market. A. few, who opposed export organizations of any kind, replied also to this inquiry, stating that, in their opinion, the only way to prevent restraint of trade by export organizations would be to prohibit them entirely. Others thought that the only way would be to restrict the membership to manufacturers who sell only kindred or noncompeting products. A few suggested that if the purposes for which the organizations were formed, were properly limited, such restraint of trade might be obviated. Thus, a professor of economics wrote: If they [organizations] were limited in their associated capacity to maintaining advertising agencies, gathering information as to trade demands, arranging for the standardization of products, and the adoption of means to meet active foreign competition, and were not allowed to pool their profits or, perhaps, sell through the same agents or to adopt other means tending to merge their interests, the danger might be reduced to a negligible amount. The majority of replies pertained to organizations among competitors. Practically all who suggested any remedy favored control in some manner by Federal laws or by administrative agencies. Many of these suggested proper Government supervision. A few thought that existing laws were sufficient to prevent restraint of trade in the home market. Excerpts from replies suggesting remedies have been arranged and classified under the following headings: (1) Enforcement of existing laws; (2) Tariff adjustment; (3) Strict limitation by law on activities of export combinations; (4) Federal incorporation; (5) Administrative Federal supervision or regulation. (1) ENFORCEMENT OF EXISTING LAWS.—A large number of respondents maintained that the existing laws are entirely adequate to prevent restraint of trade in the domestic market. A few typical replies are cited. ; From a large manufacturer and exporter of beef and pork prodnets: Do not think that export organizations of manufacturers or producers would be used to restrain trade in the domestic market, because the laws at present in force would prevent restraint of trade. A large manufacturer and exporter of electrical supplies said: The existing laws relating to the restraint of trade in the domestic market and the powers vested in the Federal Trade Commission would seem to be sufficient protection against any possible, but most unlikely, result of the kind referred to in this inquiry. ] A manufacturer of refrigerating machinery, exporting one-third of his output, said: The courts are now exercising a corrective function in all these attempts to restrain trade, and the courts have, apparently, ample powers along this line. A manufacturer of tools replied: Do not see how such organizations could be used to restrain trade in the domestic market, because all their effort would be directed elsewhere. If you think they could be, the best method of performance would be to watch them closely. The Department of Justice seems to be fully competent to do this. REPLIES TO CARD AND SCHEDULE INQUIRIES, 443 (2) TARIFF ADJUSTMENT.—A number of respondents propose some reform in the tariff, in order to prevent restraint of domestic trade. The following replies are Fr, From a manufacturer of furniture: Would have free trade on all articles sold by the association, to prevent raising the price to the home trade. From a manufacturer of wire products: Most manufacturers of to-day are producing a surplus; that is, they are producing more goods than the domestic market will consume, and sharp competition results, which amounts to little less than a war of extermination. The commercial business forces of the Nation have not been organized in such a way as to enable the manufacturer to go out in the foreign fields and secure an outlet for this surplus. In his effort to survive and make his business remunerative during the past, being constantly faced with an overproduction, it has only been natural that he would resort to measures that would enable him to secure a better price for his product, and therefore insure him a profit. If he had at his command at all times the facilities for marketing his surplus in foreign countries, this sharp competition would not result, but to guard against any abuse that might grow out of combination for the purpose of -securing export or foreign trade, a permanent nonpartisan tariff or trade commission should be established that would be empowered to hear complaints of domestic consumers, in case there was a tendency to treat them unfairly. In like manner, this tariff or trade commission should also be empowered to hear complaints on the part of manufacturers or producers of goods when the prices on these commodities were being forced to a ruinous level by foreign competition, or by what is known as * dumping.” In either case, through recommendation of this tariff or trade commission, the President at his discretion should be authorized to reduce the tariff, if any, in order to bring prices to a lower level if unfairly established, and In the case of “ dumping” to raise the tariff rates to prevent the demoralization of the American market. (8) STRICT LIMITATION BY LAW ON ACTIVITIES OF EXPORT COMBINArions.—A large number of respondents believe that the proper control of the proposed cooperative export organizations would require strict limitation of their activities. Limit by law to ewport—The excerpts which follow are typical of a large number of replies advancing, as a form of remedy, the idea of limiting the proposed organizations strictly to export business. From a large manufacturer and exporter of machinery: These organizations or combinations should be created for export business alone, and held absolutely to that line of operation, heavy forfeit being the penalty for using any machinery of the combination for trade in domestic markets. By a college professor of transportation and commerce: It would seem that if the organizations were limited to promotion of foreign trade and were prevented, by law, from concerning themselves with matters of domestic trade, they would not be able to restrain trade in the domestic market, The law might provide that if an organization formed for the development of foreign trade should be found to have attempted to restrain or monopolize domestic trade, it should be held to be illegal and its dissolution ordered by the courts. . From a manufacturer of farm engines, who exports one-half of his products: - It should be stated in their articles of incorporation that they are organized " for the solicitation of foreign trade only.” Prohibit export bounties—A college professor and economist said: If export bounties are not permitted, it is difficult to see just how domestic supply and price would be affected, 444 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Preference to be given domestic market.—The suggestion that manufacturers belonging to export organizations should give the domestic market preference is made in the following excerpts. From a manufacturer of railroad freight equipment: If such a contingency [restraint of domestic trade] should arise, it could be controlled by a law compelling producers to sell to domestic concerns on demand, In preference to exporting, on a basis of a reasonable profit over cost. A reasonable profit for different commodities could be arrived at. From an importer and exporter of dental gold materials: American goods or products raised or made in the United States first belong to all the people in the United States, and no company, corporation, or organlzation should be allowed to sell in any foreign country anything excepting the surplus or that portion of the product which would not have the effect of raising the price in the United States. By an attorney: The President, upon the recommendation of the Federal Trade Commission, should forbid the export of raw or manufactured commodities where it is shown that such export has resulted in restraint of competition in the United States. Limit size of organizations.—Several respondents thought that if the law limited the size of such organizations, restraint of trade in the domestic market might be prevented. A grower and exporter of citrus fruits stated: This might be prevented by only .admitting a certain per cent (say, 50 to 80 per cent) of the products of any one industry into one combination, provided of course that there would be other combinations which the remaining concerns could join. A manufacturer of candies said: Such agencies would not restrain domestic trade, unless allowed to become too large. If there were enough of such agencies and the bulk of the business was not conducted by a few such agencies, domestic trade would not be restrained. As in domestic trade, it would be inadvisable for the agencies to be too large, because competition would be gone in export trade. Any one agency could be prohibited from representing more than a certain number of houses of a certain worth. Penalize violators.—Several of the replies provide for penalties for violation of laws proposed. The following answers are typical of a large number which advocate penalties for illegal acts on the part of such organizations. Some provide for dissolution, others for the expulsion of offending members, others for fine only, others for imprisonment of officials or members of such organizations, and some for both fine and imprisonment. By a& manufacturer of hosiery: We think that if any combination was found to be using its strength or power in restraint of domestic trade that its charter as a combination should be revoked, and ‘the executive officers severely fined and punished. By a professor of political economy : Such misuse could be prevented by dissolving the combination entirely, * * after two or three violations of the law. From a manufacturer and exporter of caskets: It could be prevented by making the penalty apply to the officers of the corporations or firms and the penalty to be imprisonment for a long period (no fine penalty). REPLIES TO CARD AND SCHEDULE INQUIRIES. 445 From a manufacturer of machinery: Would suggest that if any such attempt were made by any of the members of the organization * * * an effective method of stopping the practice would probably be the exclusion of the offending member or members from further membership in the organization and the summary dismissal of any of the men actively in charge of the organization who assisted in any illegal or unjust restraint of trade. A professor in a New York university would prevent abuse— * * * By punishing (by heavy fines) those who gained by the violations and not the petty officers who are acting for directors. From a professor of economics: Expel from membership any one proved, to the satisfaction of the Federal Trade Commission, to have used this as a means of restraining domestic trade. Provide for fines and imprisonment for officers of companies so doing. (4) Feperar 1NcorpORATION.—Federal incorporation of export -ombinations, as a remedy for possible restraint of domestic trade, is recommended strongly by some of those replying. A manufacturer of pumps wrote: There is just one cure for almost all of the corporate abuse, and that is Federal incorporation. The writer is an officer of a large national bank, and the trouble with those organizations is reduced to the minimum. Federal incorporation would have an advantage for the manufacturer, for the reason that re could do business anywhere within the United States without the harassing interference of State foreign-corporation laws. There is undoubtedly a disposition on the part of citizens to comply more nearly with the known requirements of Federal laws than with State laws. Reports of corporations would be made with more particularity. A manufacturer of automobile spark plugs, stated that we should— * * * (Get away from State incorporations and make a Federal incorporation act a fact. Your Commission seems eminently fitted to work this out. A journalist wrote: To remedy the possibility, would recommend an amendment to the Federal Constitution compelling all trusts or combines to be created by Federal license, ander reasonable restrictions. A teacher of economics wrote: The simplest and only efficient guard against the combinations being worked in the domestic trade would seem to be incorporation under United States law with a charter from our central Government which would subject the corpora-Hang to supervision. and loss of charter upon violation of its privileges. (3) ApMINISTRATIVE FEDERAL SUPERVISION OR REGULATION.—A large number of the replies on the question of preventing restraint of domestic trade are to the effect that some form of Federal supervision or regulation will be necessary. These answers imply or specify a permanent administrative body, such as the Federal Trade Commission or some other Government agency. General control.—Many would grant more or less general powers of control to such body or commission. A manufacturer of hosiery wrote: I do not believe that such an organization, as outlined, would be used to restrain trade in the domestic market if under the supervision of the Federal Trade Commission, which would have power to regulate any abuses that might arise. By giving the Federal Trade Commission full authority and power over such combination I believe all abuses would be overcome. 446 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. A prominent attorney wrote: Control should be vested in the Federal Trade Commission. Parties should be required to file articles with the Commission 30 days before becoming effective, und the Commission should be vested with power to enter an order restraining parties pending investigation ; also power to enter an order finally restraining parties after hearing, with right of appeal to courts. A dealer in wines and liquors suggested that— A Federal board or commission should be established for the purpose of governing combinations so far as properly regulating their conduct to prevent abuses. A manufacturer of automobile parts wrote: If such combinations and organizations were under Federal supervision and had the cooperation of our consular representatives, I think they could be made such a trade power for foreign business that every incentive would be to work with the Federal bureau or commission controlling, An assistant professor of history wrote: Close observation by the Federal Trade Commission under rules elaborated to fit developments would be the best remedy. This would furnish the higher unity of control over all such combinations, and strengthen their activity abroad, while preventing dangerous activity at home, A manufacturer of machinery said: If the Federal Trade Commission is given the same relative power to deal with business as the Interstate Commerce Commission has to deal with railroads, there can be such regulation and cooperation between business and Government that will ultimately put the phrase * restraint of trade” out of our statute book’s vocabulary. A publisher having long experience with business problems wrote : The Federal Trade Commission should have authority to determine what is such restraint of domestic trade, and the law should deal drastically with the responsible individuals. An attorney said: I would provide a set of regulatory rules, or laws—as few as possible, and 50 plain that business men could readily understand them. These rules should be enforced by a Federal commission and the Federal courts. A producer of lumber wrote: The aid toward overcoming such a tendency would be to permit a corporation to seek, and the Federal Trade Commission to give, an opinion before the corporation embarked upon a certain procedure. An officer of a wheel and spoke association wrote: If there were danger of foreign trade combinations being used to restrain domestic trade, a suitable reviewing body—the Federal Trade Commission, for instance—could hear complaints and dispense justice. A manufacturer of medicinal chemicals wrote: It is perfectly obvious that any injured party would immediately complain to the Federal Trade Commission. My only suggestion is that the mechanism and expense of such complaint should be made to be within the means of small companies. An officer of a chemists’ association believed that— If the law carefully distinguishes between export trade and trade within the United States, with power to the Federal Trade Commission to enjoin combinations which restrain or tend to restrain lawful trade within the United States, the danger from this abuse will be negligible, REPLIES TO CARD AND SCHEDULE INQUIRIES. 4417 A lawyer said: The law shouid define the limits of all such combinations for export; all agreements thereunder and methods of business should be open to the Federal Trade Commission, or a special bureau thereof, and possibly subject to its veto. {f the secret combinations or the abuses of combinations can be done away with, the chief danger to the public disappears. Publicity. —Many of those replying advocated that the charters of these export organizations should be filed Vith some branch of the Government. These suggestions were often coupled with the idea that the activities of the organization should be open to inquiry and more or less subject to the approval of the Government. The following are typical of some of the suggestions received. From an attorney: The articles of agreement and purposes of the association should be required to be made a public record in the form of a report to a Federal public-service commission. Such commission or board should have limited authority to supervise the association and prevent its use in restraint of domestic trade, or to recommend action by some court given power to punish for illegal practices by the organization. From a manufacturer of asphalt products: Their charters, by-laws, or rules of association should be open to proper inquiry upon the part of the Government, and any departure from their allowed purposes would be readily known. A producer of lumber doing considerable export business said : In other lines and in our line if possible, it would be much better, should such combinations be permitted, that they be chartered by the Federal Government and be required to report to and be under control of the Federal Trade Commission. A professor of economics wrote as follows: Such organizations should be permitted only under a regular charter, and all details of organization should be open to the inspection of agents of the Federal Trade Commission and, under certain restrictions, the Department of Justice. Under such conditions any attempt to make use of the organization to control domestic prices would probably be discovered, and the association punished or dissolved. BooOKS AND ACCOUNTS TO BE OPEN TO INSPECTION AND REPORTS TO BE MADE.—A number of respondents advocating publicity specify that the books and accounts of such organizations should be open to the control and inspection of the supervisory body and that regular reports should be made thereto. A few typical replies are given. From the secretary of an association of paper manufacturers: I believe the affairs of this export combination should be made subject to the inspection and control of the Federal Trade Commission, that their books should be completely open to that Commission, that they should place regularly before the Federal Trade Commission full and complete data regarding their every act. From a manufacturer of forgings and railway supplies: We should think an effective method for preventing restraint of domestic trade would be to establish a system of examination into the affairs of these export organizations by a Federal Trade Commission officer in much the same manner as banks are now examined by the Comptroller of Currency, or railroad accounts by a branch of the Interstate Commerce Commission. From a manufacturer of railroad and structural steel: In order to prevent such possible results, we would advocate the export comhinations being under the supervision of the Federal Trade Commission. the 448 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Commission to have access, at all times, to the books and records of such organizations, and the Commission, further, to have power to suspend any such organization or combination in the event of its being used to unreasonably restrain domestic trade. A SYSTEM OF ACCOUNTS TO BE ESTABLISHED.—An economist made the following suggestion: In any case the Federal Frode Commission should prescribe the system of peccounts used by joint sellin agencies and have access to their books. Notices or MEETINGS AND COPIES OF CORRESPONDENCE TO BE FILED,— A manufacturer of building material said: Prevent it [restraint] by having all minutes of meetings and all proceedings of associations open to Government officers. Another reply suggested that— Notices of all meetings should be sent to the proper Federal officers, as well as copies of all correspondence, records, ete, and any further action that might be necessary to keep them fully informed as to what was being done. AFFIDAVITS FROM OFFICERS OF EXPORT ORGANIZATIONS.—An attorney wrote: I would require periodical affidavits from the principal officers of all concerns enjoying the benefits of or belonging to export organizations that they have not violated the provisions of the Sherman or Clayton Acts, and would prosecute for perjury those making false affidavits. The treasurer of a waste utilities company would have such organizations— * #* * Make a monthly report under oath by its executive officers showing its activities and also stating specifically that nothing had been done to control or restrain domestic trade. PuBLiciTY AS TO PRICES, ETC.—A manufacturer of automobiles wrote * The one element of safety, to our mind, is to be found in publicity. All prices, discounts, and selling commissions should be filed with a department organized to control export combinations. The publicity would act as a protection to the honest combination. a deterrent to the dishonest one. A manufacturer of canvas goods said: A method to prevent such a condition would be to demand that each member of such organization should publish both his export lists and domestic lists together for filing with the Public Service Commission, or whatever public body was authorized to handle such matters; and further, that the prices of the companies should be subject to inspection. By an oil producer: Prices of both domestic and foreign sales should be under observation by the Government to the end that manufacturers do not ask or obtain relatively higher domestic prices as against lower export prices. Federal representation in export organizations—Some of the replies are to the effect that if the Government should be represented by mehr ii or otherwise in these export organizations the danger of restraint of trade in the domestic market would be eliminated. Thus, one reply stated: It would therefore perhaps be better not to restrict the activities of the combination at all, but to place on its board a certain number of persons to be appointed by the Government, as in the case of the Federal Reserve Board, which persons should have a right of veto in certain questions. At any rate, the presence of such persons on the board would have the effect to keep the REPLIES TO CARD AND SCHEDULE INQUIRIES. 449 Government in constant touch with the activities of the combination, and it would seem as if this fact in itself would accomplish enough toward impressing the wishes of the Government upon the combination, and preventing it from any activity which might be contrary to the public interest. A manufacturer of fireless stoves said: By allowing no balance of power and with the jurisdiction and officership entirely in the hands of the Government, the danger of monopolies developing would be greatly lessened. A student of sociology and economics thought that— If the members of such boards or commissions were also members of export organizations of manufacturers or producers they would be in a position to act intelligently. Another said: Let a representative of the trade commission be one of the directing committee of each group. A professor of economics thought the best plan was— * * For the Federal Government to specify in detail the form that such organizations are to take, to require, perhaps, incorporation under such law, and to specify that there is to be one representative of the Federal Trade Commission on the board of Arsuiory or governing body of each export combination or cooperative organization. The Government representative should be compelled to report all proceedings to the Commission and the Commission should have power to dissolve the organization in case of illegal action, Prices, output, and profits to be regulated.—A very large number of replies were as urging Federal supervision and regulation of prices, output, and profits as a deterrent to restraint of trade in the domestic market on the part of these export organizations. Some advocated the fixing of prices by the Government. A number of excerpts from typical replies are given below. A lumber producer sugoested : A commission of officials under direct supervision of the Trade Commission, whose duty it would be to receive, from the foreign purchasing agents, inquiries and gei prices from the manufacturers direct with an agreement from them to sell their products direct to the foreign trade, would help trade, although there was an understanding between the manufacturers as to what they would sell certain articles for. The publicity and supervision of the Trade Commission could and would, in my opinion. do away with any possibility nf oppression. A teacher who has made a study of foreign commerce said: I should think that the Federal Trade Commission would naturally supervise export combinations and would be given power to check any inclination on their part to extort monopoly prices at home. - A professor of political economy thought the proper remedy for any incliration on the part of such an organization to gain profits in domestic trade would be that— * * * The Federal Trade Commission supervise all home business of these concerns and fix their rates on home sales at a point which would yield no more than a reasonable return. The plan would be about the same as the control of railway rates bv commissions. A manufacturer of insulated wire believed that the Federal Trade Commission should aid manufacturers by allowing them to fix selling prices: An authoritative body, such as the Federal Trade Commission, can and ought to work with the manufacturers of this country honestly, and fearlessly 97941 °—p1 2—16—-90 450 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, allow those manufacturers, with the knowledge of the Federal Trade Commission, to establish average cost bases or selling-price bases as in Germany, where the Government permits and yet controls the taking of a reasonable profit on an intelligently devised cost basis. Given that aid and restraining force, the American manufacturers can be trusted to deal honestly with the people, of which they form a very important part. % A lumber producer said: I would prevent same [i. e., restraint of trade] by legislation enabling producers of lumber—in fact, all producers of those things the supply of which is now known and can not successfully be increased—to organize and operate under the supervision of the Federal Trade Commission. They should have the power to restrict their output by agreement, to correspond with demand, and I believe this will solve the question of conservation of our natural resources, all acts-of the combination to be under the supervision of and subject to the control of the Federal Trade Commission. From a manufacturer of augur bits: We would have the Government fix the price at which such goods could be sold, after a thorough examination of business conditions under which they were manufactured ; allowing the manufacturer a fair profit only. A manufacturer of soda-water ingredients suggests prevention of restraint— « * = By not allowing them to make an excessive profit in the domestic market as compared with their profits in foreign markets. They should be allowed a liberal profit, but uot an excessive one, the profits made when competition was keen, being used as a basis. EXHIBIT V. EXAMPLES OF PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 151 EXHIBIT V. EXAMPLES OF PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. This exhibit contains a few examples of price and export agreements of foreign combinations. These agreements, secured from authoritative sources, indicate conditions for the particular industries involved. - SWISS CHOCOLATE. The following copy of the conventional agreement of Swiss chocolate manufacturers in force from January 1, 1914, to December 31, 1916, sets forth the scale of fixed minimum prices which are used as a selling basis for all chocolates sold in Switzerland by the manufacturers included in this convention, together with the conditions, penalties, etc. CONVENTIONAL AGREEMENT OF SWISS CHOCOLATE MANUFACTURERS. ARTICLE 1. The undersigned firms, according to the conditions of article 16 of the present conventional agreement, hereby agree in conjunction with one another and during the period covered by the said agreement, not to sell or invoice their cocoa products to anyone below the fixed minimum prices nor to contract any business engagement whatsoever that would be fulfilled in their factories except at the prices and conditions agreed to by the conventional agreement, nor to grant more advantageous selling conditions than those given below, even if the merchandise was fixed for delivery at a date subsequent to that of the validity of the conventional agreement. The tariff which has been arranged and established on the principle of fixed minimum prices under various headings comprising the different products is as follows * ARTICLE 2. TARIFF. Francs, a. Minimum price of sweetened chocolate for household use (type Menage), in tablets, below 500 grams, the kilo ov eee _ 1.80 Tablets of 500 grams and over— oe. 1.70 b. Minimum price of sweetened chocolate (type Economique) ————..._. 2.00 e. Minimum price of sweetened chocolate for dietetic purposes (type FADER) cnn, mimi im————————————————————— 0: d. Minimum price of sweetened chocolate (type Sante-Vanille) __.__._____ 2.40 It is agreed that, for all kinds of sweetened chocolate, the price of which is below 2.80 francs, the amount of butter contained shall not exceed 28 per cent. 2, Minimum price of “ chocolat fondant,” designated as such __.._ f. Minimum price of chocolat fondant, with vanilla AavOr meee g. Minimum price of milk chocolate... eee mem bh. Minimum price of nut chocolate (almonds, ete.) —omomm meee I. Minimum price of goods sold to retail at 5, 10, and 20 cs.; 4, 8, and 16 cs. The weight of these goods ought to vary according to the price per kilo of the corresponding quality—an exception is made in the case of goods falling under “4.” 454 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Francs, 2.40 2. 80 2. 80 3.20 2 0 J. Minimum price of cream chocolate sticks in silver paper, the kilo_____ Pralines (branched and other forms) meee. ame Loose chocolate bonbons, unpacked mum eoemcmemee —————————— Loose chocolate bonbons, packed oo... me i. Minimum price of the packing paper m. Minimum price of cocoa powder, loose, and in quantities of not less LAT Dh BELO ....r orem mmm mms mmm mam so i ili 58 5 i i yr 4 Minimum price of cocoa powder, packed in cardboard boxes, the kilo___ Minimum price of cocoa powder, packed in tin boxes ___ ome. Minimum price of pure cocoa paste, in tablets, the kilo___~____________ Minimum price of pure cocoa paste, in blocks of at least 2% kilos_._.___ Minimum price of chocolate powder, loose, in quantities of at least 23 . 10 Kilo rm mmm Ls Minimum price of chocolate powder, packed _______ L70 Deliveries for the army of chocolate powder, made by tender, are excluded from the tariff. ARTICLE 3. A discount ‘of 8 per cent is allowed to buyers on payment within 30 days after date of invoice; the longest term of credit allowed is that of three months after date of invoice. A toleration period of five days is, however, permissible in both cases. No intermediary discount can be allowed for payment between 30 days and three months after date of invoice. ARTICLE 4. No rebate or benefit of any sort can be granted to buyers except that rebate which is proportional to the amount of yearly purchases made, either by Individual buyers or by an association of buyers; this rule applies to global purchases in all conventional firms, as well as to individual purchases made by one of those firms, according to the classification under which the buyer falls. This rebate will be made on the first invoices of the following financial year. The right to this rebate strictly and expressly entails the necessity for each buyer, and, in the case of associations of buyers for all members of the association, of buying during the financial year the products which are manufactured by the firms of the convention from these firms alone. Any purchase, however small, made in these goods outside these firms will result in the complete forfeiture of all right to this rebate, even for associations of buyers who are held responsible for their members in this respect. - The scale used in calculating this rebate is as follows: For individual purchasers buying dur- | For associations of buyers under the ing the financial year for a sum of— same conditions: Per cent. Per cent, 3 3% 800-599 eee ee 800-999 _ me 1,000-1,799 eee 1,800-2,499 oem 2. 500-3,000.. .. mmemscrimmisine emma 4,000-5,999 cme B.0000,000... eis 10,000-14,999_ 15,000-24,999 eee 25,000-49,999_ ___ ee 50.000 and over —— eee 50,000-74,999___ 75,000-99,999__ eee 100,000-124,999_ ___. ________._ 125.000-149,999____ 150,000-199,999_____________ 200,000-249,999______________ 250,000-299,999_ ceo 300,000-399,999 . cee 400,000-499,999_______ 500,000 and over—___.________ 2 3 7 | R NoTeE.—The above scale of rebates was changed for 1915 as follows: The Association of Swiss Chocolate Manufacturers at a meeting held in Switzerland a short time ago established a new scale of rebates for the year 1915. The new scale of rebates effective during the year 1915 and applying to individual purchasers only is as follows: Per oo 31, E53 J — 800-999 _ _ eee meen 1,000-1,799 eee 1,800-2,499 . cee 2,500-3,999 amen e emem=$.000-5.999____ ~t. 8,000-9,999_ 10,000-14,999 _ eee 15000-24999 moe 25,000-49.999 cove meee 30,000 and overo—oo Per cent, PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 455 A discount of 3 per cent is allowed for payment within 30 days. The above is the scale for individual purchasers only. The scale of rebates to associations of buyers has been rescinded, owing to a disagreement between the chocolate manufacturers and the said associations of buyers. In the case of the Swiss Union of Cooperative Societies at Basel, as well as other concerns or commercial associations who deal with the whole of the conventional firms to the extent of a yearly sum amounting to more than 100,000 francs, the principle of the global rebate is applicable, and this will be calculated for each of these concerns or associations according to the class of rebate to which their annual purchases entitle them. The general assembly shall determine, in each special case and by a yearly examination, the buyers to whom the system of ‘the global rebate, as defined above, is applicable. Associations of buyers are recognized by the conventional agreement in those conditions under which they are actually constituted—that is, taking into sonsideration the state of business prevailing at the time being as much from the point of view of the groupings actually known as of the number of their membership. The uniting of associations actually formed will not be recognized by the present conventional agreement, and such a procedure might, according to the decision of the general assembly, result in the complete loss of all advantages granted to such associations. These conditions, mentioned above, which concern associations, will be communicated to them by the controller. ArrICLE 5. With a view to protecting contracting firms against foreign competition, the following resolutions have been agreed to: Each conventional firm has the right to demand an examination as to the tariff and the conditions attached to it, if this firm can prove that they have entered into competition with a foreign house offering the same quality of merchandise at more advantageous conditions. In such a case the controller has the right to authorize this examination, and must on that day send a notice to the conventional firms. In the same way, and on the same occasion, a discussion as to a revision of the tariff can be introduced at an extraordinary meeting of the general assembly at the request of any one firm within eight days of this request. ARTICLE 6. The conventional firms reserve to themselves the right of guaranteeing their commercial existence, as follows: ’ The conventional firms can not be compelled, by their signatures to the conventional agreement, to adhere to its obligations if these obligations are apt to endanger their existence; and any firm, which finds itself so situated, has a right to demand an alleviation of these obligations. Such demands can be granted by the general assembly by a majority of votes after having heard the reports which will be submitted to it by the controlling committee formed to strictly supervise the carrying out of the agreement. ARTICIE 7. The conventional firms shall enter into the convention free of all engagements with their clients contracted either for the year 1914 or for the followng years. ARTICLE 8. Associations of buyers are admitted to the benefits of the rebate on the total amount of the purchases of their members. The merchandise can be addressed, carriage paid, direct to each member of the association, whereas it can not be addressed, carriage paid, direct to the clients of wholesale merchants. ARTICIE O. The conventional agreement and the minimum tariff, as well as all changes in the principle or scale of rebates and discounts, can be modified and revised at any time by a meeting of the general assembly, called 18 days in advance 456 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. by a letter sent at the initiative of the committee, or by a request made to it by any single member. The resolution may be passed by a majority of four-fifths of the voters, but, if it is a question of a raising of the tariff and conditions, it must be passed unanimously. If, however, as a result of a revisional voting, one of the contracting firms considers that its special interests have been seriously and unjustly injured, this firm can submit a request to the court of arbitration, whose decision is final, to be released from its obligations within a fortnight after the date of voting, Voting can only take place with regard to these questions with which it is the duty of the general assembly to deal. ’ Resolutions agreed to finally in the general assembly are to be adhered to by all the members, even by those members not present at the voting, . Each member has a right to one vote. ARTICLE 10. Conventional firms are held responsible for their agents—contracting or traveling—who commit acts contrary to the conventional agreement, and it is their duty to take measures with regard to those agents to insure the strict observance of the conditions stated, and also with regard to the wholesale merchants to whom they have sold or sell their products. All means (unforeseen here) used by any contracting firm to compromise the faithful observance of the convention and to avoid the fulfillment of its conditions, will be, upon the complaint of any one member or of the controller, examined by the committee in order to ascertain if the firm in question can be previously notified to cease using these means, or directly referred to the court of arbitration instituted by article 12. In these means, submitted to the investigation of the committee are comprised the abuse of premiums, presents, or any special advantages granted either to the wholesale merchant or to the retail purchaser. After having received the complaint the committee will examine each case separately and will proceed, if it is considered that a violation of the agreement has taken place, and if a warning has not proved sufficient, to refer the case to the court of arbitration. Goods used for advertising purposes and having no commercial value, as well as samples bearing a corresponding inseription, can be distributed without committing a violation of the agreement. ArTicLe 11. The committée of the Independent Union, as soon as it has been notified, either by complaint from any one member or officially by the controller, of an act of irregularity must first of all decide by a simple majority whether this act has been committed voluntarily or whether it has been committed involuntarily, through an error, in the application of the clauses of the conventional agreement. The committee may in either case make use of a warning. If, however, the committee decides that the violation is a serious one—and this question must also be decided by a majority of votes—or if the warning has not proved sufficient, the case will then be placed for judgment in the hands of the court of arbitration. If the committee refuses to refer the erring firm to the court of arbitration, the plaintiff has the right to request the direct intervention of the court of arbitration, but at his own expense and risk. ARTICLE 192 A. For fulfillment of the present conventional agreement and all the condltions attached to it, the firms whose signatures are affixed to the said agreement hereby declare the offices of the permanent secretary, M. James Perrenoud, La Chaux de Fonds, to be the headquarters of the convention with tribunal attribution. B. The court of arbitration already mentioned ‘as being appointed to judge all disputes which may arise in connection with the execution of the conventional agreement, and whose decisions are to be considered as final, is a- permanent court consisting of three members appointed for the whole period of validity PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 45% of the conventional agreement, and their headquarters will be situated at La Chaux de Fonds. C. The court of arbitration thus instituted will be chosen and maintained In its entirety for the whole duration of the conventional agreement by the president of the cantonal tribune of Neuchatel, from whom an acceptance of this mission will be required. ARTICLE 13. The conventional firms will appoint a controller, chosen outside of the firms, who will be empowered to supervise the strict observance of the clauses of the ronventional agreement, to examine all eomplaints that may be lodged by metnbers with the committee, and to report to the court of arbitration all particulars of any case on which judgment has to be pronounced. The controller has the right to examine all correspondence and books of any irm against whom a complaint has been lodged or who is suspected of having violated the agreement. The controller is bound under strict secrecy. } ARTICLE 14. The court of arbitration, after having heard both sides of the case, must finally decide whether the said case constitutes a violation committed volunsarily, and not an accidental error committed involuntarily, If it is decided :hat the violation has been committed voluntarily, the court of arbitration must further decide whether this violation is to fall under the conventional penalties, which are as follows: . For the first violation, 100 francs plus 10 times the.value of that invoiced item which constitutes the violation; For the second violation, 200 francs plus 20 times the value of that involced Item which constitutes the violation; For the third violation, 300 francs plus 20 times the value of that invoiced {tem which constitutes the violation; For the fourth violation, 400 francs plus 20 times the value of that invoiced item which constitutes the violation; For the fifth violation, 500 francs plus 20 times the value of that invoiced Item which constitutes the violation; . And as for the fifth violation so on for each following violation. The contracting parties agree to consider and accept the penalties fixed above as irreducible minimums. ARTICLE 15. Each conventional firm, as a guarantee of the strict and exact fulfillment of its obligations, will place in the hands of and to the order of the committee of the Independent Union six bills of exchange signed by the said firm, payable at five days’ sight, and of the following amounts: A bill of 1,000 francs. A bill of 2,000 francs. A bill of 8,000 francs. A bill of 4,000 francs. A bill of 5,000 francs. A bill of 10,000 francs. The conventional firms empower the committee to realize on each amount (commencing at the lower value) of the six bills of exchange signed by them As a guaranty of their obligations, by payment to the Cantonal Bank of Neuchatel of the amount involved, each time that a justifiable complaint is lodged with the committee with reference to a violation of the agreement. The report submitted to the committee by the controller will state whether there exist serious reasons for believing that the complaint is justifiable. Should the court decide that the complaint is without foundation the sum paid and consigned will be restored to the firm whose innocence has been proved against a new draft. Moreover, the conventional firms agree to maintain in full the deposit of the six bills of exchange enumerated above. ARTICLE 18. ’ The stipulations and obligations contained in the present convention are applicable to all merchandise delivered and invoiced directly or indirectly by the contracting parties and destined for Swiss consumption and for consumption in the duty-free districts of Savoy and Gex. 458 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. ArTICLE 17. The present convention takes effect on December 31, 1918, at midnight, and ends on December 31, 1916, at midnight. This period can not be altered. The signatures of the firms given below are binding. Should any change be made this shall be noted at the end of the convention before the signatures, Drawn up and signed at Berne, Hotel Suisse, November 11, 1913. ADDITIONAL, ARTICLE. The conventional firms have agreed to introduce the following clause into the selling conditions for their customers: “To every order is attached the formal condition that the resale can not be made below the customary retail prices of the place where the buyer resides.” Signatures: Chocolats Klaus, S. A. Chocolats Suchard, S. A. Peter, Cailler, Kohler, Chocolats Suisses, S. A. Chocolats Sechaud & Fils, S. A. Chocolats A. Zurcher, 8S. A. Chocolats Suisses Frey, S. A. A. & W. Lindt. Chocolats Tobler, S. A. Chocolats Lindt & Sprungli, S. A. Compagnie Suisse des Chocolats et Cacaos, Lugano. Chocolats Suisses Maestrani. S. A. GERMAN BALL-BEARING CONVENTION. Practically all the ball-beating manufacturers of Germany are members of an association, the provisions governing which are as follows: I Bxclusively for the owner's personal use.] Gume TarovucH THE Provisions oF THE GERMAN Barr BrariNe CONVENTION, [Published by the referee and confidential agent, Ferd. Adolf Pertsch, Darmstadt, 1914.] INDEX. Members..... General provisions. Foreign markets... Export proofs..... ... co... Joint terms of delivery and dealers’ terms... Schedule A... Schedule B...... Representatives and distributors......... Contracts and deals made prior to the league. . General provisions governing prices. . Bonus on turnover........... -- meee Articles of the German Ball Bearing Convention. . Standard bearings...---. Abnormal bearings . Abnormal bearings wi.a1n tne no: Mal series............ With normal set of balls and slight deviations. .... With normal set of balls and material deviations... With abnormal set of balls... . .. 255%. Abnormal bearings outside of the normal series... Bearings of extended series. Threshing-machine bearings Bearings with extended inner race.. Bicycle bearings. . Small bearings ams ean at EP EEReY J AOD PORE Er iw wal wl Page. 459 460 460 160 160 460 461 461 462 162 463 463 463 463 463 464 464 465 466 466 467 467 468 468 PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 459 Cone bearings. - Bearings with housings. . Pp Bearings with defects in precision and finish. . Bearings with dust guards..... Bearings with accessories... Magneto bearings..... are ball bearings.... Special bearings... .. Narrow series. ... Thrust ball bearings..... Partially ground bearings.......... . Transmission of tension socket bearings.... gepetimental bearings.....-Axle factories..... Automobile factories... Suthorities. . Bicycle factories... - Dealers, ete... . Fried. Krupp Joint Stock Co., of Essen.. Machine factories, etc... Private individuals..... - Repairs. . Page. 468 468 468 468 468 169 169 169 169 169 470 170 171 471 471 472 472 472 472 474 474 474 ravessen ew LA A ABBREVIATIONS. Anl. Anlage (enclosure). G.V. Beshluss der Generalversammlung von (resolution of the general meeting of). Komm. Kommentar (commentary). Ligsbed. Gemeinsame Lieferungs und Wiederverkausbedingungen (joint terms of delivery and to dealers). Seite (page). NJ giche (see). Vertrag (agreement or contract). MEMBERS, The convention numbers among its members the firms mentioned below? Berlin Kugellager-Fabrik G. m. b. H., Berlin C. 25. : Deutsche Gusstahlkugel- und Maschinenfabrik A. G., Schweinfurt. Deutsche Kugellagerfabrik G. m. b. H., Leipzig-Plagwitz. Deutsche Waffen- und Munitionsfabriken, Berlin N. W. 7. Schweinfurter Pricisions-Kugellagerwerke, Fichtel & Sachs, Schweinfurt. Erste Automatische Gusstahlkugelfabrik vormals Friedrich Fischer, Schweinfurt. Friedrich Hollmann, Wetzlar. Heinrich Hollman & Co., Burgsolms. Maschinenfabrik “ Rheinland ” A. G., Dlisseldorf. Riebe Kugellager- und Werkzeug-Fabrik G. m. b. H., Berlin-Welssensee. 8. K. F. Kugellagergesellschaft m. b. H., Diisseldorf. The members of the convention recognize that they will not run down each other’s products in a spiteful manner in selling their goods, and particularly that no member will represent as inferior the bearings of the Deutsche-Kugellagerfabrik G. m. b. H., Leipzig-Plagwitz. The 8. K. F. company signifies its fundamental willingness to furnish the members of the convention bearings made by it, at prices still to be agreed apon, but only for distribution in Germany. The same obligation exists for all other members of the convention among each other, Those members who wish to buy from other members have to state in their orders the discount class in which the ball bearings are to be furnished. They then receive the discounts and turnover bonuses which enter into consideration for the respective class of special bearings and an allowance of 10 per cent, but the discount, turnover bonus, and extra allowance do not need to go beyond the total percentage of 46 per cent. The members of the convention are forbidden from buying articles of the convention from firms outside of the convention, {60 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. GENERAL PROVISIONS. The details of the contract must be kept secret as far as possible; neither must communications and facts which become known in the proceedings of the convention be used for the special propaganda of individual firms. (18 V.) The price regulation created by the convention for the time being extends to the home market only. (4 V.) ForEIGN MARKETS. For the countries in Europe, outside of Germany, and their colonies no contracts must be entered into by the members of the convention which take away from the convention firm the control of price quotations beyond July 1, 1914, (11V.) EXPORT PROOFS. It is resolved that each firm assumes or bears full responsibility for the actual shipment of the goods to foreign countries. If there should be any irregularity in this respect the exporting firm will have to furnish proofs showing whether it has done anything in this respect that releases it or not. (G. V. 20. 2. 14.) JoinT TERMS OF DELIVERY AND DEALERS’ TERMS. The prices are in marks, including ordinary freight. Fast freight is charged at half the fast-freight rate; postage is payable by the recipient. The packing is charged for at cost. In connection with goods returned, with prepayment of charges, two-thirds of the cost of packing, if the latter is in good condition, is refunded. The place of fulfillment for the delivery and payment is the city where the shipper is located. , Claims on account of incorrect quantity and poor packing must be made within a week after receiving the goods. A guaranty is assumed in this way, that all b8arings which within a year from the time they are first used, but at the latest within 15 months from the date of delivery, become demonstrably unserviceable through defects in material or workmanship are repaired or replaced free of charge. Any other claims are not to be derived from the guaranty. The bearings are replaced f. o. b. factory. The parts to be repaired must be sent charges prepaid. Indemnity of any other kind i8 not rendered. If, in special cases, the immediate furnishing of replacements should be-necessary before the defective part has been returned, such replaced parts must be charged for in the first place and the amount credited when it was found by an inspection of the bearings that the obligation of replacement exists, The time of delivery is figured from the receipt of the order or the final statement concerning its execution. The maintenance of the time of delivery agreed upon which, without a special agreement to the contrary, is of an approximate nature (days being understood as working days), Is subject to unforeseen processes or events in connection with the manufacture or to other obstacles, such as cases of force majeure, delays in transportation. operating interruptions through strikes or lockouts. Any obligation for damages. in particular conventional penalties for shipments not made on time, must not be incurred. Contracts must not be entered into in any one case for shipments beyond the term of one year, beginning three months after the date of the contract at the latest. Terms of payment. A cash discount of at the most 2 per cent for cash payments, 30 days from the date of delivery at the most, or in its place a credit term of three months at the most. Quotations and sales, in the absence of a special agreement to the contrary, apply only to the buyers’ own use and expressly exclude the sale to others in loose condition, i. e.. not mounted on machines, vehicles, apparatus, or the like, For reselling the ball bearings the following provisions apply: SCHEDULE A. The sale of ball bearings on the part of all buyers must only take place suhject to the maintenance of the following joint terms for resale and orders at PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 461 lower prices or on terms more advantageous than those shown by .the lists mentioned below must not be carried out: 1. To dealers, 1. e., to such firms or persons who conduct the sale of ball bearings as a business (automobile dealers, repair shops, garages, mechanical workshops), or who need the bearings for their industrial operations, not below the basic prices of the F. & S. lists No. 711 and 713, on which a discount of 20 per cent at the most is permissible. The sale to others must have for Its basis the, general terms of delivery of the convention as set forth in the price lists. 2. To private customers who do not make a business of the sale of ball bear-Ings, under no circumstances below the basic prices of the yellow price list No. P. 720, in which connection the granting of any discount is inadmissible. In furnishing ball bearings to firms or persons who make ga business of selling them, these buyers must be made to agree in a legally valid form to the maintenance of the joint terms of delivery and resale. By the same token, the obligation must be imposed on them that they will bind their subbuyers, if the latter sell ball bearings, in the same manner, so that each successive dealer Is obliged to maintain the whole of the joint terms of delivery and sale. If offenses against the preceding terms of delivery or resale or an underbidding of the prices laid down are verified, the purveyors of the ball bearings are released from any obligations toward the offenders in connection with the ball bearings involved. SCHEDULE B. The sale of ball bearings on the part of all buyers must only take place by maintaining the present joint terms governing resale, and must not be executed at lower prices or on more advantageous terms than those indicated below. To private customers who do not make a business of the sale of ball bearings no ball bearings muet be sold under any circumstances below the basic prices of the yellow list No. P 720, in which connection the granting of any discount or allowance, by whatever name it may be called, is inadmissible. In furnishing ball bearings to firms or persons who make a business of selling ball bearings, these buyers must be obligated, in a legally valid form, to maintain the ‘joint terms of delivery and sale; in like manner they must be obligated to bind their subbuyers, if the latter conduct a ball-bearing business, in the same way, So that each successive dealer will be obliged to maintain all of the Joint terms of delivery and sale. If offenses against these terms of delivery or sale or a cutting of the prices stipulated should be proven, the purveyors are to be released from all delivery obligations with the offenders in connection with ball bearings. No terms must be accepted other than those laid down by the convention, and in each quotation and confirmation of an order these terms must be pointed out, so that conditions prescribed by the customer may not be tacitly acknowledged. Prepayment of freight in connection with postal shipments is admissible to the following cities: Greater Berlin, Bielefeld, Cannstatt-Stuttgart, Diisseldorf, Leipzig, Schweinfurt, and Wetzlar, (General meeting, 10. 9, 13.) The guarantee for the load capacity of the bearings is to be omitted from the terms of the convention and only inserted. if a customer asks for a guarantee of the load capacity. REPRESENTATIVES AND DISTRIBUTORS. The firms belonging to the convention assume full liability for the maintenance of the terms of the convention on the part of their representatives. Representatives must not be allowed ,any price concessions for execution other than those laid down in the terms of the convention, with the exception of existing contracts. So long as these contracts are in effect—the contracts in question have to be examined by the confidential agent and, after having been acknowl edged as existing in due form—each firm of the convention and its representative is entitled to begin shipments on the terms on which the deals in guestion are made. No member is allowed to concede an additional commission to his representatives who buy articles of the convention for their own account. If, In connection with purchases made by the representative for his own account, a commission is allowed, the minimum prices must be correspondingly increased. The representatives must be named to the confidential agent. 462 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 1 New arrangements with representatives at home must in the future only be entered into in such a way that the representatives are placed exclusively on a commission basis and that they do not get any shipments for their own account. Contracts which do not comply with the terms of the convention have to be canceled to take effect at the next due date. All shipments to consignment places which must be named to the confidential agent must be given to the convention bureau. Bills which leave these places in the name of members must also pass through the convention’s central office. Stock replenishments must be treated in the same way, but may be executed without any charge for postage. ] DEALS AND TRANSACTIONS PRIOR TO THE CONVENTION. . Deals for Germany must, in any one case, only he made for shipments within the calendar year at the latest, beginning three months from the date of the conpads, pm must be reported to the convention bureau. (General meeting 1. 2, 13.) _PRECONVENTION BUSINESS. Preconvention business which was done at lower prices than those stipulated by the provisions of the convention must, as a matter of principle, be removed as quickly as possible. For that purpose actual buying obligations in favor of the preconvention buyer must be respected in the first place. As long as a customer has the right to buy goods on the strength of a contract made prior to the convention, at lower prices any firm is allowed to make a bid after having had the corresponding prices and discounts confirmed by the confidential agent. (General meeting 30. 10. 18.) ’ Representatives must fiot be given any price concessions other than those laid down in the provisions of the convention, with the exception of existing contracts. As long as these deals are subject to contract—the contracts involved must be examined by the confidential agent and acknowledged as existing according to the law—every convention firm has the right, with its representatives, to undertake the shipments on the terms on which the deals in question are made. All such provisions and existing deals must not have any validity beyond December 31, 1914, and are only considered valid up to that date within the amounts applied for. From that period the provisions of the convention become effective. Through the confidential agent the manner of attending to the preconvention business must be supervised, and the members of the convention notified with regard to the new release of the places requiring ball bearings. (General meeting 20. 2. 13.) Information must be given of a contract price which another member of the convention is allowed to enter upon for the purpose of keeping a check on the prices named by the customer. (General meeting 30. 10. 13.) GENERAL Provisions REGARDING PRICE. Any future reduction in price which is granted to a class of customers must be kept secret and must not be made known to the customer or customers involved until a release has taken place through the convention bureau or the Jatter itself has advised the customer or customers involved. (General meeting 30. 10. 13.) Convention resolutions having for their object special advantages for individual customers or groups of customers must merely be submitted by the convention bureau to the customers, and that with such acceleration and in such a way that the resolutions will clearly and unequivocally prove that a unanimous resolution of the convention is involved. Through this measure it is to be avoided that such resolutions become previously known and are taken ndvantage of in a one-sided manner. .(General meeting 9. 9. 18.) All printed matter concerning prices and terms which is to reach -a large number of customers must first be made known to the members of the convention by the convention bureau previous to the actual issuance, and the members must have time in which to file objections. Such bearings as are shown as odd or abnormal by one member but as standard by another member in his catalogue may be furnished at the prices of that member. The prices in effect at present are valid until the end of 1914. (General meeting 9. 9. 18.) PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 463 Ball bearings without cage (basket) are to be charged for at the same prices as bearings with cage. The prices for individual parts, especially of thrustball bearings, are put down in a special list. In connection with thrust disks and ball races the prices made known by F. & S. are not to be underbid until a correction has taken place jointly. TURNOVER BONUS, The individual sets are listed under the respective classes for customers or bearings. The turnover bonus is refunded for those articles of the convention which a buyer orders from all members belonging to the convention within a calendar year. As has just been mentioned, the turnover bonus at any time may only be allowed on the purchases during the calendar year. In connection with quotations in which net prices are quoted only the conventional discount may be deducted, while the turnover bonus must only be allowed at the end of the year. A turnover bonus may also be allowed on repairs and on abnormal bearings. (General meeting 21. 2. 14.) ARTICLES OF THE (GERMAN BALL Bearing CONVENTION. Ball bearings in the broadest sense of the word, including the bearing parts belonging thereto, individual parts of ball bearings in particular. I. Precision goods (i. e., bearings which are ground in the bore hole or the outside diameter or in both grooves). 1. Race systems, thrust-ball bearings. 2. Oblique ball bearings, 8. Cone bearings, open (so far as they are not intended for use on bicycles). 4. Bearings with accessories: (a) Complete bicycle bearings with concentric ball race systems; (b) transmission bearings with housings and other transmission parts; (c) other than transmission bearings with housings or hubs; {d) ball bearings which are constructed together with other gear parts (this alsp comprises all other bearings where instead of the races and (inner race or outer race) other parts of the gearing (axle, housing, hub) are provided with grooves or races, loose-head stocks, or the like). II. Goods other than precision. These comprise preferably: (a) Bearings where nothing else is ground except one groove at the most; (b) bearings which are not ground at all (patent bearings, other than those ground in one groove, are not released) ; (¢) pressed bearings which can not be called race systems, thrust-ball bearings, oblique, or cone bearings. ITI. Hardened and ground races which are not used for ball bearings, but in shape and precision resemble ball-bearing races. The convention does not extend to bicycle cone bearings and accessories for the bicyele industry, loose balls, so far as they do not belong to convention bearings, or to black unground races. STANDAED BEARINGS. Standard bearings such as are mentioned in the lists approved of must only be offered at the basic prices laid down. . Making known new series to the trade Is inadmissible without the authorization of the general meeting. ABNORMAL BEARINGS. ABNORMAL BEARINGS WITHIN THE NORMAL SERIES—UNIT TABLE. For additions within the normal series: In connection with— 100 and more oe ______ Nw i Deceit Ps rs 8 re mA ——————— 20-20 er ————————————— ‘0-19 eee mee a Per cent. {} 1) 5 45 20) 464 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. (@) ABNORMAL BEARINGS WITH NORMAL SET OF BALLS WITH SLIGHT DEVIATIONS. (By standard set of balls are meant the standard cages of all members of the convention.) If the bearing sought deviates from a standard bearing with the same set of balls made by one of the members of the convention, to the extent of not more than 1 mm. in the outside diameter or the width, the list price of this bearing is considered as the basic price. To this are added the additional percentages contained in the above unit table, which in each case must be figured for the abnormal parts or the abnormal part. In connection with the calculation of these additions, 1-row thrust ball-bearings are to consist of 8 equal parts (2 races and 1 cage), tension socket bearings of 4 equal parts (2 races, 1 cage, and 1 tension socket), 2-row double-thrust bearings of 5 equal parts, ete. Example 1a. Marks. 2 bearings No. 307, with a bore hole of 34 to 36 mm. instead of 35 mm., basie price of No. 307_ eee. 9.00 50 per cent on one-third of 9 marks; 50 per cent on 3 marks (as the inner race deviates from the normal measurement by 1 mm.) cmmeeeeeee.—— 1.50 10. 50 In connection with standard bore of 85 mm. and deviating outside diameter of 79 to 81 mm. instead of 80 mm., the same gross price of 10.50 marks results. ‘With a standard bore and standard outside diameter, however, up to 1 mm., deviating widths, i. e., 20-22 mm. wide instead of 21 mm. wide, the calculation Iq as follows * ! Marks. Basic price No. 807 cco © i § 3 Em 9 50 per cent on two-thirds (as inner and outer race, i. e.. in two parts, deviating) of © Marks=6 Marks... ees cee ree mere er mar a—— 8 12 If the outer race and the bore deviate up to 1 mm. the same gross price of 12 marks results. On each part the price addition can only be charged once, i. e., if the outer race deviates in diameter and ‘n width the addition of one-third of the price of the bearing applies to both deviations. (General meeting 15. 1. 14.) (b) ABNORMAL BEARINGS WITH STANDARD SET OF BALLS AND GREATER DEVIATIONS. In connection with deviations greater than 1 mm., as compared with standard bearings, the list price “of the part or parts involved” of the next higher standard bearing of the same series is considered as the basic price * of the ambnormal part or abnormal parts.” Furthermore the additions for lesser numbers of bearings from 1-100 and over as per unit tale are figured as ‘described nnder la. . Bzamople 1b. Marks. Two bearings (No. 807) with a 83 mm. or smaller bore hole, instead of 85 mm. bore (outside diameter and width of bearing normal), two normal parts (outer race and cage No. 307) =two-thirds of 9 marks_. One abnormal inner race, 33 mm. bore hole, one-third of the next higher bearing (No. 308), 10.76 marks _______ ____ oe _ Furthermore, quantity addition for 2 bearings as per table, 50 per cent on 2¢0 marks. — 8.60 1.80 11 40 The same gross price results if the bore hole is standard and the outside diameter is greater or smaller by more than 1 mm. e. g., outside diameter 78 mm. or 82 mm. instead of 80 mm. If the bore hole and outside diameter are standard, the width, however, deviates in both races more than 1 mm., e. g., outside diameter of 78 mm. or 82 mm. instead of 80 mm. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 465 If the bore and outside diameter are standard, while the width deviates in both races by more than 1 mm., the following price results: Marks. Cage standard of No. 307=one-third of 9marks__________ ____________ 8 [nner race and outer race of the next larger bearing (No. 308)=twothirds of 10.95 marks_______________ ____________ oe _ T.20 Quantity addition on 2 bearings, 50 per cent of 7.20 marks meee oo __ 3.60 18. 80 (General meeting 20, 2,14.) BEARINGS WITH ABNORMAL SET oF BALLS (WITHIN THE NORMAL SERIES). For such bearings it fs necessary first to look up the series to which the bearing sought belongs, as regards full number of balls and size of balls—that Is, the series which, with a full complement of balls, contains the same. or if not existing, a smaller number of balls, with the same, or if not existing, the next larger diameter of balls. In the series found the list price of the standard bearing with the same or the next larger outside diameter of balls is considered as the basic price of the abnormal bearing wanted. To these basic prices the additions named in the unit table are then furthermore added in their entirety (1. e., not on individual parts as under 1a and 1b). Example. Wanted, the price of 2 abnormal bearings with abnormal set of balls with cage of normal construction: 47X112X30 with 15 balls 19/32’, Solution. The full number of balls is 16: the size of balls is 19/32’ rr We first look for the 19/32’ ball size in the list, or, if it does not exist, we take the next higher one, i. e, 5/8’; in the F. & S. catalogue we, for instance, do not find 19/32’’ balls in the race series A, B, C. We then look for the next larger ball diameter, 5/8'/, equal to 22 full balls. This series must not be used, however, because the bearing A85, with a full complement of balls, contains more balls (22) than the one wanted (16) for the number of balls must be the same or smaller. Series B under B45 (No. 309) has 13 5/8’ balls, and therefore meets the two requirements, that the number of balls should be the same or smaller and the diameter of the balls the same or larger, The bearing wanted, therefore, with 15 balls 19/82’ lies in series B of Fichtel & Sachs. Having thus seen that the abnormal bearing wanted belongs to the series B of F. & 8., we figure out the diameter of the bearing to be computed with the measurements existing in this series. The bearing to be figured out has the dimensions of 47 by 112 by 30. In the B series ascertained made by F. & S. the nearest larger outside diameter—the same diameter does not exist—is 120 mm. in bearing B55 (No. 311). The bearing to be computed must therefore be quoted as follows: Marks. List price of B55 (No. 811) _______________.________ ____ 17.50 Plus addition for making 1-2 as per unit table. 50 per cent eee. 8.75 The bearing wanted therefore costs, per bearing gross where 1 or 2 bearings are shipped _______________~ ________ ~~ ~~ ~~ ~~ 26. 25 The discount to which the buyer is entitled is only deducted after figuring the additions. t . If a firm changes its standard measurements with reference to the set of balls, it has to immediately make known these changes to the convention bureau for transmittal to the members. Quotations on abnormal bearings which can be proven to be in effect remain valid without any effect on a possible change in the provisions of the convention for computing such bearings for a term of three months after making the quotation. The binding term can be extended to a full year at the written re-27241°—pT 2—16——30 466 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. quest of the customer. In such cases the convention bureau, however, has to exercise the controlling function. (General meeting 20.2.14.) ABNORMAL BEARINGS OUTSIDE OF THE STANDARD SERIES AND EXTENDED BEARINGS. Extended series are accepted in.accordance with the proposition of D. W. F. (General meeting 20.1.14.) Intermediate sizes of the extended series are computed in accordance with the D. W. F. formula. (General meeting 20.1.14.) Quotations on abnormal bearings which can be proven to be in effect remain In effect without any regard to possible changes in the provisions of the convention for computing such bearings for a term of three months after making the quotation. The binding term may be extended to a full year on motion of the customer. - In such cases the convention bureau must exercise the function of control. (General meeting 20.2.14.) The ball mean circle must never be smaller than the mean between bore hole and outside diameter (race mean circle), but it may be greater. As the guiding prices for series 700, 200, 300, 400, 1000, and 1100, the quotations made by the D. W. F., which every firm has received. will be considered. Further guiding price tables covering missing series PJL, 1200, 1300, likewise two theoretical end series each for race systems and thrust-ball bearings, and intermediate series for thrust-ball bearings, will be furnished shortly by the firm named. , These guiding prices also apply to tension socket bearings of the extended series by adding the prices for the tension sockets which, it is true, still have to be regulated. Double-row bearings which are equal to the bearings of the extended series In the matter of outside diameter and bore, must also be figured by using the guiding prices of the extended series and an addition of 70 per cent must be made to the basic prices of the one-row bearings. Abnormal bearings within the extended series must be calculated according to the formula mentioned helow. The governing prices to be used in the calculation are composed of the basic price of the standard comparison bearing and the additional percentages or allowances, mentioned in the guiding tables, to be computed in connection with the quantities deviating from the normal manufacturing quantities. The D. W. F. formula reads: pg 2P'+P:. Dm. id} (Dm!+¥Dm?), (1d3-+idP) In this formula the abbreviations mean: P'—Guiding price of the smaller comparison bearing. P’—Price of the bearing wanted. P*—Governing price of the larger comparison bearing. Dm*—Ball mean circle of the smaller comparison bearing. Dm?—Ball mean circle of the bearing wanted. Dm*—Ball mean price of the larger comparison bearing. The value id® is the product from the full number of balls and the square of the ball size (ball size in 1/8’). Bzrample. Let a bearing have as a full complement 20 balls of 1}’’ diameter, then the id? is ) 20 X 12° (as 13’ = 12/8). The id* therefore amounts to 2880. In the formula: 1d® is the value of the smaller comparison bearing. id 3 the valug of the bearing wanted. id the value of the larger comparison bearing. Wa in this connection examples of the D. W. F. in their circular of PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 467 THRESHING MACHINE BEARINGS. Unground bearings are not to be furnished as threshing machine bearings. THRESAING MACHINE BEARINGS WITH HOUSINGS LA AND LB. The basic prices for these complete bearings are as follows: - Marks, LA 20 LA 25 ee LA 30 Cee LA 85 ee LA AD. JE, LA 45 LA 50 Ce LA 55 oe [LA 680 Marks. 9 9.50 10.20 11.10 4 i. 75 R. 75 20. 50 LB 25 ee [B30 om {B25 ____. FP A) eee een RA eee ee I.B° 20 Do On these prices a discount of 20 per cent may be granted to mechanical workshops and dealers. Turnover bonus must not be allowed. . Machiue factories receive a discount of 25 per cent, also the turnover bonus fixed for these firms, but only as far as the maximum rate of 10 per cent on a yearly turnover of 35,000 marks and over. The same prices and discount rates also apply to the execution of post bearings and pendulum bearings. (The latter provision only affects the firms of F. Hollmann, Wetzler, and the 8S. K. F. Kugellagergesellschaft, Diisseldorf.) Loose threshing-machine bearings without housings for agricultural machine factories of standard, crowned, or adjusting-ring construction are sold at the list prices less 40 per cent discount. In addition to the discount, the turnover bonuses. as applying to the machine factories, are allowed up to a maximum height of 10 per cent. This, therefore, in connection with a yearly volume of * 35,000 marks and over” corresponds with a discount of 40 per cent plus 10 per cent turnover bonus—all told 46 per cent. (General meeting 20.2.14.) This also comprises bearings with extended inner race at the widths mentioned below, without any addition in price: LA 20. vom TA 28. commie TA RO) A an BB cris wii 5 SMA A A A Vim. oo nn R 2 jc Mm, 42 a2 — ———— 9 0 [I ; 7 In connection with bearings with still longer inner race, only the normal discount of 25 per cent is admissible. For other special constructions such as grooves and holes in the outer race, a corresponding additional price must be charged, but at the least 5 per cent of the net price. If dust lids are asked for, the following discounts apply for such parts: 15 per cent or 30 per cent for precision work, 5 per cent or 10 per cent for pressed-in stamped sheet metal ; also figured on the basis of the net price. Heavier outer races are to be graduated within the normal series according to the provisions for abnormal bearings. . Mechanical workshops and dealers only receive 20 per cent discount. (General meeting 17.1.14.) Loose pendulum bearings which are used on threshing machines are figured at the increased basic prices proposed by the 8. K. F. firm. It is permissible to grant a discount of up to 40 per cent on these basic prices, likewise the same turnover bonus which may he allowed on complete threshing-machine bearings with housings, i. e., up to the highest limit of 10 per cent with a yearly turnover of 35,000 marks and over. (General meeting 17.1.14.) This provision only applies to the firms of Friedrich Hollmann, Wetzler, and 8S. K. F. Kugellagergesellschaft, Diisseldort. 168 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, BI1cYcLE BEARINGS. Bicycle cone bearings are not subject to the convention, (2 V.) Bearings with accessories for bicycles are not subject to the regulation of prices. Loose standard race systems for bicycles are furnished to the bicycle factories given in the list at a discount of 40 per cent from the list prices. Abnormal constructions are also graduated within the normal series by taking as the basis a discount of 40 per cent and observing the existing provisions for the quotation of prices of abnormal constructions. (General meeting 10.9.13.) A turnover discount is not allowed on these bicycle bearings. With regard to the sale of loose bearings, the factories have to be obligated to maintain the joint terms of delivery and sale. Samarr BEARINGS. } PRICES ON SMALI, BEARINGS. Marks. No. 1242, 10 by 25 BY Beceem cece meee me mmm mmm mmm ee 34 0 No. 1243, 10 bY 32 BY meme eemeec meee meee meee —— mamma SO ND, THE, 12 hy 82 BY . conmmmmmimminmmsim sits Semmes: Se 30 NO. 1245, 14 bY 38 BY De cece eee ccm meme cea mmm. + 50 (Have been adopted as per Francfort minutes.) : CoNE BEARINGS. Bicycle cone bearings, see under bicycle bearings. - Cone bearings must not be offered by any member of the convention in such cases where, according to general technical or mechanical principles, race systems and thrust ball bearings are suitable. Where cone bearings are sold as precision goods, at least the prices charged for race constructions of the nearest jimensions must be demanded. Precision cone bearings, see under magneto bearings, Bearings wiTH HoUsINGS. Housing bearings (4b and 4c; as far as possible, also, 4d) are subject to the price regulation as a matter of principle. The members of the convention confine themselves, as far as possible, to selling housing bearings only according to the lists of standard specifications. Any member may enter upon such quotations laid down by the list. Of course, no benefits of any kind must be created for the buyers by quoting too low prices. . BEARINGS WITH DEFECTS IN PRECISION AND FINISH. Bearings with defects in finish must not be offered or sold in Germany until further notice. If a release should be resolved the fields of application are limited. Brarings wit Dust GUARDS. For race bearings with dust lids of precise construction the following additional prices enter into consideration: One-sided dust protection, 15 per cent; two-sided dust protection, 30 per cent. ’ A simpler construction with rough, pressed-in dust lids is furnished at an additional price of 5 per cent for one-sided dust protection; 10 per cent for twosided dust protection. BEARINGS WITH ACCESSORIES. Inquiries in which the member of the convention consulted intends to make quotations on ball bearings with accessories must be immediately reported to the central bureau of the convention if they involve amounts over 100 marks. The quotations must pass through the convention bureau. (General meeting, 9.9.13.) The accessories themselves must be charged for at cost plus at least 10 per, cent additional. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 469 MAGNETO BEARINGS. (Magneto bearings made as precision cone bearings.) The basic prices of the list No. 365 F. & S., as well as the following special discounts, apply to these goods: 1. For dealers, mechanical workshops, ete. : Up to 199 eee 200499 em. BU0-D09 cic omimmmesm mms som mm im i Se es Sm A LL000=0,900 csi swimming iim iG HO000-19,900 emit iis imi Simms bs sma obi mamo—————————— 20,000-100,000 _ eee For machine factories: TD: 10: 400mm mr sm i s—— For the rest the same as given under 1, (General meeting 29.5.18.) . 3. For igniter factories and the fields specified in the minutes of January 20, 1914, the prices put down or to be stipulated apply at the present time as made known by F. & S.’s circular of May 5, 1914. OBLIQUE BAIL BEARINGS. Oblique ball bearings must be treated exactly the same way as the bearings of race construction, with which they coincide as regards the inner and outer diameter. SPECIAL BEARINGS. All types of ball bearings which are not recognized as normal or standard by the convention but were formerly indicated in the different lists must only be offered and furnished as special bearings on special inquiry. On these bearings, too, only the discounts fixed must be granted. > Narrow series must not be contained in the main lists; neither must catalogues be added; on the other hand, special lists for repairers may be made up and distributed among these, as well as among dealers generally. (General meeting 17.1.14.). THE NARROW SERIES, Ball race constructions— D. W. PF. F&S. 1-15 BE 12 to 110 52- 57 CE 20 to 85 102-122 AE 10 to 110 must not be' sold cheaper than the corresponding bearings of the standard series with equal inner and outer diameter and greater width. The same principle must be applied in the proper sense to all the other existing series, ballrace systems, oblique bearings as well as thrust-ball bearings, THRUST-BALL, BEARINGS. Private customers do not receive any discount. Dealers, mechanical workshops, consumers, etc, 20 per cent discount. Machine factories and apparatus builders who buy ball bearings for machines which are sold to others receive from April 1, 1914, 30 per cent discount and the well-known turnover bonus: From-— 5,000 marks ——__ en T,500 MATKS meee eo oo oo - i 10,000 marks TTT z 15,000 marks oe I 20,000 marks eim————— rm ——— ——— 25,000 marks eee __ eT — — 80,000 marks oeeee eee. —— oo 85,000 marks _______________ ~~" 40,000 marks ee oT 45,000 marks —_______________________~—mmTTTTTTmTmmTm mmm 50,000 marks TTT TTT Per cent, yp T 470 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Army and navy authorities, 30 per cent discount without cash discount or turnover bonus, subject to the terms of delivery prescribed. } Other State and municipal authorities, 25 per cent discount without any turnover bonus and without cash discount, subject to the terms of delivery prescribed. New quotations on thrust-ball bearings were only allowed to be sold at 80 per cent discount beginning Monday, February 23, 1914. This resolution must be interpreted in such a way that new quotations also include all those yuotations on abnormal thrust bearings which left on February 23, 1914, i. e., also to customers or interested parties who are entitled to 40 per cent discount on standard thrust-ball bearings up to April 1, 1914, on the strength of previous guotations. Quotations which can be proven as having been made for 1914 and which had to be named to the confidential agent and whose withdrawal was not possible remain in effect. These firms may be furnished goods at the same prices by all the members of the convention. The prices made known by F. & 8. on individual parts (pressure disks and ball races) must not be underbid. Two-row, single-acting thrust bearings with displaced balls must not be quoted on. The single-acting multirow thrust-ball bearings are divided by concentric circles into as many parts as it contains rows of balls, in which connection the widths of the parts are uniform. The one-row bearings thereby produced are computed in the same way as standard or abnormal axial bearings. Rheinland thrust bearings, double acting, with one row of balls, must only be furnished to machine factories at the discount stipulated for race construction, i. e., dealers and repair shops receive a discount of 20 per cent; machine factories, automobile factories, etc., not over 25 per cent discount. PARTLY GROUND BEARINGS. Patent bearings (group IIa) other than ground in one groove are not released. Bearings of group Ila must not be quoted on until further notice, except for use in connection with roller curtains, automatic roller paths, and also for all conveyors running on wheels and operated by man power or not developing a speed greater than 10 kilometers per hour. These bearings must not be ground or emeried either in the bore or in the outside diameter. These bearings may be furnished up to at the most 20 per cent discount under the prices to which the buyer in question is entitled on precision goods. This extra discount of 20 per cent must be considered as an additional dlscount, which is only deducted after taking off the basic discount, i. e., in connection with machine factories. 25 per cent + 20 = 40 per cent. (General meeting 20. 2. 14.) This total discount of 40 per cent has to be considered as a maximum discount. To this are added at the end of the year the turnover bonuses for machine factories. The prices are to be quoted net. Quotations must pass through the convention bureau for its control and transmittal. TRANSMISSION OR TENSION So0CKET BRARINGS. Standard bearings with conical bore without tension socket are to be furnished at the same prices as the same bearings with cylindrical bore. - The prices for complete transmission bearings have not been regulated as yet. Each firm sells at those prices which it has heretofore obtained. | Machine factories and transmission firms in addition to the basic discount of 25 per cent on TENSION SOCKET BEARINGS AND HOUSINGS WITH TENSION SOCKET BEARINGS receive an introductory bonus of 8 per cent, which is immediately deducted from the invoice, but must only be allowed on orders or contracts amounting at the least to 200 marks within a calendar year. The turnover bonus to which machine factories with a minimum yearly turnover of 5,000 marks are entitled, remains in effect. (General meeting 17. 1. 14.) PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 471 In connection with tension socket bearings without tension sockets an introductory bonus is not granted. (General meeting 20. 2. 14.) . EXPERIMENTAL BEARINGS. For experiments on new fields of application it is permissible to loan bearings as well as housing parts for a long testing period, not exceeding one year, however, with the proviso that they are taken over at the prices of the convention for ball bearings and standard prices for the housings: if the experiments turn out favorably. Quotations pass through the convention bureau for confdential inspection or brought to the latter's knowledge. (General meeting 1. 4. 13.) AXLE FACTORIES. All firms manufacturing axles with bail bearings ready for use, i. e, for vehicles which do not run on tracks, receive the auto discount without turnpver bonus. Firms to whom this allowance is made must be named to the convention bureau for the latter’s guidance. The firms involved must be made to agree that they will only furnish the ball bearings bought with their axles and will not sell them separately for others to sell. Infringements of this provision result in the withdrawal of the discount and claims for damages. Replacement ball bearings for the axles furnished by the axle factories entering into consideration must only be sold at the prices and the terms stipulated by the convention. (General meeting 17. 1. 14.) AUTOMOBILE FACTORIES. AUTOMOBILE FIRMS. Adlerwerke vorm. Heinrich Kleyer, A. G., Frankfort, Allgemeine Elektrizitats, A. G., Berlin, Automobile Betriebe, A. G., Berlin. Anhalt Automobil und Motorenfabrik, Dessau. Apollo-Werke, A. G., Apolda. Audi-Automobil Gesellschaft, Zwickau. Automobilwerk Reissig, Plauen. Aschener Stahlwarenbarik Fafnirwerke, A. G., Aachen, 0. Beckmann & Co., Breslau. Benz & Co. Rheinische Automobil und Motorenfabrik, A. G., Mannheim and Gaggenbau. C. Benz Sohne, Ladenburg. Bergmann Elektrizitatswerke, A. G., Berlin-Rosenthal. Justus Christian Braun-Prexmier Werke, A, G., Nuremberg, Brennaborwerke Gebr. Reichstein, Brandenburg, 1. Bussing, Braunschweig. Ettore Bugatti, Molsheim, Berliner Elektromobilfabrik, G. m. b. H,, Berlin, S. W. 48, Cyclon Maschinenfabrik, Cologne. Daimler Motoren-Ges., Unterturkheim and Marienfelde, Deutsche Lastauto, A. G., Ratingen. H. Ehrhardt, Zella-St. Blasil. Flektromobilfabrik Gebhard & Harhorn, G. m. b. H., Berlin-Schonebere, Fahrzeugfabrik Ansbach, Ansbach, Fahrzeugfabrik Eisenbach, Eisenbach. Alex Discher & Co., Berlin-Halensee. Fulmina-Werke Carl Hogman, Mannheim, Gebruder Stoewer, Stettin, Gebruder Windhoff, G. m. b, H., Rheine, Hanea Automobile Gesellschaft, Varel. A. Horch & Co. Motorwagenwerke, A. G., Zwickau, F. Komnich, Elbing. Rud. Ley, A. G., Arnstadt. Loeb & Co., Charlottenburg. Markranstadter Automobilfabrik, Markranstadt. 472 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Marswerke, A. G., Nuremberg-Doce. E. E. C. Mathis, Strassburg. Miele & Co., Gutersloh. Monowerke Roger & Niebuhr, Hamburg, Motoren und Lastwagen, A, G., Aachen. Neue Automobil Gesellschaft, A. G., Berlin, E. Nacke, Coswig. Neckarsulmer Fahrzeugewerke, A. G., Neckarsulm. Norddeutsche Automobile und Motoren, A. G., Bremen, Norddeutsche Automobilewerke, Hameln. Nurnberger Herkuleswerke, A. G., Nuremberg, Adam Opel, Russelsheim, Oryx Motorenwerke, Reinickendort. Phanomen Fahrradwerke Gust, Hiller, Zittau, P. H. Podeus, Wismar. Polyphon, A. G., Wahren., Priamus Automobilewerke, G. m. b. H., Cologne, Prestowerke, A, G., Chemnitz. Progress Motoren und Apparatenbau Gesellschaft m. b. H., Berlin-Charlottenburg. Protos Automobile Nonnendamm, Nonnendamm, Ramesohl & Schmidt, A. G., Bielefeld and Velde, Richard & Hering, A. G., Ronneburg. Simson & Co., Suhl. i, Th. Siemens-Schuekert-Werke, G. m. b, H,, Nuremberg, Siemens-Schuckert Concern. ' Siemens & Halske, A, G., Berlin. Wandererwerke, A. G., vorm. Winklhofer & Jaenicke, Schonau, near Chemnitz, Automobile factories which are recognized as such in accordance with the preceding list, in addition to the discount of 40 per cent on race bearings and chrust bearings, receive a turnover bonus as follows: From— 60 to 100,000 marks ooo oo 100 to 150,000 marks. eee eee 150 to 200,000 MATKS emma 200 to 250,000 marks o_o 250 to 300,000 marks eee 300 to 350,000 marks. ee 9 B50 to.400,000 marks and over. 10 The quotations must have added to them Schedule A of the terms governing resale as well as list P, and the firm must agree to maintain the selling prices. In connection with shipments to branches of automobile factories only 20 per cent must be granted to these dealers, in so far as they buy for their own account. If, on the other hand, the head office asks that all shipments are to be charged to its account, the discount enjoyed by the head office will apply. (General meeting 20. 2. 14.) AUTHORITIES. Naval authorities and the army receive a discount of 80 per cent on race bearings, 40 per cent on thrust bearings up to 3, 81, 14, 30 per cent beginning 4, 1, 14; terms, cash, without any discount f. o. b., subject to the terms of the army and navy. A turnover bonus is not allowed. Other State or municipal authorities receive a discount of 25 per cent without any cash discount and without any turnover bonus on race bearings and thrust bearings, subject to the known buying terms. Buying terms not known must first be approved. BICYCLE FACTORIES, LIST OF BICYCLE FACTORIES. Adlerwerke vorm. Heinrich Kleyer A. G., Frankfort-on-the-Main. Aktiengesellschaft Panzerkassen-Fahrrad- und Maschinen-Fabriken vorm. H. W Schkaditz, Dresden. , Aktiengesellschaft vorm. Seiden & Naumann, Dresden. Anker-Werke A. GG. vorm. Hengstenberg & Co.. Bielefeld. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 478 Bielefelder Maschinen- und Fahrradwerke, Aug. Goricke, Bielefeld, Justus Christian Braun-Premier Werke A. G., Nuremberg. Brennaborwerke Gebr. Reichstein, Brandenburg a. H. Citowerke A. G., Cologne-Klettenberg. Claes & Flentze G. m. b. H., Mulhausen i. Th. Corona Fahrradwerke und Metallindustrie A. G., Brandenburg a. H, Deussig, Ernst, Erfurt. Diamant-Werke Gebr. Nevougt A, G., Reichenbrand-Chemnitz. Durkoppwerke A. G., Bielefeld. fisenwerke Gaggenau A. G., Gaggenau. . dlsterwerdaer Fahrradfabrik C. W. Reichenach, Elsterwerda-Biehla. Excelsior-Fahrrad-Werke Gebr. Conrad & Patz A. G., Brandenburg a. H. Express Fahrradwerke A. G., Neumarks, near Nurnberg. Fahrradwerke Bismarch G. m. b. H., Bergerhof. Fahrzeugfabrik Eisenbach, Eisenbach. C. G. Hainel, Suhl i. Th. Kochs Adlernahmaschinen-Werke A. G., Bielefeld. Koln-Lindenthaler Metallwerke A. G., Koln-Lindenthal, Fr. Langenhan, Zella-St. Blasii. Mamut-Werke G. m. b. H., Bielefeld. Maerwerke A. G., Nuremberg-Doce. Machinenfabrik Gritzner A. G., Durlach. Metallindustrie Schoenbeck A. G., Schoenbeck. Mitteldeutsche Fahrradwerke G. m. b. H., Sangerhausen. Nahmaschinen-u. Fahrraderfabrik Bernh. Stower A. G., Stettin-Grunhof. Neckarsulmer Fahrzeugwerke A. -G., Neckersulm. Niederlausitzer Fahrradwerke, Prochnow & Bergmann, Finsterwalde N. LK. Nurnberger Kerkules-Werke A. G., Nuremberg. Adam Opel, Russelsheim. Pantherwerke A. G., Braunschweig. Pfalzische Nahmaschinen- und Fahrraderfabrik vorm. Gebruder Kayser, Kaiserslautern. Phanomen Fahrradwerke Gust. Hiller, Zittau. Prestowerke A. G., Chemnitz. . V. Chr. Schilling, Suhl, i. Th. Simson & Co., Suhl, i. Th. Sport Fahrradwerk Schaffner & Taggesell, Oberursel. Paul Tanner, Cottbus. Thuringische Maschinen- und Fahrrad-Fabrik Walter & Co. G. m. b. H., Muhlhausen, i. Th. Triumph Werke Nurnberg A. G., Nuremberg. Viktoria-Werke A. G., Nuremberg. Wandererwerke vorm. Winklhofer & Jaenicke A. @., Schonau near Chemnitz. Weilwerke G. m. b. H., Rodelheim-Frankfort-on-the-Main. Weyersberg, Kirschbaum & Co. A. G. fus. Waffen und Fahrradteile, Solingen. Wittler & Co., Bielesfeld. For bicycle factories which are recognized as such in accordance with the preceding list the terms as laid down on page — will be valid. For the resale of loose bearings they must be obliged to maintain the joint terms of delivery and sale. (General meeting 10. 9. 13.) DeALrrs, ETC. Dealers, regardless of whether they are retailers, wholesalers, repair shops, garage, or mechanical work shops, so far as they are not private individuals, receive a discount of 20 per cent on race and thrust bearings. In every quotation the terms of delivery of the convention must be pointed out. The provisions according to Schedule B, which have to be added to the respective quotations with private list P, will apply to the resale. T turnover bonus must not be granted. (General meeting 21. 2. 14.) Ferien. Krurp, JOINT SToCcK Co., OF ESSEN. Krupp receives, as the turnover exceeds 50,000 marks per annum, 40 per cent on race and thrust bearings, one year’s guarantee from the date of operation. The following establishments are considered as part and parcel of Krupp: Krupp, Essen-Ruhr; Krupp, Rheinhausen-Friemersheim; Krupp, Grusonwerk. 474 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Magdeburg-Buckau ; Krupp, Germaniawerft, Kiel. (General meeting 9. 8. 13; general meeting 30. 10. 13.) MAcHINE INDUSTRIES, ETC. Machine factories, ete, which mount ball bearings on machines sell them any way, receive a discount of 25 per cent on race bearings and 40 per cent on thrust bearings up to March 81, 1914, 30 per cent from April 1, 1914. Furthermore a turnover bonus applies in accordance with the following table: From— - 5,000 marks eee 7,500 MATKS oe mm me mt rd mea 10,000 marks. __ mac mere T5000 IERTIES cee isi i mimi 58050550 i ln mm 0 20,000 marks oom ——————————— 25,000 MATKS. meee ecm —————————— 30,000 marks ___ 35,000 marks eee 0,000 MATES commis iin imi in iin i isto 45,000 marks oem a ee ema a mee 50000 marks. In closing contracts for at least 50,000 marks, or in case the volume of busiaess done within a year’s time reaches the sum of 50,000 marks, a discount of 40 per cent may be granted beginning with this date by completely eliminating any turnover bonuses whatever, in which connection the difference between the former discount and the turnover bonus and that of 40 per cent may be credited by way of retroactive effect. Factories which come under this provision and are quoted 40 per cent must be made known to the convention bureau before the quotation is made, provided that the buyer in question has not reached a turnover of 50,000 marks or more in the previous year already, and the convention bureau will then authorize the quotation. The quotation shall state that the customer, if he is granted the 40 per cent but fails to reach the turnover, shall refund the difference which exists between the discount of 40 per cent and the discount and turnover to which he is entitled according to the actual turnover. In explanation of this provision it is stated that the 40 per cent discount to be granted represents an average total discount on ball races and thrust bearings in such a way that, in figuring the average discount, the thrust-bearing bonus of from 2 to 14 per cent is no longer granted. (General meeting 21. 2. 14.) . As soon as the buyer's requirement (wholesalers and machine factories) comes to 200,000 marks and over per annum, they will be granted the prices and terms which apply to automobile factories of the corresponding scale. The commercial business for the automobile industry is to be reserved for the automobile industries as a matter of principle, The discounts applying to dealers who require less than 200,000 marks have as their direct object to protect this commercial business for the automobile industries. (General meeting 29. 5. 13.) PRIVATE INDIVIDUALS. In so far as a member of the convention ships to private customers direct, this has to be done at the prices of list P without the granting of any discount, ete. (General meeting 20. 2, 14.) REPAIRS. Repairs of bearings are to be made at a unit price, which is to be 40 per cent of the gross list price. This price is net. The factory in question has to impose upon the customer the obligation, to which the customer must agree, that he will take new bearings for bearings which can not be repaired, 1. e., at the prices corresponding to the customer in question. (General meeting 8 to 10. 1.13.) A turnover bonus may be granted, but any obligation in this connection does not exist. (General meeting 21. 2. 14.) On special motion a member may be released from the obligation to make repair reports on the return blank; the member must, in that case, assume the obligation of keeping the convention bureau posted concerning what is going on in this connection. (General meeting 11. 9. 13.) PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 475 GERMAN PORCELAIN MANUFACTURERS. . The following is a copy of the contract between German porcelain manufacturers which is in full force and effect at the present time. There is a special agreement between the members. of the association for export to America, giving discounts as follows: Less 8 and 2 per cent plus 25 per cent advance (this advance is shown in contract). According to the best information obtainable, these companies are selling abroad at less 2 per cent plus 25 per cent advance. This makes the 8 per cent discount apply to export only, and is really the advantage which American buyers are obtaining over foreign buyers. In other words, these companies are selling in America at an 8 per cent discount lower than they are selling abroad. (Translation.] TERMS OF SALE OF THE ASSOCIATION OF GERMAN PorceraiN Fac-TORIES FOR THE DEVELOPMENT OF THE PORCELAIN INDUSTRY, LIMITED. The designated wares must not be sold under the foregoing specified minimum prices, neither must wares at disposal. Decorated wares in any designs, even in the simplest, must not be sold under the specified minimum prices of the designated decorated wares. Upon direct sales to personal consumers the association factories must add, besides the association advance of 20 per cent and 2 per cent for packing expenses, upon tableware an additional 40 per cent and upon hotel ware an additional 20 per cent. Upon sales to dealers who own a decorating shop or who have others decorate for them the buyers must be pledged to sell the tablewares which they decorated at least 40 per cent higher, and the self-decorated hotel wares at least 20 per cent higher to others than the members are allowed to do on the basis of the association agreement. Decorated hotel ware may only be sold to dealers when they bind themselves to sell the same at least 20 per cent over the minimum price, inclusive of the association advances. In taking new orders the members must reserve the right to stop deliveries as soon as the customer concerned has even in a single instance violated his assumed pledges in the sale of the wares. Members must not again take orders for white tableware from decorators who sell tableware, until they have received notice from the office of the association that the decorators alluded to have pledged themselves to become members of the association or that on account of the insignificance of their transactions the rule under consideration has no application, Replace pieces of decorated ware are to be charged with an extra advance of 83% per cent. Less than six pieces per decor are to be regarded as replace pleces. . Replace pieces will not be charged with this advance if they are ordered within four weeks after the bill for the service referred to was issued. Those dealers who truthfully assure the Association of German Porcelain Manufacturers for the Development of the Porcelain Industry that they will in the future buy their white and decorated porcelain wares exclusively from factories belonging to the association, will, so long as they do not recall their declaration, be charged with an association advance of 25 per cent. Members of the association are not allowed to deliver at all to dealers who do not make the above declaration. If the transactions of customers who gave the above prescribed assurance with the collective members of the association should amount altogether to at least 10,000 marks, then these customers will receive a refund of 1 per vent; upon a total turnover of at least 25,000 marks, 2 per cent; and upon a total turnover of at least 40,000 marks, 8 per cent. 476 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Upon deliveries of wares to wholesale dealers, who will be denominated as such to the members by the office, there will be granted besides this turnover premium an additional turnover premium, but only upon those wares which, according to an assurance which must be given to the office of the association, were sold to retailers (literally resellers). At the close of the year the office will figure out the average discount which Is to be granted the individual wholesale dealers uniformly upon all deliveries, and inform the members of the association, . The premiums of the whclesale dealers are to be computed as follows: (a) Existing turnover premium of 2 per cent upon purchases over 25,000 marks and 3 per cent upon purchases over 40,000 marks. {b) Upon wares that were resold to retailers and that upon purchases of— Over 25,000 marks, 4 per cent (including above 2 per cent, therefore 6 per cent). ’ Over 40,000 marks, 4 per cent (including above 8 per cent, therefore 7 per cent). Over 60,000 marks, 5 per cent (including above 8 per cent, therefore 8 per cent). Over 80,000 marks, 6 per cent (including above 3 per cent, therefore 9 per cent). Over 100,000 marks, 7 per cent (including above 8 per cent, therefore 10 per cent). . No turnover premiums are granted on rebut wares, Turnover preminms are only granted upon such wares as are seut and charged to the customer at his own address and at his own domicile. The above finds no ‘application upon deliveries, at the instance of customers, to private persons, clubhouses, and hotels for their own use. To better control the turnover premium it is forbidden to keep the purchases of different customers in one necount. A yearly turnover of less than 200 marks which a dealer has with individual merabers may be taken into account in figuring the rate of premium for the year, but the premium must not be paid on this amount. Purchasing societies whose transactions with the association exceed 100,000 marks annually and who assume for all their members without exception cash payment and del credere shall receive, besides the agreed annual premium, also # del credere commission of 1 per cent on condition that in case a member is excluded from the purchasing society, the society shall assume del credere upun the amounts for which the wares were delivered before the day of expulsion. Upon contracts for the delivery of wares, the execution of which requires more than six months from the date of contract, the later deliveries shall be made at the prices and terms of the association of German porcelain manufacturers which are in effect at the time of delivery. The members are permitted to sell only such wares in Germany as have a registered factory mark or a joint association mark. The members are permitted to sell porcelain wares only to those decorators of whom it has been announced by the office that they have pledged ‘themselves by contract to the association to maintain the minimum prices and terms of sale of the association, less § per cent. Delivery of wares on commission is not permitted. Existing commission stocks must be cleared away within three months (before beginning of February, 1912). All wares must only be delivered upon fixed orders. Agents of the members must be pledged to sell only association wares and to deliver these to pledged customers only. i (NoreE.—That is, customers who have signed a pledge to buy only from the association, called * Reverskunden.” F. A.) CONDITIONS. Time, three months, Upon cash payments within 30 days, 2 per cent cash discount. If settlement is not made within an additional 14 days, no sort of cash disrount can be granted under penalty of a conventional fine. The prices are all to be reckoned at the factory exclusive of packing, Bonuses of any kind are not allowed. Free deliveries are prohibited. 1 Exceptions can be made for those purchasing companies who have received consent at an association meeting. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 477 Members who maintain a factory stock in another town than the seat of the factory must separately charge upon their bills the expense for freight from the factory to the stock room. There must in general be no refund upon rebut. The sale of wares en bloc by weight or measure is prohibited. Sales must be made at unit prices. Every unauthorized deduction in the settlement of bills obliges the members to transfer the unauthorized deduction to the association for collection under penalty of Ilncurring a conventional fine of 300 to 1,000 marks for every violation of the rule. The agents of the members must be pledged not to give customers any part of their commission. EMBALLAGE AND PACKING EXPENSES. Cases and coverings must be charged for and must not be set down cheaper than heretofore by every manufacturer. Three per cent must be added for packing at the end of every bill, but cases will be taken back at the full price. For loose packing in cars at least 80 marks per 100 kg. must be charged. Bundle packing is not to be charged at 80 marks per 100 kg. but at 3 per cent in case the charge at 80 marks per 100 kg. does not exceed the percentage charge. For coffee sets, nine pieces, which are specially packed in packages, there must be added 15 marks at the close of the bill. Therefore the set must not be invoiced 15 marks higher, but the packing must be charged as such. In like manner 30 pfennig must be charged for cartons, REBUT (BRUCH). Rebut must not be included in the articles enumerated in the new minimum price list for delivery in the German market. Those factories of scale I, which up to this time have not manufactured dinner and hotel ware, are excepted 80 long as they shall not manufacture such wares. These factories are only permitted to put rebut dessert plates belonging to coffee services on the market. It is prohibited to sell thin cups in rebut on the German market. Decorated rebut must not be put upon the market except at the established minimum prices of the IV selection. Rebut must not be sold en bloc by weight or measure, but only at unit prices, as, for instance, 15 dozen plates, 10 dozen cups. Everyone may sell as he wishes such rebut as is free for sale, but the rebut must be designated as such by two parallel strokes. Rebut must consist only of such chinaware as has the following defects: Very yellow wares, cast outs, wares not glazed over, objects with rents in glaze, wares with large fire-clay pieces, serious handle fissures, large border cracks. sand spots which can not be ground, and very spotted wares. IV Serecrion (WAHL). | IV selection is ware that has visible gross and easily: noticeable defects. The members who are entitled to sell at the scale I must obtain permission from the general assembly. Otherwise the prices of scalés II or III are controlling as minimum prices. At the request of the board of control each member must send in one piece ef ware to determine the sizes, so that supervision may be exercised to discover whether sizes are shifted. This price list and the terms of sale apply only to wares that are delivered to customers in the German Empire. Regarding minimum prices, Switzerland is to be treated as inland. The regulations concerning reciprocal declarations of dealers do not apply to Switzerland. Upon minimum sales of 25,000 marks per annum to Switzerland a turnover premium of 10 per cent may be allowed. Section IV of the new minimum price list applies to the following factories: Johann Haviland, Waldershof. Porzellanfabrik C. M. Hutschenreuther, A. G., Hohenberg. Porzellanfabrik Lorenz Hutschenreuther, A. G., Selb. Porzellanfabrik Marktredwitz, Jiger & Co., Marktredwitz. 478 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Potzellanfabrik F. Thomas, Marktredwitz. Porzellanfabrik Ph. Rosenthal & Co., A. G., Selb." Porzellanfabrik Ph. Rosenthal & Co., A. G., Kronach, Porzellanfabrik Weiden, Gebr. Bauscher, A. G., Weiden. Section III of the new minimum price list applies to the following factories: Heinrich & Co., Selb. Friedrich Kaestner, Oberhohndorf. Paul Miiller, Selb, Porzellanfabrik Fraureuth, A, G., Fraureuth. Porzellanfabrik Tirschenreuth, A. G., Tirschenreuth. Schlesische Porzellanfabrik P. Donath, G. m. b. H., Tiefenfurt. Wurttemberg. Porzellan Manufaktur C. M. Bauer & Pfeiffer, Schorndorf. Jacob Zeidler & Co., Selb. Section II of the new minimum price list applies to the following factories: Carl Alberti, Uhlstadt. Heinrich Baensch, Lettin. Beyer & Bock, Volkstedt. Bauckauer Porzellan-Manufaktur, Magdesburg-Buckau, Fasolt & Eichel, Blankenhain. Fiirstenberger Porzellan-Fabrik, Furstenberg, Galluba & Hofmann, Ilmenau. Hertel, Jacob & Co., G. m. b. H., Rehau. Hertwig & Co., Katzhutte. Joseph Hohmann, Diisseldorf. Wilhelm Jiger, Eisenberg. {lmenauer Porzellanfabrik, A. G., Ilmenau. Carl Krister, Waldenburg. Manebacher Porzellan Man. aktur, Manebach, Gebr. Metzler & Ortloff, Ilmenau. Hermann Ohme, Niedersalzbrunn. Porzellanfabrik Konigszelt, Konigszelt. Porzellanfabrik Moschendorf, A. G., Moschendorf, Porzellanfabrik E. & A. Miiller, A. G., Schonwald. Porzellanfabrik 3chénwald, A. G., Schonwald. Porzellanfabrik Sorau, G. m. b. H., Sorau. orzellanfabrik Stadtilm, A. G., Stadtilm.-*orzellanfabrik Stadtlengsfeld, A. G., Stadtlengsfeld, ‘orzellan Manufaktur Burgau, F. Selle, Burgau. Porzellanfabrik Zeh, Scherzer & Co., A. G., Rehau. Franz Pause, Neidersalzbrunn. Retsch & Co., Wunsiedel. fF. A. Reinecke, Eisenberg. . George Schmider, Vereinigte Zeller, keram. Fabriken, Zell a. H. Joseph Schachtel, Charlottenbrunn. Oscar Schaller & Co., Schwarzenbach. H. Schmidt, Freiwaldau. Schwabe & Co., Reichenbach, S. A, Johann Seltmann, Vohenstrauss. K. Steinmann, Tiefenfurt. Striegauer Porzellanfabrik vorm. C. Walter & Co., Stanowitz, Swaine & Co., Huttensteinach, C. Tielsch & Co., Altwasser, Utzschneider & Co., Saargemund. With reference to the old minimum prices the following firms are allowed to sell at prices of section I. As regards prices not quoted in section I the firms named below are bound by the price quotations of section IX: Bofinger & Co. in Kloster Vessra. I". A. Reinecke in Eisenberg. C. A. Lehmann & Sohn, in Kahla. Porzellanfabrik Triptis, Aktiengesellschaft, in Triptis. Porzellanfabrik Hermsdorf, in Hermsdorft. Porzellanfabrik Xahla, Aktiengesellschaft, in Kahla. Porzellanfabrik Zwickau, Aktiengesellschaft, in Zwickau, Porzellanfabrik schonwald, Abt. Arzberg, in Arsberg. | \ PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 479 £. Muhlenfeld, in Eisenberg. Gebr. Winterling, Roslau. Heinrich Winterling, in Markleuthen. Porzellanfabrik Stadtlengsfeld, A. G., Stadtlengsfeld, Siegm. Paul Mayer, in Bayreuth. Porzellanfabrik Kalk, G. m. b. H.,’in Eisenberg. Porzellanfabrik Freienorla, G. m. b. H., Freienorla. Carl Alberti, Uhlstadt (nur fiir dekorierte und weisse ‘Kaffeeservice, Tassen, Dessert- und Kuchenteller). Gebr. Simson, Gotha, Peodor Siemer, Blankenhain, d. Schmidt, Freiwaldau. Section III of the old minimum price list applies to the following firms: Porzellanfabrik C. M. Hutschenreuther, A. G., in Hohenberg. Hermann Ohme, Niedersalzbrunn, Porzellanfabrik F. Thomas, in Marktredwitz. Porzellunfabrik Marktredwitz, Jaeger & Co., in Marktredwitz, Porzellanfabrik Ph. Rosenthal & Co., A. G., in Selb. Porzellanfabrik Ph. Rosenthal & Co., A. G., Filiale Kronach. Krautheim & Adelberg, Selb. Porzellanfabrik l.orenz Hutschenreuther, A. G., Selb. Schlesische Porzellanfabrik P. Donath, G. m. b. H., Tiefenfurt, Johann Haviland, Waldershof. All other companies are bound by the old minimum price list and by prices of section II. GERMAN POTASH SYNDICATE—AGENCY CONTRACT AND SALES CONDITIONS. By the terms of the following agreement? the firm Jules Borgeaud & Fils, of Algiers, became the sole agent in Algiers for the sale of raw and concentrated potash salts of the German Potash Syndicate. AGREEMENT. ’ Between the Potash Syndicate, company with limited liability, Berlin 8. W. 11 Dessauer Street 28-29, party of the first part, and the firm Jules Borgeaud & Fils, Algiers, party of the second part, the following agreement, effective beginning January 1, 1914, has been concluded: 1. The Potash Syndicate, a company with limited liability, designated in this ngreement henceforth as * Syndicate,” assigns Algeria to the firm Jules Borgeaud & Fils as its exclusive territory for the sale of raw and concentrated potash salts. 2, The firm Jules Borgeaud & Fils orders the goods for its own account at prices and under conditions as determined by the Syndicate. The bills of the Syndicate are to be promptly settied in cash through the Banque Suisse & Francaise in Paris. 3. The firm Jules Borgeaud & Fils, of Algiers, shall fix its sales price so that the commission granted to it remains intact. On the other hand the sales prices shall not be higher than is necessary to cover the freight, the insurance, expenses, interest, and risk (delcredere) incident to the business. 4. The firm Jules Borgéaud & Fils on June 30 and December 81 of each year shall send to the Syndicate a list showing the names of the purchasers, the «ales prices realized, and the conditions of sale for all transactions concluded within the last half year, in so far as the firm is able to do so. 5. The firm Jules Borgeaud & Fils shall do its best to effect the sales of the potash salts in compliance with the instructions issued to it by the Syndicate, to carry on a propaganda, to report on all business relations and on the market condition, and to safeguard in every way the interests both of the Syndicate and of the works and factories supplying the goods. 1A copy of the original agreement was furnished to the Federal Trade Commission in a special report by Dean B. Mason, United States consul at Algiers, (See p. —) 480 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. 6. The firm Jules Borgeaud & Fils receives for its sales within the territory represented by it, after the transactions shall have been completed in the prescribed manner, a commission of 23 per cent from the works price. The settlement of the amount of the commission takes place after the expiration of each calendar year on the basis of the quantity of goods taken, For the deliveries of chloride of potassium - Chlorkalium) and for potassium sulphate (Schwefelsaures Kali) in excess of 2,000 tons taken by the firm Jules Borgeaud & Fils during 1914 it receives an extra commission of 2% per cent, 7. The expenses in the territory of the firm Jules Borgeaud & Fils for propaganda purposes (advertising, fertilizers for experimental purposes, etc.) shall be borne jointly by the contracting parties in accordance with an understanding yet to be reached. 8. The firm Jules Borgeaud & Fils shall not undertake the sale of potash salts in favor of third parties, directly or indirectly, without the permission of the Syndicate nor in any other way promote it. Violations of the above provision shall have for a result that all assets of the firm Jules Borgeaud & Fils held by the Syndicate are forfeited to the Syndicate and the agency taken away from the firm Jules Borgeaud & Fils without notice. Furthermore the firm Jules Borgeaud & Fils obligates itself to indemnify the Syndicate or the works belonging to it for all damages arising out of the above-mentioned violation. 9. This agreement shall remain in force until December 31, 1914, provided a dissolution of the Syndicate does not take place at an earlier date. In the latter case the agreement expires on the day of the termination of the Syndicate. It is the desire of the contracting parties to prolong the agreement after the year 1914, provided the present Syndicate exists after that time. Should the Syndicate or the firm Jules Borgeaud & Fils during the continuance of the present agreement come to the conclusion that the firm Jules Borgeaud & Fils is not in the position to operate to the satisfaction of the Syndicate within the district represented, then the contracting parties, or each of them, are entitled to terminate the agency agreement before its expiration opon a six months’ notice. After a notice has been given the Syndicate is entitled, both directly or through newly appointed representatives, to transact business in the territory represented by the firm Jules Borgeaud & Fils, provided the delivery of the goods takes place at a time when the present agreement shall have expired, without the firm Jules Borgeaud & Fils being entitled to a commission for such transactions. 10. In all disputes arising out of the present agreement both parties place themselves within the jurisdiction of the Berlin courts. 11. The present agreement is done in duplicate, of which each party has one. Berlin, February 7, 1914. Porasg SyYNpIicaTE Co., WITH LIMITED LIABILITY. Accepted subject to the nullification of paragraph 7 for the territory represented by us. 4 Algiers, February 28, 1914. The sales conditions of the Potash Syndicate, company with limited liability, for chloride of potassium (Chlorkalium), potassium sulphate i Schwefelsaures Kali), and potassium magnesium sulphate (Schwefelsaure Kali-magnesis) are as follows: I. GENERAL CONDITIONS. 1. In the case of sales the completion of which requires several deliveries, each delivery shall be considered separately. The filling, nonfilling, or incomplete filling of one order shall have no effect upon the others. 2. The goods shall be delivered in a good marketable condition. 3. The goods shall be sold under a guaranteed minimum content, and it is not a contravention of the agreement if their content exceeds the minimum. In special cases a maximum content may be agreed upon together with a minimum content, provided, however, that the margin between the two amounts te at least 3 per cent. 4. If there is no understanding to the contrary, new durable sacks containing about 100 kilograms shall be used for packing. The general rules as to the quality of the sacks shall be determined by the Potash Syndicate. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 481 5. The unit of weight is 1 doppelzentner (100 kilograms). The weighing of the goods is done by the cansignor in his factory, where also the samples are taken under the supervision of public and sworn examiners, Each purchaser has the right to have his representative present at the weighing and sample taking and to demand a sample from the graded lot. Samples shall be preserved for four months. 6. The analysis is first made bY the consignor of the goods and tested in the laboratory of the Syndicate by two public and sworn chemists. In case the findings of the two sworn chemists differ more than 0.8 per cent from each other, new analyses shall be made. The average of the findings thus determined by both sworn chemists constitutes the standard in each case. . The computation of small lots of 10 doppelzentner and below shall be made solely upon the basis of the factory analysis. 7. The payment of the purchase money shall be made in net cash in such a way that the purchaser upon receipt of the bill shall deliver to the Syndicate the amount of it in cash, carriage paid. At the request of the Syndicate, however, the purchaser shall be held to furnish bank security for the amount of the goods to be shipped before delivery or to send in the amount of the bill, carriage paid. Purchasers residing abroad shall present a certified credit, i. e., not subject to recall, at a first-class bank in Germany, to be drawn upon against shipping documents or invoices in case ocean bills of lading are made out by the purchaser. : 8. The Syndicate reserves the right to have the delivery of the goods made by one or several works belonging to it. The place of performance and of payment shall be Berlin, the seat of the Potash Syndicate, company with limited liability. 9. The Syndicate is free to annul sales entirely or in part in case one or more of the potash works belonging to the Syndicate should be prevented by force majeure (act of God) or by labor strikes in the continuance of their business. The prices and price increases shall be based upon the freight regulations of the business organizations participating in the transportation. The Syndicate shall strive to do its best to comply with the shipping direc-Hons given, yet it can not undertake to guarantee the delivery at a fixed date, 10. Deliveries of our salts to other foreign countries, owing to the many exclusive agencies existing there, may be made only after a previous understanding with the Potash Syndicate. 11. If there is a well-founded presumption that a buyer has violated these pxport regulations, then he is obliged to prove the contrary; in case he fails to produce the proof the Syndicate is entitled to assume that a violation has taken place and may demand from him the payment of a fine in settlement amounting to 50 per cent of the value of the respective goods. This fine is payable into the Syndicate treasury, and in case of refusal to pay it, shall be deducted forthwith from any assets or from any security deposited by the buyer. In addition to this the buyer has to pay damages to the Syndicate, 1. e,; to the works, for the consequences of the contravention. II. Special CONDITIONS. A. CONCERNING CHKLORIDE OF POTASSIUM. 12. The Syndicate sells 11 different grades with a minimum content of 70, 75, 80, 85, 88, 90, 95, 96, 97, and 98 per cent of chloride of potassium, and with 2 minimum content of 98 per cent of chloride of potassium and a guaranteed maximum content of one-half per cent of table salt. For the over-sea export only the grades quoted on the export price list shall he delivered. / 15. js regards the additional ingredients the following terms may be agreed to. (1) That the chloride of potassium shall not contain over 2 per cent moisture, (2) That the chloride of potassium shall not contain more magnesia than corresponds to a half per cent of chloride of magnesia; this condition, however, will be agreed to only in case the maximum content of chloride of potassium Is not guaranteed. 97941°—pT1 2—16—31 482 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. (8) That chloride of potassium with a minimum content of 96 per cent shall not have more than 3 per cent table salt; that chloride of potassium with a minimum content of 97 per cent shall not have over 2 per cent table salt; that chloride of potassium with a minimum content of 98 per cent shail not have more than 1 per cent table salt. As regards chloride of potassium with a minimum content of 98 per cent and with. a guaranteed maximum content of one-half per cent table salt, the rule shall apply that the acceptance of the goods shall not be refused even when the guaranteed maximum content of table salt shall be exceeded in individual cases, - Should the latter occur, then the purchase price shall be reduced 20 pfennigs per 100 kilograms and 80 per cent. The content of the table salt for this grade shall in no case exceed 1 per cent. 14. The prices shall be understood to apply to 100 kilograms net weight and BO per cent of chloride of potassium, including the agreed packing; the content above 80 per cent shall be charged up proportionately. B. CONCERNING HIGH-GRADE SULPHATE OF . POTASSIUM. 15. The Syndicate sells two grades with a minimum content of 90 and 96 per cent sulphate of potassium, For the first grade a maximum content of 23 per cent and for the second grade a maximum of 1 per cent of chlorine is guaranteed. The quantities of chloride of potassium present in the sulphate of potassium are computed into sulphate of potassium and charged up as such. 16. The prices shall be understood to apply to 100 kilograms net weight and 90 per cent of sulphate of potassium for pulverized goods, including the agreed sacking ; the content exceeding 90 per cent shall be charged up proportionately. C. CONCERNING CALCINIZED POTASSIUM-MAGNESIUM SULPHATE. 17. The goods shall be sold in powdered form under guaranty of a minimum content of 48 per cent of potassium sulphate and of a maximum content of 2} per cent of chlorine. The chloride of potassium contained in the calcinized sulphate of potash magnesia shall be computed into potassium sulphate and charged up as such. 18. The prices shall be understood to apply to 100 kilograms net weight and 48 per cent of sulphate of potassium, Including the agreed sacking; the contents 2xceeding 48 per cent shall be charged up proportionately. The following is a copy of a sales certificate used by the Potash Syndicate of Germany guaranteeing the quality and specifying the quantity of potassium sulphate sold for consumption in Algiers: OVER-8EA DIVISION. Sales certificate for 2,000 tons of potassium sulphate with a minimum content of 90 per cent of sulphate of potassium and with a maximum content of 23 per cent of chlorine. We hereby certify that we have sold to Messrs. Jules Borgeaud & Fils, Algiers, 2,000 tons of sulphate of potassium, with a minimum content of 90 per cent of sulphate of potassium and with a maximum content of 2% per cent of chlorine at the price of 19.60 marks (19 marks and 60 pfennigs), per doppelzentner (= 100 kilograms), and 90 per cent on the basis of the conditions of the price list dated January 5, 1914, and of our conditions of sale attached herewith. Concerning this sale the following is agreed to by the purchasers: The goods are destined for consumption in Algiers. The delivery is to take place successively during the year 1914. The purchasers are at liberty to obtain under this certificate also chloride of potassium at the corresponding prices. The purchasers are entitled to receive under this contract up to a thousand tons additional at the same prices and conditions, provided they file a corresponding application on or before July 1 of this year. Berlin, February 9, 1914. THE POTASH SYNDICATE, COMPANY WITH LIMITED LIABILITY. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 483 UNION OF FUSE MANUFACTURERS OF GERMANY AND BELGIUM. The following translation of the agreement between the German and Belgium fuse manufacturers shows the prices, terms, and conditions which were imposed upon the members: SELLING PRICES. BING DUBBB. cen cco cmos esis im simi 55551 ms tt a0 0 eee SR SBS Double FUSS meee Triple fuses em Single tape fuses Double tape fuses. ee Gutta-percha fuses, about 5 mm. diameter_ oo ___________________ Gutta-percha fuses, with thread covering... _____________ Gutta-percha fuses, with tape covering________________ These prices are per coil of 8 meters long. SELLING CONDITIONS. Pfenn'es, “0 ~g — ) Ay 1. All concerns which are selling fuses are compelled by the Union to sell at fixed prices and shipment conditions and are not permitted to grant the purchasers any discount. 2. The selling prices fixed by the Union sre as follows: (a) For dealers, in lots of less than 500 coils, and for consumers net, without discount. (b) For dealers, in lots of 500 or more coils, 5 per cent discount, (¢) For wholesale dealers, under contract for at least 10,000 coils per year, 10 per cent discount. 3. Delivery freight free to any station in Germany, Luxemburg, or Holland. For every shipment of less than 200 rings an addition of 1 mark will be charged. 4. The packing in wooden cases is included in the fixed selling prices. Empty cases can not be returned, and the selling parties should not accept them. 5. Payment has to be made within 30 days after the date of the invoice less discount of 2 per cent, 90 days net. Terms of payment.—Two per cent off if paid within 30 days, or 3 months net. For shipments under 200 coils an addition of 1 mark will be made. Special terms will be made for kinds not included in this list. Tarred fuses may be obtained, if desired, in bright black or gray. The following letter gives the names and addresses of the members of the Union of Fuse Manufacturers referred to above: Dear Str: Your favor of the 8th instant, file SD-5437, 1s duly received and noted. In response, we beg to give you the list of the members of the Belgo-German Syndicate, as follows: Brucker & Zinke, Meissen, Saxony, Germany. _ Vereinigte Fabriken engl. Sicherheitszunder Draht-und Kable Werke, Akt. Ges., Meissen, Saxony, Germany. Brucker & Zschetzsche, Minden-Westfalen, Saxony, Germany. Torgauer Zunderwerke, G. m. b. H., vorm. A. Rabitz, Torgau, Germany. Rheinisch-Westfalische Sicherheits-Zundschnur-fabrik, Ernst Brun, Crefeld-Linn, Germany. W. Guttler, Reichenstein, Schleisen, Germany. Heino Carl Marx, Harburg, Hamburg, Germany. Arser Zundschnur-Fabrik, Fritz Schnatz, Ars a. d. Mosel, Germany. Franz Winterholler, Rosenheim, Ober-Bay, Germany. Norddeutsche Zundschnur-Industrie, Akt. Ges., Wennigsen a Deister, Germany. Westdeutsche Sicherheitszunder-Fabrik, G. m. b. H., Haan, Rheinland, Germany. Societe Anonyme des Explosifs de Clermont, Muller & Co., Clermont-Engis, Belgium, ’ Fabrique de Meches de Vise, Lixhe-lez-Vise, Belgium. Kabelwerk Duisburg, Abt. Zunderfabrik Saarn, Mulheim-Ruhr-Saarn, Germany. Yours, very truly, 484 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. It has been reported that one of the concerns which is a member of the Union of Fuse Manufacturers was selling fuses to an American concern at 40 per cent cheaper than the price charged European buyers. The following letter, from another member of the Union, tends to verify this. Attention is called to the prices quoted for shipment to the United States: Dear Sie: Your favor of the 80th ultimo duly reached us. Our prices are the following : [Per 1,000 feet.) Hemp fuse. .cuceeeeeemenczsoeezensncaraane. Djme fuse (waterproof, white double fuse).. Single tape. «uv meaeeer ieee Double tape (not used in Belgium)..... Triple tape (ot used in Belgium)...oceeeeaaansaaeanas. Gutta-percha with white yarning (not used in Belgium) ........ Jer roReTT CTE" Market price in eleium. frarcs, 3.40 10.25 12.62 Price for the United | States f.o.b. Antwerp. Franer, 6.00 8.75 8.12 10.62 13.12 10.30 Wooden packages, labels, ete. included. The. above prices are to be understood net without any deduction, payment per letter of credit on Paris with order. With regard to the Belgian market value of our waterproof fuse, viz, 10.25 francs, instead of 10 francs, as indicated by.the writer in Cologne, we peg to say that the price of 10 francs was quoted “ at the factory,” whilst 10.25 francs is the market price free any railway station in this country. We are having a price list for Belgium printed and will send same on to New York as soon as possible. In the meantime we are communicating with Mr. Gottschalk in Cologne and will report to you later on, It might be preferable to substitute the word “ waterproof” by “sump” Fuse, this being the ordinary way of calling the double fuse for export. In our opinion * waterproof ” would evoke the idea of gutta-percha or india rubber, and the customs authorities might feel inclined to value the fuse as a guttapercha fuse with white yarning. Kindly let us have by return your opinion, because we shall eventually have to alter the labels for Star brand accordingly. Yours very truly. METALLIC CAPSULE MANUFACTURERS’ ASSOCIATION. The metallic capsule manufacturers of France and an English concern, Betts & Co., with a branch factory at Bordeaux, entered into the following agreements: . (a) For the sale of bottle caps in France, Algiers, and Tunis. (8) For the purpose of regulating the export of French bottle caps into the United Kingdom. The terms of the respective agreements are as follows: AGREEMENT (A). [Translation from the French.) Between the undersigned (1) Mr. Campbell, living in London, acting in the name of Messrs. Betts & Co., whose head office is in London, 1 Wharf Road City Road, and of which company he is managing director, and in virtue of powers conferred upon him by the board of directors of the said company, of the one part; (2) Mr. Blanchard, living in Bordeaux, acting in the name of Messrs. Blanchard Bosc & Co., whose head office is in Bordeaux, cours du Medoc No. 15, of the other part; (3) Mr. Bourhis, living at Dijon, Rue A'Tle Nos. 83 and 85 acting in the capacity of director of the * Compagnie PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 485 Moderne de Dijon,” society limited by shares, whose head office is at Dijon, Nos. 33-35 Rue d'Ile, and in virtue of powers conferred upon him to that effect py the board of directors of the above society, still of the other part; (4) Mr. Lambert, living at Marseille, acting in the name of “The Establishment H. Cauvet Lambert,” No. 20 Rue de la Conception and in virtue of powers conferred on him to that effect by the board of directors of the said company; (5) Mr. Cremers, living at Bordeaux, acting in the name of the society called “ Cremers & Cie,” whose head office is at Bordeaux, No. 33 Qual des Chartrons, still of the other part; (6) Mr. Caillaud, living at Saumur, at the ‘ Pont de Fouchard,” still of the other part; (7) Mr. Lelievre, living at Sens, acting on hehalf of Messrs. Lelievre Freres & Co., whose head office is at Sens (Yonne), still of the other part; (8) Mr. Meynieu, living at Bordeaux, acting on behalf of Messrs. L. Meynieu & Co., whose head office is at Bordeaux, No. 24, Cours St. Medard, still of the other part; (9) Mr. Quibel, living at Coutras, acting on behalf of * P. Quibel & Cie,” whose head office is at Coutras (Gironde), still of the other part; (10) Mr. Ramondin, living at Bordeaux, 2 Rue Pomme A’Or No. 11, still of the other part; (11) Mr. Sainte Marie Dupre, living at Arcueil, Felix Faure Avenue, still of the other part, all of whom are manufacturers of metallic capsules, it has been agreed as follows: Articie LL All the manufacturers whose names, addresses, and descriptions have been given above have entered into a joint association, under articles 47, 48, 49, and 50 of the commercial code, with the following objects: 1. Of protecting their mutual interests. } 2. Of guaranteeing to each of them a fixed amount of business as hereinafter provided. 3. Of dividing between them, in the proportions hereinafter fixed, 'the increase or decrease which may be proved to exist at the end of the business year, both in the volume of business done by them in France, Algiers, and Tunis and in the amount of business done by either of them in the same countries, compared with that of the other manufacturers whose signatures appear below. The goods affected by this article are hereby defined as all kinds of capsules in lead plated with tin, with the exception of screw capsules. ArTtIicLE II. This association for joint participation shall affect exclusively, as above stated, the business done by the undersigned in France, Algiers, and Tunis. Its duration shall be 10 years, reckoned from April 1, 1911, At the annual general meeting which shall take place 18 months before the expiration of the present agreement the manager shall officially propose a resolution for the continuation of the present contract for a period of not less than five. years, and a definite resolution shall -be arrived at at this same meeting. The decision to continue, if arrived at, must be unanimous. Artic III. The contribution of each of the participating members is fixed at the sum of 200 francs, which they undertake to hand to Mr. ——, who is intrusted with the functions of manager of the association, as hereinafter provided, within eight days from the signature of the present agreement. This contribution 1s in guaranty of the execution of these presents. It is understood that the above-mentioned contribution shall not in any case be considered as * fonds social.” AxrticiE IV (A). Within three months from the signature of these presents each of the undersigned shall hand to the manager a statement showing the amount of business for which he claims a guaranty from his coparticipants. This amount shall be equal to that which is actually done during the year 1910, plus the difference which may exist between the prices usually charged by him and those of tariff 0000 for small capsules and tariff No. 2 for champagne capsules, provided always that such addition shall not exceed 20 per cent of the business which he has actually transacted, calculated on the total of the said business, 486 ~ REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. It must be clearly understood that invoices in which the prices charged are higher than they would be according to tariffs 0000 and No. 2 shall be taken into account at their net amount in determining the volume of business transacted by each member, ArTICLE IV (B). To establish the limited figure guaranteed to each, the following procedure will be followed : 1. The business done by each of the parties in 1910 will be abstracted invoice by invoice. . 2, Each of these invoices will be extended at the 0000 tariff prices for ordinary capsules and No. 2 tariff prices for champagne capsules. 3. The invoices thus modified will be totaled. 4, The difference between the total business transacted in 1910 and that of the invoices thus reconstructed will be compared. 5. The latter figure (that of the reconstructed invoices) will be adopted as the initial guaranteed trade, provided that the difference between the trade done in 1910 and this increased total does not exceed 20 per cent of the former. ArTiCIE V. The amounts calculated and set forth by each of the undersigned manufacturers, as provided above, shall be examined by the manager of the association. This examination must be effected within nine months at latest from the date when the last statements have been forwarded to the manager. When once this period is passed, the amounts which have not been criticized or disputed shall be considered true and sincere and shall be entitled to a due proportion of the guaranty to be given by the participants to the manufacturer who shall have transacted such volume of business, : ArTICLE VI. The amounts set forth and verified as above shall form the volume of business which each one guarantees to the others during the succeeding year. This must be understood in the sense that any increase or decrease proved to exist at the end of this same year among the coparticipants shall be divided between them and borne by them in proportion to the share of each one in the initial volume of business guaranteed. (By way of exception, the initial amount guaranteed to M. Ramondin will be 180,000 francs.) Artic VII. At the expiration of the year following the signature of the present agreement and of each succeeding year the amount of business done by each of the undersigned manufacturers shall be determined by means of the memorandum slips which will be mentioned in article 15. ] The amount of business so transacted by each one will be compared to that done by him in the preceding year; the various amounts will then be added up and the total volume of business compared with that done in the preceding year, The manager will then determine the scale on which the increase or decrease would have to be made if the business done were proportionate to the share of each one in the volume of business guaranteed. ArTticie VIII Those manufacturers whose amount of business 1s greater than it should have been according to the proportionate rule just mentioned will pay into the hands of the manager a sum in cash equal to 30 per cent of their overproduction. The sums thus paid by the overproducers to the manager shall be paid by him to the underproducers, who shall each receive 25 per cent of the amount of their underproduction. The remainder of the amount paid in by the overproducers, namely, 5 per cent, shall serve to form a reserve fund, which, should it not have been used for the purposes of the association, will be distributed among the members in Jrapnrtion to their effective participation upon the dissolution of the associaon. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 487 ARTICLE IX. 1. Upon the expiration of each business year, after settlement of the accounts between the overproducers and the underproducer as has been provided in the preceding article, the manager shall again determine the amount guaranteed to each one of his coparticipants. 2. The amount guaranteed to those coparticipants who are underproducers shall be equal to the amount of business actually transacted by each during the preceding year plus three-fourths of his underproduction. 8. The amount guaranteed to those participants who are overproducers shall be equal to that guaranteed him in the preceding year. The total of the overproduction shall then be determined, and one-fourth of such total shall be divided between all the members of the association in proportionate shares, and shall increase by so much the amount guaranteed to them according to paragraphs 2 and 3 of the present article. 4. Provided always that in the event of one of the overproducers proving that his surplus production has been derived either in whole or in part from goods supplied to a client who had not up to that time ordered capsules from anyone whatever, then one-fourth of the surplus production so attained by him shall pe deducted from the total mentioned in the preceding paragraph and shall be placed entirely to his account. 5. In the event of a client who had not hitherto used capsules beginning to do so, even though he should have bought and sold brands for which this mode of corking had already been employed, such client shall be considered as coming under the category mentioned in the preceding paragraph. The manager shall thereupon draw up a comparison between the business done with such client as purchaser of old brands and that done with him as a new employer of capsules, so as, if necessary, to apply paragraph 4 of the present article to the latter amount. Articie X. By way of exception as regards the method of distribution of the overproduction and of payment of rebates provided for above, it has, in the cases of Messrs, Sainte Marie Dupre and Ramondin, been agreed as follows: 1. Monsieur Sainte Marie Dupre shall be entitled to an overproduction equal to the difference existing between the initial figure guaranteed to him and the figure of 731,000 francs, without being obliged to pay percentages on such overproduction. 2. Monsieur Ramondin shall be entitled to an overproduction of.80,000 francs on his initial guaranteed amount without being obliged to pay any percentage on such overproduction. As soon as this limit of overproduction shall have been attained Messrs. Sainte Marie Dupre and Ramondin will become amenable to all the general clauses and conditions of these presents. If at the expiration of the third business year following the signature of these presents Messrs. Sainte Marie Dupre and Ramondin have not attained the total overproduction which is allowed them by way of exception, the clauses and conditions of the present contract shall, however, become applicable in their entirety to these two participants. Seeing that the concession as to increase above granted has been made chiefly as a personal consideration to Messrs. Sainte Marie Dupre and Ramondin, it is expressly agreed that if they cede their industrial establishments before the expiration of three years from the date of the signature of these presents the said concession as to increase shall immediately cease. ArTtice XI. In the event that, in consequence of successive underproductions, any one of the undersigned manufacturers shall see his annual amount of business fall to B80 per cent and less of the initial amount to be guaranteed him, in spite of his amount having been made up several times in succession, he shall be legally obliged to cease his membership of the joint association hereby formed between the undersigned manufacturers, and his account with the said association shall be immediately settled by the manager, and he shall have no right to any share in: the funds of the participation. Artic XI1. The settlement of the annual accounts of the participation, the payments to be made by the overproducers to the manager and by him to the underpro- 488 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, ducers, the determination of the new amount guaranteed, ete., must all be made within the month following the end of each business year; any overproducer who shall not pay the sum due from him into the hands of the manager within 15 days after the latter shall have requested such payment shall be subject to a fine of 1,000 franes, which shall be increased to 5,000 francs in the event of his refusing a second request made to him by registered letter. ArtrIicLE XIII, Each of the coparticipants shall retain the full and entire ownership of his industrial undertaking, of his commercial organization, ete. Those coparticipants who shall treat with third parties shall always do so in their own personal names, and may involve no one but themselves either actively or passively in any obligations; the present agreement creates no action nor obligation toward third parties on the part of the participants. ArriCciE XIV, For the purpose of ascertaining and fixing the value of the amount of business transacted by each of the undersigned with regard to each of the other coparticipants, and of being able to determine the amount of business done by him out of the total amount transacted, they shall draw up a tariff in which the metallic capsules manufactured by the undersigned shall be classified, catalogued, and priced according to description, dimensions, and series. A copy of this tariff regulating the contributions of the members between themselves will be attached to the present agreement after having been signed by each of the participants. This tariff can not be altered except by majority of two-thirds of the votes belonging to the coparticipants. ARTICLE XV. 1. Every parcel of capsules dispatched or supplied by one of the members of the association to any client whatever in France, Algiers, or Tunis must be mentioned on a special memorandum bearing the date of dispatch, the name of the addressee, the nature and proportion of the order, the number of the class to which the capsules belong, the weight and price agreed on according to the tariffs which are applicable to the relations of the manufacturers among themselves, and finally the price agreed on with the client. 2, The manager shall enter to the account of each participant the amount of the deliveries made by him, calculated at the agreed tariff which may then be in force, without any modification for returns, discount for payment in advance, commission, amounts for carriage, or otherwise. . 3. The memoranda drawn up as above shall be forwarded to the committee of the joint association within the fortnight following the 1st and 15th day of sach month, . 4. Should one of the members have failed to forward the memoranda in question to the manager within the period named, or should he fail to comply with a summons addressed to him by registered letter, it is expressly agreed, by way of a penal clause, that he shall be subject to a penalty of 500 francs for each eight days’ delay, which sum shall be paid into the reserve fund of the participation, and should it not be otherwise used shall be divided upon the dissolution of the association between all the members in proportion to their effective participation, with the exception of the delinquent. ARTICLE XVI. The amount of business which may be done with a client who shall have ceased for at least one year prior to the signature of these presents to have dealt with any one of the members of the participation, shall not be taken into consideration in the accounts of the participation. Provided, always, that if a client thus taken away from a nonmember by a member of the participation shall leave the latter in order to deal with another nf the coparticipants, the amount of business done by the latter with the said client shall be taken into consideration in the account of the first participant.. Moreover, the guaranteed amount attributed to the first member of the participation who has thus taken a client away from a nonmember shall be increased by one-half the amount of business transacted by him with the said PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 489 client during the preceding year, or in the months preceding his loss, if such loss shall take place in the course of the first business year of the participation. Any client who has given no orders to the members of the association for 8 period of two years shall be supposed to have dealt with a nonmember and the present article shall be applicable to him. ABTICLE XVII (A). Each of the coparticipants shall pay into the hands of the manager within eight days following the expiration of each month a sum equal to 13 per cent of the gross amount of the invoices made out by him at the tariff of the participation during the preceding month. Provided always that in the case of contracts for forward delivery in hand at the date of signing these presents, the prices of which are at least 15 per cent less than those of the new tariff, the sum to be paid shall be reduced three-quarters of a per cent only, calculated bn the tariff prices. The sums thus paid shall serve to pay the expenses necessitated by the execution of these presents, to protect, when necessary, the general interests of the association or even the private interests of one of the members in so far as regards his manufacture of metallic capsules, The balance shall be paid to the credit of the open account by the manager in the name of each of the members, and shall be returned to him at the expiration of the association. It must be clearly understood that the above-named expenses must be borne by each member in proportion to his share in the participation. ARTICLE XVII (B). As soon as the reserve funds constituted by the payments provided under Article XVII shall amount to 200,000 francs the rate at which these payments are made shall be reduced to 1 per cent. ArTIicLE XVIIL The undersigned manufacturers appoint Mr. ——— as manager of their participation association, which he hereby accepts. The duration of the office of the manager shall be equal to that of the association. He shall, however, be liable to dismissal for incapacity or for bad conduct on such a decision being arrived at by a majority of three-fourths of the members of the association voting by show of hands only. In this event, as also in that in which his functions should cease owing to the premature dissolution of the association of participation, the manager will have no right to any claim for damages. The manager may control as and when he may deem fit the accuracy of the amount of business which each member shall state to have been done by him, and particularly the accuracy of the memoranda mentioned in paragraph 1 of Article XV. Each of the coparticipants declares that he is willing to, submit to any mode of inquiry prescribed by him and particularly to the examination of their books and correspondence on the spot and to send all account books and documents which may be requested. ARTICLE XIX. The manager shall, with the approbation of the committee, engage the staff necessary for the management of the participation; shall control, either personally or through anyone approved by the committee whom he may appoint, the operations prescribed and regulated by the present agreement; shall pronounce and apply the penalties provided by the contract; and shall in short do everything which may be necessary and requisite for the loyal and exact execution of these presents. The manager must act as regards third parties in his own name and for his account without mentioning to such third parties his connection with the members of the participation. ARTICLE XX. The accounts drawn up by the manager shall be controlled by the technical committee of four members hereinafter mentioned or by such expert to whom they may delegate their power. 490 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. These members shall have the right to verify the amounts received by the manager and the application of the sums received by him. ARTICLE XXII. 1. By way of guaranty of the execution of the present agreement each of the undersigned members shall hand to the manager, within eight days from the signature of the present agreement, a negotiable security of the value of 5,000 francs in 10 bills of 500 francs each, without due date, or a sum of 5.000 francs In cash or bearer securities. 2. In the event of the manager declaring that one of the undersigned members has contravened one of the obligations imposed upon him by these presents, the manager shall inflict a fine upon the delinquent, the amount of which is fixed at 500 francs for the first offense, 1,500 francs for the second, 3,000 francs for the third, and 5,000 francs for the fourth. } 8. Should the member of the participation so fined dispute the existence of the fault imputed to him, the matter shall be submitted to the decision of an arbitrator chosen by lot from among the three presidents of the Joint participation associations formed between the manufacturers mentioned below, viz: 1. The dyers of Roubaix. 2. The benzine cleaners of the Department of the Seine, 3. The Association of French Felt Manufacturers. The decision of the arbitrator so appointed shall be final and conclusive, ARTICLE XXII. In the case of the application or of the maintenance of a fine the promissory notes handed over by the delinquent shall be negotiated to their due value by the manager acting in his own name, who shall advise the delinquent eight days in advance of the date of presentation of the bills, and the sum produced by bringing them into circulation shall be applied as provided in paragraph 4 of Article XV of the present agreement, The same course shall be followed in the event of the application of the fine to cash deposited or the sale of the securities deposited. Within eight days following the application of the penal clause the delinquent must take up his guaranty fund to its original amount; should he fail to do so notice shall be given him by simple registered letter, and he shall be subjected to a fine of 500 francs for every eight days’ delay. This fine shall be applied as provided in paragraph 1 of the present article. Artic XXIII The coparticipants appoint the following four members as members of the technical committee mentioned in Article XX, 1. M. M. Lelievre Freres & Cie. 2. Messrs. Betts & Co. 3. M. M. Meynieu & Cle. 4. M. M. Cauvet Lambert & Cie. The technical committee shall appoint its own chairman. The duration of office of the members of the committee shall be for three years; the members are reeligible. They shall be elected by a simple majority of the members voting by show of hands. ArTticLe XXIV. The meetings of the committee shall be convened by the chairman whenever he may deem necessary. They shall also take place each time that two of the members, at least, shall forward a request for a meeting to the chairman, stating their reasons for so doing. ARTICLE XXV. A general meeting of the members of the participation shall take place regularly on the second Friday of March, July, and November in each year. If six of the members of the participation forward a request in writing to the president for a general meeting, stating their reasons for so doing, the president shall convene a general meeting of the members of the participation within the fortnight following. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 491 ARTICLE XXVI. The regulations concerning the discussions of the committee and also those relating to the composition of the general meeting, to the method of voting, to the number of votes necessary to pass the resolutions, etc., and generally to bll the details of working under the present contract of participation shall be set forth in a list of private regulations which shall be attached to these presents after having been signed by the coparticipants. It is, however, hereby settled from the outset that the number of votes allowed to each member at the meetings shall be one vote for each 100,000 francs or fraction of 100,000 francs worth of business done by him, and the number of votes allowed to each must not exceed five. ArTIiCIE XXVII. In the event that one of the undersigned manufacturers shall assert and prove that his interests have been damaged in consequence of competition on the part of a manufacturer of metallic capsules who does not belong to the participation, he must point out to the committee some measure which he considers would be efficacious in protecting him and shall notify the manager to apply such measure. if the committee dispute the damage suffered by the coparticipant, or the cause of such damage, or if there is a discussion between it and the coparticipants as to the efficacy of the measure applied, the latter shall have the right to submit the following questions to an arbitrator chosen from among the three presidents of the associations mentioned heretofore: : Is he damaged by the competition of nonmembers? Is the participation powerless to protect him? In the case of an affirmative reply on the part of the arbitrator, the coparticipant who has demanded the arbitration shall have the right to withdraw from the present contract upon giving 3 months’ notice in writing. ARTICLE XXVIII. In the event that one of the participants shall leave the association in virtue of the right conferred upon him by the preceding article, the participation may be legally dissolved if it shall seem good to six, at least, of the other members of the association. ArTicLE XXIX. In the event that the dissolution of the association should take place at any time whatever the liquidation shall be carried out by the manager, who shall enjoy the most extensive powers for that purpose, subject to the control of the committee. ARTICLE XXX. In the event of the liquidation and bankruptcy, of an alteration in the name of the firm, of the sale or lease of the business concern or factory owned or worked at the present day by one of the members, each of the undersigned participants undertakes to impose upon his legal representatives the obligation of adhering to the present agreement and ratifying it in all its clauses. ARTICLE XXXI. In case of the decease of any one of the undersigned participants before the expiration of the duration of the present agreement, his heirs or assigns shall be bound jointly to execute the clauses thereof except in the case of their ceasing to do business by reason of the final winding up of their concern. ARTICLE XXXII. ’ For their relations between themselves, but without the name being considered in any way as the style of a firm, the coparticipants give their association the name of “ L'Union Professionnelle des Fabricants. de Capsules Metalliques.” 192 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, ARTICLE XXXIII. It is expressly agreed between the parties for a period of one year from the signature of these presents: 1. That the prices which they charge to resellers shall not be less than those of the participation tariff minus 20 per cent for * stock” capsules and 15 per cent for the capsules known as “ a marque” (stamped). 2. That the amount of business entered to the account of those coparticipants who have delivered capsules to resellers shall be equal to that which would result from applying the participation tariff less 5 per cent. For the purpose of the execution of these presents the parties elect domicile at ——. Drawn up in as many copies as there are parties hereto. (Signed by all the parties included in this agreement as enumerated on Dp. ——.} Rures axp ReqorAaTIONS. In addition, it has been agreed as follows: I. COMMITTEE. ArTicre I. The head office of the association shall be at Paris. In consequence of the appointment of the members of the committee in conformity with the agreement of association, and in consequence of resolutions arrived at by the members of the committee themselves, the latter is composed ps follows: 1. Mr. Meynieu, president. 2. Mr. Lelievre, treasurer. 3. Mr. Bryce, for Messrs. Betts & Co. 4. Mr. Lambert, for the establishment Messrs. Cauvet Lambert & Co. ArticLe II. The members of the committee shall be obliged to meet every three months, eommencing from the 1st of April . The day of the meeting is fixed for the second Friday of the month in which it is to take place. Any member prevented from attending may be represented, but only by another member of the committee. The committee being composed of firms. any one of the partners or directors may represent his firm. ' No member of the committee may represent more than one member prevented Irom attending. ? The services of the members of the committee are gratuitous. However, the traveling expenses of each member of the committee from his place of residence to the head office of the committee and back shall be entered to the expenses of the association, and a voucher proving their presence shall be allowed to each one, the value of such voucher being 25 francs per day. Articie IIL. Apart from the obligatory meetings just mentioned, the members of the committee shall also be obliged to meet within a fortnight following the date on which four at least of their colleagues shall have requested them to do so, and have stated their reasons for such request. ArTICIE IV. The resolutions of the committee shall only be valid if three at least of its members are present or represented. In the case of votes being even, the chairman shall cast the deciding vote. Any member of the committee who shall arrive at a meeting, more than a quarter of an hour after the time fixed shall lose his right to a presence voucher. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 493 ArTICLE V. The manager shall be present at all the meetings of the committee, shall take part in its deliberations, and shall draw up any propositions which he may deem useful. He shall enter in a register “ad hoc” the minutes of the committee meetings and shall send to each of the members a copy of the minutes subsequent to the meeting, This register shall be signed at the same time by the members of the committee and the manager. . ARrTicLE VI. The committee shall fix the salaries of the manager and of the staff necessary for carrying on the association; it shall control the manager's accounts, verify the accuracy of his papers, proceed with him at the end of each year to audit and settle the accounts of all the ‘operations of the Joint Association, and generally assist the manager, but only from a technical point of view, without being able to interfere in the management of the association, for which the manager is alone responsible. The committee shall convene a general meeting of the members of the association each time that four, at least, of the latter shall address a request to that effect to the chairman, stating their reasons for so doing, and they shall also convene such a meeting upon a decision passed by a majority of their own members, The committee shall decide upon the business to be submitted to such meeting. ArTicLE VII. The committee shall receive from the manager all the promissory notes subscribed by the members of the participation, and the cash or securities deposited by them, according to Article XIX of the agreement of association. The cash, securities, or bills thus handed over by the manager shall be deposited with the chairman of the committee, with the exception of the bills subscribed by the latter, which shall be deposited in the hands of the treasurer. Arrticte VIIL In the event of a fine being ificurred by any one of the members of the participation, the committee shall hand te the manager the cash, securities, or bills equal to the amount of the fine incurred, which he shall then cash. If the imposition of the fine should cause a dispute between the manager and the delinquent, the latter must report this to the committee, who will only hand over the bills to the manager for this purpose if the imposition of the Ane has peen pronounced justifiable by one of the three experts named in Article XIX of the contract of association. II. OFFICES OF THE TREASURER. ArTticLE IX. At the end of each month the manager shall hand over to the treasurer the sum representing the difference between the payments made him by the members of the participation, in conformity with Article XV of the contract of association, and the expenses necessitated by the working of the participation. The sum thus handed over to the treasurer shall be paid by him to the credit of a joint account opened in his name and in the name of the chairman of the committee with the association. ArTicLE X. At the time of the annual settlement of the accounts of the operations of the Joint Association, the manager shall also pay to the treasurer the excess of the sums received by him from the overproducers after deduction of the sums remitted to the:underproducers. The same shall be done in the event of the manager cashing the amount of any fine incurred by one of the coparticipants. The sums thus paid to the treasurer shall be applied as provided in Article IX above. 494 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Arricie XI. As soon as the sums paid by the manager to the treasurer as above stated Wo 6,000 francs, the excess shall be employed in the purchase of lottery honds of the Credit Foncier de France or of the ville de Paris, or any funds guaranteed by the French Government. III. FUNCTIONS OF THE MANAGER. Articre XII The manager shall be intrusted with everything relating to the working and operations of the Joint Association. In order to insure the said working and operations and in particular to protect when necessary the interests of the coparticipants, he shall enjoy the most extensive administrative powers. He may for these purposes undertake any outlay which he may consider advisable up to the extent of 2,000 francs, with the sole restriction that he must notify the committee immediately of such outlay. ArTicLE XIII, 1. The manager shall cause an account to be opened in the name of each of the members of the participation. This account shall be credited with the amount of all the sums paid by the participant in virtue of Article XV of the contract of association, and with his share in the amount of the fines which may be incurred by any of his coparticipants. The account shall be debited with his proportionate share in the general expenses of the participation. 2. The manager shall cause an account to be opened each year in the name of each of the members of the participation, in which the amount of business guaranteed to him shall be entered, as also the value of the capsules dispatched and delivered by him as shown by the memorandum slips provided for in Article XV of the contract of association, calculated at the participation price; that is to say, according to the tariff to be applied to the transactions of the manufacturers between themselves. ’ Artic XIV. In the month following each quarter the manager shall send each of the coparticipants a table recapitulating the operations of the participation, and showing— The amount guaranteed to each. The amount of business done by him. The overproduction or underproduction of each. The sums payable or receivable. The whole shall be drawn up in such a manner that each member of the participation can form an exact idea both of the general progress of the business of the association and of his own share in the business done. ARTICLE XV. Within the month following the expiration of each year, the manager shall also forward to each member a copy of the final account of the operations carried out during the year by the coparticipants. The manager shall render account to the committee, as stipulated in Article V of the present regulations, of the receipts and outlays effected by him. The approval on the part of the committee of such receipts and outlays shall constitute an entire and final discharge to the manager for his accounts and operations. : [Article XVI not in copy furnished the Commission.] IV. MEETINGS OF THE MEMBERS OF THE ASSOCIATION, ArTICIE® XVII. 1. The ordinary general meetings of the members of the association shall take place at the periods and dates fixed in the contract of association. 2. The extraordinary general meetings shall take place upon a resolution of the committee, upon request of four at least of the other coparticipants, or when convened by the manager, all as has been explained above. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 495 8. Within the eight days which precede each ordinary and extraordinary Eeneral meeting, the manager shall acquaint the coparticipants with the questions which are to be submitted to them for discussion and approbation and shall let them know the hour, place, and day of the meeting. Every participant who wishes to submit a proposal to his colleagues upon the occasion of one of these meetings must have advised the manager thereof 15 days beforehand. 4. Every member of the participation who is prevented from attending must be represented by one of his colleagues. 5. No one may represent more than one member of the association, 6. Any member of the association arriving more than 15 minutes late for a meeting shall be subject to a fine of 25 francs. ARTICLE XVIII 1. In order to be valid, the resolutions of the members of the participation must have been passed by two-thirds of the votes allotted according to Article XXVI of the contract of association. . 2. Provided always that any resolution tending to modify the agreement of the association shall only be valid if it is passed by at least four-fifths of the votes allotted by the aforesaid Article XXVI. 3. In the event of there not being a quorum present on the occasion of a first meeting, a second meeting shall be convened within 15 days and the decisions of the latter meeting shall be valid whatever may be the number of votes present or represented. The above majorities shall then solely be calculated in accordance with the number of votes belonging to members either present or represented. ArricLE XIX, The ordinary and extraordinary general meetings of the association shall be presided over by the manager. ARTICLE XX. In the event of a member of the association during the first year finding that he is an overproducer by reason of the execution of contracts which were not taken into account in the establishing of the 1910 trade figures, he shall have the right to call the attention of the manager to such contracts. who shall submit them to the members of the association. The members of the association may execute these contracts without their being considered in the establishing of the association accounts. In the event of the members declining to execute the contracts the member who took them originally shall execute them without their being considered in the establishment of the association account. A fourth part of the trade represented by the sum of the said contracts shall be divided at the end of the first business year between all the members of the association in accordance with the rules laid down in the said contract of association. Each member, however, will, in accordance with the rules of the contracts of association bear the consequences of all contracts taken subsequently to the 24th day of February, 1911. (Signed by all the various members of the Syndicate of Associated Capsule Makers.) AGREEMENT (B). Between the undersigned, (1) Mr. Blanchard, living at Bordeaux, No, — — — Street, acting in the capacity of director of Blanchard Bosc & Co., of which the head office is at Bordeaux, No. 15 Cours de Medoc; (2) Mr. Cremers, living at Bordeaux, No. — ——— Street, acting in the capacity of director of Messrs. Cremers & Co., whose head office is at Bordeaux, No. 33 Quai des Chartrons; (3) Mr. Meynieu, living at Bordeaux, No, — ——— Street, acting in the capacity of director of Messrs. L. Meynieu & Co., whose head office is at Bordeaux, Cours St. Medard No. 24; (4) Mr. Ramondin, living at Bordeaux, Rue Pomme d'Or No. 11; (5) Mr. Lelievre, living at Sens (Yonne), acting in the capacity of director of Messrs. Lelievre Freres & Co., whose head office is at Sens (Yonne); (6) Mr. Lambert, living at Marseille, No. — Rue —— 496 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. acting in the capacity of director of H. Cauvet Lambert & Co., limited liability company, whose head office is at Marseille, Rue de la Conception No. 20, and in virtue of powers conferred upon him to that effect by the board of directors of the said society; (7) Mr. Bourhis, living at Dijon, Rue d’Ile Nos. 33 and 35, acting in the capacity of director of the “ Capsulerie Moderne de Dijon,” society limited by shares, whose head office Is at Dijon, Rue d’Ile Nos. 33 and 85, and in virtue of powers conferred upon him to that effect by the board of directors of the above society; (8) Mr. Caillaud, living at Saumur at “ Pont-Fouchard;” (9) Mr. Quibel, living at Coutras (Gironde), acting in the capacity of director of Messrs. P. Quibel & Co., whose head office is at Coutras, Gironde; (10) Mr. Sainte Marie Dupre, living at Arcuell, Felix Faure Avenue, jointly of the first part; and Mr. Oliver H. Campbell, living in London, acting in the capacity of director of Messrs. Betts & Co, whose head office is in London, and in virtue of the powers conferred upon him in his said capacity, it has been agreed as follows: Whereas the parties state that under & private contract dated Paris the ——, an association for joint participation, was entered into between them with the object of protecting their-common interests, of regulating competition between them, and chiefly of compensating the underproduction of certain capsule manufacturers by the overproduction of others, the whole in accordance with the clauses and conditions set forth in the said contract. And whereas Messrs. Betts & Co. have a branch of their company at Bordeaux and have taken part in the said contract in the same way as the other capsule manufacturers therein named, and Mr. Campbell in his aforesaid capacity has pointed out to his colleagues that Messrs. Betts & Co. require an assurance that the French capsule manufacturers should not compete with them in the United Kingdom and should not profit by the benefits which they enjoy under the sald agreement to compete with their company in their own country; And whereas Messrs. ——— have admitted that the demands put forward by Mr. Campbell are well founded: Now it has been agreed between the parties as follows, for the purpose of regulating the export of French capsules into the United Kingdom: Articre IL. It is agreed between the parties that the export of metallic capsules United Kingdom by the different French makers shall be the following: to the 1. On account of Messrs. Blanchard Bose & CO mcm commcceem meee 9. On account of Messrs. Cremers & CoO mame ecco 2 On account of Messrs. Meynieu & CO cece cme On account of Mr, Ramondin. ree . On account of Messrs. Lelievre Freres & Comm mmmcam cme meme 8 On account of Messrs. Cauvet Lambert & Comm accaom ccm Francs. 58, 000 100, 000 60, 000 20, 000 17, 000 25, 000 Total. eee eo 280.000 Messrs. Quibell & Co., Cailiaud, La Capsulerie Moderne de Dijon, and Messrs. Ste. Marie Dupre, not being exporters at the present time of metallic capsules to the United Kingdom, hereby undertake not to export any during the existence of this contract. Mr. Campbell in his aforesaid capacity accepts the figures named above by his associates. ArticLE II. Should the export of metallic capsules made directly or indirectly to England by any of the parties hereto exceed the amount allotted to him by virtue of Article I of these presents, the said party hereby undertakes to pay Messrs, Betts & Co. a royalty of 25 per cent on the excess of his export to the United Kingdom. Articie ITI. The control of the export of the metallic capsules made by each of the undersigned to the United Kingdom shall be conducted at each of their offices by the manager of the association of participation mentioned above, PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 497 ARTICLE IV. In the event of Mr. Campbell in his capacity as aforesaid, claiming that the penalty provided in Article II of these presents, is insufficient to protect him against infractions of this contract committed by one of the undersigned, his claim shall be submitted to one of the arbitrators designated in Article XXI of the contract of association concluded between him and the French makers of metallic capsules.” The arbitrator shall be chosen by lot. The arbitrator shall decide finally and without appeal on the amount of indemnity due to Messrs. Betts & Co. by the delinquent. ArTiciE V. In the course of the month of April in each year the manager of the assoclation shall render to Mr. Campbell in his capacity aforesaid an account of the result of the control carried out by him, ArTIiCIE VI. The duration of the present contract shall be equal to that of the contract of association in participation entered into between all the undersigned. (Signed by all the parties concerned in this agreement. IODINE COMBINATION. The following is a translation of the constitution of the Iodine Combination (Combinacién de Yodo) in Chile, which was formed in 2 and was still in existence in March, 1916.2 (See Pt. I, pp. 205-208. ConstrruTioN oF THE IopiN COMBINATION. ArTicLE 1. This Is to establish an association among the producers and holders of stocks of iodin on the Pacific coast, called the “ JIodin Combination,” with domicile at Iquique, ArT. 2. All the members of the combination bind themselves to fulfill the provisions of this constitution, with the amendments made according to article 26 thereof.and under the responsibilities and penalties established therein; and equally to fulfill the obligations under an agreement of consignment and agency for the sale of iodin which, in fact, is made with a concern in Europe, according to section I of article 18. The indemnities for damages and the fines which are declared and made effective according to this constitution shall be considered as civil obligations contracted in favor of the other members of the association. ART. 8, The duration of the association shall be from April 1, 1894, to March 81, 1897; but if no member shall have given notice in writing to the board of directors prior to September 30, 1896, that he desires to retire, the combinaton shall, in fact, be prolonged for another term of three years, or until March 31, 1900, and thus, in continuation, indefinitely. Nevertheless, any member may retire at the end of ahy period, by advising the board of directors in writing six months in advance. } OBJECTS OF THE ASSOCIATION. ArT. 4. The objects of the association shall be: A. To come to an understanding with the producers of fodin in other countries in order to furnish, by means of agents appointed for this purpose, all the iodin that may be necessary for consumption; B. To make an agreement with a concern in Europe for the consignment and sale of the iodin exported by members of the combination; C. To promote by all possible means the consolidation of the combination end to secure as members new producers and holders of stocks, who may later present themselves; and, especially, D. To procure an increase in the applications of iodin by means of a propaganda in favor of its consumption, and prizes of money to the best studies which treat of new uses for iodin. “The copy from which this translation was mode bears no imprint date of 1915. 27941°—p7 2—16—— 4 498 © REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. OBLIGATIONS AND RicHTS oF MEMBERS OF THE ASSOCIATION. ART. 5. All individuals and companies producing iodin, or mere holders of stocks, who sign this written agreement are members of the association, and also those who later adhere to its provisions in a public document signed by the new adherent and by the president of the board of directors of the assosintion, or by the. person who is performing his duties or acting for him. ART. 6. No member, of whatever class, shall prepare, sell, transfer, or in any other manner do business in iodin on this coast, or abroad, except in conformity with the following provisions: A. All members of the combination shall consign or hold at the disposal of the consignees in Europe or of their duly authorized agents all the iodin exported during the life of this combination; B. All the iodin in stock abroad or in transit on the 31st day of March, 1894, shall be at the disposal of the consignee agents in Europe; C. The members of the combination shall export their fodin to the ports designated by the consignee agents and furnish all the details in respect to the shipment to which they apply; D. In case any member desires to sell or lease his iodin factory, or his stock of iodin, or part of it, he shall give notice of his intention in writing to the board of directors of the combination, and at the time the sale or lease is effected he must stipulate in a contract, which shall be made, that the lessor or buyer shall accept and recognize all the oblizations contracted by such member under this constitution; ’ E. On the sale or leasing of the works of a member of the combination, or of his stock of iodin, or a part of it, the quota in the total sales belonging to that works shall not be changed in any way, and the proceeds shall belong to the seller or the buyer, according to the terms of sale; and F, Whatever modifications in the apportionment of the quotas which it may be necessary to make by reason of sales or transfers, made in conformity with this article, shall take effect only after the corresponding notices, given in writing to the board of directors by the parties thereto, shall arrive in the hands of the consignees of the combination in Europe. In case the parties agree to it, the board of directors will cable the notices, but at the expense of these parties. ART. 7. The sum due the South American members of the combination from the monthly sales made by the consignees in Europe or by their duly authorized agents shall be divided among the members by quotas, which shall be fixed by the board of directors in Iquique on the following basis: : A. The quotas shall be fixed by the production, and shall be changed only by the entrance of new producers, by the separation of present members whose stocks have become exhausted, and in the cases provided for in article 9. B. The shipments made during the two years from April 1, 1892, to March 31, 1894, shall be taken. For the purpose of fixing the quotas the members shall be divided into three classes, called (1) old producersy (2) recent producers; (8) new producers. C. First class—Old producers.—The proportion of the total shipments that #ach one has shipped shall be his proportion of the sales, but always governed by section A of this article and those following and by article 9. The producers who have not been subject to the restrictions of the Nitrate Combination accept as the basis for the fixing of their quotas of the sales a production in proportion to that which they would have had if they had formed a part of said combination. The proportion shall be fixed by agreement with the board of directors of the [odin Combination. D. Second class—Recent producers.—The production of the producers whose first shipment was made between April 30, 1892, and April 30, 1893, shall be determined by adding to the quantity of lodin that they have actually shipped, the proportion lacking to make up their figure for the two years. For example, a producer who made his first shipment in the month of October, 1892, and has exported up to March 31, 1894, the amount of 900 quintals, has been in operation 18 months; consequently, at the rate of 50 quintals per month, he would have 1,200 quintals for the two years, and if with this addition of 300 quintals the total shipments for the two years had been 24,000 quintals, the proportion of this producer in the fixing of the quotas would be 5 per cent of the sales. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 499 E. Third class—New producers.—Besides the really new producers, those who have shipped iodin since April 30, 1893, shall be considered as new producers. The board of directors is authorized to make the necessary arrangements to the end that this class shall join the combination, keeping in view the proportion that ought to exist between the quotas of the old and new producers, taking into account the restrictions to which the latter have been subjected by the Nitrate Combination. While the final quotas are being fixed the board of directors shall designate for the new producers provisional quotas which shall be approximately in proportion to those of the other members of the combination, taking into account their respective production. When the production is ascertained and the final quota fixed any difference for or against the new producer shall be adjusted, and F. The stocks of the mere holders of stocks, to wit, the Devescovi Syndicate, Carmen R. v de Saez, Otto Herrmann, and the Tarapaca Nitrate Co. in process of dissolution, which amount to a total of 50 quintals, more or less, shall be liquidated at the rate of 2 quintals a month for the first two and at the rate of 1 guintal for the last two. . ArT. 8. The signers of this constitution must give access to their iodin factories at any time, and with all possible facilities for the better fulfillment of their obligation, to an inspector named by the board of directors, who shall perform his functions in conformity with a special set of rules drawn up by the board of directors. ArT. 9." In case a producer adds to his machinery the board of directors shall have the power, if the producer asks for it, to increase his quota in proportion to the real increase which has been made in the producing capacity of his machinery, which must be demonstrated to the satisfaction of the board of directors. Notwithstanding that a works or producer has operated for nine years without making use of the provision in the above paragraph, he shall have the right from that time to make the ordinary test for iodin in order that his quota may be fixed in relation to the productive capacity of iodin demonstrated in said test. Any producer who stops producing nitrate in his works shall enjoy his quota only until the stocks on hand at his own works have been exhausted. The transfer of iodin from one producer to another or from one works to another does not transfer the right of the quota to a closed-down works, If work is resumed in a works which has closed down and whose stocks have been exhausted, it shall again enjoy the quota belonging to it, beginning with the month following that in which its first shipment of iodin arrives abroad. . ArT. 10. No old producer is allowed to sell or transfer fodin to a new producer until the final quota of the latter has been fixed. Any violation of this provision shall be punished by a fine of £50 for ench Spanish quintal sold or transferred, and when the violation has been proven, the board of directors shall have the power te authorize the consignee agents of the combination in Europe to deduct the fine from the proceeds of the next quotas belonging to the offending member. The amount thus deducted shall be prorated among the other members of the combination according to their quotas. ArT. 11. Any member who sells odin outside the combination must indemnify the other associates at the rate of £50 for each quintal thus sold. The fine for any other violation of the provisions of this constitution shall be determined by a friendly board of arbitration made up in conformity with the following rules: A. The board of arbitration shall be formed of two arbitrators or friendly conciliators, one designated by the board of directors of the association and the other by the offending member. Within five days following the acceptance og their positions these two arbitrators shall name a third, who shall adjust tne differences that arise among them; B. In case a difference of opinion exists as to the violation of this constitution, the president of the board of directors of the association, or the person acting in his place or representing him, shall have the right to bring before the justice of the peace of Iquique a petition which shall state the specific case of violation, designate the offending member, and name the person to be arbitimice 9 as amended by a resolution passed at a meeting of the members Sept. 12, 1902. 500 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, trator for the said president. The contents of this document shall be brought to the notice of the member to whom it refers, and he shall have five days to appear before the samé judge and name the arbitrator whom he has the right to designate. If within the five days he does not appear, or if the person named by him does not accept the place, it is understood that the board of arbitration be finally constituted, without any further procedure, by the nomination made in the form indicated by the board of directors; C. The period of five days mentioned in the preceding section shall be increased by 30 days in favor of anyone who has been notified outside the Province of Tarapaca; D. If within the time indicated in section A the third arbitrator has not been named, the justice of the peace of Iquique shall name him on the petition of either of the parties; E. The arbitrators named in conformity with the preceding sections, and with the fullest powers of arbitrators or friendly conciliators, shall proceed to acquaint themselves with the difference stated in the petition referred to in section B and shall decide the matter at the latest in the period of 15 days, which period can not be extended; If within this period they do not give their decision, the case shall be decided by the third arbitrator referred to in sections A and D without further proceedings and without further appeal in the succeeding 15 days; F. The final decision of the arbitrators shall be communicated to the justice of the peace of Iquique, so that he may bring it to the attention of the parties, nnd it shall have the force of a decision of a court for the purpose of making its findings effective on petition of any of the parties at interest; @G. In the decision of the arbitrators the amount of the fine, if any, must be fixed, and also the damages to be paid; H. All other differences in respect to the provisions of this agreement which arise between the board of directors of the association and one or more of the members thereof, and the decision of which has not been provided for in this constitution, shall be submitted to the decision of arbitrators in the form provided for in this article, ArT. 12. It is understood that the word {odin, used so frequently In this constitution, refers not only to crude and refined iodin, but also to compounds of iodin, as, for example, todid of copper or of potassium, ete, and that these compounds or mixtures shall be covered by the combination and shall be rated according to their iodin content. THE ADMINISTRATION OF THE ASSOCIATION. ArT. 13. The association shall be govérned in Iquique by a board of directors composed of 10 actual producers of iodin, or representatives of the same in the general management of their business, and of two delegates of producers putside the Province of Tarapaca, if the latter name any. In case these delegates are named they must fulfill the conditions prescribed in article 5, The representative of the agents of the consignees and general agents of the combination in Europe shall also have the right of speech and vote in the meetings of the bourd of directors in Iquique, but only in case none of their representatives has been clected as proprietary director. ART. 14. The directors shall be elected at the second general meeting of producers of iodin each year by secret ballot and by a majority of all votes. ART. 15. Any producer, whatever his place of residence, may be elected director, but those who reside outside the Province of Tarapaca must be represented In the exercise of their duties by a person who fulfills the required qualifications for a propretary director. ART. 16. In case of the death or absence of any proprietary director, his place shall be taken by another representative of the concern of which he had formed a part, or, lacking this, by a proxy named by the board of directors; and the vote of this representative shall be considered as valid as that of a proprietary director. ArT. 17. The directors shall hold office for one year or until a new board of directors has been elected at a meeting of members; and they may be reelected. Whenever the combination shall cease to exist, the last board of directors elected shall have power to name a commission, which shall have all the powers necessary to hring about the dissolution of the association, PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 501 THE BOARD OF DIRECTORS. ArT. 18. The powers and duties of the board of directors are: A. To elect from among its members at its first meeting a president, and a vice president who shall take the president's place in case of absence. In case hoth are absent the board of directors shall elect a president ad interim; B. To discuss and decide upon all the affairs of the association, the course to pursue to attain its purposes, and in general to supervise and render effective the obligations contracted by the associates under this constitution; C. To represent legally and in other ways the association on this coast, and with power to settle any litigation or question which the association has, to which end all the members through this document grant sufficient power to the president of the board of directors with authority to delegate it or reassume it whenever he thinks it convenient; D. To employ or discharge employees when necessary, and to fix thelr salaries; E. To collect dues from all members of the association to supply funds for the expenses of administration, which shall be collected in proportion to the guotas of each of the associates; but the total amount of dues shall not be more than 20,000 pesos annually ; F. To hold regular meetings during the second half of each month, and special meetings whenever necesssary. The board of directors can take no action unless six members are present and an advance notice of the meeting has been sent to all members. The measures passed shall be decided by a majority of votes, except as provided in section J of this article. No director shall vote in. matters directly or indirectly affecting his private interests, but all the directors shall vote on matters in regard to the consignment of iodin to Europe; . G. To appoint proxies or delegates of the board of directors outside of Iquique; H. To call meetings of members both regular and speeial ; I. To make for periods of three years a special agreement with a concern in Europe (which for the first period shall be that of Messrs. Antonio Gibbs & Sons) for the consignment and agency of sales of iodin, governed by this constitution and on the following basis: First. Following the present arrangement with European producers, the South American members of this combination shall have the following proportion of the total annual sales: 593 per cent up to total sales of 3,000 English hundredweight of 112 English pounds. 00 per cent of from 3,001 to 5,000 English hundredweight of 112 English pounds. 50% per cent of from 5,001 to 6,000 English hundredweight of 112 English pounds. D0 per cent of all over 6,000 English hundredweight of 112 English pounds. Second. The associates shall pay the consignee agents a commission of 5 per cent of the amount of total sales made by them for account of the combination during the life of the consignment and sales agreement. Third. The consignee agents shall render monthly accounts of sales, the facts as to stocks on hand and their distribution, and shall keep at the disposal of the interested parties the balances of the sales accounts, according to the practice followed up until the present time. Except as provided in article 10 of this constitution, they shall hold out of the first proceeds only an amount sufficient to cover the expenses on the iodin consigned to them. It is understood that the consignees shall pay to the interested parties the proceeds of the sales only after they have received the corresponding shipments of iodin. J. To fix the selling price by agreement with the European producers of lodin through the consignee agents of the combination in Europe; the vote of not less than six directors shall be required for this; K. To render effective the obligations contracted by the members in conformity with articles 10 and 11 of this constitution; and L. To regulate the conditions under which new producers may join the association. 502 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. PowERs AND DUTIES OF THE PRESIDENT OF THE BOARD OF DIRECTORS. Arr. 19. The powers and duties of the president are: A. To direct the work of the board of directors and preside over all meetings of the board of directors and of the members; B. To designate the dates for the regular and special meetings both of members and of the board of directors; C. To see that the measures adopted by the board of directors and in the meetings of members are carried out; D. To call special meetings of the board of directors whenever necessary or when desired by three directors; and FE. To represent the association legally and in other ways with the powers indicated in article 11, section B, and in article 18, section C, and for the purpose of carrying out all the obligations contracted under this agreement. MEETINGS OF MEMBERS. ' ArT. 20. There shall be held a regular meeting of members every six months to consider the general affairs of the association, to approve the accounts, and to hear the report of the board of directors on the state of business. There shall also be held special meetings of members when the board of directors considers it necessary to have them or when they are desired by at least six members of the association. In the special meetings of members only that matter for which the meeting was called shall be considered. ART. 21. In calling a regular meeting of members 15 days’ notice shall be given, and in calling a special meeting of members the same notice shall be given, the object of the meeting being specified in the notice. If on the date designated in the notices for a regular or special meeting of members there be no quorum, the president, or whoever represents him, is authorized to postpone the meeting for one week, publishing such notice in a daily paper in Iquique. ART. 22. To present any proposition in a meeting of members it shall first be necessary to hand it in writing to the secretary of the association three days in advance, and the secretary shall immediately post it on the bulletin board of the meeting room. ART. 28. A quorum in a meeting of members shall consist of one more than half of the membership of the association, but as to a postponed meeting a quorum shall consist of the members present, and the measures passed by it shall be as valid as though more than half of the members were present, except as provided in article 26. ART. 24. Every resolution in the meetings of members in order to pass must be adopted by a majority of all votes, except as provided in article 28. ArT. 25. In the meetings of members any member may be represented by TOXY. bk ART. 26. Every proposal to change or enlarge the present constitution must be approved by at least two-thirds of the members of the association in a special meeting of members called for this purpose. These changes or amendments can not be made in the consignment and sales contract described in article 2; this can not be changed without the unanimous consent of all members of the association. ART. 27. All measures passed in conformity with the provisions of this congtitution shall be binding on all members of the association and they shall be responsible individually and collectively. TEMPORARY ARTICLE. In order te carry this constitution into effect producers representing 75 per cent or more of the production of 1893, to be determined by the shipments during that year, must close down their iodin factories for not less than one year peginning May 1, 1894. The producers who continue manufacturing iodin during this period shall receive on their quotas 1% pence per ounce less than the net selling price, and the amount derived from this deduction shall be prorated among those who close down their factories in proportion to their quotas. The producers who close down their factories on April 30, 1894, must sublimate and export, as soon as possible, all the fodin they have extracted from “ mother waters” (aguas madpes) up to that date. It is understood that the PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS, 503 i jodin shipped since March 31 last shall not effect in any way the fixing of fuotas. The producers who do not close down their factories may leave their iodin here on the coast, but this shall be under the inspection of the board of directors. CONTRACT OF ASSOCIATION, In Iquique. Republic of Chile, April 18, 1894, before me, notary public, who signs below and witnesses whose names are signed at the end, appeared: Juan Blair, for Blair & Co., with power of attorney for the Companias Salitreras Santa Rita and San Sebastian; Guillermo B. Comber, for Brooking, Comber & Co.; Juan Dastres, for Granja, Dominguez & Lacalle, and L. Ceballos & Co.; Guillermo Fritze, for J. Gildemeister & Co., and Sloman, Dohna & Co.; Federico Glavich, for Glaviech & Cavallero; Jeremias M. Goodall, for Morris & Watters; Guillermo Hardie, for the successors of Santiago Drew; Guillermo Hansen, for the Compania Salitrera Consolidada and Otto Hermann; Jose James, for Pedro Perfetti; Juan A. Low, for Watter Bros. ; Federico G. Lomax, for Inglis, Lomax & Co., with power of attorney for the nitrate companies, “ London,” * San Jorge,” “ San Pablo,” * Santa Elena,” and the Devescovi Syndicate; and the said Federico G. Lomax, for the Compania New Tamarugal; Heriberto W. Morrison, for North & Jewell, the nitrate companies * Colorado,” “ Liverpool,” * Paccha & Jazpampa,” *Primitiva” and “San Donato”; Filipe 8. Marincovich, for himself; Augusto V. Polastri, for the Anglo-Chilian Nitrate & Railway Co.; Pedro Gaston Pascal, for Loayza & Pascal; Gregorio Quiroga, for Evaristo Quiroga & Bro.; David Richardson, for the Compania de Agua Santa, Gil Galte, and Rawson & Whitelegg ; Guillermo Parish Robertson, for Gibbs & Co., successors to the nitrate company * Tarapaca,” in process of dissolution; Guillermo Patterson Robertson for the nitrate companies “ Rosario” and * Lautaro”; Oscar Salbach, for Fdélsch & Martin; Mariano BE. Vernal, for Juan Vernal & Castro, Hidalgo & Co., Mrs. Zoila M. Hidalgo and Vernal Bros. ; Angel Vicetto, for Jose Devescovi; all of legal age, producers and holders of stocks of iodin in this jurisdiction with the exception of Messrs. Comber, Hardie, James, and Low, of which the first two reside in the plains and the second two in Pisagua, being temporarily in this jurisdiction, and all known to me, and say that in the names of their. principals, as will be verified, they have just reduced to writing the constitution of an association called “Iodin Combination,” which are of the following tenor (here follows the constitution). Those who have appeared declare that they accept and agree: First, that the amount of shipments of iodin made by Messrs. Folsch & Martin for the purpose of fixing the quotas in the monthly sales described in nrticle 7 of the constitution, made a public document by the present instrument, shall be 700 quintals of iodin annually in conformity with the second paragraph of section C of said article 7 of the said constitution; second, that Messrs. Gil Galte and Loayza & Pascal receive sufficient to make up the amount of their shipments of iodin for the two years fixed in section B of said article 7 to the monthly average of that which they have shipped from April 1, 1892, up to the last shipment made in 1893, the amount shipped by them during the past three months of the present year up to March 31 last being considered in making up the total; third, that as to F. S. Marincovich’s Yungay works and L. Ceballos & Co.'s San Francisco works their quota in the monthly sales be two quintals while their stocks last. Finally, those appearing declare that the following producers shall shut down the iodin factories of the nitrate works actually belonging to them for the period fixed in the temporary article of the constitution. beginning at the latest the 30th of the present month: “Anglo-Chilian Nitrate & Railways Co.,” * Colorado,” * Consolidada,” * Lautaro,” except the Catalina works belonging to this company, * Liverpool,” “ London," “New Tamarugal,” “Paccha & Jazpampa,” * Primitiva,” * Rosario,” “Antofagasta Nitrate,” * San Donato,” * San Jorge,” * San Pablo,” “San Sebastian,” ‘ Santa Elena,” and “ Santa Rita,” and Messrs. Brooking, Comber & Co., L. Ceballos & Co., 8. Drew, Filsch & Martin, Gil Galte, J. Gildemeister & Co., Hidalgo & Co., F. 8, Marincovich, E. Quiroga & Bro., J. Vernal & Castro, Vernal Bros. Zoila M. Hidalgo, and Watter Bros., who represent more than the 75 per cent required by said temporary article, and consequently the condition imposed by said article to make the constitution binding has been complied with. The powers and personnel are not inserted in this document because the interested parties so desired it, and, moreover, because 504 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. they are already in the protocols of this year. Thus say and agree those appearing, who sign in verification after having read this ducument, together with the witnesses, Jorge Molina Galeas and Carlos Robledo Torres. Sworn 10 by Evaristo Quiroga & Bro. Gmo. Fritze, Felipe 8. Marincovich, Join A. Low, J. James. G. Hansen, Oscar Salbach, H. W. Morrison, Gmo. P. Robertson, ¥. G. Lomax, Inglis, Lomax & Co., A. V. Polastri, D. Richardson, Glavich & Cavallero, W. Parish Robertson, J. M. Goodall, G. B. Comber, Juan Dastres, Angel Vicetto, J. Blair, Blair & Co., Gmo. Hardie, P. G. Pascal (by proxy), Juan Vernal & Castro, Mariano E. Vernal (by proxy), Sloman, Dohna & Co., Gmo. Fritze, J. Molina Galeas. Carlos Robledo Torres. Francisco Martinez Galvez, notary public. This is a true copy of the original, which I have compared with it. Iquigque, June 26, 1894. } FrANcCISCO MARTINEZ GALVEZ, Notary Public. DECLARATION OF THE COMPANIA DE SALITRES DE ANTOFAGASTA AND OF MES. CARMEN Ruiz, WIDOW OF SAEZ, ON JOINING THE IODIN COMBINATION. In Valparaiso, Republic of Chile, July 4, 1894, before Pedro Flores Zamudio, notary public, and witnesses who sign below, appeared Juan Peterson, representing the incorporated company called “Compania de Salitres de Antofagasta,” by virtue of a resolution of the board of directors of said company, which will be inserted later, and Mauro Lacalle, for Mrs. Carmen Ruiz, widow of Saez, by virtue of power of attorney, which will also be inserted, both being business men, of legal age, and living in this jurisdiction, who are known to me, and state: That they agree in the name of their respective principals to Join the association which, under the name “ Iodin Combination,” the producers and holders of stocks of iodin in Iquique have formed by means of a public document dated April 18, 1894, before a notary in that city, Francisco Marlinez Galvez. The undersigned declare that they are acquainted with the document above referred to which they have seen and that they accept in con-Sequence all the rights and obligations which are described therein (here follow the powers of attorney). After reading it they agree to it and sign it, together with the witnesses, Pedro N, Hernandez and Toribio Cancino, A copy was made. Sworn to by— Juan Peterson. Mauro Lacalle. Pedro N. Hernandez. T. Cancino. Pedro Flores Zamudio, notary publie, Came before me and in verification thereof I place my signature and seal thereon. PEDRO FLORES ZAMUDIO, Notary Public, COMBINATION OF CACAO PRODUCERS OF ECUADOR. A copy of the constitution of the Asociacion de Agricultores del Ecuador (Association of Planters of Ecuador), as amended on Jannary 18, 1913, and approved by the President of Ecuador on January 25, 1913, was furnished by Consul General Goding, of Guayaquil, in connection with his special report on combinations in Ecuador. (See p. 183.) A translation of the constitution is given below in full: CONSTITUTION OF THE ASSOCIATION OF PLANTERS OF ECUADOR. [As amended at meetings of members held December 11, 1912, and J anuary 18, 1918, and approved by the President of Ecuador on January 25, 1918.] OBJECTS OF THE ASSOCIATION. AxrTtIicLE 1. The “ Association of Planters of Ecuador,” formed in Guayaquil, has for its object the union of the cacao growers to protect this product from “ bear ” speculators, to increase and maintain its price, to encourage its cultivation, the marketing of it abroad, and to develop new centers of consumption, PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 505 FUNDS OF THE ASSOCIATION. ArT. 2. The funds of the association shall be raised through a tax of 1 sucre on each quintal of ‘cacao exported, which the producers shall pay. This tax was legally established by a decree of the legislature on October 28, 1912, It was assigned exclusively to the protection of cacao, and began when said decree necame effective! The activities of the association in regard to the quotations of cacao and the maintenance of its price shall begin when the board of directors decides by a majority of all votes to do so. ArT. 3. Every producer on placing his cacao for sale in this market, or at the other points described in section 9 of article 14, shall have the right to receive from the office of the association a provisional receipt or certificate, which shall state the number of quintals delivered. He must request said certificate within 80 days after the delivery of the cacao, and he must have the O. K. of the revenue collector on the bill of sale of the purchaser. The certificate shall state: The name of the boat in which the cacao arrived, the date of its arrival, and to whom it was consigned ; the name of the producer, the plantation, and the district or region in which this is located; the grade of cacao and the number of guintals. ArT. 4. The certificates referred to in the preceding article shall be exchanged for shares of the association for the same number of sucres as quintals of cacao delivered by the producer, less 8 per cent for unclean cacao, and 4 per cent for clean cacao, this deduction being for the purpose of reimbursement for the loss between the amount of cacao delivered and the amount exported, und also for the general expenses of the association. The exchange of shares for certificates shall be made only when the producers hold certificates to the value of 500 sucres.? ART. 5. The shares of the association shall be issued in the names of the producers and shall be of two classes—shares of 500 sucres and 50 sucres, respectively. When the certificates for cacao delivered are exchanged for shares, the number of quintals of cacao stated therein shall be added up and for any amount less than 50 quintals of cacao that remains, the producer shall receive a special certificate which shall be taken into account in the succeeding exchange. The certificates exchanged must belong to one producer; the certificates of different producers can not be put together for the purpose of exchanging them for shares. When one producer has obtained 10 shares of 50 sucres each he may exchange them for one share of 500 sucres. ArT. 6. The certificates shall be nontransferable. The shares shall be transferable by means of an indorsement signed by the producer in whose name it has been issued, or by inheritance; and they shall not be effective until they have been registered in the books of the. association, after being approved by the board of directors. When the shares are registered in the books of the ussociation, it is necessary that the transfer be made to the owner of a cacao plantation, since the association recognizes as shareholders producers of cacao only, except in case of inheritance, Arr. 7. Every producer of cacao who holds in his own name one or more shares of the association .and who subscribes to the constitution and regulations thereof, shall be considered as a member with a right to the benefits derived from such status. ArT. 8, The funds of the association shall be used for the following purposes : 1. To carry on all kinds of operations which are for the purpose of maintaining and increasing the price of cacao. 2. To undertake an efficacious propaganda of the cacao of Ecuador to increase its consumption at home and abroad, and to procure the opening up of new markets. 3. To come to an understanding with other associations and similar bodies in other countries producing cacao, and to take steps leading to the protection of the price of cacao by means of a union between the producing countries. To this end the negotiations already begun for the immediate formation of 1 The legislative decree was promulgated in Quito, in the “ Official Register,” No. 92, Dee, 20, 1912, and became effective in Guayaquil, Jan. 16, 1913. 4 According to the decree issued by the President of the Republic, which is Inserted at the end, this has been changed to read: * The exchange of shares for certificates shall be made only when the producers hold certificates to the value of 50 sucres.” 506 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. the league of producers of Ecuador with those of Portugal and Brazil shall be renewed, and, if the board of directors think it necessary, a resident delegate shall be appointed in Europe or Brazil. This appointment shall be made sub-Ject to the approval of the President of Ecuador. . 4" To use means to bring about improvements in the cultivation of cacao, to Increase its yield, and to prevent the deterioration of its quality by a study of the methods employed in other producing countries, and by procuring the application of the methods suitable to Ecuador. 5. To work out and put in practice the means considered necessary to solve the problem of the scarcity of agricultural labor, and to try to secure the com ing of field laborers to Ecuador by favoring immigration. 6. To work for the decrease of taxes that burden cacao and to negotiate for the lowering of the high import duties now paid in some of the consuming countries by aiding the Government in all ways possible in the labor of bringing about this result by means of treaties of commerce which procure that advantage. 7. And finally to carry on any lawful commercial or banking operation, the object of which is to facilitate the realization of the purposes for which the association was formed. If necessary, the association, through its board of directors may raise loans, giving as security for payment the tax referred to ip article 2 and also the stock of cacao which the association holds in Guayaquil. The approval of the President of Ecuador shall be necessary for the validity and security of these loans. But in no case can the tax for more than one year be given as security. GOVERNMENT OF THE ASSOCIATION. . ART. 9. The association shall be governed by a board of directors, composed of the manager and nine principal members elected in accordance with this constitution. ART. 10. The position of director is personal and shall last for one year. The directors may be reelected indefinitely and shall not cease in the discharge of their duties until the election of those who are to take their places. In case of the absence or inability of the president and vice president, the directors in order of their election shall take their place. ArT. 11. The board of directors shall elect from among their own number a president and vice president. They shall also elect the director on duty for the month. The manager shall act as secretary, shall be elected for one year, shall be reeligible, and shall have an advisory vote only. ART. 12. The board of directors shall meet at least once a month; and also whenever called by the president or the manager. A quorum shall consist of five directors. Their resolutions shall be passed by a majority of all votes and they shall be in the form of acts signed by the president and secretary. The decisions of the board of directors shall be carried into effect without a formal act unless the contrary is especially provided. ART. 13. There shall also be nine alternate directors who shall act In order of their election in case of the death or absence of any of the principal directors, and with the same rights and duties. ART. 14. The bpard of directors has authority— 1. To appoint the trustee (sindico) of the association. 2. To determine what the operations of the association shall be. At each meeting the board of directors shall discuss the state of the cacao market and its tendency, and shall fix for periods that shall not exceed 15 days the quotation for the purchase of cacao. This quotation shall be made public by notices in the press. The association shall pay for cacao offered to it by the producers the price fixed by said quotation in order to prevent its being sold at a lower rice. P If for any reason whatever, and especially through the necessity of maintaining the price, the cacao purchased can not be sold to advantage at home, the board of directors shall export it to warehouses in the principal consuming ports abroad, drawing bills of exchange for a part of its value, secured by the bills of lading, to be reimbursed when the sales are made by the agents of the association abroad. The proceeds of said bills of exchange shall be used to buy more cacao delivered by the producers. . 8. To employ and discharge the employees of the association on the recomsmendation of the manager. fo IS QQ PRICE AND EXPORT AGREEMENTS OF FOREIGN —(—— ’ 5 Nd 4. To fix the salaries, with the approval of the President of Eduador. of the manager, trustee (sindico), and employees. J. To issue the shares of the association, with the signatures of and manager. G8. To call meetings of members. 7. To make an examination of the cash and other assets of the association once each week, 8. To examine and accept the balance sheets and accounts of the association and to submit them for the approval of the meetings of members, together with a report on the condition of the association and the success of its operations, indicating the reforms and means necessary for the better administration thereof. 9. The board of directors shall establish agencies in the principal ports of the Republic and at other points where they consider it desirable. Art. 15. The regular meeting of members must be held during the last 15 days of January each year, on the day and at the hour designated by the board of directors. Special meetings of members shall be held whenever the board of directors call them or when members representing one-third of the shares issued request such meetings in writing, giving the reasons for holding same. The president shall preside over the meetings of members, and the manager shall act as secretary, without the right to vote. ART. 16. The owners of one or more shares of 500 sucres shall have speech and vote in the meetings of members, providing that their shares have been entered in the register of the association eight days before the meeting, in accordance with article 6. Each share of 500 sucres shall have one vote. The shares of 50 sucres shall be inactive, and shall have no voice in the meetings of members nor in the operation of the association; but ten 50-sucre shares together shall have a vote, although they belong to different owners. . The shares shall be represented by the producers of cacao only or by their proxies, whc may be elected to fill some office in the association. ART. 17. An absolute majority of votes, on the basis of the provisions of the preceding article, shall constitute a quorum at the first meeting; and if there is no quorum a new meeting shall be called through the press for eight days later, this fact being stated, and then the meeting shall be held witl the number of associates that attend. ART. 18. The decisions of the meetings of members, within the limits of their authority, are binding upon all the associates, even when they have not been present. Their decisions shall be adopted by a majority of all votes. Art. 19. The members at their meetings shall have authority— 1. To elect the directors of the association and appoint the manager. 2, To approve or audit the balance sheets and accounts of the association. 8. To decide as to the expenditure of the funds of the association, which shall be proposed by the board of directors in conformity with the provisions in article 28. 4, To settle the points submitted to them by the board of directors and other matters in regard to the success and development of the association. ADMINISTRATION AND REPRESENTATION OF THE ASSOCIATION. Arr. 20. The manager shall act as commercial representative cf the association, shall be elected for one year, and may be reelected. ArT. 21. When the manager is absent for not more than 15 days, the president of the board of directors shall perform his duties. In case of his absence for a longer time the board of directors shall replace him temporarily with one of its members, either principal or alternate. If the absence results through no fault of the manager or if he has express permission, and the absence lasts more than 30 days, the director who takes his place shall receive half of the salary. Art. 22. When the manager wishes to resign, he shall so inform the board of directors 30 days in advance, within which time a meeting of members shall be called to take cognizance of the resignation and to elect a new manager. Arr. 23. The manager shall have authority— 1. To attend the meetings of the board of directors, with right of advisory vote. 2. To organize the office force under his direction; to recommend to the board of directors the appointment of employees suitable for the places to which they 508 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, will be assigned; to ask for the discharge of any employee or discharge them at once, according to the seriousness of the offense. 8. To see to the prompt collection of the tax of 1 sucre per quintal of cacao, together with the concurrence of the treasurer and the president of the board of directors. 4. To perform the duties which the board of directors considers necessary for the success of the association. . 5. To report to the board of directors what has been done and to suggest what further steps should be taken. : 6. To keep daily records in detail of the purchases and sales of cacao, with the prices paid and received. These records shall be presented to the board of directors. [Sec. 7 was omitted in the printed constitution from which this translation was made.) 8. To have charge of the office of the association and superintend the work of all his subordinates; fo carry on promptly all the business and sign all letters. 9, To sign, together with the director on duty for the month, the checks, drafts, and contracts of the association, Art. 24. The responsibility of the manager ceases when his acts have been approved by the board of directors or by a meeting of the members. THE TREASURER. ART. 25. The treasurer shall be appointed by the President of Ecuador from among three names presented to him by the board of directors of the associa-Lion. The salary of the treasurer shall be 500 sucres per month. ART. 26. The duties of the treasurer are: 1. To collect the tax of 1 sucre per quintal as described in article 2. This collection shall be made within two days after the departure of the steamer by which the shipment was made. } 2. To deposit, in places designated by the board of directors, all the money from the tax as soon as collected, and also any other money the association may have. 8. To pay the bills for the purchases of cacao made by the association and any other expenses incurred. These bills shall not be paid unless approved by the president of the association and the manager. 4. To keep up to date a journal of the receipts and expenditures under proper heads and with the respective vouchers numbered, and to present to the director on duty for the month the daily balance of said journal. During the first six days of each month he shall present a table showing the receipts and expenditures—the balance sheet—for the preceding month for the examination of the board of directors and of the members at a meeting. DISTRIBUTION OF THE FUNDS AND THE DISSOLUTION OF THE ASSOCIATION. Art. 27. After the balance sheets and accounts for each year have been approved by the members at a meeting, the condition of the association and the results obtained shall be discussed, and what is necessary as to future operations shall be determined. Arr. 28. In case it is not necessary to expend all the funds of the association to carry out the purpose for which it was formed, the funds remaining shall be distributed as proposed by the board of directors: 1. To form a reserve fund. } 2. As a dividend on the shares, or by a drawing of lots, participated in by the shareholders, or by both of these, as decided by the members at a meeting. ART. 29. In case of dissolution of the association, the members at a meeting shall appoint one or more of the members as receivers. The manager and the directors may undertake this office. The receivers shall have the legal and other authority of the association during the period of dissolution and shall proceed with all their acts in accordance with the law and the authority or instructions received from the members at a meeting. In addition to the receivers appointed by the members at a meeting, the President of Ecuador shall appoint another one who must be a producer of CACAO, PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 509 FINAL ARTICLE. Art. 30. The constitution of the association approved by the Government in decree No. 457 of August 19, 1912, is hereby annulled and the present constitution substituted therefor. . S. DURAN BALLEN, President of the Board of Directors. H. MOLLER, Vice President. JUAN ILLINGWORTH, - RIcoBERTO SANCHEZ BRUNO, Leonarpo C. STAGG, Jost ANTONIO ICAZA, JosE GABRIEL PENA, R6MUL0 ARzUBE CORDERO, ENRIQUE BAQUERIZO MORENO, Principal Directors. GUAYAQUIL, January 18, 1918. (No. 64.) THE PRESIDENT oF THE REPUBLIC, Having considered the constitution of the “Association of Planters of Ecuador” made in the city of Guayaquil on January 18, 1913, and taking into consideration the provisions of article 537 of the civil code, Resolved, That said constitution be approved with the following change: The last part of article 4 shall read “50 sucres” instead of “500 sucres.” NATIONAL PALACE, Quito, January 25, 1913. (Signature of the President.) Luis N. Dmionw, The Secretary of Public Instruction and Agriculture. Junio BE. MogENO, | The Assistant Secretary of Public Instruction, ete, A true copy. CONTRACT OF THE ERMAN Tan SYNDICATE WITH AMERICAN A copy of the contract made in March, 1911, by the German Potash Syndicate with the several American concerns importing potash to be used for fertilizer purposes is given below: Whereas the syndicate is a corporation organized under and pursuant to the laws of the German Empire for the purpose of acquiring and disposing of the products of the potash mines comprising said syndicate or identified with it, which number of mines at present represent 73 of the 75 mines now existing and in operation within the German Empire; and Whereas the syndicate, pursuant to the power and authority vested in it by the laws of the German Empire, its certificate of incorporation, and the by-laws made pursuant thereto, has made and established certain rules and regulations for the conduct of its business and has promulgated and affixed a schedule of prices for the products of said syndicate mines and the terms and conditions opon which the products may be purchased, classified its customers, fixed a scale of tonnage and the prices and discounts thereon; and Whereas the buyer is engaged in the business of manufacturing fertilizers and distributing same within the United States of America and can only purchase and acquire the potash required by the buyer in its manufacturing business and for the sale among its customers from the syndicate; and Whereas the buyer, in order to obtain its supplies and requirements of potash salts for use in its business as aforesaid, is compelled and required by the syndicate to agree to each and all the terms and conditions hereinafter set forth and contained as a condition prerequisite to obtaining the quantity of potash salts stated hereinafter in article 5 purchased by the buyer from the syndicate, which conditions and requirements the syndicate here affirms, Now, therefore, in consideration of the premises and the sum of one dollar ($1.00) to each in hand paid, receipt of which is hereby acknowledged, it is 510 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, hereby contracted, covenanted, and agreed by and between parties hereto in manner and forms as follows: (1) Gemeral.—The syndicate hereby contracts and agrees to sell and deliver to the buyer, and the buyer hereby contracts and agrees to take and purchase from the syndicate, its entire requirements of potash salts for the term, and at the prices hereinafter stated, subject, however, to the exceptions and limitations hereinafter set forth. (2) Term.—The term of this contract shall be from the date hereof to and including the thirty-first day of December, 1916. (8) €rades.—The syndicate will furnish and the buyer shall have the right to purchase and receive any of the grades hereinafter mentioned and in such amounts as the buyer may require. (4) Deliveries.—Deliveries of all potash shall be made by the syndicate free on board ship at any German, Dutch, Belgian, or French port, at the option of the syndicate. The title to the goods shall pass to the buyer and all interest and ownership of the syndicate therein shall cease whenever and as soon as the buyer has made payment to the syndicate against delivery of documents. (5) Quantities.—The buyer contracts, covenants, and agrees to purchase and take from the syndicate for shipment during each calendar year as a minimum the quantity of twenty thousand (20,000) tons K:0. If buyer fails to make such purchase or to take deliveries, or makes purchases from other parties, except as in this contract allowed, the syndicate may terminate this contract. (6) Prices.—The prices during the entire contract period shall be as follows: Muriate of potash, 80-85 per cent, basis 80 per cent, in bags of 200 Ibs. net weight eee eee $38. 05 Muriate of potash, min. 95 per cent, basis 80 per cent, in bags of 200 Ibs. net Welght co eee mmm meee OD. BD Muriate of potash, 98 per cent, basis 80 per cent, in bags of 200 lbs. net VR LIU iim iii iin im iim mm Sn A mi Si i cm mimi iis S00 Sulphate of potash, 90-95 per cent, basis 90 per cent, in bags of 200 lbs. net weight «oo eeeeee—— 46.30 Sulphate of potash, min. 96 per cent, basis 90 per cent, in bags of 200 he. net welght. oii ee ie mimes 304 BE Double manure salt, 48-53 per cent, basis 48 per cent, in bags of 200 lbs. net weight mmm. 24.45 (No charge for bags.) Manure salt, min, 20 per cent, K:O (in bulk) comma eee. 18.30 Hard salt, min. 16 per cent (inbulk) ____ eee __ 10.65 Kainit, min. 12.4 per cent, K.O (in bulk) eee __ 8.25 per two thousand (2,000) pounds net weight; cost, freight, and insurance to Boston, New York, Philadelphia, Baltimore. Newport News, New Orleans, Galveston. Also cost, freight, and insurance to Norfolk, Wilmington, N. C., Charleston, Savannah, Brunswick, Fernandina, Jacksonville, Mobile, Pensacola, provided the syndicate ean arrange for full cargoes of at least 3,000 tons to said last named southern ports. A discount of one and one-half (13) per cent shall be allowed buyer for cash payments and deducted from the amount of each Invoice, exclusive of freight. The syndicate will allow and pay buyer a further discount at the rate of thirteen and one-half (13%) per cent on concentrated salts (muriate of potash, sulphate of potash, and double manure salt) and a discount of fourteen (14) per cent on crude salts (manure salt, twenty (20) per cent, hard salt, and kainit) to be deducted from the face amount of all invoices (including freight and cash discount) for shipment during each calendar half year. One-half of such discount, together with the cash discount hereinbefore provided for, shall be deducted from the amount of invoice covering each shipment, and the balance of said discount shall be paid the buyer by the syndicate at the end of each half year; provided, however, that the buyer shall deliver to the syndicate or its United States representative a statement in. writing setting forth the faet that the buyer has purchased its entire requirements of potash salts during the said calendar half year from the syndicate, or from other exclusive fertilizer syndicate potash buyers (except as hereinafter limited or restricted), and the delivery of such statement in writing is hereby made an express condition to the right of the buyer to receive the balance of said discount hereinbefore mentioned ; and provided further, that the buyer shall have ordered and has been ready to receive shipment of potash salts at the rate of twenty thousand (20,000) tons KiO per year from the syndicate. PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 511 From and after January 1, 1914, the syndicate shall have the right to increase the prices set. forth in article 6 by not exceeding three (8) per cent, calculated on the net prices free on board cars at mines. From and after January 1, 1916, the syndicate shall also have the right to increase said prices by a further or additional three (3) per cent, to be likewise calculated on the net prices free on board cars at mines. In case, however, the syndicate shall avail itself of the right to increase prices at either of the times hereinbefore mentioned, then and in that event the syndicate shall give the buyer notice of its intention to make such increase at least three months prior to the respective dates hereinbefore mentioned, and on receiving such notice the buyer shall nave the right at any time within two months after such notice has been received to cancel this contract from and after the end of the year in which the notice of such increase shall be given as aforesaid. (7) Protection.—In case the syndicate during the term of this contract shall sell to any purchaser of potash salts in the United States (Atlantic and Gulf ports) for fertilizer purposes any potash salts at lower prices than herein specified, or shall allow or pay to any such purchaser or purchasers higher discounts than those herein provided for, then and in such event the syndicate shall allow and pay to the buyer on account of purchases made by such buyer of potash for the time during which such lower prices or higher discounts shall have been allowed or paid, the same lower prices or higher discounts so allowed or paid to such other purchaser or purchasers from the syndicate; provided, however, that this provision shall not apply to shipments which may hereafter be made by the syndicate under or pursuant to the existing contract made by Rudolf Bielemann, acting for Westeregeln and certain other mines, which said contract expires on the thirty-first day of December, 1911, and which the syndicate has taken over and acquired and has obligated itself to perform according to the terms thereof, (8) Weights and analyses.—Certificates of weights (for crude salts only) and certificates of analyses shall accompany bills of lading. In case any lot of the manure salt, hard salt, or kainit shall test by above-mentioned analyses pelow said minimum guarantee, the syndicate shall allow for such deficiency at the rate of seventy-five (75) cents for each one (1) per cent of actual potash in two thousand (2,000) pounds. by which such manure salts, hard salts, or kainit shall test below the said minimum guarantee any fraction in the same ratio or proportion. If the buyer shall, at any time, with good reason claim that an error in weight or in analysis has been made, the syndicate agrees to give the matter its prompt attention and proper consideration and to adjust the same without unreasonable delay. The syndicate agrees that the buyer shall have the privilege of maintaining at its own expense a representative in Germany to assist in all weighing and sampling. (9) Payments.—Payments for each shipment shall he made by the buyer in cash, before sailing, through a bank or banker in Berlin or Hamburg, Germany, to be approved by the syndicate in exchange for the documents—to wit, syndicate’s invoice, consular invoice, certificate of insurance, certificate of analysis, certificate of weights (for crude salts only), bills of lading and charter party if any. The amount of the invoice shall be converted into marks at the rate of exchange ruling at the date of payment. To facilitate prompt payment as herein’ provided, the buyer shall give the syndicate at least five weeks in advance of shipment, confirmed letters of credit on banks or bankers in Hamburg or Berlin, Germany, to be approved py the syndicate to an amount at least equal to the amount of the invoice (less freight, cash discount, and other discount) of such shipment. (10) Freight.—The prices herein specified include freight to above-mentioned United States ports, but the freight will be deducted from the invoice and paid by the buyers on arrival and discharge at United States ports. The freight so deducted shall be converted from pound sterling into marks at the rate of M. 20.40 for £1 sterling. (11) Insurance—Insurance shall be on “ free-of-particular-average” terms. (12) Orders—Buyer shall order potash salts for shipment in eight approximately equal monthly quantities calculated in K.O during the months of May, June, July, August, September, October, November, and December, and shall, if possible, give shipping instructions to the syndicate at least six weeks in advance of the time of shipment. Buyer has the right also to order goods for shipment during January, February, March, and April. The syndicate shall be entitled to thirty days’ additional time for shipment, if it shall so require, 512 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Goods shall be ordered in quantities of not less than two hundred (200) tons of bulk goods and fifty (50) tons of bag goods to each shipment. (13) Enhancement.—The syndicate will every year during the term of this contract fix a “booking date” which shall be not earlier than the first day of April in any year. On or before the date so fixed buyer shall deliver to the syndicate or its representative in the United States a detailed statement of its requirements of potash salts during that calendar year, together with a detailed statement of the various grades of potash salts herein specified and the quantities of each grade buyer so requires, which detailed statement shall include in the aggregate a quantity of K,;0, which shall at least equal the minimum quantity agreed to be purchased by buyer. } In the event of the failure of buyer so to deliver to syndicate such detailed statement of its requirements on or before the * booking date ” so fixed, then the base price to buyer of potash salts shall be increased by fifty (50) cents per two thousand (2,000) pounds for concentrated salts (base muriate of potash BO per cent, sulphate of potash 90 per cent and double manure salt 48 per cent), and twenty (20) cents per two thousand (2,000) pounds for all crude salts, anything herein contained to the contrary notwithstanding: Provided, however, fhat if buyer shall have delivered a detailed statement of its requirements, as aforesaid, on or before said * booking date ” it shall have the right to order and purchase an additional quantity of potash salts not exceeding 80 per cent of the quantity specified in said original detailed statement by delivering to syndicate, or its United States representative, on or before the following 31st day of July, a further detailed statement of its additional requirements, specifying in detail the various grades and quantities of each grade constituting such additional requirement, and without enhancement of price; but if such additional detailed statement of such additional, requirements shall not have beer so delivered on or before said 31st day of July, then the base price thereof shall be enhanced as aforesaid. (14) Interruption of navigation.—If, owing to interruption of navigation to potash-carrying vessels, syndicate should be unable to ship potash salts from the mines by water and should be obliged to ship the same by rail from the mines to the seaports, buyer agrees to pay the difference between water and rail freight for all salts which the syndicate shall be so obliged to ship by rail. If, however, such interruption of navigation should occur in summer, buyer has the option either to pay the said difference or to defer the shipment of potash salts theretofore ordered by buyer until the resumption of navigation, provided notice of desire to so defer shipment shall have been received by syndicate before the potash salts so ordered shall have been actually loaded on cars at the mine, ] Notice of interruption of navigation is to be given by syndicate to buyer as early as possible, (15) Strikes.—In case of war. revolution, strikes, accidents, epidemics, or any other contingencies beyond the control of the syndicate happening to such number of the mines or works represented by the syndicate as shall render it Impossible to produce or ship all or any part of such goods referred to herein, or in case the production or shipment of all or any part of such goods shall be prevented or delayed, the syndicate shall have the right either to cancel this contract with reference to the shipments which may be so affected or to make the shipments after the said impediments and contingencies shall have been removed ; in such case shipments sHall not have been delayed more than thirty days after the time when such shipments should have been made under terms of this contract; as to shipments for the months of October, November and December, buyers agree to accept a delayed shipment if made prior to January 31st following. If the syndicate is unable to deliver the goods at the time, and in the manner in said contract provided, said buyer shall have the right to pur. chase the same in open market in amounts or quantities which have not been delivered by the syndicate. In case of war, rebellions, strikes, accidents, epidemics, or in case of any contingencies happening to such number of factories owned and operated by the buyer or its branches that the operation thereof shall be interfered with or interrupted in such manner as to prevent the buyer from using in substantial and material quantities the merchandise covered by this agreement, the buyer has the right to cancel such portion of this contract as may be effected thereby by giving proof by affidavit executed by the president or one of the officers of the buyer, setting forth the existence of the impediments preventing the using of said goods; provided said goods shall not have been shipped or vessels to carry the same shall not have been chartered prior to PRICE ANI: EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 513 notice being given to the syndicate or its representatives in the United States vf the existence of such impediments. (16) United States taxes or duties.—The buyers hereby assume and agree to pay any tax or duty which may be imposed or assessed by the United States Government and any war insurance risk affecting deliveries under this contract. (17) Discharge of goods—Buyer shall receive potash salts in northern ports as soon and as fast as vessel is ready to dicharge and in southern ports at the rate of not less than three hundred (300) tons of 2,240 lbs. per day, Sundays and holidays excepted and weather permitting. On shipments to southern ports the syndicate agrees to stipulate in charterparties that the steamer shall discharge at two (2) wharves, provided there is a sufficient depth of water at such wharves. Buyers guarantee, however, only 19% feet of water at Wilmington, N. C., and only twenty (20) feet of water at Mobile, Ala. The syndicate, whenever possible, shall also stipulate in charter-parties for discharge at a third wharf, but in such case the buyers shall pay the expense of removal of the steamer from the second to the third wharf. (18) Protection.—If potash salts from potash mines should be offered for shipment to the United States, Atlantic or Gulf ports for fertilizer purposes at lower prices than those named in this contract after deduction of cash and other discounts, buyer shall be entitled to buy them. Buyer shall, however, immediately give notice with full particulars to the syndicate’s American representative. Syndicate shall then have the option within a reasonable time of either taking such purchase over for its own account or to allow buyer to keep said goods for itself, deducting a like amount of K:O from the quantity contracted for with the syndicate. In case, however, potash salt shall be furnished for fertilizer purposes within the United States during the existence of this contract, and at least three thousand (3,000) tons muriate or twelve thousand tons kainit and other grades of salts in the same proportion, or either or any of such grades shall be sold at prices lower than provided for in this contract after deduction of cash and other discounts as hereinbefore stated, and in case the buyer shall be unable to purchase and acquire the same as in this article set forth, then and in that event the syndicate agrees as follows: First. That it will protect the buyer against such reduced prices to the extent that it may legally do under the potash law applicable thereto, either by reducing prices to meet the cut in prices made as aforesaid, or the syndicate will deliver to the buyer the same proportion of the grade of salts sold at such cut prices which the entire purchases of the buyer shall bear to all the purchases from the syndicate made by fertilizer manufacturers in the United States under contracts similar to this agreement during the year in which such cut shall be made. In case, however, the syndicate shall be unable to reduce prices or deliver potash at such reduced prices as hereinbefore stated. then and in that event. Second. The purchaser shall have the right, on notice to the syndicate or its United States representative, to cancel and terminate so much of the contract as shall cover the grade of salt for which the price has been reduced as hereinbefore stated, and which reduction of prices the syndicate is unable to meet as above set forth, but in the event the buyer shall expect to cancel such portion of the contract then the syndicate shall have the right at its option, on notice to the buyer, to cancel and terminate the agreement with reference to any other salts covered by this agreement in whole or in part for the balance of the term fixed in this contract. (19) Scale of discounts.—The syndicate will give the discount mentioned in this contract only to actual manufacturers of fertilizers who shall buy at least twenty thousand (20,000) tons of K:0 annually. For smaller quantities discounts shall not be allowed in excess of the rates and on the basis of tonnage as follows: For at least 15,000 tons For at least 10,000 tons “or at least 5,000 tons For at least 1.000 tons K. 7941 ° —pT 2—16—— 29 “oncenrated salts. " Crude salts. Per cent. Per cend. 10 , 10° 7 | T £ i s ! 514 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. The syndicate will grant such discounts on the tonnage and in the amounts hereinbefore stated only to actual manufacturers of fertilizers, and in such cases only to such manufacturers as shall buy at least the tonnage set forth in the foregoing table. (20) Cuba and Porto Rico shipments—After January 1, 1912, the syndicate will ship such proportion of potash as the buyer may require to Cuba and Porto Rico on the terms and conditions hereinbefore referred to, but in case freight charges on such shipments shall exceed freight charges to Atlantic coast and Gulf ports the difference in freight shall be paid by the buyer. California requirements.—The potash required by the buyer in connection with the business conducted by it in the State of California and on the Pacific coast is excluded from this contract and is not subject to the restrictions in this contract contained. European shipments.—It is understood that the buyer’s purchases are for nse in the United States, Porto Rico, and the West India Islands, and the buyer will not reship the potash covered by this contract to any European or other foreign country. (21) Purchases for 1911,—All purchases and sales for 1911 shall be treated as made during the half year. Buyer shall notify the syndicate on or before August 15th, 1911, of its requirements, said date being fixed as the * booking date ”” so far as shipments for 1911 are concerned. } (22) Outstanding contracts.—It is understood that the buyer has heretofore entered into a contract with Flermann or Waldemar Schmidtmann for Gewerkschaft Sollstedt providing for the sale and purchase of twenty-five hundred metric tons K.O per year, and that the buyer, on receiving potash delivered or claimed to have been delivered under said contract, has protested to certain charges made in each invoice and claimed as a tax under section 26 of the German potash law, the buyer claiming that the seller was liable under said law for said tax and that the dispute regarding such liability has not yet been adjusted. The foregoing contract is made subject to the rights and obligations, if any such exist, under said contract so far as the provisions thereof shall bind. the buyer. The buyer states that it proposes to test either by arbitration or legal proceedings the question of the obligations under said contract. In case it shall be determined as a result of such proceeding that said contract is binding upon the buyer and not subject to cancellation, or that buyer is liable for the so-called tax or. in case the buyer’s liability, if such exist, either by legal proceedings or otherwise, shall not be disposed of, then and in that event the buyer shall be relieved from the obligation to take from the syndicate the gaid 2,500 tons covered by said contraet, or any part thereof, it being the intent hereof that the buyer shall not be obligated to take any part of the 2,500 tons from the syndicate provided the buyer shall be compelled to receive the same from Gewerkschaft Sollstedt under said agreement. The buyer covenants to use its best efforts to procure the cancellation or other termination of said contract and agrees that the syndicate shall be permitted to take such part in any proceeding that may be instituted to procure the cancellation or termination of said contract as the syndicate may desire. The syndicate further agrees to aid said buyer, so far as it may be able, in procuring the cancellation or termination of said contract. The buyer shall have the right to adjust or compromise its difficulties’ with Gewerkschaft Sollstedt in such manner as the buyer may deem advisable, but: the buyer shall not make any such adjustment or compromise on the basis of receiving deliveries from Gewerkschaft Sollstedt, except on two weeks’ notice to the syndicate that a binding offer, correct copy of which is to be given to the syndicate, has been made by Gewerkschaft Sollstedt and giving an opportunity to the syndicate within said time to take over or adjust said contract as hereinafter stated. If the buyer shall adjust or compromise such difficulties on such terms that the buyer shall continue to receive potash under said contract the buyer shall give the syndicate prompt notice, and the syndicate shall have the right thereafter, on notice to the buyer, to refuse to make further deliveries under this contract and to cancel and terminate the same. The syndicate at all times shall have the right to take over said contract (unless the same shall have been canceled or terminated) and if it shall acguire the same the syndicate shall have the right to compromise or adjust the said contract at its own expense in such manner and on such terms as the syndicate shall deem advisable; provided, however, that in case the syndicate shall take over, adjust, or compromise said contract the syndicate shall PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 515 furnish the buyer the same number of tons covered by said contract at the prices in the manner and on the terms 2s in this agreement stated; such deliveries to constitute a part of the potash agreed to be taken by the buyers as in this contract set forth. In case the buyer shall, as hereinbefore provided, receive deliveries on adjustment and compromise from Gewerkschaft Sollstedt the syndicate shall have the right to be released from all obligations under this contract as hereinbefore stated. If, however, the syndicate shall elect fo continue deliveries under this contract the syndicate’s right and obligation to deliver potash hereander shall apply and affect only the amount representing the difference between the quantity covered by said Gewerkschaft Sollstedt contract and the amount of potash covered by this agreement. } (23) Guaranties.—The syndicate declares that the foregoing contract and the provisions thereof are in compliance with the law of the Empire of Germany, and that said contract under said law is in all respects legal and binding. The undersigned buyer herewith declares that he has made this contract for himself and by reason of subcontracts with other fertilizer manufacturers. The names of these subcontractors are stated on the annexed sheet. The undersigned subcontractors guarantee herewith to the syndicate to take delivery of the quantity which will be seen from the copy of the subcontracts te be handed by the undersigned buyer to the syndicate’s New York representative and further guarantee to the undersigned buyer and the syndicate that each of them recognizes the terms of this contract in every respect with all rights and obligations and in such a way as if each subcontractor had independently made a direct contract with the syndicate, each for his tonnage, Buyer herewith concedes the right to each subcontractor as if they had each independently made a direct contract with the syndicate. In witness whereof the syndicate has caused these presents to be executed In its behalf by its managers, thereunto duly authorized, and the buyer has caused these presents to be executed in its behalf by its [representatives], thereunto duly authorized. the day and date first above mentioned. KALISYNDIEAT, G. m. b, H. W. ForTHMANN, ppa. KUNzE, Managers. presence of— Berlin. Executed and delivered in the MAXIMILLIAN KEMPNER, A. VoaEL, of New York. » EXHIBIT VI. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS AND COMBINATIONS. ‘17 EXHIBIT VL MISCELLANEOUS DATA CONCERNING FOREIGN CORPORA-TIONS AND COMBINATIONS. In answer to the inquiries of the commission, William J. Clark, of the General Electric Co., furnished highly valuable data concerning the interrelationship of German banks ot industrials and concernin; British investments in foreign countries. These data were compile] from official sources and were supplemented by Mr. Clark's own extensive information on these SS my Where the commission had later or more authentic information it revised Mr. Clark’s figures, and as they stand the data are believed to be substantially correct. The preparation of this material by Mr. Clark represents a great amount of work and the commission Yd appreciates his generous cooperation and assistance. INTERRELATIONSHIP OF GERMAN BANKS AND INDUSTRIALS. DIRECT CONNECTIONS OF THE LARGER GERMAN BANKS. TABLE X.—Direct connections of the larger German banks with the ** Direction’ (management) of other German corporations. [Prepared from Saling’s ¢ Borsen-Jahrbuch ”’ for 1914-15 by William J. Clark, of The General Electric Co., 30 Church Street, New York, N. Y.] REICHSBANK. CONNECTIONS OF IT8 ‘‘DIRECTION” WITH THE ‘DIRECTION’ OF OTHER CORPORATIONS. [Approximate capital, $63,600,000.] Other corporations. Bank fiir Handel und Industrie..... A. G. Kbrting's Elektricititswerke.. Deutsche Hypothekenbank A. G Bank des Berliner Kassen-Vereins.. ooo... Disconto-Gesellschaff...ee. - Concordia Spinnerei und Weberel.... ....cooeniiiiieran. - Tempelhofer Feld A. @. fiir Grundstiic x. © = = Bergmann-Elektricititswerke A. G.oeeuueaciienneienae-nnuen Hafengesollschaft Haidar Pasch@...ccueieinceeaconaacannanie.-Gesellschaft fiir elektrische Hoch- und Untergrundbahnen.... Deutsch-Ostafrikanische Gesellschaft. . ve Allgemeine Berliner Omnibus-A. ¢ Connection through— Dr. Johs. Kaempf, Paul Bernhard, Dr, Hugo Oppenheim. Paul Bernhard.............. Dr. Emil Hecker, Carl Fiirstenberg, Edmund Helfit, Max Richter. Dr. Emil Hecker, E. J. Meyer, Fritz Andreae, Carl TJoerger, Edmund Hellft, Dr. R. von Mendelssohn, Dr. Hugo Oppeneim, Ed. Arnbold, Karl Mommsen. Or. Emil Hecker, Dr. Louis Ravené, Dr. A. 8. Salomonsohn, E. Hardt. Dr. Emil Hecker... .cocez.-Dr. Emil Hecker, Dr. Karl Helfferich. Dr. Emil Hecker.cceeeeeseon Dr. Emi] Hecker...ccevee..... Dr. Emil Hecker...........| Dr. Emil Hecker, Edw. Woermann, Dr, Hugo Opjerhoin Dr. Emil Hecker, Dr. P von Schwabach. Approximate capitalization. $43. 000, 000 1, 800, 000 8’ 300. 000 2 590, 000 75, 000, 000 850, 000 5, 000, 000 22, 500, 000 5, 642, 000 37, 650, 000 2. 500, 000 4, 600, 000 710 520 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe X.—Direct connections of the larger German banks with the ‘* Direction’ (management) of other German corporations—Continued. REICHSBANK—Continued. Other corporations. Dstafrikanische Eisenbahngesellschaft ...ceccccnsccosas Anatolische Eisenbahn-Geselischaft..........ccvcvveiaciocsans Bank fiir Orientalische Eisenbahnen in Ziirich........c...... Betriebs-Gesellschaft der Orientalischen Eisenbahnen.....-... Saloniki-Monastir Eisenbahn.. SS — Deutsche Bank. - EERE S#chsische Bank zu Dresden.... Preussisché Central Bodenkredit-A. G.....-#Landbank” A. G. in Berlin. ooo. ceveeerr cnmmmenioicnanas Banca Commerciale Italians (Ital¥)..ceccecccacasssacacnsaseas Banca Generala Romana in Bukarest. Braunkohlen u, Briket-Industrie A. G......... J Hedwigshiitte (Coal Co.) British connections. . . 3ergwerksgesellschaft Hibernia....... .-Otavi Minen u. Eisenbahn Gesellschaft (virtually a foreign holding company. Rvbniker Steinkohlen Gewerkschaft.. Vereinigte Koenigs- u. Laurshiitte-A, GQ. fir Bergbau u. Hiittenbetrieb. Deutsche Erd6l A. G.ocenrenvencrn-r-Anglo-Continentale Guanowerke Vulcan: Werke... J Deutsch-Atlantische Telegraphen-Gesellschaft........aca.. .. Felten u. Guilleaume Carlswerk A. G.......cececaneeannencen Deutsche Waffen 11. Munitions Fabriken. cououcoo ooo oan. Dommitzscher Thonwerke A. G..e.v-secnceianiacncaacacnaan. Norddeutscher Lloyd in Bremen. . .. AQ. fiir Verkehrswesen Neu Guinea Compagnie. ..cecaes Tabak-Regie-Gesellschaft des Tiirkischen Reiches (Turkey).. “Nordstern’’ Lebens-Versicherungs A. G..... “Nordstern”” Unfall-, Hattpflicht u. Feuer-Versicherungs A. G Kamerun Eisenbahn-Gesellschaft, Berlin. ...ceecceeeaen-anen Luxemburger Bank (Internationale Bank in Luxemburg)... Deutsch-Luxemburgische Bergwerks-u. Hiitten A. G. in Bochum, (Felsenkirchener Bergwerks-A. G... Westlilische Eisen- und Drahtwerke A, G...c.. creecnecnene Rheinisch-Westfiilische Sprengstoff A. G.....evivnvoncnncenss Jeutsch-Niederkindische Telegraphengesellschaft...cecaee A. E. G. fiir Verzinkerei u. Eisen-Konstruktion.....veeeee.-. Deutsch-Asiatische Bank. Shanghai... RRR Vereinsbank in Hamburg. .......c.veeemeee covenemnonen: Oberrheinische Eisenbahn-Gesellschaft A. G.... ... Dstdeutsche Eisenbahn-Gesellschaft. Keneh-Assouan Eisenbahn-Gesellschaft......ceaeenncenneen... Neue Boden-A. G........ccuucane- cvwve Mannesmannrohrenwerke. ... . Kod Berliner Hagel-Assicuranz-Gesellschaft.... Connection througsh— Dr. Emil Hecker, Carl Joerger, Dr. O. Braunfels. Ir. Emi] Hecker. .........-)r. Emil Hecker............ Jr. Emi] Hecker........... Ur, Emil Hecker........... Dr. Emil Hecker, F. von F Fuld. Dr. P. von 8chwabach, Dr, E.von Oppannsm, Dr. P. von wabach, Dr. A. Salomonsohn, Dr. P. von Schwabach, Engelbert Hardt. Dr. P. von Schwabach, Dr. John Keentl Dr. P. von Schwabach, Dr. A. Salomonsohn, Dr. P. von Schwabach..... Dr. P. von Schwabach..... Dr, P. von Schwabach, Car) Fimebt Dr. P. von Schwabach...... Dr. P. von Schwabach, Fritz von F. Fuld. Dr. P. von Schwabach..... Dr. P, von Schwabach...... Dr, P. von Schwabach..... Dr. P. von Schwabach, Carl Fiirstenberg. Dr. P. von Schwabach, Dr. E. von Oppenheim, Dr. P. von Schwabach, Carl Fiirstenberg. Dr. P. von Schwabach, Ed. Arnhold. . Dr. P. von Schwabach...... Dr. P. von Schwabach..... Dr. P. von Schwabach, Dr. A.Salomonsohn, Dr. Hugo Oppenheim, Dr. P. von Schwabach, Dr. Louis Ravené, Arnold von Biemens, Dr, A. Salomonsohn, Dr. Hugo Oppenheim. Dr. P. von Schwabach..... Dr. P. von Schwabach, F ‘W. von Krause, Dr. A. Salomonsohn. . Dr. P. von Schwabach, Dr. A. Salomonsohn, Dr. P. von Schwabach, Carl Flirstenburg, Dr. Emil von DD : Dr. Emil von Oppenheim, Dr. Louis Ravené. Dr. Emil von Oppenheim, Dr, A. S8alomonsohn. Dr. Emil von Oppenheim. . Dr, Emil von Oppenheim. . ur, Emil von Oppenheim.. Jr i] >» Of. r. Hugo DRS , Dr. Otto Braunfels, Dr. Hugo Oppenheim...... Dr. Hugo OPDOnRO, pr Dr. Hugo Oppenhein, Dr. A, Salomonsohn. Dr. Hugo Oppenheim, ..... Dr, Otto Braunfels......... Dr. Otto Braunfels, Arnold von Siemens. Dr. R. von Mendelsson, E. J. Mever Approximate capitalization. $26, 000, 000 28, 280, 000 18, 200, 000 11, 000, 000 16, 000, 000 62, 500, 000 9,500, 000 16, 000, 000 12, 500, 000 31, 250, 000 3.000, 000 4,856,000 1,500, 000 26, 000, 000 4,000, 000 4,600, 000 14, 500,000 7,675,000 1,250, 000 7,000, 000 12, 500, 000 22,000, 000 6.000, 000 250,000 56, 000, 000 4. 000. 000 2, 760, 000 10, 000, 000 5. 000, 000 1,650,000 4,000,000 5, 50, oo 30. 000. 000 1,000, 000 2,125, 000 1, 750, 000 (,000, 000 =’ 000. 000 9,000, 000 5,000, 000 1.125,000 13,500,000 11,000, 000 21,325,000 900, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 521 FaBLE X.—Direct connections of the larger German banks with the ** Direction” (management) of other German corporations—Continued. REICHSBANK—Continued. Other corporations. gerliner Hypothekenbank A. G................. - Stiddeutsche Boden-Creditbank in Mtinchen.................. Viirttembergische Bankanstalt (vormals Pflaum u. Cie.)..... Amsterdamsche Bank (Holland). .........c..ccvveeennces oo. stiddentsche Immobilien-Gesellschaft in Mainz= .e Tugo Schneider A. G.occeeiieiiinviiiiarennrseanaseannnnns 3ank fiir Deutsche Eisenbahnwerthe.... POP 3erliner Handels-Gesellschaft. sms ws 3ismarckhiitte.............. wa p——— Jarpener Bergbau-A. G............ ne Jberschlesische Eisen-Industrie............... rg By Rheinische Stahlwerke zu Duisburg-Meiderich _ _ Rombacher Hiltton Werke. ... .....cccuverrennercenceaseesanan. Schlesische Kohlen u. Kokes Werke....... -. Gewerkschaft Victoria in Liinen..... ........ FP Jandelsgesellschaft fiir Grundbesitz. ...cueveernrnunenrenennn. Elektrochemischewerke Ges. M. Db. H.....covveevenunn tenn. -.. Berlin-Anhaltische Maschinenbau-A. G... we Accumulatoren Fabrik. ............... may wn Allgemeine Elektricitits-Gesellschaft Bank {ir elekfrische Unternehmungen...... ....ceeerrn.-.... Berliner Elektricitétswerke...... . lektro-Treuhand A. G . Kraftiibertragungswerke Rheinfelden. . ....eueeueeeenercnn.... asanstalt-Betriebs-Gesellschaft............ we Aluminium Industrie A. G.... wwwer ww Deutscher Eisenhande] A. G.. LL Risenhiitte Silesia Fulius PIntSch A, Go. .venneeiiinnein, cee ieeceenannnen. Rhenania Vereinigte Emaillierwerke A. G.... Vereinigte Deutsche Nickelwerke A. G.......... Westfiilische Drahtindustrie.... A. BE. G. Schnellbeshn A Grosse Berliner Strassenbahn. .......o.ocvvieeninneeinnnnnnn. Zucker Raflinerie Tagrminie R. Meyers Sohn A. G..... “Phoenix,” A. GQ. fiir Bergbau u. Hiittenbetrieb..... ve Deutscher Lloyd Transport-Versicherunegs A. G. dllgemeine Deutsche Credit-Anstalt... A 3rasilianische Bank fiir Deutschland. a Deutsche Ansiedlungsbank............. ee cue. — Werschen-Weissenfelser Braunkohlen A. G........ wa Kaliwerke ESChOrsleben. ......cvvuenner are ennrnnensananannnn. Naptha-Productions-Gesellschaft Gebritder Nobel (Russia)... Freiherrlich von Tucher’sche Brauerei. ........ueeeeune... .. Vereinigte Koln-Rottweiler Pulverfabriken Deutsch-Ueberseeische Elektricitits-Gesellschatt... .. ._.. ... Ludwig Loewe & Co., A. G...... ws Preussische Pfandbrief Bank zu Berlin..................v..... Kattowitzer A. G, fiir Berghau u. Eisenhiitten Betrieb. . . .. . A. G. Mix u. Genest, Telephon u. Telegraphen-Werke....... ... Bergisch-Mirkische Industrie GesellSChAt. uu. oo vuuue.nne.. oes Preussische Lebens-Versicherungs A. G. ra Schantung-Eisenbahn-Gesellschait. _ The Southwest Africa Co. (Ltd.) (British company)........... Siemans-Halske A. G Siemens-Schuckertwerke. ..... ......... SREY Stahlwerke Rich, Lindenberg-A. G... RRS OR Jewerkschaft Ludwig IT Stassfurt.....e..... Sk i mn, Berliner Weissbier Brauerei A. G...eeeunnoeennennneeunonnonn, Vereinigte Chemische Fabriken zu Leopoldshall A. G Connection through— ’r Johs. Kaempf......c... 1. Johs. Kaempf....... .. r. Johs, Kaempf... .... ... r. Johs. Kaempf...... .. *, Johs. Kaempf........ .. *. Johs. Kaempf..... .. “{irstenberg. ‘lirstenberg. “irstenberg. ws Mirstenberg. —-Flirstenberg.............. u. Fiirstenberg, Dr. A. “alomonsohn. Fiirstenberg. vac Flrstenberg. we “iirstenberg......ceeee au. Jurstenberg.... we Mrstenberg...o.ooee.... ‘iirstenberg, Ed. Arnbold Tiirstenberg............. J. Fiirstenberg, F. von F, Fuld, Ed. Arnhold, Dr. A, Sg]omonsohn, 3. Furstenberg, Carl Joerger. . Fiirstenberg............. C. Fiirstenberg, Carl Mommsen. C. Fiirstenberg, Carl Joerger. C. Fiurstenberg..... .. .. C. Fiirstenberg............. C. Fiirstenberg, Dr. Louis Ravené, Dr. A. Salomon: sohn. C._Fiirstenberg, Dr. Louis Ravens. C. Fiirstenberg... 2. Fiirstenberg.... 3. Fiirstenberg..... J. Fiirstenberg.............. C. i! Ed. Amhold, Dr. A. Salomonsohn, C. Firstenberg, Ed. Arnhold C. Furstenberg... . Engelbert Hardt............ Engelbert Hardt *. von F. Fuld. Dr... Salomonsohn......... ir, ‘alomonsohn, ....... 'r, Nalomonsohn........ " ‘alomonsohn. ....... -alomonsohn........ i 3alomonsohn........ +. 3alomonsohn........ Jr. A. Salomonsohn, Dr. E. F. von Oppenheim, Dr. A. Salomonsohn. ...... Dr. A. Salomonsohn, Ed. _ Arnhold. A. K. G. von Donhofl...... A. K. G. von Donhoft, G, F. H. von T. Winckler, Dr. Louis Ravené. A. K. G. von Donbofl....... A. K. G. von Donhoff....... A. K. G. von Donhofl...... A. K. G. von Donhoff, Ed. Arnhold. Dr. Otto Braunfels. Edw, Woermann........... A. von Siemens, Carl Mommsen. A. von Siemens............. Carl Joerger......ccceeneen.. Carl Joerger.....ceaeoncae.-Carl Joerger...ueceeernenses “arl Joerger Approximate capitalization, $5, 675, 000 6,750, 000 2,500,000 3,000,000 5,000,000 3,000, 000 1,500,000 36, 500,000 7,50, 000 31,000,000 10, 000,000 16.000. 000 24,000, 000 3/000, 000 000,000 3,000, 000 1,500,000 1,000, 000 6,000,000 05’ 000° 000 34,000,000 12,000,000 t2°500° 000 3, 800,000 3,500,000 3,000,000 3.000000 4, 000.000 8,800, 000 1,125,000 2,500,000 3,750,000 10. 625. 000 54, 000, 000 5,500,000 50,000, 000 1.200. 000 39,000, 000 5,300,000 2,000,000 1,438,000 4,000,000 35,585, 000 2,000,000 8,500,000 87,000, 000 7,000,000 13,500,000 15.775. 000 2,500,000 1,700, 000 900,000 17.000. 000 8,750,000 31,000,000 30,000,000 1,400,000 1,400,000 425.000 2.000. 000 522 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, TaBLE X.—Direct connections of the larger German banks with the *‘ Direction (management) of other German corporations—Continued. REICHSBANK—Continued. Other corporations. Archimedes’ A. G. fiir Stahl- u. Eisen-Industrie........... Ammendorfer Papierfabrik.......... I Schlesische Elektricitdts- u. Gas A. G.... hdd Deutsche Wasserwerke A. G...... sees Crollwitzer Aktien-Papierfabrik.... ue .e Berlinische LAY iho ml THOS «in wignp msm: sm Braunkohlen u. Brikettwerke Roddergrube A. G............. Russische Eisenindustrie A. G. in Gleiwitz.... .ooeeo.. ... Bank ftir Brau-Industrie..... yan Nationalbank fiir Deutschland. ........ SEE Sa Diisseldorfer Eisenhiitten-Gesellschaft...... ep 3auland Seestrasse-Nordpark, A. G... en A. G. fiir Beton u, Moneirbau.... ae Deutsche Bierbrauverei A. G................_. an Deutsche Linoleum u. Wachstuch Compagnie..... — Poppe ut. Wirth, A, Geonerreniiiiiieinriiireiannaceananancanas Kollmar u. Jourdan, A. G. (Uhrkettenfabrik in Pforzheim).... Mechinische Weberei............... sure ilektricitidts-Lieferungs-Gesellschaft... Wh, SERN REY Leonhard Tietz A. G. {dong tmnt stores, trading concern)... Jeinrich August Schulte, Eisenhandlung, A. G....ccceauun.... Actien-Verein des Zoologischen Gartens zu Berlin........ ... Norddeutsche Grund-Credit Bank......- Le Preussische Hypotheken-Actien-Bank... La Litteldeutsche Creditbank.......... wo nternationale Baugesellscheft... ve filzische HI PO PR IB vagy rigs stun ue gtegprerenys ‘hemische Fabrik Griinau Landshoff & Mever A, G........... Jesterrzichische Sudbshn............._. EERE "Ha Jresdner Bank............... py. A. G. fiir Anilin Fabrikation.... an Westliche Berliner Vorortbahn. .....coveonieereiuiianrennnn... Tarkort’sche Bergwerke u. chemische Fabriken zu Schv~'m.. rllgemeine Hiuserbau-A. G.in Berlin...............coeuuua.. Cerraingesellschaft am Neuen Botanischen Garten A. G..... 3erliner Bierbrauerei A. G. vorm. F, W, Hilsebein .......... Joehmisches Brauhaus A. G..ovvnennnnnnannan., ws Jhemische Fabrik Auf Actien (vorm. E. Schering)..... --... Verein chemischer Fabriken A. G. in Zeitz..........cveeu.... Norddeutsche Gummi- u. Guttapercha-Waren-Fabrik....... Berliner Wischefabrik A. G. vormals Gebr. Ritter.. eer Admiralsgarten-Bad in Berlin....... gerlin-Neuroder Kunstanstalten.......... —— Allgemeine Deutsche Kleinbahn-Ges., A. Gu.eeeurveneen Braunkohlenwerke Leonhard A. G...... Jrenstein & Boppel-_ fotki Koppel A. G...... Elektrische Licht-u. Kraftanlagen A. G... “Siemens” elektrische Betriebe A. G...ccene...... Deutsche Efisenbahn-Betriebs-Gesellschaft in Berlin. ....... .. i Wald Eisenbahn-Gesellschaft zu Giitersloh...... Deutsche National bank, Kommanditgesellschaft auf Aktién... Hamburg-Amerikanische Packetfahrt A. G.. . Total....-Reichsbank. .. Grand total. ..eocee-Connection through— Approximate apitalization, Carl Joerger.......-or) JOOrEer. sansa Carl Joerger, Fritz Andras... carl Joerger...eaesnze.. Carl Joerger.. - Carl Joerger....... wo F.von F. Fuld............. FF. von F. Fuld, K. Fiirstenberg. Fritz Andreae..... --Pritz Andreae.....ceeeer -. ritz Andreae.....ece. ... ‘ritz Andreae....ecerenr ... “ritz Andreas....cceeeeae... Tritz ANAreas..c...veeunqe--ritz Andreas.......cccu.... ritz Andreae...evaeeee. .. ritz Andreae..eceeacennn.. citz Andreae..ceeeceen.... ritz Andreae....caaeeen... citz Andreae....ceeeeeen.., or. Louis Ravend.......... or. L. Ravené...... .. .... tJ. Meyer... oe LI. Meyer. .....coeeuao.n. i. I. Meyer, Carl Momms-n ee MOYO can nvemwnnn we i, +, Meyer | on "ot OT rue ake nh # do MOYOY. « yusunswanunvany +4 Amahole.: EN d. Arnhold va id Arnhold.... om vax Richter . Max Richter ve Max Richter... .. ..... fax Richter.. ............. Jax Richter we vax Richter ww aw Max Richter. ceeeenrenne.ns fax Richter. ....... .. Max Richter . Max “ichter.. Jax .ichter... ‘av Lichter... Jar’ ‘ommsen.... ...--Jar’ TOMINSeN....ceeeceu.es ar’ OMMSEN..cvanee-- ox =r ‘ommsen..... . “ ‘ONSEN. cuuanaae.aen. Jommsen...cceeeeennn. « Schrade....oevaees sues . L. 8chrade.... $1,200, 000 i, 100,000 3,400, 000 1,500,000 850,000 900,000 7,000,000 3 862° 000 2,750,000 26, 400,000 500,000 450,000 1,400,000 1,500, 000 2,200, 000 L, 300, 000 1, 600, 000 950, 000 5, 000, 000 9, 000, 000 900, 000 1,500, 000 2,100,000 20, 000, 000 17,250, 000 2, 500, 000 10,000, 000 900, 000 (40, 000, 000 83, 000, 000 3, 000, 000 i900, 000 2.300, 000 500, 000 900, 000 R00, 000 1,600, 000 2,500, 000 1, 500, 000 450. 000 528, 000 1,688,000 500, 000 7,320, 000 3,000. 000 8, 000, 000 (4,200, 000 10, 500, 000 1, 500, 000 2,000, 000 3,000, 000 39. 000. 000 "573,388,000 63,600,000 To .12.636.088.000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 528 TABLE X.—Direct connections 9 2 larger German banks with the ‘‘ Direction’ (management) of other German corporations—Continued. DISCONTO-GESELLSCHAYFT, CONNECTION OF IT8 “DIRECTION” WITH THE “DIRECTION” OF OTHER CORPORATIONS. [Approximate capital, $75,000,000.] Approsiniia capitalization. Other corporations, Deutsche Hypothekenbank A. G.......---Bank des Berliner Kassen-Vereins.... Neu Guinea Compagnie..... Brlthaler Eisenbahn....cven.. Hiistener Gewerkschaft A. G. .... Maschinenfabrik und Mithienbauanstalt G. Luther, A, G. Deutscher Eisenhandel, A. G....coocvinnnnneanan. Heinrich Eh Schulte Eisenhandlung-A. G.... Deutsche Erdol-A, G..oocvvivennearnernnnnnnnn.. Deutsche Doha “Hansa”. A. G. filr Maschinenpapier-Fabrikation........... Forpwarke Franz Rasquin A. G, zu Miihlheim a. Neuwalzwerk A, Guuenieiiiicriiiiiiraerecnens Otavi Minen u. Eisenbahn Gesellschaft..... = ... The Southwest Africa Co. (Ltd.)... - Schantung-Eisenbahn Gesellschaft...ccecececeans LONANANK + vv cv vim sunen sans pansm CE EE SCE LRH Phoenix, A. G. fiir Bergbau u. Hiittenbetrieb... Deutscher Lloyd hea. Qa. A. Schaaffhausenscher Bank-Verein A. G... Gelsenkirchener Bergwerks-A. G...eececocseces. Rheinisch-Westfiilische Sprengstoff A. G...ccee.. Vereinigte K8In-Rottweller Pulver-Fabriken.... Rheinisch-Westfilische Elektricititswerke A. (.. A. G. fiir Gas u, Elektricitit ....coeeuennnnn...... Wasserwerk fiir das Nordliche Westtilische Kohlenrevier., Deutsche Waflen- u. Munitions Fabriken........ Stahlwerk Oeking A. G.e..veeereerncnnnnnns. anon. * Nordstern’’ Lebens Versicherungs A. G......... Oberrheinische Eisenbahn Gesellschaft A. G...... Concordia Spinnerei u. Weberei, . - tee Vulcanwerke Hamburg u. Stettin..s..eeeueee.... Allgemeine Elektricitits-Gesellschaft.... Elektro Treuhand A. G.u.cveererounnecnnnnnn Hamburg-Amerikanische Packetiabrt A. G...... Norddeutsche Versicherungs-Gesellschaft......... Allgemeine Deutsche Credit-Anstalt.. ecu. ... Fritz Schulz jun. A. G...c.ooviniiennnnninannn.... A. G. Brown Boveri & Cie. in Baden, Schweiz... Parzellanfabrik Kahle Connection through— Jr. E. Hecker, Dr. G. Strupp Dr. E. Hecker, H. Waller... Dr. W. Schlauch, A. 8. von Oppenheim, A, Lent, Dr. O. von Hentig, Dr. L. Ravené, Dr. W. Schlauch, A. 8. von Oppenheim, Dr. R. Fuss, T. Ilinsberg, H. Mathies, Dr. R. Fuss. J. Holter..... Dr. R. Fuss, I. Ravené.... Dr. L. Ravené, H. Mathies, R. F. Ullner..oeea--- Le Dr. F, Boner....... 3. Wiss. ... P. Brand? P. Brandi.......... Dr. 2, D. Fischer.......... Dr. P. D. Fischer, I. B. Schroder. Dr. P, D. Fischer, J. Holter, A. 8. von Oppenheim, Dr. QO. von Hentig. E.Hardf.....coveeveen..... E. Hardt, L. Hagen, W. Beukenberg, A. S. von Oppenheim, R. Esser, H. Hartung, G. von Langen. B. Hardt. comms or ersann E. Kirdorf, 0. Ulricht, A. 8. von nr H. Harsung, A, Rallen, ta Hagen, Dr. M. J. Schréder, R, Esser, W. Benkenberg, W. Hoesch, P. Klockner, G. von Langen. E. Kirdorf, R. Esser, A. Salomonsohn , H. Mathies E. Kirdorf, L. Hagen, J. Holter. &. Kirdorf, G. von Langen, L. Hagen, R. Esser. E. Kirdorf Lo E. Kirdor ©. Kirdor %. Kirdorf, L. Hagen.. “, Kirdorf .. Kirdor 3. Kirdor..eueereecnseesen. Jr. E. Hecker, Frederick ay. A Ballin. wuaqeps covevsnena * . Ballin, L. Hagen, A, 8. ron Oppenheim, A. BalliDeseenonenenneinnn.. A. Ballin, H, F. von Oppenheim, ¥. von Schroeder A. BalliD.usoneroenoneannnn J. Favreau, Dr. Q. Strupp, P, Jay. I. FavIeal. c.eeuaeeennnr or Ls RR Favreau, Dr. G. Strun Also Not shown in | shown in ronnections/connections of Reichs- | of Reichsbank. bank. $9, 500, 000 2, 590, 00C 2 750. 000 or wan $1, 565, 000 1,900,000 1,335,000 8,000,000 i2. 500, 600 3, 800, 000 420° 000 1,000. 00C 11.980 00C 4,000, 000 8,750, 000 17, 000, 000 6888. 000 3,000, 000 30, 000, 000 1, 500, 000 12.500. 000 20, 000, 000 2.625, 000 8. 500. 000 PEO BOOBDOOS 20, 000, 000 4.100, 000 8. 680. 000 5,000, 000 5,000, 00¢ 4,000, 0C 850, (WV 1,000, 0X 35. 000, OV 13, 200, 000 “69.000, 000 5,000, 000 1,850, 000 10, 000, 000 2, 500, 000 30.000. 000 reacaceusae 524 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe X.—Direct connections of the larger German banks with the *‘ Direction’ (management) of other German corporations—Continued. DISCONTO-GESELLSCHAFT—Continued. Approximate capitalization, Other corporations, Deutscher Eisenhandel, A, G.ceeciocnnnconeer ae Aussig Teplitzer Eisenbahn.. - Sichsische Bank zu Dresden euuv-ae v0 or ae. Deutsche Grunderedit Bank ......ueceeecvaceaa.. Landkraftwerke Leipzig A. G. in Kulkwitz....... Jrosse Leipziger Strassenbahn........ccvvescarse. Preussische Central-Bodenkredit A. G.occveennan Deutsch-Asiatische Bank........-.. Eschweiler Bergwerks-Verein... - Gussstahl-Werk Witten... Harpener Bergbau A, G....ccooeoiiiiinnecnannns Rheinische A. G. fiir Braunkohlenbergbau u. Brikettfabrikation—Céln. Werschen Weissenfelser Braunkohlen-A., G....... A. G. fiir Elektricitits-Anlagen...cec.evcececoases Elektrische Licht. u. Kraftanlagen—A., go Felten u. Guilleaume Cariswerk A. G.... ian Deutsche Le ew in toecl tame. of Deutsch-Ostafrikanische Gesellschaft............. ESisoe Fouer-Versicherungs-Gesellschaft-Coonia. Concordia, Colnische L eb en s-Versicherungs-Gesellschaft. Kdlnische Hagel-Versicherungs-Gesellschaft....... K6Inische Riickversicherungs-Gesellschaft..neeee.. Derrissh-Rasambingiscse Bergwerks- u, Hiitten Westdeutsche Bodenkroditanstalt.....cceeeeenses Barmer Bank-Verein—Hinsberg, Fischer & Co.. Basalt-Actient Gesellschaft Schenck u. Liebe-Harkort A. G ..ccceierinevnannes Vereinigte Deutsche Nickel-Werke A. Goenneenees Leonhard Tietz A. G.ceerennrcrasrcncosrrasncann Rheinisch-Westfiilische Boden-Kraeditbank....... Siddeutsche Disconto-Gesellschaft A. G. in Mannheim. J. D. Riedel A. G. Berlin-Britz.......ccouuenen.. A.G. Mix & Genest Polen a. Tole apinneT Kattowitzer A. G. fiir Bergbau- u. Eisenhiittenbetrieb. ry Silesia......... we Aktién Verein des Zodlogist. sn ve Norddeutsche Grunderedit-Bank......c.c.ceecees.. Bank fiir Thiiringen (vorm. B. M, Strupp A. G. in Meiningen). Mitteldeutsche Creditbank.., - A. GQ. fiir Montan-Industrie... “Eintracht,” Braunkohlenwerke u. Briketfabrion. a. G. Johannes Jeserich.....cecesssvacesnece-3aline u. Soolbad Synge, “nr pe Vereinigte Thiiringische Salinen..... Porzellanfabrik Konigszeltees rove nan. Porzellanfabrik Sehénwald... Triphis A. Qu cuucnivsnopiipusngussningisspawssne H. Berthold Messinglinienfabrik un. Schriftgiesserei. Kammgarnspinnerei Wernshausen.... Connection through— I. FAVIeaU. sereeeerenonanne-. Favreau....... rr Tayeu.-HY nim mmnnmn 4. 8. von Oppenheim, B. Klitzing. A. 8. von Oppenheim....... A. 8. von OLIOTRSIR warp A. 8. von Oppeheim, R. Esser, T. Hinsberg. A. 8. von Oppenheim....... A. 8B, von Oppenbeim,..... A. 8. von Qppenheim....... A. 8. von Oppenheim...... A. 8. von i A. 8. von Oppenheim, L. Hagen, A. 8. von Oppenheim, L. Hagen. A. 8. von ay A. 8. von Oppenheim, A. von Langen. A. 8. von Oppenheim, G. von Longe A. 8. von Oppenheim...... A. 8. von Oppenheim, G. von Langen. A. 8. von Oppenheim, R. Esser. H, Mathies, W, Marx, J. Holter, Dr. L. Ravens, R. Esser. T. Hinsberg, R. von Vill ee, T. INES F. A. von der Heydt, W. Marx, T. Hinsberg....... T. Hinsberg.. I. HinSberg...ooeeeneaeienc BE. Lafenbey ‘W. Hoesche, L. Hagen, R, Esser, G. von Langen. BE. Ladenberg...--Jr. 0. von Hentig..euuen.. Dr, O. von Hentie. Dr. L. Ravend. Or. L. Raven. vn. ven... Dr. L. Ravend...ceeeec- «. Jr. G. StrupPececccsesccers Ir. G. Strupp. Dr. G. StrupPecceeecrencens. Dr. G. Strupp, Dr. F. Bamburger. Dr. G. StrudD.ecece- + ir. G. Strupp...... ir. G, Btrup™... 'r. G. Strup, .. nw. G. Strupsi «ee. T. Q. StIUPP.cecscancancea: ir. G. StrupDecc. cceecsees Dr. G. StruPPeces- CE Dr. G. Strupp.e..-Also Not shown in | shown in connections connections of Reichs- | of Reichsbank. bank. $8. 000, 000 1s, 750, 000 9, 500, 000 8, 000, 000 2,500, 000 3. 850. 000 {5.000.000 3.00.00, "13,000,000 2300’ 000 31, 000, 000 .{""137000, 000 4.800, 000 14, oc 3,000 "4, 260, 000 2,680, 000 785, 000 3,250,000 8, 250,000 2,250,000 2,500, 000 NT 2. 500, 000 i esssacevecs amma 56, 000, 000 RAE: Jae eR een 2,830,000 28,600, 000 460,000 *°§ 800,000 ,500, 000 9.000. 000 15, 000, 000 800, 000 2,100, 000 15. 775.000" 1,000, 00C 500, 000 2.100, 000 3.000, 000 17,250,000 :............ eeeet 1,200,000 3, 400, 000 “rm 720,000 745,000 863,000 715,000 408, 000 2,073, 000 1,360, 000 843. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 525 TaBLE X.—Direct connections of the larger German banks with the *“ Direction” (management) of other German corporations—Continued. DISCONTO-GESELLSCHAFT—Continued. Approximate capitalization, Other corporations, Westdeutsche Jute Spiqneret u. Weberei......... Vereinigte Eisenbahnbau- u. Betriebs-Gesellschaft. £. Wunderlich & Co., A. G....... Rea RE Cer Wiirttembergische Notenbank ......c.cceseesceces Deutsche Effecten- u. Wechsel-Bank.....ceceveee Magdeburger Bank-Verein .......c.cceveceennocns Maschinenfabrik Buckau, A. G. zu Magdeburg ... Kaliwerke Aschersleben........ccececercaaneceanan Deutsch-A tlantische Telegraphen-Gesellschaft Deutsch-Niederlindische oly Sos site Dorsal eiidamerfians ische Télegraphen-Gesallschaflt. Gesellschaft fiir elektrische Unternehmungen. .... Gebr. Bohler & Co., A. G...cvvevrenrnonncceanc oun Ludwig Loewe & Co., A, G.... I. Jrosse Berliner Strassenbahn.. —— Badische Lokal-Eisenbahn-A. G.......ceseenveee. Ostafrikanische Eisenbahn-Gesellschaft...ceeeae.. Westdeutsche Eisenbahn-Gesellshaft. ......ceusn. Frankfurter Allgemeine Versicherungs-A. G...... Th. Goldschmidt A. G. EsSen ...cceevuueeennnn... Diisseldorfer Eisenbahn-Bedarf (vorm. Carl Weyer & Co.). julius Pintsch A. G...c.ccevevnenne Hoffmanns Stirkefabriken-A. @.-Hasper Eisen 1. Stahlwerke. _. wrste Deutsche Fein-Jute-Garn-Spinnersf A. G... Rammgarn Spinnerei Diisseldorf vee Jermann Schott, A. G...... oe Jstbank fiir Handel u. Gewet'n.... IE Deutsche Lebens-Versicherungsbank ...eeeeeeen. Anglo Continentale Guanowerke .......c......... Hamburg - Siidamerikanische Dampfschiffahrts-Gesellschaft. Rheinische Stahlwerke su Duisburg Meiderich.... Riitgerswerke A. G ..... - Maschinenfabrik Baum ........... TT Farbwerke (vorm. Meister, Lucius & Briining)... Luxemburger Bank (Infernationale Bank in Luxemberg). Rheinisch-Nassauische Bergwerks u. Hiitten A. G. A. G. fiir Rheinisch-Westfalische Cement Industrie—Beckum. ~ Maschinenfabrik Grevenbroich......cveeeeenn.... Waggonfabrik-A. 8 ror: P. Herbrand & Cie.).. Maschinenbau-Anstalt ¢“ Humboldt” .....eeee... Faconeisen Walzwerk 1, Mannstaedt & Co. A. G. A. G. Mir Rheinisch-Westfilische Industrie. ..... Lothringer Hiitten-Verein Aumetz Friede... . Vereinigte Xoenigs- u. Laurahiitte A. G. fiir Bey y The Nobel Dynamite Trust Co. (Ltd.) eeeeeeenee Berlin-Anhaltische Maschinenbau A. G........... Deutsche Maschinenfabrik A. G. zu Duisburg... Kalker ny prkzeug Maschinen Fabrik Breuer Schumacher & Co. A. G. Orenstein & Koppel—Arthur Koppel—A. G..... Annaburger Stemgutfabrik A. G. . .... Has u. i Manufactur. Diirener Metallwerke A. G....... pr emem—— Vereinigte Metallwaarenfabriken A. G. (vorm. Haller & Co.). Mecklenburgische Bank....._ s——. we Carl Ernst & Co. A. Gouviveniiennenieenennnnns Risen 1, Stahlwerk Hoesch A. G. in Dortmund . Connection through— Also Not shown in | shown in ronnections connections of Reichs- | of Reichsbank, bank. Dr. G. 8trupp..eec.-Dr. G. SorupD.. $745, 000 1.936. 000 Dr. G. StIruPD.eceveeenrenen R. von Vellnagel..... re %. von Vellnagel....... -.. i. Folsche...... I, Folsche......... J. Hooter, A. Salomone: . 1. I. Hoeter, G. von Langen, L. Hagen, J. Hoeter, L.. Hagen ........ I. Hoeter, L. Hagen ......../ essscscnans 313,000 2, 680, 000 $, 300, 000 5, 000, 000 Ll. 398. 000 1,000, 000 12° 500.000 4, 750, 000 9. 000. 000 28,000, 000 5, 160, 000 ""4, 213.000 ‘5, 000, 000 8,000, 000 4,295,000 1, 430. 000 Hooter .......c....... . Hoeter, W, Marx... .. Toeter - - ‘oster wa 0BLOr cer. ieeninieneene]enninarenasan foster -7" TTIIITITITTII]"36 000, 000 "oete. Ulrick .. Tar N rr W. Marx... W. Wolde............. F. A. von der Heydt, kr. Kldckner. I. A. von der Heydt........ ®, A. von der Heydt.......-. A. von der Heydt....... . von Klitzing...ee........ "von Klitzing....eeee. ou. . von Ohlendorff..... ...: I. von Ohlandaor® SL 3,800,000 L, 500, 000 £135 000 390,000 856,000 00, 000 1,500,000 800, 000 10.140 000 4.950000 Jr. J. Hasslacher ceececsee.. Or. J. Hasslacher ....ee.. Jr. J. Hasslacher .......... X. von Weinberg.... R. Es=ar._ 18, 000, 000 7,100,000 1,070, 000 23, 500, 000 8.160, 000 2,945, 000 370, 000 550,000 1,150,000 9, 000, 000 2,895,000 460,000 2.300, 000 R. Esser. .eue---R_. Reon R. Esser, P, Klbckner ..... Be BESO. seuss ininsiivvans R. Esser, P. Klockner, W, Hoersch. R. Esser, P. Klockner, L. Hagen. R. ESSOr.ceeescesnanarana-L. Hagen, P, Kltckner, W. Hoesch, L. Hagen. .coavace. 14.500. 000 23, 400,000 "4,590, 000 980’ 000 es TIOEO0. uw snesvuvosini . Hagen, H. Hartung......: 4. 3:8gen ',, Har "4.000. 000 2 JiBEOD. ce eeiiiieeanan-« ;fagen, H. Hartung...... + Tagen. i Agen. .. Haca™ “esssscessne tenrseseanes L8, 000, 000 525, 000 1,200, 000 1,375, 000 886, 000 1,325,000 550,000 8.600’ 000 1. Hartung. .cveeeeesvenesas d. Hartung... .__..eeeee. WwW Hoesch 526 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TABLE X.—Direct connections of the larger German banks with the *‘ Direction’! (management) of other German corporations—Continued. DISCONTO-GESELLSCHAFT--Continued. Approximate capitalization. Other corporations. Gerb- 1. Farbstoffwerke H. Renner & Co ....... Mittelrheinische Bank in Coblenz................ Krefelder Stahlwerk A. G. in Fischeln bei Krefeld. Hochéfenwerk Liibeck A. Guenenvnnenncncennne.. Vereinigte Stahlwerke van der Zypen u. Wissener Eisenhiitten A. G. Gasmotoren Fabrik-Deutz .........ceecececceane: Schwelmer Eisenwerke—Miiller & Co. A. G...... Bergmann Elektricititswerke A, G c..cvveveraees Diisseldorfer Eisen- u. Draht-Industrie....ccca..-KdIn-Neuessener Bergwerks-Verein ........cec.e Continentale Gesellschaft fiir elektrische Unternehmungen. Elektricitats-A. G. (vorm. Schucket & Co.) ...... Mannesmannréhren Werke..eeew----vaeer---Privatbank zu Gotha . Total, .cuceuiwen-Reichsbank. Grand total. . Connection through— iv. Hoesen . >, Klockner ’, Klockner 2, Klockner 2 Kléckna 2, Kldckner, G. von Langen , Klockner... . Klockner . Klockner .. -.» von Langen . 3. von Langen . J. von Langen ....ceue---G.von Langen ... - —........ Db Schoeller.. Dr. E. Hecker, Dr. L. Ravend, Dr. A. Sslomonsohn, E. Hardt. Also Not shown in | shown in sonnections connections of Reichs- of Reichs bank. bank. cegrrsaen wren Ir 3,060,000 5,150,000 1,300,000 2,200, 000 8,150, 000 8,157,000 600,000 1,827,000 S. 3,360,000 10,045, 000 31,490,000 694, 259, 000 63, 600. 000 21. 325.000 781, 595, 000 emsmaal 781, 595,000 ° 757,859, 000 BANK FUR HANDEL UND INDUSTRIE. CONNECTION OF ITS ‘DIRECTION’ WITH THE ‘DIRECTION’’ OF OTHER CORPORATIONS. [Approximate capital, $48,000,000,] Reichsbank....... Bank des Berliner Kassen-Vereins...ccceeeoeneee Bdea-Atiiea Gesellschaft am Amtsgericht Pan-OW. Neue Boden A. G, in Berlin......cocereeeennans-Deutuisusamericantike Telegraphen-Gesellschaft, Mix u. Genest Tolopmons u. Telegraphenwerke.... Gebriider Stollwerk A. G..c.eeevnvnnaier- wie Berliner Hypothekenbank A. G.cceeeeeaceneccens Ostbank fiir Handel u. Gewerbe.....ceeeeereeeaes Deth-Lasermnreische Bergwerks u. Hiitten Bank fiir elektrische Unternehmungen. ....... ogee Continentale Wasserwerks-Gesellschaft.....cceeene Liibeck-Biichener Eisenbahn-Gesellschaft......... Filter- u. brautechnische Maschinenfabrik A, G. (vorm. L. A. Enzinger). Deutsche Lebens-Versicherungs-BanK. ce. Harpemer Bergbau, A. G.....- cemmreee ae Tisenhiittenwerk Thale A. G..cvezveevaenenre 1 Jorsigwalder Terrain-A. G. in Berlin.............. Brauerei Ernst Engelhardt nachf. A. G., Berlin.... Dstelbische Spritwerke A. Gees. vuvcenneaseacanns. Berlin-Gubener Hutfabrick A. G. (vorm. A. Cohn) Berliner Spediteur-Verein, A. G... enone Edward Lingel Schuhfabrik A G... . .. . A. G. Korting’s Elektricititswerke A, G...ees.... Bageriaos Celluloid-Waarenfabrik (vorm. Alb. ook) A. G. Relss & Martin A. G ..overcinnnirmenancnenanaan, Terrain-Aktiengesellschaft Miillerstrasse in Berlin. Stiddeutsche Immobilien Gesellschaft.......ceuea.. Gustav Genschow & CO. A. G.cunnnnnenivnnnnne. Malzbierbrauerei Groterjahn & Co. A. G. in Berlin. Dr. J. Toenp) Paul Bernhard, Dr. H. Oppentiim. \. Klitzing, Dr. H. Oppenheim. H. Marks, A. Rosen... H. Marks. ..cesseaca-H. Marke I. Marks... ---". Marks..... . VOI SimSON..eeoureuennns _. von Simson, M. Herz..... I. von Simeanr 3. von Simsor RARRRIREY 3. VON SiMSON.cveeenseninn *. von Simson . . Andreae, ir . Andreae, Jr., 8S. Boden-~imer. >odenheimer Jodenheime: . rodenheimer. ..evesscesnjodenheimer we wy odenheime -. ...... ... todenheimes, .cueeaee .odenheimer...-coee----.odenheime= %. Gutmann.. R. Gutmann... A, RoseN.coccaeennn. A. Rosen, J. Andreae, C. Parkis, br. 7, Kaempf, A. Rosen... ws A_Rebhf $2. 500, 000 11,000,000 9, 000, 000 2,000,000 "6,800,000 58. 000. 000 34, 000, 000 Cw nee. 31, 000, 000 rsesecarsec creuwas mene auwawal 1.800.000" ot ressavered $63,600, 000 1, 250, 000 "8,000,000 T7500. 000 "3, 800, 000 15, 000, 000 1,300, 000 800, 000 1100, 000 1,000, 000 1,250, 000 900,000 500, 000 (, 800,000 325,000 1, 200,000 900,000 300, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 527 TaBue X.—Direct connections of the larger German banks with the ** Direction’ (manages ment) of other German corporations—Continued. . BANK FUR HANDEL UND INDUSTRIE—Continued. Approximate capitalization. Other corporations. Berliner Hypothekenbank A. Gi. Siiddeutsche Boden-Creditbank NO Stembergische Bankanstalt (vorm. Pflaum & ie). Amsterdamsche Bank... Banca Commerciale Italiana. ........cootcecuenes Hugo Schneider, A. G., in a chemische Fabrik Griesheim-Elektron..eecce..... Felten u. Guilleaume Carlswerk A. G......cveeea. Elektricitits-A. G (vorm. W. Lahmeyer & Co.)... Adlerwerke (vorm. Heinr. Kleyer) A. Geeeeeneeen “Concordia,” Bergbat-A. G...ccueeerervnecceonsn Rheinisch-Westfilische Sprengstoff-A. Geeeerennns Niederrheinische Giiter-Assequrenz-A. G......... Vereinigte Berlin-Frankfurter Gummiwaaren Fabriken. : Norddeutsche Jute-Spinnerei u. Weberei..eeeoun.. Vereinigte K6In-Rottweiler Pulverfabriken....... Allgemeine Elektricitits-Gesellschaft.... I Deutsch-Atlantische Telegtaphen-Gesellschaft. .. Chimie Fabrik Gronaulandshoff u. Meyer, Westliche Berliner Vorortbahn.........cceqeuan. “nia Allgemeine Versicherungs-A. G. zu erlin, 3chantung-Eisenbahn-Gesellschaft..e.ceeao... Bank des Berliner Kassen-Vereins... wn Deutsch-Asiatische Bank....- iw Vereinsbank in Hamburg......... Aktiengesellschaft fiir Verkehrswesen.......eee... Deutsch-Ostafrikanische Gesellschaft... ........ Neu Guinea oT Ostafrikanische Eisenbahn-Gesellschaft........... Keneh Assouan Eisenbahn-Gesellschaft......va... Jitddeutsche Eisenbahn-Gesellschaft.ce.cueeu. ... Deutsche Hypothekenbank A. G.... Toe 3rauerei Gebr. Dietrich A. G.... ERR Jerm. Léhnert A. G... RRA 2osener Strassenbahn..,..... 3% ma Frankfurter Hypothekenbank.......... pes 2reussische Pfandbrief-Bank zu Berlin........... Farbwerke (vorm. Meister Lucius & Briining) in Hochst. ‘Silesia’ Neu-Oppelner Portland-Cementfabrik zu Oppeln. Deutsche Grundcredit Bani a Bismarckhiitte.,eueeuueeaa... oF Actiengesellschaft Eisenwerke Kratv............. Schlesische Actiengesellschaft fiir Bergbau und Zinkhiittenbetrieb. Vereinigte Koenigs- und Laurahiitte A. G. fir Bergbau u. Hiittenbetrieb. Oppelner Actien-Brauerei u, Presshefefabrik..... de a chemische Fabriken zu Leopoldshall ‘Union’’ Fabrik chemischer Producte zu Stettin ‘Archimedes’ A. G. fiir Stahl u. Eisen-Industrie Schlesische Dampfer Compagnie A.G. Brieger Stadtbrauerei A. G.-Total....-- _ Grand total... Connection through~— Also Not . shown in | shown in ronnectionsiconnections of Reichs- | of Reichsbank. bank. Jo KBembl. co unawpsmumunes Dr. J. Kaempf, J. Andreae, Dr. C. S. Polex. Dr. J. Kaempf, C. Parkis....! $6, 800, 00C 9, 250, 000 3,500, 000 9,000, 000 31, 250, 000 1, 800, 000 25000. 000 Dr. J. Kaempf, J. Andreae, C. Parkis. Dr.J. Kaempf...ceeareuan-n Dr. J. Keempf..cu.ccveeannnl Dr. C, 8. Polex, J. Andreae.. Dr. C. 8. Polex, T. Guilleaume, C. Parkis, Dr. C. 8. Polex, T. Guilleaume, C. Parkis. Jr. C. 8S. Polex.. roel Fd. CarPae.cueeeurenn.. eeeseseenr "d. Carp, T. Guilleaume....| 2,625,000 d. Carp... " sw "1. Rinke" "$8,000, 000 16,000,000 3,375,000 8,000, 000 "1,200,600 1,100, 000 1,650,000 I. Rinkel..... t'. Guilleaume. ....... ... I. Guilleaume, Dr. F. G. Brockdorf. I. Guillaume. . ....... Prof. J. Riesser 6,500, 00 95, 000, 00 12, 500, 000 900, 000 3, 250, 000 “oe Prof. J. Riesser.ce...--Prof. J. Riesser "17700, 000 rof. J. Riesser..c.caaes- a or. H. Oppenheim..... ... ir. I, Oppenheim.......... ‘r. H, Oppenheimn.......... 'r. 77, Oppenheim,......... T. Oppenheim..e.eenee.. 'r. Oppehneim.......... r. Oppenheim......... r. ..Oppenheim..... _.. “achstein..-2arkie... “arkiSeeeeeeneorz.... 1, derz...coveaiann. A. E. Schénberg............ ADArese....c.ccener cu... Dr. L. Gans... 17,000, 0 7,590, 00C 000, 000 1,000, 00C r, 150, 000 7,500, 000 2,750, 000 2%, 000, 000 13’ 500. 000 9.500. 00K: "7750, 000 3,500, 000 1, 250, 000 9, 500, 000 23, 500, 000 900, 000 6,000, 000 5, 500, 000 9.250 000 9.000. 000 Dr.T. Naess Or, F. G. Brockdorfl........ .c..c....... Dr. F. G. Brockdorff .......! 7,500,000 Dr. F. G. Brockdorff ......- . Dr. F. G. Brockdorff ...... we 14, 500, 000 Pr. F. &. Brockdorff ....... Dr. F. G. Brockdorff ...... Dr. ™. G. Brockdorf as 300,000 3,250, 000 "1,495,000 800, 000 231, 640, 000 83. 600. 000 3.000, 000 Jr, ». @. Brockdorff...... Ir. £. G. Brockdorff....... ir. ¥. G. Brockdorff ... yr. L.. Grunfeld. . 1.200. 000 Br. 1. Kaempf, P. Bernhasd Dr. H. Oppenheim. Af ARK (pY) 338, 455, 000 295, 240, 000 528 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TaBLE X.—Direct connections of the larger German banks with the ** Direction’ (snanagement) of other German corporations—Continued. NATIONAL BANK FUR DEUTSCHLAND. CONNECTION OF IT8 “DIRECTION” WITH TEE DIRECTION” OF OTHER CORPORATIONS, [Approximate capital, $26,400,000. ADEininate capitalization. Other corporations. Bank des Berliner Kassen-VereinsS..ceceeecsacreoar Norddeutsche Grund-Credit-Bank .--eecessees-Berliner Makler-Verein....oeeececeecevcasns onsen Datasets Bergwerks- u. Hiitten Hiittenwerke C. Wilh. Kayser u. Co. A. G. zu Berlin. Consolidirte Alkaliwerke. ess eerracreroncncoassons Gebriider Goedhart A. G. in Diisseldorf. ces sese-. Neue Boden A. Gueeenercarencrocacnnsoncnconenn: Stahnsdorfer Terrain-A. G. am Teltowkanal..... Tiefbau u. Kalteindustrie A. G. (vorm. Gebhard & Eo. Deutsch-Ueberseeische Elektricitits-Gesellschaft, Fesellschaft fiir elektrische Unternehmungen..... Kraftiibertragunswerke Rheinfelden....... .... H. Schonberg & Sohne A. G......cceonneceannnnn Leipziger Gummi-Waaren-Fabrik A. @Q. (vorm. J. Marx Heine & Co.). Deutsche Waffen- u. Munitionsfabriken.......... Ludwig Loewe & Cr ATlveTeine Deutsche Kleinbahn-Gesellschaf$ Grube Leopold bei Edderitz, A. G. in Edderitz.. Deutsch-Niederlindische Telegraphengesellschaft A.-G. Conn. Dalek Biisrericaniscie Telegraphen-Gesellschaft. Continentale Wasserwerk-Gesellschaft............ Eisengiesserei-A. G. (vorm. Keyling & Thomas).. Deutsch-Asiatische Bank. .....oecernaneasuocnnan Oberschlesische Eisen-Industrie A. G. fiir Bergbau & Hiittenbetrieb. 3chantung-Eisenbabn Gesellschaft... wa Alkali Ronnenberg A. G...eeeeceeanecinonaseannan i“ Handelsstidte’”” Bellealliance A. G. zu Berlin.... Sutin ARempasiischatt Miillerstrasse zu Berin. Union,” Baugesellschaft auf Actien...... Aktion Brauerei Friedrichshain. ................ A. G. vorm. H. Gladenbeck & Sohn Bildgiesserei Habermann & Guckes, A. G. in Kiel............. Jarl Lindstrom A. G. in Berlin. . a Deutsche Bierbrauersi-A. G...c.covuveececceeenas Preussische Pfandbrief Bank in Berlin............ Norddeutsche Credit-Anstalt......cccceveenni ae Oberschlesische Eisenbahn-Bedarfs-A, G......... Zechau-Kriebitzscher Kohlenwerke Gliickauf A.G. Terraingeselischaft am Neuen Botanischen Garten A. G. Berliner Bockbrauerei-A. G.. [inke-Hofmann-Werke Breslauer A. G.flir Eisenpahnwagen-Lokomotiv- u. Maschinenbau in Breslau. 3chlesische Elektricitiits- und Gas-A. G........... Breslauer Elektrische Strassenbahn........ Rositzer Zucker-Raffinerie.........c.ccocerennnn.. Frankfurter Allgemeine Versicherungs-Gesellschaft A, G. Kamerun-Eisenbahn. ..ceeeeneseaneaoenaacamense Vereinigte Stahlwerke van der Zypen und Wisse ner Eisenhiitten-A. G. Donnersmarckhiitte, Oberschlesische Eisen- u. Kohlenwerke A. G. Connection through— Also Not shown in | shown in connections ~onnections of Reichs- of Reichsbank. bank. J, Winterfeldt, F. Andreae. . agen. . Md Schiff, Gar *2,590, 000 2,100, 000 267000. 000 $1,250, 000 M. Schiff. Prof. H. Paasche. ave! 1,200,000 8,000, 000 2, 000, 000 '1, 700, 000 1.400, 000 Mf, Schiff, .--". Schift . . Schiff eeeennnnns. . Schiff, L, Born - ._ Qechift 11.000. 000 . Schiff, F. Andreae....... . Schiff . Schi: *. Schi: M. Schit. 57,000,000 "8.400.000 28,000, 000 "7430,000 400, 000 “en! 1 M. Schiff....cocveceeneraanne M. Schift, Dr. P. von Gontard. M. Schiffe.... = .eeeoeeees! 5,000, 000 7.000, 000 7.300, 000 f, Wittenberg... --..-. E. Wittenberg... v5 E. Wittenberg. ... awe) 1.750.000 2,000,000 9, 000, 000 T. Wittenberg.........« T. Yistonnary L. Born... I. Winterfeldt.....c.c....... TJ Winterfeldt.. .. .cccceeae +, 000, 03 10.000’ 00K 2, 800, 000 700, 000 T'. Marba, L.. Born..........' 17,000,000 T'. Marba......-I. Marbe T. Marba "8,000, 000 800, 000 1. 200 000 --T. Marba.eaeeececuee i*, Marbe '. Marba....-. Koch... Rw nnavmpgmeprns: '. Andreae, P. Koch........ ,Koch....ceeeannnanas pt Witting... avenennsnese . Witting, Dr. O. Niedt.. . Witting... 2 WT 1,700,000 1, 100, 000 300,000 800, 000 2 100. 000 SOO, | ag. 000. (¥ 6, 00,000 8,100, 000 2 950. 000 R. Witting, A. Philipsthal, L. Born. R. Wittingeeeaa« 1,900,000 7,100, 000 1. Witting, F. Andrese....." 8,750,000 I. WHINE cc sumpnansvnsss 2. Witting, Prof. H. Paasche R. Witting.... "1, 700, 000 2,000, 000 6.000, 000 R. WHHing.eiaveeeerenceeassl C. Scheibler.cecsvscssoc ase: reveeennend] 78,150,000 co vennses| 5,000,000 4, 000, 000 Dr. E. Holz....-- MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 529 TABLE X.—Direct connections of the larger German banks with the “Direction” (management) of other German corporations—Continued. NATIONAL BANK FUR DEUTSCHLAND—Continued. Approximate capitaliza~ tion. Other corporations. Westfiilische Stahlwerke......ccovecvaencen oun Chemische Fabrik Honningen u. vorm. Messingwerk Reineckendorf R. Seidel A. G. Honningen a. Rh. Eisenhiittenwerk Marienhiitte bei Kotzenau A.G Ungarische Lokaleisenbahnen A. G.eeeer--- ... Jelsenkirchener Bergwerks-A., G... ry Jussstahlwerk Witten......c.v.ceeeeeceennanan. Jewerkschaft Gliickauf zu Sondershausen..... G. Sauerbrey Maschinenfabrik-A. G............ Vereinigte Berlin-Frankfurter Gummiwaren Fabriken. I i Rm — Hermann Schott, A. G. zu Rheydt... ”. Bank fiir Brau-Industrie..........c.cccccavnameas Diisseldorfer Eisenhiitten-Gesellschaft.....caaee. Bauland Seestrasse-Nordpark A. G.....cceaeaea A. G. fiir Beton u. Monierban. ..........ceeeaess Bank fiir elektrische Unternehmungen.......... Zlektricitits-Lieferungs-Gesellschaft............ Deutsche Linoleum u. Wachstuch Compagnie. . Penpe ot WIrthA, Quo onsnninn swim vmenramvas Kollmar u. Jourdan A. @Q. (Uhrketten Fabrik in Piorepan, Mechanische Weberel..........ccccoaue - Leonhard Tietz A. G. (trading concern)......... “ Phoenix” A. G. fiir Bergbau u. Hitttenbetrieb. . A. G. Deutsche Kaliwerke Bernterode......... “Finkenberg’> A. G. fiir Portland-Cementu. Wasserkalk-Fabrikation. R.W. Dinnendahl A. G.....ccccrvvennccne-Glas-u. Spiegel-Manufactur.. - ACH I, BORO. ocuguminsninvgpanensss <u Allgemeine Elektricitits-Gesellschaft............ Deutsch-Atlantische Telegraphen-Gesellschaft. . Gebr. Bohler & Co. A. G.oveemvenenianerannnnnas Berlin-Charlottenburger Strassenbabn........... Jamburger Strassen-Eisenbahn-Gesellschaft.. . . Posener Strassenbahn.......cccccerenven an. Erfurter elektrische Strassenbahd............... Magdeburger Strassen-Eisenbahn-Gesellschaft. . Bank fiir Bergbau u. Industrie................. Jesellschaft fiir Brauerei Si u. Presshefe Fabrikation (vorm. d. inner), Karlsruhe~ Griinwinkel, Howaldtswerke, Kiel............c.ccccuunveen. Rheinische Metallwaren- u. Maschinenfabrik ... Toleppon FanyjeA, G. vorm. J, Berliner...... Norddeutsche Lederpappen-Fabrik............ §rrhiituedss,” A. G. fiir Stahl- u. Eisen-Indusrie. Deutscher Eisenhandel-A. G................... Sehieslyhe A. G. fiir Bergbau u. Zinkhiitteneb. Vereinigte K8In-Rottweiler Pulverfabriken..... Daimler Motoren-Gesellschaft............... .. Diirener Metallwerke, A. G...........c..ccuciean Preussische Boden-Credit-Actien-Bank. Total. . Reiechsbank..... Grand total....... ... Connection through— Or. B. Holz.ccommnnman-nse Dr. FE. HoOlZ.cuueuoo or. E. Holz....coccneaneene. I. 8. von Hahn... “ '. Hagen... J Tagen. ee veeeererananaen T8gON..r -ruerarnnreners Tagen. SN, Tagger oo . Hagen.. Tagen.. Andreae. .. Y Andreae.......ccceceecnanl Andreae.. even Andreae. I \NATeAB. .cvuvsmencanesans Andreae. ....ceceeceeencer Andreae. ....ce.acce a. ANdreae...ceeeeeuacee uo Andraar . Andreae......ececenar- or ". Andreae.....cceeeeuue ..- KOStecuenoaennaniacnneraan " Kost...----_ Ko=* H. KoSt.e.oeouenaranas oe Dr, P. Mallinckrodt........ L. Born, Dr. P. von Gontard, | A. Philipsthal. «. Born, A. Philipsthal,.. ~BOrM.ceenrraas-TRON yo ipo www wus sums vgs Lorn, Dr. P.von Gontard. EOI Me nnn gimmie "OTMesesnenn vO umeumnnannnesny . -'hilipsthal..cceeencenen.. 1. Philipsthal....cceeveucn.. 2rof. H. Paasche .ceeeeane. 2rof. H. Paasche.... . ... Prof. 71. Paasche. ...ceeeee.. 2rof. H. Paasche......-. Prof. H. Paasche Prof. H. Paasche. . Dr. O. Nindt_. Dr. O. Niedt........c0a.--Dr. P. von Gontard... Dr. P. von Gontard .........' Dr. P.von Gontard......... Or, P, von Gontard ........ Dr. E. von Eichhorn... F. ANAress...ccoececaossoces Als shown in lonnections of Reichsbank. Not shown in connections of Reichsbank. $4, 700, 000 2,700, 000 1,300, 000 2, 000, 000 30, 000, 000 2,300, 000 2, 200, 000 1.100. 00¢ 500, 000 900. 000 2) eu, 0. 500, 00( 450, 00¢ 1,400, 00C 34, 000, 00° 15, 000, 00 2, 200, 00" 1, 300, 00C 1. 600.00 850, 00¢ 9, 000, 00 30, 000. 000 16,000, 000 270, 000 360,000 1, 200,000 1, 860, 000 "77 500.000 95,000,000 12’ 500. 0600 _,160, 000 1, 250, 000 7,700,000 1; 250, 000 525,000 3,000, 000 895, 000 3. 983. 000 1,744,000 4, 000, 000 1; 600,000 11. 000 1.200. 000 8, 000, 000 9, 250, 000 116,000 ., 375,000 9.250,000 307,919, 000 revaecaaaa.l 63,600,000 ..479, 590, 000 | 371, 519, 000 8, 500, 00C 97941°—p1 2—16—124 530 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TapLE X.—Direct connections of the larger German banks with the “Direction” (management) of other German corporations—Continued. BANK DES BERLINER KASSEN-VEREINS. CONNECTIONS OF IT8 “DIRECTION”? WITH THE ‘‘DIRECTION’ OF OTHER CORPORATIONS. [Approximate capital, $2,590,000.) ————— Approximate capitalization. Dther corporations. Bank fiir Handel & Industrie... Deutsche Hypothekenbank... Disconto-Gesellschaft... Concordia Span) und Weberel......ceaeeess! Detitsch-Asiatische Bank i Vereinsbank in Hamburg.... ceeeseanes A. G.{lir Verkehrswesen...cccvevaeeens: -weses Deutsch-Ostafrikanische Gesellschaft. ...cccn... Neu Guinea Compagnie. RARER Ge Dstafrikanische Eisenbahn-Gesellschaft... .. Ostdeutsche Eisenbahn-Gesellschaft. ... seeveene Keneh Assouan Eisenbahn-Gesellschaft........ Deutsche Bank............. Deutsche Uberseeische Bank... --Banca Commerciale Italiana. A. G. tir Anilin Fabrikation........ceceeuue.n Berliner Hagel-Assecuranz Gesellschaft vom Berliner Handels-Gesellschaft...... - -.(..... Nationalbank fiir Deutschland . ve Bergwerks-A. G. Consolidation. ................ Gewerkschaft First Leopold zu Hervest-Dorsten Bags Gesellschaft Hibernia... -.......... A. G. Thiederhall...cecicavnceneseeeronarncanss Handelsgesellschatt fiir Grundbesitz............ Lefpaiges, emsustierel zu Reudnitz—Riebeck 0. A, G. - Berliner Maschinenbau A.G.(vorm.L.Schwartzko: 9. Poin o Continental Gas-Gesellschaft........ A, G. i. Glassindustrie (vorm. Friedr. Siemens). Westfiilische Drahtindustrie................... Migoricine Lokal- und Strassenbahn-Gesellschaft, Pfilzische Hypothekenbank........ccccecnacen-Preussische Rvnotigen Aktien Bank.......... Mitteldeutsche Creditbank.... eter bem Internationale Baugesellschaft. ................ Chemische Fabrik Gronau Landshoff und Meyer A. G. Qesterreichische Siidbahn..... Dresdner Bank. .......ceesemmnecanonacsoeis rans Berlin-Anhaltische Maschinenbau A. G......... Allegemeine Elektricitits-Gesellschaft..... .... Deutsche Waffen- und Munitionsfabriken...... Ludwig Loewe & Co. A. G....e... A. E. G. Schnellbahn-A. G..cceesaerearrerrasane Grosse Berliner Strassenbahn..... . a Deutsche Wasserwerke-A. G ..cc.cvcenreaannss bytes Eisenbahn-Betriebs-Gesellschaft in erlim, Teutoburger Wald-Eisenbahn-Gesellschaft zu @Giitersioh. Connection through—— Also shown in nonnectione of Reichsbank. Not shown in sonnections of Reichsbank, Dr, Hugo Oppenheim...... Dr. Emil Hecker, Edmund Helfit. Dr. Emil Hecker, Herman Waller. ps. oa Pay r. Hugo Oppenheim, Pau von M. Bartholdi, Albert von Blaschke. Dr. Hugo Oppenheim....... Dr. Hugo Oppenheim. ...... Jr. Hugo Oppenheim....... Jr. Hugo Oppenheim...... Dr. Hugo Oppenheim, Carl Joerger. Pe Hugo Qpenjiein. ren r. Hugo Oppenhe ax Winterielat. ’ 8d. Wallich, P. Mankiewitz.: ZB, Wallloh. ou pvespimivine Hd. Wallich, Max Winterfeldt. H, Wallich......ooocuinnnsn. H. Wallich, Ernest Jeagin Meyer, Rbt. von Mendellsohn. Max Winterfeldt............ Max Winterfeldt, Fritz Andress. Max Winterfeldt......-Max Winterteldt $48, 000, 00C 9, 500,000 75, 000, 000 850, 000 5. 000. 000 secret ome a "ecasonssoae PRR 11, 000, 0°° 4,150, 00 2, 500, 00C 2,750, 00( ve 000. ON receesconn AAA. 1,600,000 ..ccevveeee 13,500,000 . eee... 62,500,000 |............ seneasssansso.l $16,000,000 31, 250, 000 oe 6, 700, 000 900, 000 . Yen swear] 7,500,000 2,000,000 Max Wintorfeldt....eeessnes] 26,000,000 oeerenooon.s Max Winterfeldt. elena t 1,250,000 Max Winterfoldt...oeereese.i 6,000,000 |............ Max Winterfeldt vee..] 4,000,000 5,200, 000 16, 000, 000 5,000,000 3, 750, 000 15. 000. 000 Ernest Joaquin Meyer....... Ernest Joaquin Meyer.......’ Ernest Joaquin Meyer, Carl Mommsen. Ernest Joaquin Meyer.......| Rrnest Joaquin Mever..cceed 8,000, 00C 20, 000, 000 17. 250° 000 Pane an Jee 2, 500, 000 900. 000 Srnest Joannie Moyer..oens. Ed. Arnhold......ccncee..n Ed. Arnhold, P. Mankiewitz. Ed. Arnhold, Max von Klitzing, Albert von Blaschke. Ed. Amnhold..ceeeerenszznne £d. Arnhold, Max von Klitzing, Albert von Blaschke. Ed. Arnhold.....cceeo.aaas Ed. Arnold, Max von Klitzart Carl Mommsen, Carl Joerger. Carl MomMmsen....ceeeeensas Carl MomMmMSeN. .ceovsenacess 440, 000, 00C 85, 000, 000 4,000, 000 95. 000. 000 5,000, 000 7,000, 000 10, 625, 000 54. 000. 000 sdvesvasss ee 1,500,000 ....ccceeees 1,500,000 |-onnnemmnens 2,000,000 |, verepeers MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 531 TaBLE X.—Direct connections of the larger German banks with the “Direction” ’ (management) of other German corporations—Continued. BANK DES BERLINER KASSEN-VEREINS—Continued. nelly. Approximate capitalization. Other corporations. Ostbank fiir Handel und Gewerbe............. Pessii-] xemburgisehe Bergwerks- und Hiiten A. G. “Phoenix” A. G, fiir Bergbau und Hiittenbetrieb. Rheinische A. G. fiir Braunkohlenbergbau und Brikettfabrikation-Coin. A. G. in Firma Saar- und Mosel Bergwerks-Gesellschaft zu Kogtingen. Boden-A. G. Berlin-Nord.......eceuraeeeccnens Tempelhofer Feld-A. G. fiir Grundstiicksverwertung. Rheinisch-Westfilisches Elektricitits-Werk.... Bauland Seestrasse-Nordpark A. Geceeeenvecan-A. G. fiir Beton und Monierbau...cceeeeeeeneess Westliche Berliner Vorortbahn. ....cccceecanea-Jehantune-Eisenbahn Gesellschaft....ccececace Preussische Central-Bodenkredit A. G......... Vereinigte Koenigs und Laurahiitte A. G. fiir Bergbau und Hiittenbetrieb. Deutsche Uberseeische Elekiricitits Gesell: schaft. Jesellschaft fiir elektrische Unternehmungen.. Berlin-Charlottenburger Strassenbahm......... Deutscher Lloyd, Transport-Versicherungs AG. Jiegnitz-Rawitscher Eisenbahn.....cceecene... jraunkohlenwerke Leonhard A. G....ececuuee Jrenstein & Koppel (Arthur Koppel) A. G..... Slektrische Licht- und Kraftanlagen A. G...... <lektro-Treuhand A. Gr. ..ccceeeveciannncaansa 3iemens elektrische Betriebe-A. G....... w Siemens-Halske-A. G.........- TreEReNeT ee “Allianz,” Versicherungs-A. G.....ccccceaeeeens Kamerun-Eisenbahn-Gesellschaft.....cceeeacee. Westdeutsche Eisenbahn-Gesellschaft. .. Barliner Makler-Verein. .. Privathank zu Goth8.....cccavesnamecceenanaen Tohenlohewerke-A. G. zu Hohenlohehiitte Krels Kattowitz. s The Southwest Africa Co. (Ltd.) (British company). accurnulatoren-Fabrik A. G ....ccveemeee-- ae Kraftiibertragungswerke Rheinfelden.......-... Aluminium Industrie-A. G.......... os Norddeutscher L10yd.c....ceeiaecnsscnsnrmnnnn Bank fiir Thiiringen, vorm. B. M, Strupp-A. G. in Meiningen. isoprene Bank-Verein........c.ceeeesennsn Siiddeutsche Discontogesellschaft-A. G. in Mannheim. ~ Stahlwerke Rich. Lindenberg A. G ...cceacener Gewerkschaft Ludwig II Stassfurt......._ ..... Berliner Weissbier-Brauerel A. G............... Verein Chemische Fabriken zu Leopoldshall ‘ Aihimedes ” A, G. fiir Stahl- u. Eisen-Indus. rie, Bank fiir elektrische Unternehmungen.....-. 3chlesische Elektricitéts- u. Gas-A. G..... Ammendorfer Papier-Fabrik..... _.-Crollwitzer Aktien-Papierfabrik.............. Berlinische Lebens-Versicherungs-Gesellschaft.. Bank fiir Brau-Industrie.............ccceaue Diisseldorfer-Eisenhiitten Gesellschaft...... .,. Deutsche Bierbrauerei-A. G........ccevecucann. Zlektricitdts Lieferungs-Gesellschaft............ Deutsche Linoleum- und Wachstuch Compagnie Poppe und Wirth-A., G.. Connection through— Also shown in sonnections of Reichsbank. Not shown in connections of Reichsbank. Max von KHtzIng...cceee-aeoleveececncacnss! Max von Klitzing.....ccaee.i $56,000,000 Max von Klitzing...........] 50,000,000 Max von Klitzing...aey- oc Max von Klitzingf.cceeeee.-Max von Klitzing...cceenee Max von Klitzing....ceeea--y $7, 500,000 13,000,000 9,500,000 4,000, 000 Max von Klitzing..cceaaee-Fritz Andrege.....cccaeen-e-~Tit2 ANdreas...cececeoncses £d. Arnhold........ce00euen Albert von Blaschke, Ed. Arnhold. Albert von Blaschke........ Albert von Blaschke........ Albert von Blaschke, Max von Klitzing. Albert von Blaschke, Max von Klitzing. Albert von Blaschke....... Albert von Blaschke. ...ce« ‘Ibert von Blaschke..... Jarl Mommsen....-Jarl Mommsen. Sarl Mommsen - Jarl MOmmseN..eeeeeesenss. Jarl MOIMSeNaee: recoecnea Jarl Mommsen....-. ceceaes ‘ax von Klitzing....cee.-. ‘[ax von Klitzing....... ..-fax von Ei: P. Mankiewitz, Herm+ Waller, P. Mankiewitz.. P. Mankiewitz. 20, 000, 000 100, 0C 1,400, 00 3,250, 00 17. 000. 00 sansa csese wh 15,000, 000 14, 500, 000 87,000, 000 28,000,000 4,250,000 "2° 500.000 aTTI———— "31 500. 000 000, 0. £,000, 00 “4, 200, 00¢ 3, 200, 000 11, 000, 00G 31, 000, 000 "8,000, 000 "5, 600,000 1, 250,000 3,000,000 31.000. 000 4.000.000 wi P_ Mankiewite 8.750, ann Se. P. Manklewitz.............. ?. Mankiewitz, Carl Joerger. °, MankiowitZ..ceaueu.. 2. Mankiewitz. Herman Waller 8,000, 000 8,400, 000 5,000, 000 56. 000. 090 Herman Waller. Herman Waller 5,000,000 15. 000. 000 Jarl JOOrger..ceeeconeree-ns Carl Joerger. ae Carl JOOrger..cvceanoaacnener Carl Joerger . t,400,. » 1, 000, 00: 425, 00% 3. 000, 00" Carl Joercer 1. 200, 000 Jar; Joerger, Fritz Andreae Carl Joerger, Fritz Andreae. Jarl Joerger. Jarl Yoerger.. Jarl. 0erger...coeenan ritz Andread.eeee: .cacceen. Htz Andread..c.e.. -..eeee. itz Andreae...ceeececeess Jitz Andreag...ceeeecnecee ritz Andreae...coue---ritz Andrear 14,000,000 .oneeeocas 8,750,000 .enivieeen 2100,000 oeeeeioins £50, 070 ene 900,000 ..eeeneenns 2,750,000 .oeneemeenen 1, 500, RARER 1,800,000 ean 2,200,000 <nerneereenn 13000000 toon. TI" 532 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TABLE X.—Direct connections of the larger German banks with the “Direction” (management) of other German corporations—Continued, BANK DES BERLINER KASSEN-VEREINS—Continued. Appeoniman capitalization. Other corporations, Kollmar and Jourdan-A. G. (Uhrketten Fabrik in Diorehein, Mechanische Weberei.......c...ccceveeeencanse Leonhard Tietz A. G. (trading concern)....... 1 Reichsbank Grand total... __ Connection through— Fritz Andreae.....c.cceeeees Fritz Androge....cceeecceces Fritz Andreae... ccivicacos-~ H Wallich. P. Manklewitz. Also shown in onnection of Reichsbank. Not shown in sonnections of Reichsbank, $1, 600, 000 vesawiwnnniy 212,700, 000 + "63,600,000 .1.708.500.000 | 286. 300.000 850, 000 9. 000. 000 DEUTSCHE HYPOTHEKENBANK A. G. CONNECTIONS OF IT8 “DIRECTION’’ WITH THE ‘‘DIRECTION’’ OF OTHER CORPORATIONS. [Approximate capital, $0,500,000.) Bank fiir Handel u. Industrie........ccoccanaee Handelsstidte ‘‘ Bellealliance’’ A. G.zu Berlin. . Fabrikisolirter Drihte zu elektrischen Zwecken (vorm. A.J. hE G. Bank fiir Deutsche Eisenbahnwerthe........... 3erliner Handels-Gesellschaft.... .. ..ceeree Bismarckhiitte...........- ecacenes Jarpener Berghaut A. G.....ccncorecnccncre- rar lua (Hibernia).e.ovevevues Dberschl he Eisen-Industrie-A. G. fiir Bergbau & Hiittenbetrieb. Rheinische Stahlwerke zu Duisburg Meiderich. . Rombacher Hiittenwerke.....c.c.ceeeoncecenner Schlesische Kohlen- u. Kokeswerke.....cceeees-Gewerkschaft Victoria in Lilnen.....ccceeeeeeenr dandels-Gesellschaft fiir Grundbesitz........... Elektrochemische Werke Gesellschaft mit beschrinkter Hugin. Berlin-Anhaltische Maschinenbau A. G.....--.. Vulcanwerke......cuoeesen: ac Accumulatoren Fabrik-A, Gre.ceeeeeeee van oo Allgemeine Elektricitéits-Gesellschaft. . ......... Sank fiir elektrische Unternehmungen......... 3erliner Elektricitdtswerke......cccccnceconnans Telten & Guilleaume Carlswerk-A. G..coeeeeee.-Zraftiibertragungswerke Rheinfelden .....cc... Jasanstalt-Betriebs-Gesellschaft.vevae----- a \luminium Industrie-A. G..... . deutscher Eisenhandel A. G. .dsenhiitte Silesia. .c.cvreereneenesresnesoocans lhenania Voronin Emalllierwerke-A. G..... 7 Sri Deutsche Nickelwerke A. G.....-Westtilische Drahtindustrie.... -. A. E. G. Schnellbahn-A. G. A, G. fiir Verkehrswesen..... Grosse Berliner Strassenbahn......cvoeeusznenen Zucker-Raffinerie Tangermiinde F. R. Meyers Sohn-A, G. Kamerun-Eisenbahn........c....--Ostdeutsche-Eisenbahn Gesellschan...... .... Neu-Westend A. G. fiir Grundstiicksverwertung Reichelt Metallschrauben A. G....eeennear--on Lo ay Eisenbahn.., Ostbank fiir Handel u. GoWerbe.....ccc.ceveens: Bierbrauerei-A. G. (vorm, Gebr, Hugger)eeeeee. Herm, LOhnart-A, G..uceeeeracecsacsacesencces Hermannmiihlen-A, G. zu Posen. ...ccceececcce-Bank des Berliner Kassen-Vereins....eeceeeeaa-Disconto-Gesellschaft........cccceeercecancen- Spinnerei un. Waebere! . C. Parkis...coecceeeeaeianes Dr.G.Hirte......occeeeens Dr. G. Hirte, C. Sobernheinr $48. 000, 000 x, C. Fiirstenberg.......... Or. OC. Fiirstenberg....eeee.-)r. +, Fiirstenberg...ccceveer Ir. J. Fiirstenberg...ceece.. or. C. Fiirstenberg.....ecea-Dr. C. Flirstenberf..cce- eae 2, 700, 0 36, 500, 00V 7,500, 00C 31,000, OC" 26,000, OC 10.000. 0 Jr. C. Siirstenberg..... a... or, C. Fiirstenberg....ee... ir. C. Fiirstenberg.....cc...-Jr C. Fiirstenberg...cceae.. ir. C. Fiirstenberg....ceec.-Dr. C. MNirstenber?. ..... cou. 8,000, ( 24, 000, 00: 2, 000, OC" 2,000, 0¢* 3,000.0" 3 £00. or Toy Tos T, [4 .lirstenberg....cc...-firstenberg.cceeeeas y{irstenberg...c.ees.. {irstenberg......... “firstenberg..ccee ea... .drstenberg..c.caeeefirstenberg..cecee-.. _lrstenberf...ecee.. lirstenberg. . ceeee.-lrstenberf..cceaeas iirstenbers.cececeesfirstenber; ....cece-{irstenberg.cceecece- Airstenberg.eeeceea.-firstenberg.ceveceecs- co... Miirstenber 0, 000, 00 ,000, 0: %, 000, 0C 4,000, 0 ~.000, 0 “000, 0 %. 400, 0 000, 0° 000, 0C-000, 000 000, 00C 000, 007. 1500, 00x 71760, 000 10, 625, 000 4,150, 000 4, 000, 00C 2’ 500’ on re r. J. Fiirstenberg..ceeeece. nw. C. Fiirstenberg.......... °r. L. Darmstaedter....... r. L. Darmstaedter....... . Goldschmidt.........--vm amburger....eee. ane N. Hamburger, C. Sobernheim. J. Hamburger.......... VY, Hamburger..eeoceeenen. CR Jr. E. Hecker, E, Helfft.... 2, 590, 00. 'r.E. Hecker, bra. Strupp] 75,000, 006 r, BE, Heck - 850, 000 1, 000. 000 evararcnen con asered ssse eoserrocane srcamssnee eesevsaanee ree cee or “eee See ETT essesenssan weose sees Lsesesescess _ 3,400, 000 750, 000 2,500, 000 7,500, 000 400. 000 400, 000 350, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 533 TABLE X.—Direct connections of the larger German banks with the “Direction” (management) of other German corporations—Continued. DEUTSCHE HYPOTHEKENBANK A. G.—Conginued. ASprnsls capitalization, Other corporations. Harkort’sche Bergwerke u. chemische Fabriken zu Schwelm, Allgemeine Hiiuserbau-A. G. in Berlin......... Pertainzamlisonet t am Neuen Botanischen Garen A. G, Berliner Bierbrauerei-A. @. (vorm. F, N. Hilse-Say, 86 hes Brauhaus-A. G....ccoveanecensnee i Fabrik auf Actien (vorm. E. Scher-2). Onion Fabrik chemischer Producte in Stettin.. Norddeutsche Gummi- und Guttapercha-Waren-Fabrik. Berliner Wiischefabrik-A. @. (vorm. Gebr, Ritter). Admiralsgarten Bad.............. - Berlin-Neuroder Kunstanstaltell.........ce0.... Allgemeine Deutsche Kleinbahn-Gesellschaft, ‘Fort ’? Allgemeine Versicherungs-A. G... Bank far Brau-1ndusttle, ero re Commerz- u, Disconto-Bank....... se A. GQ. fiir Montan-Industrio....cveeeeeeeraconces Baroper Walzwerk-A. G..Barop 1. West........ Milowicer EiSenWerk......cccveeemanececnsesnss Alkaliwerke Ronnenberg-A. G.....ccceeeenen... Held & Francke-A. G....coeeeeneerenncansansn. “ Adler» Deutsche Portiand-Cement Fabrik-Deutsche Bierbraueral-A. G.....c.ccepeuen.... Wass A Eabelics, G. (vorm. P. Herbrand & 0. Maschinenbau-Anstalt “ Humboldt”. .......... a. a IR @ovivngopes Tiefbau- u, Kilteindustrie-A. G. (vorm, Gebhardt & Koenig). Hackethal-Draht u. Kabel-Werke A. G.... ... Re JOTODE A. Oh soensnpennisrensusvusiageisisssen Tele A. G, Lom, J. Berliner) ..... frankfurter Align ersicherungs-A, G.... Niederlausitzer Eisenbahn-Gesellschaft. Spritbank A. G..cocovirnpenn.-Berliner Kindl-Braueref A. G........uuee...... Hofbierbraueref Schéfferhof u. Frankfurter Biir. gerbrauerei. Deutsche Gussstahlkugel- u. Maschinenfabrik, A. G. fiir Fabrikation von Eisenbahnmaterial zu Gorlite. A. @. Gorlitzer Maschinenbau-Anstalt u. Eisenplessarai. Total. .eeeeannmancaas on Relchsbank Grand total........ Connection through— Also shown in connections of Reichsbank, Not shown in connec-Lions of Reichsbank. M,. Richter. ..oceecccccccncas $2, 300, 000 Jessssesenas M. Richter...cceesnnneer M. Richter... M. Richter. ....cccensesneces Max Richter...ccceeeveeeee. Max Richter..... re Max Richter...cceeeeseecs. Max Richter. . - "ee Max Richter... .. ..,...... ee 500, 000 000’ 000 ‘wessssscsen 800,000 1,600, 000 2’ 500, 000 aere=sess pe “7 450, 000° $3. 250, 000 528. 000 Max Richter.....cueeeeeene.. Max Richter...eceesesrceees Max Richter. ....ceeecoccance 1,688,000 500, 000 7.300. 000 sscscsscens ‘esas a Max Salinger......ceeeae. a. Curt Sobernheim....,. . J. Sobernheim..... ‘, Sobernheim. ....... '. Sobernheim.............. .» Sobernheim. . [SR ', Bobernheim | wwe ,. Bobernheim ......... 1. Sobarnheir 2750. 000 850. 000 : 25,000, 000 1,200, 000 700, 000 1,280, 000 5,000, 000 550, 000 1, 800, 000 C. Sobernheim C. Sobernhei: C.Bobernhelm. ... C. Sobernheim. ....... Nn Sobernheim 1. 500. 000 "1,150, 000 9,000, 000 800, 000 1. 400. 000 crc -ees yw J. Bobernheim 3. Bobernheim J. Sobernheim........,.... *. Sobernheim . . i *, Sobernheim ., EY 1. Zulinzinger. ...ceeue.... Jr, H, Arnhold.....--Or. H. Arnhol” 1, 250, 000 500, 000 1,600, 000 9, 000, 000 2, 200, 000 1,250,000 650, 000 2,000, 000 1,250, 000 750, 000 1, 800, 000 Dr. H. Arnhold.......-. C. Peters...cceues C. Poters..ccceercensap Jr. E. Hecker, C. Wirstenburg, Ed. Heiftt, Max Richter. 553. 731. 000 88, 139, 000 83, 600, 000 ASCs ANOROPOIOSEE: 553, 731, 000 151,739,000 534 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. DIRECT CONNECTIONS OF THE SIEMENS-SCHUCKERTWERKE AND SIEMENS & HBALSKE A. G. TasLe XI.—Direct connections of the ‘‘ Direction” (management) of Siemens-Schuckertwerke and Siemens & Halske A. GQ. (electrical, manufacturers) with the ‘‘ Direction” of other German corporations. Prepared from Saling’s Borsen-Jahrbuch for 1914-15 by William J. Clark, of the General Electric : 30 Church Street, Rew York.) ! Co, . SIEMENS-SCHUCKERTWERKE. . CONNECTIONS OF 178 “ DIRECHON* WITH THE * DIRECTION” OF OTHER CORPORATIONS. [Approximate capital, $60,000,000.) A nae capitalization. Other corporations. Deutsche Bank.......ceeeeeaman Siemens & Halske A. G... MannesmannrShren Werke. ........ Neu Guinea Compagnie. ....cccccereensansnsan i Qiemens’’ Elekirische Betriebe A. G.coeeenee Essener Credit-Anstalt......ccceveensnncuonnes Bochumer Verein fiir Bergbau u. Gussstahlfabrikation. Bednpislen u. Brikettwerke Roddergrube Gewerkschaft Ver. Constantin der Grosse ...... Gewerkschaft Dorstfeld......cocevrnenncneceans Gewerkschaft des Bteinkohlenbergwerks Ein. tracht Tiefbau zu Freisenbruch. Essener Bergwerks-Verein Konig Wilhelm?” .. Essener Steinkohlenbergwerke A. Goveevenecnns Gelsenkirchener Bergwerks-A. Gueevee--- sacs Harpener Bergbau A. G.....ccececeveaneerncess Konigsborn A. G. fiir Se Lit Bnltke Rich. Lindenberg A. G. zu Rhemscheid. Oberschlesische Kokswerke & Chemische Fabriken A. G. Rombacher Hilttenwerke zu Rombach......... Jewerkschaft Victoria in Lilnen............... Fewerkschaft Gliickauf zu Sondershausen..... Gewerkschaft “Gliickauf Berka” zu Sondershausen und Gewerkschaft ¢Gliickauf Ost,” Sondershausen, Wilmersdorfer Terrain Rheingau A. G.......... Riitgerswerke A. Qe.ooeeneeneinasnnrncannccnes Maschinenfabrik Augsburg-Niirnberg A. @ .... Deutsche Maschinenfabrik A, G. zu Dus Ernst Schiess Woy gmasthineniiRin A. GQ. Elektro-Treuhand A, G..cceeeerernrnnrnnnnn.. Rheinisch-Westfilisches Elektricititswerk A. G. Wasserwerk fiir das Nordliche Westlilische Kohlenrevier, Vereinigte Berlin-Frankfurter Gummiwaraen Fabriken. Julius Pintsch A. G.....ce.e-Reichelt-Metallschrauben A, G.eeed:-F, Kiippersbusch & S6hne A. Gueeerrrco- 10 '“ Allianz” LiSihapungs Au GQuecernenzosncenes "Unin Allgemeine Versicherungs-A. G. gu erlin, Jesellschaft fitr elektrische Hooh- u. Untergrundbahnen in Berlin, Btettiner Elektricititsworke.....c.coeecuesacnas Chemische Fabrik Horgan und vorm, Messingwerk Relnickendorf R. Seidel A. G. Continentale Gesellschaft fiir elektrische Unfernehmungen, Deutsch Ueberseeische Elektricit&ts-Gesell schaft. Connection through— C. Klénne, C. von Siemens.. Dr. F. A. Spiecker, C. F. von Siemens, A. von Siemens, Dr. W. von Siemens, C. Klonne. A. von Siemens, G. Gillhausen. A. von Siemens. ......i..... W. von Siemens, E. Budde, R. Werner. C. Klénne, G. Gillhausen... 0. Klonne, G. Gillhausen. 0. Klsnne 3, REIBND8. uu uremmupmnnnens 1, Xlénne,.. NY Klénne KIAONe.. caaecanrne. o-“lénne, Anne. . . 10NNe..ccereeccsncncnnes AMIN ov nem epminim wn Klonn ee CO Kldnne. . YL RIBONe..o « vmnnpcovane Y K10DN€eees iui ier ens !, Kionne.eeo--an --- - J. Klénne.. >. Klonne.... .:. >. Klonne............... C. Klonne, O. von Petri, A. 7on Rieppel. , , Klénne, G. Gillhausen... Klonne,, .---.eu.-- " TONNE... .reeseesoscanes J. KODE. ...enseracrer- an Y Kldnr C. KIOND®...ccececcanns 2. KlOnme.....ccaaeu--'» Klbnne... . Gb ABO. uur svn uss ain; . n1nne, H, R. von Maffei 3 Klgnn-C. von Stemens......--C. Dihlmann, R. Werner... H. Natalis.... -_ or H. Natalis, O, von Petri, A, Wacker, H. R. von Maffei, A. Pohlmann, A, von Rieppel. H, Natalis, R. Werner. .... Also shown in conneections of Reichsbank. $62, 500, 000 31, 000, 000 21, 325, 000 2,750, 000 11. 000. 000 7.000. 000 30. 000, 0 31,000, 00° 3, 230, 00¢ 1. 400. 00 2%, 000, 000 3’ 000. 000 So hed 13.900. 000 8. 800. ON) 37,850, 000 87, 000, 000 Not shown in conneetions of Reichsbank. ressssce- ew. $28, 600, 000 15. 150. 000 9, 600, 000 8, 000, 000 2.250, 000 5,460, 000 5,225, 000 5,770,000 "3,200,000 800. 000 Pe 1,260, 000 7,100, 000 16, 000, 000 4,500, 000 1,325, 000 ...1" "20,000, 000 8,680,000 1,100, 000 750, 000 1,350,000 5, 000, 000 1.700. 000 1, 665, 000 2,700,000 10. 045. 000 sow TL MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 535 TaBLE XI.—Direct connections of the ** Direction” (management) of Siemens-Schuckertwerke and Siemens & Halske A. GQ. (electrical manufacturers) with the ‘¢ Direction” of other German corporations—Continued, SIEMENS-SCHUCKERTWERKE—Continued. ANronimats capitalization. Other corporations. Rheinische Shuckert-Gesellschaft fiir elektrische Industrie A. G. Elektricitits A. G. (vorm. Schuckert & Co.) in Niirnberg. Bayerische Notenbank....cceevumeeisoicrnunans Bayerische Hypotheken- u, Wechsel-Bank...... The Nobel Dynamite Trust Co. (Ltd.)eeeeeuene. Griin & Bilfinger in Mannheim... .__.......... Elekira &. O ..oovpacnsamgpenvey jo Hamburgische Elektricititswerke - wwe Bergische Kleinbahnen........ceeuevevueunusrner Gewerkschaft Eimscher Lippe zu Essen. ....... 3tichsische Maschinenfabr (vorm., Rich, Hartmann). Blechwalzwerk Schulz Knaudt A. G............ Westftilische Drahtindustrie......ccceeeecer un Stiddeptsche Eisenbahn-Gesellschaft..... ar Total.... Reichsbanl Grand total o.oo cecec soe Connection through— H. Natalls...eceesens. H. Natalis, A. Wacker, A. von Siegel, H. R. von Maffei, O. von Petri, A. Pohlmann, T. R. von Maffei....... . R. von Maffei... . von Chauvin.... -. von Rieppel.... von Petri. . von Petri... von Petri...... “Thausep. Gillhausen...,.....-. Gillhauser 3. Gillhauser 5. woh Blemans Also shown in connections of Reichshank. Not shown in connecions of Reichsbank, wesannunuuel $3,528, 000 31, 490, 000 ry ad 2, R00, 000 31,000, 000 3, 400, 000 1,050, 000 1,360, 000 3,000, 000 7,533, 000 3,300, 000 1,800, 000 2, 486,000 12,600, 000 317,347,000 63, 600, 000 384. 725. C00 | 380, 947, 000 . SIEMENS-HALSKE A, G. CONNECTIONS OF ITS ‘‘ DIRECTION’> WITH THE ‘‘ DIRECTION” OF OTHER CORPORATIONS. [Affiliated with Siemens-Schuckertwerke. Approximate capital, $31,000,000.) - Vereinigte Lausitzer Glaswarke A. Gueeecccceo. Bank des Berliner Kassen-Vereins. Deutsche Bank.... Maschinenfabrik Bruchsal A. G.........c..venens Eisenbahnsignal Bauenstalt Max Jiidel & Co... Jiemens-Schuckertwerke. Vereinigte Chemische Werke A. G..oo-----Mannesmannréhren Werke... Neu Guinea OOLIDATIe, sr jarnserenssaranses “Siemens” elektrische Betriebe A. G... i. Schlesischer Bankverein Commandit Gesell schaft auf Actien. Steffens & Noll, .ceveerereennreeneeccnannennee Donnersmarckhiitte, Oberschlesische Eisen. und Kohlenwerke- A. G. Oberschlesische Eisenbahn-Bedarfs-A, G...... Oberschlesische Eisen-Industrie A. G. fiir Bergbau- u. Hiittenbetrieb, Dbecyalliaisce Kokswerke & Chemische Fabrien A. G. Portland-Cement-Fabrik (vorm. A. Giesel)..... Riltgerswerke A, Q....ccreiuinnnnnvnennnsnanss Linke-Hofmann-Werke Breslauer A. G. fiir Fisabshn agen LoRNouY- u. Maschinen. atl. Elektrische Licht- u. Kraftanlagen A. G....... i “Nor Satern Lebens-Versicherungs-A, G. zu Berlin. C. Mommsen......eeeveen--E. Heinemann, C. von Siemens, E. Berve, C. Kltnne. Dr, O. Feuerlein, Dr. A. Ber liner. R. Pfeil.... R. Pleil......-Dr. F. A. Pleas, C. K1nne, Dr. W. von Siemens, * A.. von Siemens, C. F. von Siemens, Dr. A. Frank. ....ceaueunes A. von Siemens, E. Heinemann, A. von Siemens............. Dr. W. von Siemens, Dr. A. Berliner, C. Mommsen. &. Berve..... E. Berve, Dr. A. Berliner. - E.Berve..ceues---E. Berve...ccececeoen:-. E. Berve.....-E. Berve, C. Klénne,...... KE. Berve...c....ceveeescnee E. Berve, C. Klbnne.... -... E. Berve.. E. Berve, C, Mommsen, E, Heinemann, Dr. A. Ber: liner, A. Koechlin. E. Borve..coccvsensenresnnnee E. Berve.. jo $2, 590, 0m 62, 500,00 pay T a "60. 000. 000 FLITE 2,750, 000 11. 000, 000 | cre cews "10.000. 000 bare ndnevaset iii 14.200. 000 4,000, 000 5’ (00. 000 31,762, 000 1,900, 000 2,330,000 844, COO 17,560, 000 3,000,000 5,000, 000 18,100, 000 5,770,000 495,000 7,150, 000 7.100. 000 lecaceconanes ccscasscense a 536 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe XI.—Direct connections of the ¢¢ Direction’ (management) of Siemens-Schuckertwerke and Siemens & Halske A. G. (electrical manufacturers) wath the * Direction™ of other German corporations—Continued. SIEMENS-HALSKE A. G.—Continued. Approximate capitalization. Dther corporations, #Nordstern” Unfall., Haftpflicht-u. Feuer-Versicherungs-A. G Schlesische Feuer-Versicherungs Gesellschaft... Deutsch-Asiatische Bank. ...ceceeeener © Deutsche Ueberseeische Bank. .....c.covaeee.... Steaua Romana A. G. fiir Petroleum Industrie A. G. fiir Elektricitits-Anlagen.....cecvcuunu.s Depish-Ushesesishe Elektricitiits Gesell schaft. Gesellschaft fir elektrische Beleuchtung vom Jahre 1886. Schantung-Eisenbahn Gesellschaft...ccacecnsas. Ungarische Lokaleisenbahnen-A. G... “a. Zssener Credit-Anstalt.......cccecnvscesennaas Bochumer Verein fiir Bergbau u. Gussstahlfabrikation. Braunkohlen u. Brikettwerke Roddergrube A.G. Gewerkschaftverein Constantin der Grosse...... Gewerkschaft Dorstfeld........ccenesceencecens Gewerkschaft des Steinkohlen Bergwerks Eintracht Tiefbau zu Freisenbruch. Esseuer Bergwerks-Verein “ Konig Wilhelm”. . Essener Steinkohlenbergwerke A. G...c.cue Gelsenkirchener Bergwerks-A, G. Harpener Bergbau-A. G....... Kéonigsborn A. G. fiir He Ra Solis Rich. Lindenberg A. G. zu Remscheid, - Rombacher Hiittenwerke.... . Jewerkschaft Victoria in Lilnen................ Gewerkschaft Gliickauf zu Sondershausen...... Fewerkschaft ¢‘Gliickauf Berka’? zu Sonders-“ausen u. Gewerkschaft Glilckauf Ost’’ zu Sondershausen. Wilmersdorfer Terrain Rheingau A. G......... Maschinenfabrik Augsburg Nurnberg A. Oy enay Deutsche Maschinenfabrik A. G. zu Duisburg... Ernst Schiess Werkzeug Maschinenfabrik A. G.. Rlektro-Treuhand A Rheinisch-Westfilische Elektricitiitswerke A. G Wasserwerk fiir das Nordliche Westfilische Kohlenrevier. Ferelaitie Berlin-Frankfurter Gummiwaaren Fabriken, fulius Pintsch A. G...... Reichelt Metalischrauben A. Gr .... wi F. Kiippersbusch & S6hne A. Q..ceveeeceer se. “Allianz” Versicherungs-A. G...cevececnecannn Phin, Allgemeine Versicherungs-A, G. zu Bern. Bhalylsch-Wesiitaks Disconto Geselis¢haft-Mitteldeutsche Creditbank....ccceeceecoccanee Braunkohlenwerke Leonhard A. G......cvevee. Orenstein & Koppel (Arthur Koppel) A. G.... Deutsche Wasserwerke A. Gecuenrvirercecanass Deutsche Eisenbahn-Betriebs-Gesellschaft in Berlin A. G. Teutoburger Wald Eisenbahn Gesellschaft zu Giitersloh. Gesellschaft fiir elektrische Hoch. u. Untergrundbahnen. Accumulatoren-Fabrik A, G....cccaeeueeeennnn Bank fiir Oriantalische Eisenbahnen in Ziirich. Total.....-Relchsbank A pg Grand total... Connection through— Also shown in connections of Reichsbank, | Not shown in connections of Reichs bank. E. Rerve........ J.J $1.650.000 Ce BOIVe....coi reresencecniicaniencaiaaar . Heinemarr _. | 5,000. 000 .1Teinemann.....cceeee--, 1{einemann, . Teinemanr, eineman— $2,475,000 "10, 000, 000 16, 000, 000 4,260, 000 20, 850, 000 D. Tajpnama=n I. Heinemann.....cceeees..-'. Heinemann.. . .. Klénne.... 1! Klénne. 17, 000, 000 "25,000, 000 28,600, 000 15, 150. 000 C. Kl6nne... 3, Klénne J. Klonne.. NV Klonne 7. 000, 000 ’ sen "7,000, 000 8,000, 000 2,250, 000 5,460,000 B. 225. 000 onne, RIDII. , ou cian pmm we Jonne, A. Kirdorf... {I6nne 16nnr 80, 000, 00¢ 31,000, 000 717400. 000 73,230,000 ‘In KI8NNe.csarscacsnancs aur Klonne...eeeeeesnens Klénne...---Ss. Kionr 24, 000, 000 3. 000. 000 "2,500, 000 600. 000 Y RKIUNNG. cence Klonne. , K16nne...eeeaaes BIBnng., . sesupupaeeans ve Xlonne, Dr. A, Berliner, , Mommsen. C. Xlonne.. SS 0. Klonne.. 1,260,000 6,000, 000 4, 590, 000 1.325. 000 13.200. 000 20, 000, 000 8, 680, 000 1, 100, 000 CO. K1ONNO0eear ccecocenr-nae-3. KIGDDe....cceeeecennane) * Kibnne..,.-.- .. . -.- K]ONNecsseences J. Xl6nne... .. Y Klénne... 8. 800, 000 "7750, 000 1,350, 000 8,000, 000 1,700, 000 28. 345. 000 A. Kirdor! ; OMMSeN.cccansoenca-ase AMommsel.... «wc os eee OINMSON..vesesncnsnonce 'OMINSA eeennnceccenaces , Mommeen_, en 17, 250, 60C 4, 000, 00( 18, 000, 00( 1,500, 000 1. 500. 00C on vee aervirese asencseiase 2,600, 000 C. Mommsen......q-:-C. F. von Siemens. . ceceeesst Dr, A. Berliner....cceecan.-A. Koechlin...... ' .ecmee 87, 650, (NO rw swd BBS 6,011,000 63, 60Q, 000 521, 365,000 | 469, 611, 000 £,000,¢” 18. 200. ON; A von Siemens. C. Mommesen revsevesn| MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 537 BRITISH INVESTMENTS ABROAD. PARTIAL LIST OF BRITISH ORGANIZED OR CONTROLLED COMPANIES WHOSE PROP-ERTIES ARE LOCATED OUTSIDE OF THE UNITED KINGDOM, UNITED STATES, AND [Prepared from foreign statistical manuals of 1915 by William J. Clark.) It should be understood that the following list of British investments does not represent the total of British capital invested in foreign countries. Nhe United States and Canada are omitted from this Fst, and large amounts of British capital have been invested in both. Moreover, even in the countries covered, many investments have not been included because not given in any published sources. The total of British capital invested outside the British Isles probably aquals and may even exceed $20,000,000,000. On the other hand, the companies included in this list are not exclusively British. In numerous instances British capital is associated in these companies with local capital, or with French, Belgian, German, Spanish, and Dutch capital. Hence the British investment in these companies is doubtless less than the capitalization given herewith. So far as known, however, British capital controls these companies and comprises by far the greater part of the investment therein. Recapitulation. Character of companies: Steam railroads........... . . Cable, telegraph, and telephone...... Other public utilities........... Mining and similar companies... [ndustrials........co.ooereoiiiainaan... Plantations and similar companies.............. Trading, banking, and miscellaneous companies. Total i onimate capitalization, *3, 142, 634, 000 170, 158, 000 973, 367, 000 1, 738, 211, 090 173, 955, 160 427,127, 540 1,774, 739, 836 - BR ea A BN SE Ww Total. - 8. 400. 192. 626 Tasre XII.—Summary of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada, by countries and by character of companies. Location of properties or enterprises. Steam railroads. Cable, telegraph, and telephone. Other public utilities. Mining and similar companies. Industrials. Plantation and similar rompanies. Trading, »anking.and miscella~ neous companies. Total approximate capltalization. Abyssini@..ccececcececencnciisacencsnaens Aion. en, wr Algeria....cccemeanne ArgentinA.eeeeereccannans Australia. .-Austria..... BolgluM.ccinorormmogoensrnnnnevsvemenvinsusnanans Belgium and Holland...ecccvceeceaerane Bolivia. Brazil............ British East Africa..... British East Indies. . British Guiana. ...... British Honduras. ...... British North Borneo. . Burma. ......cooeaioaaae Canada and Bermuda.. Lin ve Cape Verde Islands. ......c.... Central American States... Jeylon..... Chile cvs vvsponess Chile and Bolivia. Shina and Japan..... Costa Rica... ceemenn. Cubs.e..... J Denmark. ...cocavvn oa Dutch Colonies..... Dutch Guiana. - PARE eh and America... Europe and AzZires.....cccecenvaenian Europe and Far East. .ceeeecnecinriaiuiiiiiiinnecnan: Falkland Islands, ..ccaenenaen oo Finland... France “82. 855. 000 "221,032, 000 36,877,000 $1,410,0. . 3, 803, 000 7,055, 000 160, 792, 000 27’ 10. 000 $425. 000 $4,293,000 14,701,920 183,000 213,978, 045 198, 764, 855 20, 833, 350 "16,750,000 129; 458, 465 2. 753, 250 $4,718,000 59,516,920 3,986, 000 689, 853, 045 111, 613,935 18,783,350 2,873,000 10, 750, 000 «1,298, 440 300, 017, 605 14, 124, 500 2,356, 300 5,936, 900 773,885 28,476,810 B1, 060, 250 250, 000 1,860,900 775, 000 1,719,835 88, 402,025 193, 689, 500 82,500, 000 20,003,515 165, 000 20,859, 500 172,722,000 3,710,000 86,411,960 450, 000 32,029,915 371,847,020 11,071,000 3,125, 000 40, 000, 000 715, 000 155, 000 84.978 180 i,296, 043,000 12.935. 000 $21,745, 0. 1,995, 080 770, 006 3.340 00 "241 293.000 "1,750,000 277, 420, 000 950. 000 7,020, 000 6, 663, 000 8’ 345. 000 9.211 000 1,728, 440 13,374, 14 2, 776, 25 2,356, 300 1,631, 90¢ 173, 88¢ 8,984,100 1.333 900 tte 490.000 835,000 600,000 3,113, 000 27 317. 000 54.700. 000 "250.000 "1, 000,000 10673. 000 "16,379, 710] 6 700.350 "TTTI87900 ~~ ThE EA A) els “77429, 000 82,036, 000 "718778. 000 74,719,835 2,305, 600 16, 683, 500 "7'8,071,515 "1,514,000 500,000 Th 005.350 """53, 250, 000 62, 500, 00C 500. 007 TT 978,00 505. 000) "83.547 495 "17,060, 00 183’ 840’ 00 ""37168,000 TTT10100, 000 "8.307. 00C 202,500 "69,011,610 T10173.600 12,395, 00C 450, 000 905, 000 15. 256. 000 26,340, 00C 10. 685. 000 ,240, 00 11,071,000 3,125,000 10 000 O00 3 000. 000 a. 480 000 eel TTT 15, 000 TT TTT) oa, 445.175 334. 486. 020 "*"B.000. 000 ein 3,565, 000 1 068. 005 h Co oo) So ng rt ed ¥ i r L k F . - = > a france and Italy...c.cceveerecncenneneonsenvene: Gorman East Aldon nme nmrmreroii” GOIIANY...iciceaencensons ran Gold Coast... Greece. ...... BUAOIIAM, vos pusvwvnwas sump dawaiian Islands..... Holland... BB wvugrivy sn summa RR "ndia and Ceylon............. sland of Labuan...... taly...... Korea..... uberig.....caee.... iadagasear. . falta... ..coee-{auritins..eeneeeeeenas {exiCO..ecanenan-Aonaco.. Moroceo........ New Caledonif...oeeeeeeanaceanans New Guinea. ....cceceeee.... New Zealand..... — NiCAragUS. ce ceeeeeosecccecnnarecncenerenacsnensmoncnnens NOIWAY..enuneectocncccnrsescasseacnoonannas 2araguay.. Jersia.... 2M. .....es *hilippines....... 20rL088L ose ennnnns *ortuguese India...... thodesia..... toumania. --... Russia... Salvador... Boon. vuiinrmanes Santo Domingo...... Servia... Sjam.... SiDOri cue nveannnnan..n Society Islands........ South Africa....... South America. . Bpain.............. 4 Straits Settlements... . RA Bweden........... 3a Tasmania...... CRATER Rob Bw DriniNad, cousmuns puss ens ss en sinh Sm mmr Tunis. . comune Turkev.. "593.015. 000 “165.805. 000 “TTT e109. 000 "14,800, 000 "712,100,000 "27,500,000 6 750. 000 70,535,000 6.860. 000 TR 900. 000 "787,520,000 mm 22.623. 000 3,000, 006 28,230, 000 2,515,000 2 073’ 000 "TT3 510. 000 TT930300.000 2250. 000 5. 000. 000 2,445,000 34° 496. 000 "16,522,000 1.270.000 "120.299. 000 "5.042. 000 ™3, 500,000" "12,207,000" 7 948.000 Bhi a 4, 653,00 5,340, 00 77, 164,000 1.863. 000 3,337,000 MRT 0, 142,0° 31, 646, 0K. 5’ £ra’ 004 25 823. An wl, 2,222,00 50, 00% t_195.000 97 756 500 "1 840 ON, "21,103,000 905, 000 2.008. 000 24,290, 0» 12, 874, 000 1,210,000 1.575 00 4,7 157, 837, 000 1.900) Nr 530, 00 1,444, 00C 9. 630. 00 10 E35 KOO 53, 596, 000 18,093, 000 2,135,000 13,722, 000 12,949, 000 98, 000 802. 000 "3.558.150 "78,083,300 7........... tevemnzzoaaser 16,150,000 25.000 ororisirine teencoenna.. 16,513,500 1,110,750 ............. 2,950,940 *"34,714,205 "7300, 400 3, 000, 000 7,983, 300 6, 851, 150 31,721,000 8, 067, 500 1,110,750 2,250,940 2,445, 000 765, 250, 755 9,042,150 500, 000 19,044, 40) 50,000 1,465, 000 527,500 »370, 000 51509, 885 184, 606, 711 443,600 2,865,900 1,640, 000 3,965,235 51,844, 200 905, 000 18,592, 845 18,300, 000 24,290, 000 153,150,485 1,210,000 WU, 689,125 8,750,000 212,500 17,681,615 276,107, 390 8,060, 000 411,200 3,496,400 530, 000 2,444,000 9,630, 000 Flips rt 150, 000 210,308,445 1,063, 698, 945 2,421,500 40,052,515 1,245,035 198,393,035 1,127,285 151,540, 780 3,248,450 13,358,450 1,150,000 22,569,000 2,245,476 15,194,475 erneraraann 98, 000 50.414.110v 90,791.110 5 I 3 LC KF 90. 825. 000 "376,000 we weegege ri "6110000733, 604,725 "5,500,885 84, 510, 396 443, 690 2,865,900 """3,533, 835 24, 405, 200 “T7500, 845 "113; 704, 485 019.125 "1,204,000 "16.375 000 "431, 400 “1675. 000 97200 One L """"512" 500 2 aan 14E "2,010,615 29’ 55’ 94% Tal 900 1 000. 000 » £-> ~ 23, 551, (0 4,061,015 1.250. 000 450,000 5.101. 000 7,975,000 850. 000 "118,384,495 = 3 2 n TE oon. pon Jt 00 ) TasLe XI1.—Summary of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada, by countries and by character of companies—Continued. = Location of properties or enterprises. a i resem nn wma ses United States of Colombia. .... Venezuelsa......-. West Africa. ..ccacevevacacascoennacn West Indies. ..caeeeveeecncaceacecanecs Dther countrios. . Total. ... Steam railroads. $81, 515, 000 41, 150, 000 16. 800, 000 3.142. 634. 000 Cable, telezraph, and telephone. $800,000 169, 000 958, 000 +, 098,000 27,497,000 170, 158, 000 Other public utilities. }19, 513, 000 500,000 1,700, 000 “300, 05 30.875. 000 973, 367,000 Mining and similer aompanies. $11.77, = roe, 51,0. 257,00 23. 756. ON 1.738.211, 090 Industrials. $375,000 8,076, 445 12 945 aon 173. 955. 160 Plantation and similar companies. 81,508,300 "3,908,540 263, 480 427.127. 540 Trading, ranking, and miscellaneous rompanies. $17. 698, KOC '6,733,%3. 10; 000, 00 75 206. 160 L774, 739, 836 “otal approximate capi-{alization. = b £110,526, 8¢ =5, 570, 3(¢ 30, 543, 441 52,792, 705 17,948, 480 181.369, 580 8.400. 192. 626 pt rd iw o Ee -— = MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. . 541 TaBLE XIII.—List of British organized or controlled companies whose ) located Le of the United Kingdom, United States, and Care are STEAM RAILROADS, Location of property. Approximate capitalize. tion. aguas Blancas Railway Co. (Ltd.)... cmuesancssessnns $14, 500, 000 tll & Northern Ry. Co. (Ltd.).- -. an 1,250, 000 leoy & Gandia Ry. & Harbor Co. (Léd.)eeeuueoeseccoenees 5,625, 000 \lexandria & Ramleh Ry. Co. (Ltd * a 1,200, 000 *ntofagasta & Bolivia Ry. Co. (Ltd. Cn ARSE 18, 000, 000 srgentine Great Western Ry. Co. (L- 36, 200, 000 irgentine Northeastern Ry. Co. (Ltd... 32, 188, 000 irgentine Ry. Co.......ccuvueenann.. 12, 500, 000 ‘rgentine Transandine Ry. Co. (Ltd.)....- 7,900, 000 ig Union Ry. Co. (Ltd.).secaeneeen 2, 500, 000 Arica & Tacna Ry. Co. 2,250, 000 Hosvie Sours B%ey 28, 800, 000 \ssam-Bengal Ry. Co. (%d.,... 13, 890, 000 Assam i & Taye (EH. )eeeneeanrccececmennnnannie 7,990, 000 3ahia, Blanco & North Western Ry. Co. (Ltd.)...vceeeeeees i0, 000, 000 3arranquilla Ry. & Pier Co. (Ltd.)....- cedscconnnn 1,750, 000 Sate a Ry a dere ene 2,625, 000 3eira Junction Ry. (Ltd.} RR 2,680, 000 Joe BY. 00. (LAT PEAR ewe 10,000, 000 3engal & North Western hy. Co. (Ltd.)... 30, 200, 000 Bengal Docars Ry. Co, (Ltd.)...cavae..- 3, 800, 000 3engal Nagpur Ry. Co. (Ltd.).. re 58, 625, 000 Bengualla RY. COueuuvnnercancasacunccnosen sees 217, 500, 000 3ilbao River & Cantabrin Ry. Co. (Ttd.)ececaacncarecacanns 750, 000 3lack Sea pair, Clhuggne vor » A $9, 560, 000 Solon RY. Li AT seve vee 6,130, 00g ih aroda & Central India Ry. Co. I 212, 500, 000 Brazil Great Southern Ry. Co. (Ltd.). ..cccuucemncncannaaas 3, 860, 000 Brazil Great Southern Ry. Extension (Ltd.)....... 243, 000 3razilian North Eastern Rys. (Ltd.)..- 1,750,000 Ry TEE SP. 164, 800, 000 3uenos Aires & Pacific Ry, Co. (Ltd) vr 140, 000, 000 3uenos Aires Central Ry. Co...covvuicniies vomececnocneanas’ 17, 500, 000 3uenos Aires Euseuada & Southern RY: Co, (14. ec uvunen 2,400, 000 3uenos Aires Great Southern Ry. 00. IL). co cnivemsnrens 269, 000, 000 3uenos Aires Midland Ry. Co. ¢ Hee 17, 530, 000 3uenos Aires Western Ry. Co. (Ltd.).. 148, 860, 000 3urma Rys. Co. (Ltd) ereeeecenna- +24, 700, 000 Carizal & Cerro Blanco Ry. Co 1, 500, 000 Central Africa Ry. Co........ 2, 500, 000 Central Argentine Ry. {Ad on 15, 800, 000 Central Ry. of Chubut Co. (Ltd.)... swan. *, 625,000 Central Ry. of Ecuador INCL i IRE SNe 1,340,000 Central Truguay Eastern Extension Ry. a 4,330, 000 Central _ruguay Northern Extension Ry. (Ltd.)........... 8,135, 000 Central Uruguay Ry. Co. of Montevideo (Ltd.)........... 7,110,000 Chilian Eastern Central Ry. Co. (Ltd.)....- 4,450, 000 Chilian Northern Ry. Co. Jad) aoe 17,880, 000 Chilian Transandine By. 0. (Ltd.).. 14,925, 000 Chinese Central SE td Yn: ny 500, 000 Colombia Russ avigation Co, (Lta.)cceceeeninnceennnanen 10, 170, 000 Colombian tral RE C0, (TAY, 0on ninnnnmsnnananasinannes 5,250, 000 Colombian National Ry. Co. (Ltd.),. 9,750, 000 Colombian Northern Ry. Co. (Ltd.)... en de 2, 400, 000 Cordoba Central Ry. Co. (Ltd.)... rgenting. ce .vceneessn oa 36, 800, 000 Costa Rica 23 Co. (Litd.).- 2058 RICA. cuneecnneensnaee- 17, 060, 000 Cuba R. R, Co. (Canadian’ Juba... .e 36, 890, 000 Cuban Central Rys. (Ltd. rmacrmenn SE I ——— 21, 000, 000 Cueuta RY. C0 iii cia eircnanernraaecacssnnenansssease JNited States of Colombia... 2,400, 000 Yes Bimasyn Ry. Co. 3 ucnreenrsssennersrvsans ndig.......- 2, 565, 000 Jelhi Umballa Kalka Ry. Co. (Ltd.)... AE awe sB0i0 0 cuvmuies va 8, 600, 000 Jemerara Ry. Co. . oh end — 3,470,000 Jovada Ry. qd. recasanen Jnited States of Colombia. . 760, 000 Zast Indian I; oa ndia....- 120, 000, 000 Jastern Dy Ry. Co....... . eam ...do... 110, 000, 000 Egyptian Delta LIBHE RS (LOA) ort toieenn rene enncens EY Phrerscenssrunnernnre vuw 9,485,000 Emu Bay & Mount Bischoff Ry. Co. (Ltd.)...ccceeeeeee.... TASMANIB....rrrecencneonnn- 950, 000 Emu DVR. Co. 0 ee sil rvrsrsemyanennnns same 2, 560, 000 Entre Rios 5 (Ltd.> see irgentinB.......--- " 88, 875, 000 Jranada Ry. Co. (Ltd.)....- sassnmeensaes DOM sssinsnswenenns so. 858, 000 3reat Indian Peninsula BY. C0..cceverrensienncnranesseeses AGI iciiieriesciiasneea] snenaersnness Jreat Northern Central Ry. of Colombia (Ltd.)........... Jnited States of Colonia’ | 4,950, 000 Guayaquil & Quito Ry. Co..... cc resssassa.. fcuador.. CREE ab 25, 000, 000 i Private loan to Russian Government, 3 Joint ownership with Indian Government. Loan to Russ ian Government. 4+ Equivalent to. Chile and Bolivia. ....a.... Srazil....oea.... pu Vie sranprmnsinenryniny hilosnd Boiivia...1." 1 argentina...... . “Ven. Ja 542 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TaBLe XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom. United States, and Canada—Continued. STEAM RAILROADS—Continted. Havana Terminal R. R. CO.urevrnrnerancansreescncnacnasen dis Highness the Nizam’s Guaranteed State Ry. Co. (Ltd.).. nteroceanic Ry. of Mexico-. ECC Kahetian Ry........ ww Kokand Namangan La Guira & Caracas _eopoldina Ry, Co. § Leopoldina Termina, Lima Rys. Co. (Ltd.) - Madeira-Mamore Ry. CO. (0G. iver anaeiiiarenen-Madras & Southern Mahratta Ry. Co. (Ltd)....ccvieracenn Marianao & Havana By. GALA. vvsvnmivnnvannumnmsms Mashoualand Ry. Co. ga) wi Mexican Eastern Ry. Co. (Ltd.).. Mexican Ry. Co. (Ltd.)........ Mexican Southern Ry. (Ltd.).. Mexican Union Ry. Fado wo ARASH Mexican North Western Ry. Co. (Canadian)... vichoacan & Pacific Ry. Co. (Ltd.)........cceevnneanee Midland Ry. Co. of Western Australia (Ltd.).c.ce saves, vidland Uruguay Ry. Co. (Ltd.)..cevormnnnnn. Midland Uruguay Extension Ry. Co. (Ltd.)..... Hogyana Rys. & Navigation Coceenennnen-.-Natal-Zululand Ry. {L242 New ow Central ms (Ltd)... Nitrate Ry. Co. fi YoncuniveierentoRiy SeEr HARNEY North Eastern of Uruguay Ry. Co. (Ltd. )eeeersc-vrucaranacs North Western of Uruguay Ry. Co. (Ltd.). Youth Western Ry. Co. of Peru....... so Jdttoman Ry., from ne to Aiden. . JE Samay Central EL eT cesecavsane Puerto Cabello & Valencia T: 0. (Ltd. Yee oieeecncncnannens i Junction & Mineral Co. (Td) e.eeevauen.. 2hodesia Fr LAA) von wimpesmpmsmumems ssn swems mans wasn Rohitkund & Kumaon Ry. Co. (Ltd.).... veer eee Russian South Eastern Ry... Ep— 3alvador Ry. Co. (Ltd.)......... sevseas Samana & Santiago Ry. Co. gid)... RT — 3an Paulo & Minas Ry. Co. (Ltd.)..- a San Paulo Res Co. (Ltd.)-. “ Santa Marta 2 C0u (EAL vuiis oon » Sin COVRE EAR RAA Shahdara (Delhi), Saharar pur Light Rv. Co. (Ltd.)........ South Behar Ry. Co 40 J South Indian Ry. Co. (Ltd.)..... Southern San Paulo Ry. Co. (Itd.).......... Cveerease State of Bahia South Western Ry. Co. (Ltd.)eeeeeauenr.n Polio] By, C0u.viprovegronpmpgrrs Tampico-Panuco Ry. Co. (Ltd.). Initod Boys. of YOO corurrrmimmrs sms s son sagan sees United By of the Havana & Regla Warehouses (Ltd.)..... Uruguay East Coast Ry. (Ltd.)... - Uruguay Northern Ry. Co. gaa Venezuela Central Ry. Co. (Ltd.).-Vera Cruz Rys. a8 Wh mp gs Vera Cruz Terminal Co. (Ltd.)..... Villa Maria & Rufino Ry. Co. (Ltd.). Volga A eee West Galicla Ry. Co. (Ltd.)eeeeeiiirennescanraconnnonnes West of India F Sg a Guaranteed Ry. Co. (Ltd.).... Western Ry. of Sdo Paulo........ Western Ry. of Havana (Ltd.)..... Wolmar Ry. Co....c.cvavunnn-Zafra & Huelva Ry. CO... Total.... Location of property. Approximate capitalization. BubB.cccenenencncecencanne India........ vo MoxI00. cos avsnvunmriener we Bustin. coum iecvimennnnin azo r80ceren ran Venezuela . Po Brazil.... ud orne@0ouaen A, Peru... rea Brazil ... Sim m——————— NAD. cieeiiiiinniriecienaan SADR coos crreenvens vreau Jouth Africa... ...couene cae Way: = lA 412, 000, 000 30, 500, 000 36, 000, 000 - 7,000,000 2, 000, 000 3, 600, 000 78, 000, 000 .2, 250, 000 2,250, 000 36,000, 000 55,100,000 500,000 27, 500, 000 2,050, 000 16, 700, 000 9, 385, 000 1,725, 000 35, 100, 000 375, 000 .2, 935, 000 1,950, 000 *, 500, 000 000, 000 290, 000 100, 000 , 520,000 ,000, 000 , 390, 000 £, 600, 000 2,300, 000 1, 800, 000 +, 200, 000 1,000, 000 *0, 950, 000 10, 670, 000 15,400, 000 5, 860, 000 2,200, 000 400, 000 000, 000 * 720,000 500, 000 ,000, 000 550, 000 , 500, 000 1,175,000 %, 875,000 5,070, 000 1, 500, 000 7, 000, 00G 1100, 000 000, 000 870, 000 500, 000 400, 000 ,335, 000 875,000 , 860, 000 750, 000 ,000, 000 450, 000 - 900, 00C + 13, 530, 000 ,0esy 3, 142, 634, 000 ceaebaevrevacverencsasnscannr Australi... c.icvvenesiaen Uruguay... cov vecneares JR—— |: wm —————————. Brazil. coueeniermevmvunmunns South Africa...c.cecuee a... spun iQBeve wee a PUZUAY ws vievvivonisneines Peru...... . aet Fa ATAZUAY ee reeneeonorreonnns ems + we South Afric..cecareeennens, pA wmnmis mmm wok wasn wn India... raver Russia.... wg ews Salvador. cove cruvsnsanvavens 3anto Domingo.......c--... Brazil.....-ite JOUER RAR i SRR Won 0 Hp rs United States of Colombia. Indif.eens oven anf? agugrenll Braz’. sma rage nBBascmruwsuweevyeesivinys Chile..-Mevi-a,.. a gi iDnrevwever seven venie y Bens sasenussmnnmaonense ruguay.. Venezuela...c.cceennannnan. Mexico... ----evernreonen-an ...do..... . rgentina... reeeas ba ARR ream a————e DBI wn wg pnw resin wma ‘ortugese Indiasllll rast... yw nnnnnnwrunigmspmns ussig..---nain CABLE, TELEGRAPH, AND TELEPHONE COMPANIES. African Direct Telegraph Co. (Ltd.)..-amazon Telegraph Co. (Ltd.)........ wh HE Anglo-American Telegraph Co. (Ltd.)...cceeeareanncnsennen Anglo-Portuguese Telephone Co. (Ltd) eeseceecareeacenssas Bogota Telephone Co. ta. Chl Telephone Co. (Ltd.) fries... razile..eciiiiiieacnnnen urope to America.......... Se nanan ; Le States of Colombia .. $1, 500,000 2,663,000 35,000, 000 949,000 169, 000 1,650, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 548 Tare XII1.—-List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. CABLE, TELEGRAPH, AND TELEPHONE COMPANIES—Continued. China & Japan Telephone & Electric Co. (Ltd.) (partially French capital). Constantinople Toeppans Co...... - Juba Submarine Tel ograph CO. (IA, Ju ven cvsrimaimanspnonns )irect United States Cable Co. (Ltd.) (lessor company)..... Direct West India Cable Co. (I.td.). = way Direct Spanish Telegraph Co. (Ltd.).......... - Zastern & South African Telegraph Co. (Ltd.)e..cecenenen.. Eastern Extension Australasia & China Telegraph Co. (Ltd.). Eastern Telegraph Co. (Ltd.)........ ..- S—— Europe & Azores Telegraph Co. (Ltd.).. - Great Northern Telegraph Co. (Ltd.). cee eeeecueneeeacneaans Halifax & Bermudas Cable Co. (Ltd.) (writer’s affiliation . Eastern Co.). 'ndo-European Telegraph Co. (Ltd.). " Montevideo Telephone Co. (Ltd.)..... FRA, « Oriental Telephone & Electric Co. fa SARE SAEER AE VEE 24 ‘acific & Sopa Tlogranh Co. (Ltd.). . River Plate Te egraph Co. ¢ td. a south American Cable Co. (Ltd). .coicueeraercciavananaa, Spanish National Submarine Telegranh Co. (I.td.)......c... spanish Telephone Co. (Ltd.).. Celephone Co. of Egypt (Ltd.)..... -. Inited River Plate Toghane Dor 112, I —— 7enezuela Telephone & Electrical Appliances Co. (Ltd.).... West African Telegraph Co. (Ltd.)... West Coast of America Telephone CO ...v.veneeeuansen. West India & Panama Telegraph Co. (Ltd.)e.. Nestern Telegraph Co. (Ltd)... Total, ce... T.ocation of property. Ching and Japan. .ceeeees oo. Turkey... mee yEnEy DB een g es ey or mean _urope to Amerfca...... .. West Indles........ ... IDOI. as semevns ai sna we South Africa................ Straits Settlements, Philippine Islands, and Australasia. surope and Far East....... iurope and Azores....see.. AON0PEL yo sup enweryusnnvsnant Canada to Bermudas........ ‘urope and Far East...... CL traits Settlements.......... Test coast of South America. ruguay and Argentina.... razil to Senegal........... rauish coast....-vain. . “IPbs cus wespnmr irene Jentina and Uruguay.... snezuels..... 5 frican Cable. .....oveeeunen “Test coast of South America. Vest Indies and Panama... Jonth America... ...... Approximate capitaliza~ tion. $165, 000 2,250, 000 1,100, 000 8,071,000 318, 000 373,000 3,000, 000 18. 762. 000 40, 000, 000 1,000, 000 7, 500, 000 2:0’ 000 2,125,000 800,000 2,073, 000 842, 000 375,000 1,235,000 1,295, 000 847,000 940, 000 1,110,000 958, 000 1,155,000 1,413,000 8, 780, 000 14.490, 000 170,158,000 LOCAL PURLIC UTILITIES OTHER THAN TELEPHONE. Adelaide Electric Supply Co. (Ltd.)... v \lexandria Water oo. L dd Jes sesnvernn: oer em sndalusia Water Co. (Ltd.).ecuueeeiseeaiannscnancecascances Anglo-Portuguese Gas & Water Co. (Ltd.).. os Anglo-Romano Gas Cou.eeeeeecnneocns RRR jive Water Works Co. (Ltd.)..... vreemcecaionn 3ahia Blanca Gas Co. (Ltd.).ececcnecnesscroecnccaneacaanees 3arbadoes Electric Supply Corporation (Ltd.)... we 3ombay Gas Co. (Ltd.).. ocean... > 3uluwayo Water Works Co. (Ltd.)........ TR Jalcutta Electric Supply Corporation (T4d.) ceeuueenaeer oo Jape Town & District Gas Light & Coke Co. (Ltd.)......... Cartagena (Colombia) Waterworks (Ltd.).c.c.eeeecvnacnnas Cantareira Water Supply & Drainage Co. of S30 Paulo... --Ceara Gas Co. (Ltd). eeeevisrnnnan. oo Jity of Las Palmas Water & Power Lo. (Li u.) eee ceecese ae lity of St. Petersburg New Water Works Co. (Ltd.)........ Colombo Gas & Water Co, (Ltd.).. . Colonial Gas Association (Ltd.)..... .. CR oma de Electricidad da la Pravineia de Buenos Aires Compania Hidro-Electrica de Tucuman.........ceeee.- wun Jour Sonsolidated Waterworks Co. of Rosario (Ltd.).... vesll@ewessmapigy ontinental Union Gas Co. (Ltd.).... rance and Italv............ Danish Gas Co...cocermnnnnneraiaannncas SNMArK..ccerenrenneen en Electricity Supply Co. for Spain (Ltd.)... DBM. coven: ccrrecaneanana. European Gas A deni LR [, ATCO. cure: secsesanceusan Genoa & District Waterworks Co. (Ltd.)eeaceesmmccnann. BlY. i ceiiiiin iran Hankow Light & Power Co. (Ltd.)...... hiNB.cecisareancenrrasanes Hong Kong & China Gas Co. (Ltd.).... ck Cel rmanei’ woe: Juelva Gas & Electricity Co. (Ltd.)...e.eoeviiniiiecnnnee.. RAID... Hydro-Electric Power & Metallurgical Co. (Ltd.)eececce- 2... 8SMADIB-..ceueennn nnn... (mperial Continental Gas Association _ _ esse. Austria, Belgium, France, ! . _ Germany, and Holland. [nternational Light & Power Co. Zug) (Canadian).......... South America.... ...... Kalgoorlie Electric Power & Lighting Corporation (Ltd.) ---| Australia....... vel 1 Organized ang registered as a British company, but is really German, 3 Loan. $3, 240, 000 3,000, 000 188,000 166, 000 13,000, 000 2,445, 000 £, 100, 000 300,000 +400, 000 1,276, 000 3,000, 000 1.165, 000 500,000 700, 000 425, 000 ,673,000 250,000 500,000 800, 000 10 275. 000 12, 500, 000 3, 623, 000 5, 000, 000 3, 710, 000 1, 182, 000 5,000, 000 "408, 000 100, 000 560, 000 279, 000 3,337,000 30, 875.000 5,340,000 1,300, 000 544 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, TasrLe XII1.—List of British oganian or controlled companies whose properlies ar located outside of the United Kingdom, United States, and Canada—Continued. LOCAL PUBLIC UTILITIES OTHER THAN TELEPHONE—Continued. Location of property. Approximate capitalization. Kimberly Waterworks Co. A TBE: Wh Beuguilla & Catembella Electric Light & Power Co. Madras Electricity Sup Av Se. (IAD) wwnvnivnipevensne <wue Malaga Electricity Co. aL Qi Jusnvissaesvennnvmnsens sunessss Malta & Mediterranean Gas Co. (Ltd.)...- ---iceecnennnes Melbourne Electric hy Co. (Ltd.). ww Metropolitan Gas Co. of Melbourne. .........ccceueeicancaaes dexican Northern Power Co. A Mexican Light & Power Co. (Ltd.) (Canadian).....ceea. un. fontevideo Gas Co. 18) ils: cee aes Montevideo Waterworks Co. (Ltd.)......c.vuveencnnrcnncanas Nairobi Electric Light & Power Co. (Ltd.) cee. seenennnn Jriental Gas Co. (Ltd.).... --- wae Ottoman Gas Co. (Ltd.)...- rman *ernambuco Water Co..... .......... veensances ’rimitiva Gas Co. of Buenos Alres (Ltd.).......ccceeeaaneaen. Province of Buenos Aires Waterworks Co. (Ltd.)eeerveersen River Plate Electricity Co. (Ltd.)ec.evncarennicrianennennens San Paulo Gas Co. (Maris seven Seville Waterworks Co. (Ltd.)... wv Shanghai Waterworks Co. (Ltd.)..... Se South African Lighting Association. ........ ere Jouth American Light & Power Co. (Ltd.)..........cceeunan South Barracas (Buenos Shen 33 & Coke Co. (Ltd.)....... Southern Brazil Electric Co. (Ltd.)eceeeiinenennnnenncnan oan Tarapaca Waterworks Co. (Ltd.)... ssevsavacanas Tuscan Gas Co. (Ltd.)..c.icniimnennenaanane fecamee Victoria Falls & Transvaal Power Co, (Ltd) eseveensnesnns Slectric Supply Co. of Victoria (Ltd.).....ccceeeeacneacnanas “lectric Light & Power Co. of Cochabamba. ..eeemecneace-s. ~nglo-Argentine Tramways 00, (LEI N, spunranarvansuseancs argentine Tramways & Power Co. (Ltd.)..c.cecieanceannen. Asuncion Tramway, Light & Power Co. (Ltd.).eccevuennne.. Auckland Electric Tramways C0 (TAA) aannnnnnrmnrmnamas 3arcelona Traction, Light & Power Co. $4 (Canadian)... 3ombay Electrie Suppries & Tramway Co, (Ltd.).......... 3razilian Street Ry. Co. (Ltd. Je. cccienirernenenenrnaenes 3razilian Traction, Light & Power Co. (Ltd.) fC psan)... jrisbane Electric tramways Investment Co. (Ltd.)........ 3russels Motor Cab. Co. (Ltd.)...ccooceeiriinnininecencanne 3uenos Aires City & Suburban Tramways (Ltd.)eeeeencnee Juenos Aires Port & City Tramways (Ld.).ccccccnsecnaces 3uenos Aires Lacroze Tramways Co. (Ltd.)......cocemeen.n 3urmah Electric Tramways & Lighting Co. (Ltd.)..... ... Calcutta Tramways Co. id, an ee Cape Electric Dagens [527 Capetown Consolidated Tramways & Land Co. (Ltd.)....... Carthagena & Herrerias Steam Tramways Co. (Ltd.)....... Ceara Tramways, Light & Power Co. (Ltd.)ccceecuerennenn City of Buenos Aires Tramway Co. (1904), (Ltd.) (lessor company). Ovilons: Electric Tramway & Light Co. (Ltd.) (German concern). Colombo Electric Tonal & Lighting Co. (Ltd.).ceeueecee. J6YION..cccneerncvacaaiiae Cordoba Light, Power & Traction Co. (Lid) treeeseanreneee: Argenting....ceeeecaecaoa... Costa Rica Light & Traction Co. (Ltd... ,oecoaeeansns +o DOSE RICA. cueemecmucannns Delhi Electric Tomi & Lighting Co. (Ltd.}.ceuseenc-.. India... ——— East India Tramways 5 SLAY ewrrcuen vevovsoenaae o:.a00.... i Tongkong Tramway Co. (Ltd.)..cooces oo iseesemmenaes: SRIDBcicieneecrentianneene. ndian Electric Supply & Traction Co. (Ltd.)... -.vco -. India. . Amer ary Rare _ndian Motor Taxi-cab Co. (Ltd.)...... spy ve weveellBonn fnesarer ses Tolpsenns Electric Tramways (Ltd.). .cveeveneserracnaraos. AUStraliA ceeceececani. Lo La Plata Electric Tramways Co. (Ltd.)..... veer--sas ATEENUIDB.careernereeanennse Lisbon Electric Tramways A a otal puenve nena s yay ey Road Rys. Co. (Ltd).. taly.... © gem Madras Electric Tramways (Ltd.)- dia... SRR Malta Tramways (Ltd.)eceeeenecrnacnnznnsacas LE Melbourne Tramway & Omnibus Co. (Ltd.).. Australia. . ad Mexico Electric Trays (LY enn ms vse Mexico. . Mexico Tramways Co. (Canadian)..e.o.vovaeac-- ....do... i eeervaeres Rio de Janeiro Suburban Tromysys (Ltd.).... seen Brazile... icieeana.. San Luis (Mexico) Tramways (Ltd)... ceseaveeevensaaan.. Mexico. cima Shanghai Electric Construction Co. (Ltd.) (tramway) ...... Shida. .....ccceiviinananses Singapore Electric Tramways (Ltd.)..c..voeereennae-as. -..t Straits Settlements......... | » Although organized and rezister= a: ~ Bri*ish company, it is in reality a German concern. South Africa....ccceevnanses! a0 las —— $2, 500, 000 908. 000 2, 942,000 500, 000 855, 000 t, 800, 000 8,570, 000 11, 300, 000 7,578, 000 2, 850, 000 8, 750, 000 250, 000 ..500, 000 225,000 481, 000 18,000, 000 2, 625, 000 2, 625, 000 3,000, 000 2,162, 000 2,118,000 575,000 1,612, 000 1,000, 000 8,100, 000 1, 200, 000 1,230,000 38, 250, 000 2, 267,000 1,750, 000 105, 107,000 1, 788, 000 3, 500, 000 5,042, 000 11, 659, 000 9, 878, 000 800, 000 14,177,000 1,125,000 533, 000 , 385,000 1,489, 000 14,924, 000 , 000, 000 0, 440, 000 1, 479,000 3,750, 000 1,194, 000 £, 900, 000 7.070, 000 7.675, 000 1,254,000 3,970, 000 2,083,000 858,000 500,000 1,295,000 715,000 505,000 1,999, 000 1,900,000 7,780,000 875,000 1,088, 000 715,000 1,800,000 B, 605, 000 12, 572, 000 3, 263, 000 1,595,000 1,680, 000 1,863. 000 MISCELLANE(GUS DATA CONCERNING FOREIGN CORPORATIONS, 545 TasLe XIII.—List of British ao or controlled companies whose properties are located outside of the United Kingdom, United States. and Canada—Continued. LOCAL PUBLIC UTILITIES OTHER THAN TELEPHONE—Continued. United Electric Tramways of Caracas, (Ltd.)....... re United Electric Toma of Montevideo (LAA. Yc vuevnsanns Tampico Electric Tags ower & Traction Co. (Ltd.) ...... Jouthern Brazilian i) Co, (Ltd.) (tramway, etc.) ...... 3n0 Paulo Tramway, Light & Power Co. Lae = 25 Jencieg Tramway, Light & Power Co. (Ltd.) (Canaan). . Tucumsan Tramways, Light & Power Co. (Ltd.)........... Vera Cruz Electric Light, Power & Traction Co. (Ltd.).... Minas Geraes Electric Light & Tramway Co..cecevecacaens Monae? Ry., Light & Power Co. (Canadian)............. Manaos Tramways & Light Co. (Ltd.)....ecemacneeraennns North Melbourne Electric Tramways & Lighting Co. (Ltd.). Lima Light, Power & Tramways COevcanescnccsnannanca ou Rangoon Electric Tramway & upply Co. (I4d.).ecceecnnan Puebla Tramway, Light & Power Co. {ORAL} meer - Pernambuco Tramways & Power Co. (Ltd.). mmm wa Para Public Works Co. (Ltd) .ceerenrrecnnerereisesnsnone. Para Electric Railways & Lighting Co. (Ltd.)..ceceeesnes International Lighting Association (Ltd.) (288). .ccacanae .-Total... Location of property. Venezuela... Jruguay. Mexico... Brazil..ceancecerecrcecs -e.udc Ar “IZENtINA.cvaeccacroncns san ‘exico...- ee <razil..... wa X00 ni snvnanensR cE 1aZil..ccceececneancccanaes ustralia... J. “ert... ceraene sees 0di8.ceeeeanciecncannasenes AeXiCO. aera reacneanen nue. 3razil... wen vee.CO. seve .e..do.. we A nstrali~ oo anvnwnes) Approximate capitalization, 51,700,000 9,913,000 1,250,000 5,035, 000 20,000, 000 100. 000. 000 3,939,000 3,000, 000 1,100,000 10, 600, 000 3,000,000 1,661,000 2,207, 000 3, 600, 000 13,729,000 10,179,000 310,000 3,950, 000 315,000 973, 367. 000 MINING AND SIMILAR COMPANIES. vabada Trust (Ltd.).... Abbassi Gold Mines (Lt¢.} \bbeville Gold Mines gre * bbontiakoon Mines i td)... et \bosso Gold Mining Co. (Ltd.). 300 Th Co (Lag ois ay Acorn Gold Mines (Ltd.).c.c.coveemnnannnn. LW RE A \ffoh Gold Supiesdas (Fades asinvnossnonvasnnss ve frican & Australian Co. (Ltd.)eceueianeeieearnanannaannie. frican Farms (Ltd) .coeeeeemcnce ao = a. “rican Gold HenT 5 (Ltd)... fon Msi g td) eeeaens nen tanseeneenn frican Tin Co. (Ltd.)e..cceeecrececsesznecasncocscocanc nan frikander Dery Gold Mines (Ltd.)...-Xoko Gold Mines & Estates Co. (Ltd.).... SE ikoko Main Reef (Ltd.)......c.c.... SRREAAES a ‘lluvial Tin Fields of Africa (Ltd.)....ccc. iecececenen. .malgamated Properties of Rhodesia (Ltd.)...ccvcuuuen.... -malgamated Tin Properties of Nigeria (Ltd.)............. ~malgamated Zine (Ltd.)...ces caenacenncaananiannnen.s aaiepns Gold Field i yn chor Diamond Mines (Ltd.)....... Anchor Tin Mine (Ltd.). reo Andrada Mines (Ltd.).... Anfargah Gold Mines(Ltd.).ccee,eenenn.. Anglo-Colombian Development Co. (Ltd.) Anglo-Colonial Territories (Ltd.)...... Anglo-Continental Mines Co. 23 Anglo-French Matabeland Co. {Lt rd agp saa A rench Quicksilver & Mining Coneecsion of China ANE rench Ticapampa Silver Mining Co. (Ltd.)... Anglo-German Exploration Co. (Ltd.)..cccerveeaas Anglo-Rhodesia Development Co. (Ltd.)c....iasseneee: Anglo-Swazi Co. fisds RET RE intelope Gold Mine (Ltd.)-*pex Mines QU .poroma Goldfields (Ltd.)..cceamnncan-nsppantoo Consolidated (Ltd.). ppolonia Goldfield (Ltd.)..... ramayo Francke Mines (Ltd.).. . SINGLY EY ves \rnoya Mining Co. gag) . reaenn \sgard Mining Co. (Ltd.)... feceeevene Ashanti Development (Ltd.)e.ce.verernicrcrecnanannonnsn Ashanti Gold Coast Acquisition Co. (Ltd.).eeevseescnnns Ashanti Goldfields Corporation gaan RRR Ashanti Rivers & Concessions (Ltd.). 27941 ° cpp 9-1 @e-l5 Mexico and West Africa..... West ATIC. .ocneeecanncaa. South Africa... - wn wa Gold Coas* ewe PL T—— West Africs..eecececanncacss Jouth AfriCB.cesecostccasans 301d Coast. covovunncnisnnans Africa and Australis........ South Afriea......_.......... wre llls pase SR West Africa iceeeevennnnn. gosef0ui sv iesssvannrunsvenyi South Africa....cceeeeennnn. pipes Lin iinit HARA West Africa. .cerreaccncannas AUStralif..ccececrecroccacee-1 TN Jouth Africa... seeeceeaae-. Tasmania, covsvvsvassunmnas British East Africa.......... Gold Coast, .eueuuareanannnan Jnited States of Colombia... South Africa..eceeseencecnen West Africa... seecscececces doth Africa hina. [ER— Pert........ ou Jouth Africa... gunn caeef Meamsanasarsssesnseren: TBH sn cma bu suAB ARRAS ERR SY Gold Coast... -. .eeececeren. ....do., Em BOliViB.eseeeoenne + Lasianes South Africa....ceueeeeenens SPAIN. .ceareancconecnmanane-AUSIPIL , ou sennevessncenenens West Africa. ...ccceceeneenen woof Frewssesenssenpsesnaaser $300, 000 665,000 600, 000 3,138,000 1000, 000 300,000 440,000 50,000 100, 000 3.250,000 500, 000 70,000 50,000 220,000 480, 000 80,000 450, 000 3,765,000 750,000 2.500, 000 150, 000 625.000 282, 000 1,250,000 2, 000, 000 L, 250, 000 1. 255,000 775,000 485 000 300, 000 500, 000 100, 000 60, 000 95, 000 .» 740, 000 +500, 000 1; 260, 000 i) 250’ 000 300,000 3, 000, 000 325,000 710,000 100,000 50, 000 50, 000 1,500, 000 400, 00¢ 546 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Taste XIII. — List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued, MINING AND SIMILAR COMPANIES—Continued. Asiakwa Alluvial Syndicate (Ltd.).......- vs Asp Gold Mining Co., (Ltd)... ccc... xn Assin Fesu & Gold Coast Syndicate SLA) op gpensaseves Assoc ated Gold Mines of Western Australia (Ltd.) ......... Associated Northern Blocks (Western Australia) (Ltd.)..... Associated Queensland Mines nang en Aurora West United Gold Mining Co., (Ltd.).e...ceacenenn-. Australian Trimetallic Co. (Litd.).. P— Avino Mines (Ltd).......ccocoae. oo. en Bacis Gold & Silver Nn [4 £22 1 ms Bahia Proprietary Mines (Ltd.)..ceveecaer-e-- -aevrane ae Balagahat Gold Mining Co. (Ltd.).- a Balkis (Ltd). ...veunnnnn ceeen Baltic Lead Mines (Ltd.)........ ... valor n ln nmmmn nnn 3antjas Consolidated Mines A vr raees 3arramia Mining & Exploration Co, (Ltd.)ee.ce 1enevena. sarranca Mines (Ltd.)...cceeecncnenineeiusererecnecnonnes larett Gold Mining Co., (Ltd.)...- erm yra Ry 3arrier South (Ltd.)........... IRE: A attlefields (Rhodesia) (Ltd.).... Pr techuanaland Copper C0: CIAL.) ou pun vissownnmannwmasansans ‘echuanaland Exploration Co. (Ltd. )eerveeeecerenane. 3elingwe Gold Reefs (Ltd.).......-ell Reef Development Co. (Ltd.). 3ell’s Transvaal, (Ltd.)......... 3eni-Felkai Mining Co. a enue Northern Nigeria Tin Mines (Ltd.).. Jetlin Prope Mines (Ltd.)... 3eraida Tin Fields (Ltd.)... Msichi Tin Co, (Ltd.)... gu ‘lasuwboseh Diamonds (1it.)eeenens CERES lack Flag Proprietary Co. (Ltd.)escceeeectacrencecccnoacns lackwater Mines, (Ltd.)..... on. slayney Copper Co. (Ltd. ae lock 14 Torrington (Ltd.)...- a. ‘ongwelli Tin Syndicate (Ltd.)....ccceeeecmnicrencncneanen yonnie Dundee Gold Mines (Ltd.)...cc..... oy ra 3oschoek Proprietary Co, (Ltd.)...- RSET lonn. Minas (LEQ). aise ress nnnsennsnsnceansy Jrazilian Gold Aes Syndicate (Ltd.).eeeeeerecren aus razilian Gold Fields (L IAI so “razilian Mining Se 329) rye FAR win ‘rilliant Block Gold Mining Co. (Ltd.).ceeceaceenacncnacanns “rilliant Central Gold Mining Co..... resesennsennr mer rilliant DO HC TLS yr cee-‘rilliant Extended Gold Mining Co. (Ltd.)..ceedeeceane-s.. rilliant Gold Minin Co. (Ltd) ee oereieeeceenncancenen riseis Tin & Genera i (Ltd.)eeeeasnnn we ‘ritish Borneo Rien 0. Rt dren . ie ‘ritish Broken Hill Proprietary C0. (AR Y conornsnmpnpennes ‘ritish South Africa Co.’s Mines Develonment Co. (Ltd.)... roken Hill Extended (Ltd.)...cuaauc.--. hv roken Hill Proprietary Block 14 Co. (Lt0.)eceneecncan: sae roken Hill Proprietary Block 10 Co. {Tea messanessnar ae ‘roken Hill rope Co. (Ltd.)....-roken Hill South Silver Minine roomassie Mines (Ltd.)...... AS roomassie-Prestea Main Reef . . .... ...) syndicate (Ltd.) Semana Gold & General Mining Co. (Ltd.).... Jucklands Estate & Diamond Co. (Ltd.) Sucks Reef Gold Mines (Ltd.).. ERR 3uena Tierra fining Cs CLA) wes ennpysnny en . Julawayo & General Exploration Co. (Ltd.)... Gms 11 mn Jullfinch Proprietary fi desnss Cmaeiiean yal Pd) ee erenreniniiniasannceancnaan hs 3urbank’s Birthday Gold Mines (Ltd.)..cceeeceesceer . surbank’s Main Lode (Ltd.).c.ceeeeeeaeincrnannran-Jurma Development Syndicate (Ltd.).ec- --2eeeneeecnne Sarma MGs (LU) + <.ceve ere ERR 3urma Ruby Mines Licdeyy sey 3utter’s Salvador Mines (Ltd.).....cc.ueeu.. FFE ae 3wana M’Kubwsa Poppet Mims C0, Clb) co vnv im imminns Cam & Motor Gold Mining Co. (Ltd.)....ccveeeueanenencnnae. Cape Copper Co. (Ltd.)....ccu..... Creer. rae Capillitas Consolidated Mines (Ltd.)... cccceeeeruunconssans Caridad Copper Mining i A —— Carolina Development Syndicate (Ltd.). Location of property. Gold Coast....oeeveeannnnce. South Afric8...vneeceesccnes Jold C0aSt..uecnescancaacnnn AUStrali.e. uo vececernenans, a.do.. A reed is conv ra EEE South Africa....o...ce --... Australia... heen MOXI00, sun essunsnannonnes vousQB uu: on mass ressiias Brazil. ndia...... ees South Africa........cceue.. 3weden and Norway....... SOUR ARE ne fue we egypt... ER Ee rss eur South Afric8..ccceener wen Australia.....covcceeeeee oo South Africa...cceceucuanee.. cna, ei mm————— ee ...QO. Algiers..... West AfTiCB..eeuieencaanses. South Afric8..ceceeecacenea-West Africa... .vceees an ped Cu HR RRR A Eve South Africa...cccecnneenne. AUSTRALIA. ce svnenvacecnceene New Zealand........ . Australis... ve wn yrs Q sammie ne arsg re any West Afric. .cccccacaear oa Australid..ecieesecncae - South Africa. .cucccaaacsns. viveliBei. siiensmretunin ran Braz? ae vena eee ceerl0. tenia irronenaas Aus* "8lifleeeccroccnacnicanes ene! BL ————— asmania and Australia..... ‘ritish North Borneo. ..... australis. ..oociiiiniiicnnen 3outh Africa.... en Australia... -. sn im wenelBun wmeeeresenersuene ~eest . ~essrsssssecress Golc. RNR EERS BL United States of Colombia... South Africa... A ....do.. nent SNEHRRRR MexiCo.... .cccenncceccansnn South Africa..cececeecensees Australis.....cceceeuascenees South Africa..ccecacecnscnas Australid..e..cecenrcecncncan .e..do. ceerens Burma.. ssecsassvecannae wevilQ0ur revsnensmessuvire vo.do... ieee Salvador.... wie South Africa... teniseen eree@N. rrierenerenee. anee@0. cit eiiciacareaeen Argentind...cceeecnenccanen. Bp. you pnsonnranenrenionys “auth Afrira Approximate capitalization. £35,000 750, 000 85,000 2,500, 000 1, 750, 000 75, 000 530, 000 500, 000 370, 000 490, 000 60, 000 1,540, 000 530, 000 337,000 2, 500, 000 275, 000 910, 000 600, 000 715, 000 1,000, 000 475,000 1, 500, 000 960, 000 800, 000 94, 000 535, 000 300, 000 400, 000 375, 000 1, 000, 000 125,000 712,000 1,250,000 140, 000 770, 000 100, 000 180, 000 1,620,000 3,750, 000 80, 000 885, 000 65,000 500, 000 155,000 187,500 525,000 2, 600,000 3,000,000 2, 500, 000 1,700, 000 250, 000 500, 000 775,000 3,000, 000 3, 360, 000 1,000, 000 .+ 230,000 500,000 175,000 200, 000 750,000 L, 650,000 365,000 2,380, 000 500, 000 350,000 187,000 370, 000 +, 755,000 900, 000 750,000 }, 310, 000 2, 500, 000 , 050, 000 2,055, 000 375,000 150, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 547 FaBLe XII1.—List of British organized or controlled companies whose properties are “located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. Carrizal Share Trust (Ltd.)...... . .. Carthagena Mining & Water Co. (Ltd.).. — Castellana Consolidated Mines (Ltd.)... ve mew Caucasus Copper Sonpany (Ltd )ecives somnwunssnnnnanmse Central American Mines (Ltd.).........c.cveeenacacaccaceens Central & West Boulder Gold Mines (Ltd.)..eeeeea, vu. on. Central Sion CO, (L,Y. ssarons + semnanoswisans Central Co. of Western Australia (Ltd.).....ceeevemmneenenn. Central Corporation (Ltd.)......c.cueeuriennnemeeaenn. Central Provinces Prospecting Syndicate (Ltd.)...... po Central Rhodesia (Ltd) - wn Central Zinc Co (Ltd.)......... gpg Chaffers Gold Mining Co. (Ltd.)...... . oy “hamp d’or French Gold Mining Co. (Ltd.)....cceameeeace.. champion Reef Gold Mining Co. of India (Ltd.)............. Shampion Tin Fields se ere Charterland & Genera. Plamen and Finance Co (Ltd.).. Chendai Consolidated (Ltd.).... Chenderiang Tin Drenpgats J Chiapas Zone Exploration Co. (Ltd.).cceee veunan Chicago-Gaika Development Co. (Ltd.).... Shillagoe (Ltd.)...... Chrome Co. (Ltd.)........ Cinderella Cons. Gold Mines ue. A Sinnamon Bippo COMA Ys ig ensnvuns vpmnmpgn sai RRA City & Suburban Gold Mining & Estate Co. (Ltd.).......... Ce (Ltd.)..... Hem sam Cloverfield Mines (Ltt... Cobar Copper Co. (Ltd.).......... iavesecass Cocks Pioneer Gold & Tin Mines............ceeeceencccenaen Colombia Smelting & Concessions Co. (Ltd.). cveeeeeencannn. Colombia Mines posi (RAR) vo pon gusnvnnmrevnar Colombian Mining & Exploration Co. (Ltd.). ec. .sounue. Colonial Prprieary Co. (Ltd.)..... swe Conquista-Xicao Gold Mines (Ltd.)..... oo Consolidated Co. Bultfontein Mine {i RARER iw men Jonsolidated Goldfields of New Zealand (Ltd.).....eeeovon.. Consolidated Gold Fields of South Africa (Ltd.)...c.u...... consolidated Langlaagte es TA payne Consolidated Main Reef Mines Estate (Ltd)............ Consolidated Mines Selection Co. (Ltd.)...-Contractors (Ltd.). .veceevennnnnn. Pr Sopp anes of Copiapo (Ltd.).. SEARS Jordoba Copper Co. (L4d.). «- c.cveuveeenancoseannencnnannee Corocoro United Copper Mines (Ltd.). .cveeeneeeenvanen on Coronation Syndicate Qe « GREER r. Crescens Mines & Land Co. (Ltd.)... rescence Creswick Gold Mines (Ltd.)......... sw Croesus South Gold Mines (Ltd.). ..eceeeeeenrenrnunears- oe Crown Diamond Mining Exploration Co. (Ltd.)eeseeeeunen.. Jrown Mines (Ltd.)....eceeeunn.. RENEE or Consols (Ltd.). .ceeaed ). 8. R. Syndicate (Ltd.)........... s Jyaggafontein Gold Mining Co. (Ltd.)... - Yama Tin Co. (Ltd.)............ . Yanube Mining Concession (Lt, .-Jarymusu Development Co. (Ltd. cevne ane Jay Dawn P. C. Gold Mines (Ltd.)... ceeeesranans Je Beers Consolidated Mines (Ltd.).. [E— 1e6b00K Dredging (Ltd)... veeieeueuieencnr venenenar aut ‘iamantfontein Doss Syndicate (Ltd.).....eceeannn. ismond Exploration & Finance Syndicate (Ltd.)......... ‘jamond Dopey Mines (Ltd.)........... . Jiana Mine (Ltd.).............. Jobbin & Cloncurry Mines $id, ue rear Dua Nigeria Tin Fields (Ltd). ..coeeeenienneeeen onan, Jungun River Wolfram Development Svndicate (Ltd.)..... Jurban Roodepoort Les (Led) ovndicate (Li Jurban Roodepoort Gold Mining Co. (Ltd.)... Durham Prospect Gold Mines (Ltd.).. on E. G. Syndicate (Ltd.).......... e aee Tast Africa Syndicate (Ltd.)....cu.oouenine nn ooinnnnnnns, East Oriental & Glenmire Gold Mining Co. (Ltd.)........... East Rand Central Mines (Ltd.).eece. eee oo oommoii East Rand Deep (Ltd.). ...couieiirerararninennmmosonons on, Zast Rand Extension Gold Mining Co. (14d.). een... -.. East Rand Mining Estate (Ltd.)....-Location of property. “hile....... ‘pain. ..... reson RID. easel AUSSIA. Luvana SO ViCaragUaee.cecoarsanencenss Australif..eoiceeecarecaannn i Australia ww oe sgl BBs covnensmnosne sma South Africa....ccc.. a... Australia... ? Di hnmneen wewillBe dis an dibin ns buns snsneon Jouth Africa....ceceuneen... MAB. ...coiiiiiriccncnens West Africa. ...coveecnnnnn. South Afric... ...ceveeeue. Biraits Settlements.......... wg wl0ey fa exico...... ERR South Africa. .....oeeee..... Australia.....cceccaeeans on. New Caledonia......... ... South Africa. ..ccccceeeaun.. 301d Coast. ..vcusciennncnann South Africa. ..ccevnveanannn wnwalOus mE waviBP ep awvne wugrawEsOREr Australia. ve EL Ty United States of Colombia. . veaeQO0. ee oune West Africa. . Brazil.......cicovucennnenan. South Africa. .ccveeecae- un. New Zealand..c.eeveees -South Africa....-ree upusnemveonwesares Sh TT nited States of Colombia. hile. .ovveinecnncannennr on spain..... om Jotivia........ wwe sp South Afries..c.ceccrennannns rensflBpycernrarsmensy annie Australia. ... VEER TL South Africa...ccvccneaee.. ....do....... ren ven Australia. .... Cseamanne: West Africa. .coueeiveennnnnn South Africa. ...ccceeaicnens West Africa. ....cueee.. ue. 3ervia..... we Gold Coast...ceeeeencaenns. Ausitalin. c.oorsanseonsanmen South Africa...ccvveerenanas Australia. ......ceeeenaenens South Africa.....ccevnuenn. wat. .. ee sCT ma PAIN... ihe sessaevee Australi. .oceeeeveccarnnanee West Africa. .....ccovvennenn Straits Settlements.......... South Africa. ..coeenacnnanens peel Bimaevnm sen EER RATS Tow Zealand suensussirovans EYDhyssecnnnsgesisshannnies British East Africa........... Australias .....ccouoiiveeanns Jouth Africa..... wn Approximate capitalization. $340,000 165,000 532, 000 3,950,000 725,000 375,000 t, 690, 000 510, 000 150, 000 1.500, 000 225, 000 750, 000 600, 000 675,000 1,300,000 250, 000 820,000 225,000 462, 000 1,135,000 4,000,000 i, 875,000 +, G40, 000 2,300, 000 1, 540,000 5, 800, 000 5, 250, 000 1,775,000 90, 000 300,000 180, 000 130,000 %, 500,000 625,000 -, 850, 000 t, 600, 000 1,210,000 3, 250, 000 5,100, 000 1.625, 000 3,225,000 15, 000 50, 000 1,000, 000 3,370, 000 1,100, 000 365, 000 £45,000 695, 000 500, 000 3, 540, 000 165, 000 145, 000 2.682, 000 225, 000 530, 000 £10, 000 550, 000 30, 675, 000 450, 000 100, 000 100, 000 208, 000 250, 000 350, 000 800, 000 175, 000 % 250, 000 625, 000 500, 000 236, 000 535, 000 100, 000 378, 000 250, 000 1,465, 000 2. 250. 000 548 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe XIII.-—List J British alia or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. Location of property. East Rand Proprietary Mines (Ltd.)....cccouceeeonnsac---o. J0uth Africa...cceeacenannas Eastern Akkim (Ltd.)..... py ve. 301d Coast...ocevsnnennrcenr Eastern Gold Mines (L*¢.:.. T—. vo. South Africa....cecceanienn. Bostern Dioiuier C8 Lil ype ¢ carewmewasnanusnersercess SIIB cer vevnes cron EEO Eastern Smelting Co. (Ltd.)..- ve. Straits Settlements....eeees. Effuenta Mines (I4d.). c.veeceececeeoseaces assuscoer sa. JOA COBSE..vvennnnrnuuenann Sheen Alangsh Wias oo. (Ltd). ocveccacncnccesscceccnaa. South Africa....ceeeennenne. 71 Amparo Mines (Ltd.).......... Cbecceaceesccssse- ro VODOZUOIB.e..cnccnescironnen El Mayo Mines of Mexico (Ltd.)........ ... Mexico... asimsrencant 71 Oro Mining & Railway Co. (Ltd.)... RL cresesassen De st ae won gunelllan praises sees nn woe 1 Dorado Banket Gold Mining Co. (T4d.)...ccvveeercuas... South Africa...cccceennenann. Zncinillas Mines & Smelting Works of Santa Rosalia (Ltd.).. Mexico...... ... ..--...... Inglish & Austraiian Copper Co. (Ltd.)...c.ccevneeeue ... Australia. ve English Crown Spelter Co. (Ltd.)........- a. anihd A TT English San Andres Gold Mines (Ltd.).....cccvveeac- .. Jnited States of Colombia. . Enterprise Gold Mining & Estates Co. (Itd.)..ceece.. .- ... Jouth Africa.... vee EE TN LIE Aexico ....-- PE unm Ofpss & Sinhur Oo, (Ltd... .- wanna: OA enwns mrwmmn sven wv Etheridge Gold Mines (Ltd.)...... weer vous AUSIAUR. core sv iar ye ravanan Wx-Lands Nigeria (Ltd.)..c.ccicroiieecearcscnccccnsccecss West Africa. uceecnnncece.. Stier Lond § Muserate dn. IAA.) cusonnesnnanvsnvnsse SOME ATION. conan nsvmmuns: F. M.S. Timah (Ltd.)eeeueue-- -- caner~e.- Straits Settlements.......... Falcon Mines (Ltd.)........ vaee South Africa.....c.cceacese Famating Co. (T4d.)...ccceururcsccerennscavanensenaannes Argentina. ...ceveeevnoncans. Fanti Consolidated Mines (Ltd.)....- West AfriC8...cevneeenneans Tanti Mines (Ltd.)....... wae Des Traees Fanti Syndicate (Ltd.)..... sell ppepesvsmanmesan amas Ferreira Deep (Ltd.)........ South Africa. ccceeeencenee. Filani Tin Mining Co. (Lt¢.,. West Africa... senwnmere Tlinders Copper Co. (Ltd.)......... Australia. ... RL “oldal Copper & Sulphur Co. (Ltd.).......- re NOIWBY ....onecnsessneecenas “forbes Rhodesia Synions (Ltd). «sar Jouth Africa..ccececenccenn forum River Tin Co. (Ltd). eeeeeescaeieaneeecnaeccnscees] West Africa. icereeennceanes “rank South Diamond Estates and Finis Co. (ids. South Afric8..eeceaenrances "ree State Banket Development Co. (Ltd.)..cemeivaveacrceecdiiii@0uir cnnncennnvanaaen. ‘ree State Rand (Ltd.). ...do. . ree State Reefs (Ltd.)...... won l0 0 . TU TL en re sesmwans SMistralla, oor sunpnusvsgmimes Jrontino & Bolivia Gold Mining Co. (L1d.).cccueecscense.-.] United States of Colombia... Fura Gold Drsdsinete. 4! veel Osh Aviles. ccuevevasvnnenee Gaika Gold Mining Co. (Ltd.).. BAAR ARES South Africa........ y Geduld Broprigniy Vine (Ltd. ) ec eeeiceasecnoncnsoossensant soeal0isnuarennenccncenacnar Gel Tin Lode & Alluvial Co. (Ltd.».. tesvesssecnnass WOSLAfiCA. vnucenranacens Geldenhuis Dep (Ltd.) - see; South Africa...ceesucececen-Gem Gold Fields (Ltd.). ceesl0eiiiieiincrenonnn ane Sora Exp Tidy... Gold Coast..nieernesrencens Geri River Tin Mines (Ltd.). West Africa..cececccrconaan Jor Tin 9gndionie (Lak). sav ellDines pasa spunea Geygerle ( Nr South Africa..... J. ziant Mines o Ah RARER EWE TR Ginsberg Gold Mining Co. (Ltd.).. mae WL Ll ve Glencairn Main Reef Gold Mining Co. a po Globe & Phoenix Gold Mining Co. (Ltd.)... FeReEe ay Lyte (Ltd.).. PS Golconda Mines (Ltd.)........ vas iis PERBAR, con Gold Coast Consolidated Lands a rweme emma —n on Gold Coast Development Syndicate (Ltd.)... cevervecrsace-nn: oly Gast Expl ad) ve aemeOa4 ve mess . Gold Estates of Australia (Ltd.)...ceveeeecvennnnrsesaeaaaat Austral cece iene Gold Fields of Mysore and General Etpltuim (Ltd.).eee.. Ddid...niiiircececennnenan Gold Fields Rhodesian Development Co. (Ltd.)...- .. South Africa...ccceeceananan. Sold Finance Co. {iid gene .. Australia... .eeeenennrnan. Gold Reefs of Barima (Ltd > ... Sritish Guianf.e.eeecenaces. Jolden Blocks (Ltd.)...... . vou ow ZoalanQ eee ensnnesnmane Golden Horseshoe Estates Co. (Lita... se. Australia.....c---ceeenneees Jolden Kopje Sion Mines (Litd,).... ... 3outh Africa. .....cceeci.o. Gopeng Consolidated LT A straits Settlements...... Government Gold Mining Areas Consolidated (Ltd.)........ 3outh Africa. ............. Grampian Freehold Estate (Ltd.).......- oe Australis... o.oo... ool Great Boulder No.1 (Ltd. )eeeneaeenacenn [R. Cireersas mas Great Boulder Perseverance Gold ining VO (Ltd )eeean in aon tesvasesssensananas Great Boulder pa Gold Mines( Press pda png ww Sou Briain Gold Mining & Estate Co. of Witwatersrand South Africa. Approximate capitaliza. tion. $18, 530, 000 85, 000 73, 500 1, 250, 000 1,025,000 930, 000 2,050, 000 450,000 400, 000 3,750, 000 137, 000 1, 500, 000 687,000 690, 000 120. 000 175,000 1, 000, 000 2,275, 000 1,960, 000 300,000 875, 000 (,375, 000 40, 000 3,250, 000 4,600, 000 3,053, 000 2, 500, 000 35, 000 1,900, 000 330,000 52, 000 865. 000 160, 000 362, 000 1,010,000 605.000 525, 000 338, 000 280,000 1, 040, 000 302, 000 1,367,000 1, 610, 000 60, 000 2,925, 000 285, 000 75, 000 150, 000 50, 000 263, 000 1,310, 000 1,050, 000 562. 500 2,750, 000 1,000, 000 $50, 000 148, 000 2,170,000 250, 000 128,000 100, 000 250, 000 708, 000 2, 570, 000 305, 000 585, 000 445,000 7,850, 000 2,442,000 2, 000, 000 7,000, 000 125, 000 1, 125, 000 7,000, 000 875, 000 500. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 549 Tare XIII.—List o British a or controlled companies whose properties are located outside of the United Kingdom. United States, and Canade—Continued. MINING AND SIMILAR COMPANIES—Continued. Great Cobar SU Raha TEA Great Fingall Consolidated (Ltd.).. Great Fitzroy Mines (T.td.)....eeueeneareat Oriental Gold Mines (Ltd.)....... Grecian Marbles (Ltd)... .covineenieeiaaanns = ariqualand West Diamond Mining Co. (Ltd.).cceeeeaeeenaan Jrootvlei Propriet: Mines (IQ. Ye cunnrcanironmmmnnnens Juanacevi Co, tas... pi. Suiana Gold Co. (Ltd.)...... Juram River Tin Mines J 5 o Twalia Central Gold Mines (Ltd.)..... 1. E. Proprietary (Ltd.}.cceeocencmannaa... Tampden Cloncurry Coppa: Mines (Ltd.)... lampton Properties (Ltd.).....-{ampton Uruguay fu). fannan’s Reward (Ltd.).. ym ‘armony Estate Development Co. (Ltd.)... ‘armony Proprietary Co. (Ltd.)i....... iartley Consolidated Mines (Ltd.)... rer po. fay Gold Mining Co. (Ltd.)..... wasl BY 3 WENERNEES Tenderson & Forbes Gold Mining Co. (Ltd.)c.ccuerueenansnne enderson’s Transvaal Estates (Ltd.)eoveeeeccnanane.. inman Concessions (ead ae .. olmholmen Copper Co. (Ltd.). se OUtPOOTt (Ltd.) caver eceeiemcarcanctacrcs ssnesoncannnes [uelva Copper & Sulphur Mines F233 d rensanmnrmamnnrnesne Tuinac Consolidated Lopper Co. (Ltd.)....... —_— ‘unter’s Road Syndicate (Ltd.).. pews .utti Gold Mine (Ltd.)...---- A Iyderabad €o. 88). , wa «da H. Gold Mining 5; (hA8.5, . ‘dris Hydraulic Tin (Li SE mR ‘nambari Gold Drearns oneessions (Ltd. ). veces ceenanenns ndian Manganese Co. (Ltd.)........ © ieee ‘ndimba Tin Alluvials (Ltd.)... creeeeeves Inez Gold Minfag COLLAR) vvippmmeprrvaswsmmvenswevemnmnn ingliston Extended Gold Mines (Ltd.)..... pa insiza Mines (Ltd)... veunennnnn. pan (nternational Granite Co. (Ltd.). wn BEER Ipoh Tin Pie C0, (LAA) evi vennmmsavenvavasrnesnvansss ivanhos Gold poration CIA Yeuvucinns inawmasves see ivory Coast Development Co. (Ltd.)....- ad BWR lantar Nigeria Co. Gad. Jemas en Co. (Ltd )eee: oi rrer cries aes Iibutil Gold Mines AST) LE - wn ‘oharnesburg Gold Fields (Ltd.).. ven fos Tin Area SLA) IRE pe ES sea Juanita Mines of Rhodesia (Ltd.)..ceaveeceeneiniaccnennans Jugs Tin & Power Co. (Ltd.).. CH , jumbil Tin Areas (Ltd.)....... ANSERANE $AW Jumbo Gold Mining Co. (Ltd.).c.uee.... HER SRA EA) Jupiter Gold Mining Co. (Ltd.).. . Wi Kaduna Syndicate {Ltd.). cavemen i es Kafue Sopos Development Co. (1td.).... wont sim — Kalgurli Gold Mines fad)... i! A Rhleryinm ies A Go (iad: . a amunti redging Co. Yemwmes — {ano re Ete Eldar ie effi Tove a RRA Kimberley Gold Mi Co. (Ltd.> King Asbestos (Ltd.)... Kinta Tin Mines (Ltd.)..... Kledang Tin Mining Co. 45 da ota to. wt Kleinfontein Estates & Towns PD (Ltd.)... Klerksdorp Proprietary Mines (Ltd.).-Knight Central (Lid)... Knight’s Deep (Ltd.)... cc ceieeoiiiocnan. Kobolondo Development ‘syndicate (Ltd.)... Koffyfontein Estates (Ltd... Koffyfontein Mines (Ltd.). Kokumbo Co, (Ltd.}e.ccnoeren. an Kolmanskop Diamond Mines (Ltd.)....ce... EE. Yah Tomata Reefs Gold Mining Co. (Ltd.).veceeeencerceconcancnas Lorean AVL (1d Juve ssannrmnnissrcsrorirssmnssnnrass Kramat Pulsi (L Srrgiyeese: A RE ThA Kuranti Syndicate (Ltd.» Location of property. Anges. SoC ....de Jreece. South Africa. ....do. Mexico........... British Guiana...... West AfricBe.cecaasa.ioansas Australia. ....coeceeinaaans South Africa. ceceeeeernnnnn. Australia. [ Sout’ yo 4 wenal I eeesmsecassasmnar Woosh 0B csavsssmnsns sud Sowih Afriea..ovvsvsnivevans see eO0L. eiiiecienncsanne-West Africa...aeveueinee se NOTWAY...0ceeneannosccnuan Jouth Africa .cccecaaaecanas DBI wren na wr r aww ZO puerwiimarwaners «wes South Africa...cceaveeine se ndia... “rRvEe EET ERY ...do... rea Australia. .....ccoccneen on Straits Ssttlements......... POI... - -ic.cceosancesceandia....... ene South Africa. .ccececenaann.: reid Q vu mps wer gov avers Australia. ....ccieeianeenne: South Africa......ceeveeens. PIntonfl. oo consveansrnnn sun Straits Settlements.......... Australis. ......coccecvenen. West Africa...occ -vroou oe JO LT a JR andia....... South Africa. ..cceaeeen. West Africa. .ccveeceenennan. South Africa. ..ceeeeearances West Aftien...... caves ser waa 00a gun Sa RRR South Africa....ccceceerenna. c...doe... ol Sh Emme West Africa...ccouenanceann. South Africa. ...eceeecceans. Australis. ..cocveencecoaones South Africa. .....ccceeaeeeen Straits Settlements... ccceeen. West Africa.....ccoumveanye: reer@0ueierencureeernsnsaan: South Africa..... ..-ceeuee. 11 5a Uh yo ARREARS Jtralts ~-tflements.....ce... eee@0iaii iia icaeee South Africa..... BIRR swat Jelena yg seevavan. West AfriCa..cceconecsccens South Africa. ...cceevecesee New Zealand...c.ceraeneee KOTBR.vereacacnsnssvasssses traits Settlements......-Fold Coast... Approximate capitalization. 18, 000, 000 625, 000 750, 000 262, 000 1,575,000 5,228, 000 1, 808, 000 +2125,000 250, 000 850, 000 625, 000 B75, 000 .,950, 000 1. 829, 000 967, 000 85,000 85, 000 +. 250, 000 255, 000 88, 000 700, 000 715,000 2,765, 000 1, 782, 000 100, 000 750,000 395,000 157,000 187,000 350, 000 1,560, 000 352,000 300, 000 348, 000 250, 000 280, 000 180, 000 325,000 100, 000 155, 000 120,000 3, 000, 000 70,000 300,000 63, 000 , 180,000 312,500 375,000 162,000 1, 412, 000 250,000 1,750, 000 5,070,000 95, 000 1,375, 000 600, 000 1,910, 000 650, 000 315, 000 250.000 500; 000 625, 000 300, 000 309, 000 125, 000 235,000 1,500, 000 3,953, 000 869, 000 142, 000 1.540; 000 2,040, 000 562, 000 i, 000; 000 50, 000 500, 000 195.000 550 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TaBLe XIII.—List of Brivsh Ls or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continusd. Kuranui-Caledonian (Ltd.).. wee veen Xuskie Tin Fields BL Sp ron rss nannies Kwall Tin Fields of Nigeria (Ltd.)..ceeceeeeerecracans Lo 20 Mining £0. (LAL, Junin sn prassnomominins susie La Reforma BA Jesunasrcencannsvasens Lace Proprietary Mines gL, I A Lafon River Tin Areas (Lid.)- wind sme Lahat Mins (18) REA creer ee Lake Copper a i Lake View & Oroya Exploration (Ltd.).c.oeeemciveeanar oun Lake View & Star (a3..” , Lake View South ( dy RE ——— Lampa Mining Co. (Ltd.)..c.ccnvieiiacnnars srrsesconc-raas Lancaster West Gold Miz Co. (Ltd.).... REE SRN uanglaagte Estate & Gold Mining Co.. Lert Tin Mines (Ltd.)... cesses Lena Gold Do ist) [ Leydsacn Mics { td)... y now Aberian Svelop ant 0% Bid argrgumrversnensnnsues iberian Diamond & Gold Trust Co. (Ltd.)..cooeuean... Abiola Copper Mining Co. (Ltd.)...ceeeruircecocrancans:, Ji (i opie FERRE =H Anares Lead Min: B50 ie IEE RS Jinchwe Concession Co. (Ltd.)..c------- SREY gd Jdoyd Oemeer Co. (Ltd.). . somah BR)satin (Ltd) eenan-nenns tesevanar ~ondon & Rhodesian Mining & Land Co. (1.td.).....ceuu.. wondon, Australian & General Exploration Co. (Ltd.)...... London Dublin Gold Coast Syndicate (Ltd.)..ecemeec nine. Lonely Reef Gold Mining Co. (Ltd.).. meena Lower Bisichi Tin Mines (Ltd.).... TN a Ms NET pH panes Vlei Estate & Gold Mining Co. (Ltd.)...euueeensy Jydenberg Estates (Ltd.).c.coveeenininicienncascsnnndannes ydenberg Land & Exploration Co. (Ltd.)ceecenececann. «ydenberg Gold Exploration Co. (Ltd.).. a anlar Bajiway & Mines (Ltd. a—— . F. Raion 0. (Ltd). SR dain Ree! et iii ape ‘falacca Diamond Mines (Ltd.).... RRR falayan Tin Dredge Co. (Ltd)....... isevesnensanneas oDper ine (Ltd.).--- EP {anta Mining Co. (Ltd.)... SERRE ms Jones Mine A iv SARA Lh SAID GRR bk Hmm mms Tariewale Nigel Gold Mines & Estate (Ltd.)e-ceececenrcann-‘ashonaland Agency (Ltd.)....c.cveervmermenncnecacner Tashonaland Consolidated (Ltd.)... Mason & Barry (Ltd.).....c.c.ceu- Sg fatabele Queens’ Co. (Ltd.).... A RR 1owchi Mines (TA. ).o.coeer 1 cossesrwevvavsrsansnrans vas fay Consolidated Gold Mining Co. (Ltd)... ecevecvenn.. fayblossom Mining Co. Ge angreran SRR RE dayo Development Co. (Ltd.)..... CRRRCSehs Mazapil Copper Co. (Ltd.).... ih Bann +2 vain Mazoe Mines (Ltd.). teesmsasan Medapola (Ltd.)....eoveeniemtunnaneiie viiranaannanananan denzles Consol. Gold Mining Co, (Ltd.).ceerereinnnnnnnnnn.. ‘fenzies Mining & Exploration Co. (Ltd.).cverrencnnneannnn. Messina Development Co. (Ltd.).cueueeueimiiereracacanann. Mexican Mining & Industrial Corp. (Ltd.)...c.c.ceeuvanunnn.. Mexican Pacific Gold Mines (AAS, mee lio Mexican Proprietary Exploration Co. (I.td.).. ‘fexican Rosario Mining Co. (Ltd.).-‘{exico Mines of El Oro (Ltd.)...... .. 'feyer & Charlton Gold Mining Cp. (Lid.)... smn: we {ichoacan Daedy & Mining Co. (Ttd.).. cc iimieecananenen fills’ Day Dawn United Gold Mines Co. (Ltd.) ............ ines Contract Co, (IAL, )eveurssvipussnrsmsnnnanonnonnns Mining & General Investment (Ltd.). Minna Tin Co. (Ltd). ....cvenonene Modderfontein B. Gold Mines (Ltd.)...s. Aodderiontein Pen Levels (Ltd.)... Mongu Tin Mines (Ltd.)... a bh Mons Cupri (Ltd... cveieeineeniciiineeeaareenransensooannnns Monte Mayor Gold & Silver Mining Co. (Ltd.)...ceeeevecens. Montrose Diamond Mining Co. (Ltd.)eeeceeeeecas -- .-Montrose Matabele Co. (Ltd.).. Location of property. New Zealand.....c.eenunae West Africa...ceecencsnc-os was elle. ae rea Mexico. . Wik: E63 aeael0eisnneiinnncnancecnnes South Africa..c.cc.censeaces West Africa....cvneeccai ua: Straits Settlements.......... BWeden, cocevers ruvsnnnamun Australia. ..- rE snmevlOvuy PT, woe sfl0aiy cesenasencenr Parl. ci.cicess sunnnine South Africa... se--do.... srw ceeil0uer i rierececnnneran. BUSA, cv smsnernmnainns swe South Africa. .ccesevanes oe LADOIIa wpe vn mpnmennnennis ...do.. eRe OF vuconoars owe West Africa... i A Span. .cvaeiercrenecnsnoanar South Africa. ..ceceeeeccana-Australis... c..coecemsecnen South Africa...ceeecveenanee. wv eB0rs wawnrweverwaen yng Australis... -.ciaceccraecsas 301d Coast..nuerecnencnaionn South Africa. .cceceeennaan.. West Africt..censeccennens. wow oA « wu BRERA TRAGER South Africa. .cevevaneenunas freee iireeeencrecacsannnas NE cecacsenencasnans woiB0gy mies Dameware" Australis. ....ceeeenavavenes South Africa. ..cceeeneeencn. reas SPER Australi. .....cevevenannnae Straits Settlements.......... Australia. ..ccoeveeennonnnen MEXICO. .e.cvereisuencnecacss South Africa...cceevavee.nen cxvunliBiqrinnvntwenmmanne nyu sgoliis mamwus sn pwmn ww sav By pgunn=s 0 resenyeye Portugal....creceenannerenas Jouth Africa... ..cvceecenene. BUITHB. .cceeemurneacanananns South Africa. .coeereenanane. ces elOinninncninninannane, cqnoll ame HH wR ERR x MEXICO. c-erersreronovannnnn Jouth Africa. ...cceeeanna... Jeylon.cvceecnninccarannna. Australia... ..iceeeecenens cons 0unpgwnns winnie South Africa.... wn Mexico... an vem 3outh Africa.... Po Mexico. -... re Australia... -- reven General. ..ccocveiinincnnnnns 3outh Africa. ...ccovacnense. West Africa.....coveeneen.. South Africa. ...ceaneenen... cis dlBs senna. ko vevavmE Ee: West Africa.....ccaaeevennee. Australia. .....cocoeenenen. 3alvador....ccirenanensonner 3outh Africa....- . py Approximate capitaliza. tion. $20, 000 350, 000 207,000 2,525,000 2,250, 000 ++ 275,000 225,000 §00, 000 2,710,000 .,805,000 1,000,000 125, 000 385, 000 3,445, 000 1,430,000 ', 385,000 5,770,000 300, 000 570, 000 325,000 . 260, 000 240, 000 305,000 595,000 1,400,000 320,000 2,000, 000 705,000 51,000 1,355,000 100, 000 325,000 3,778,000 315,000 750, 000 750,000 1,780,000 260, 000 5.700, 000 535, 000 625, 000 380, 000 300, 000 325,000 125,000 3,000, 000 925, 000 925, 000 500, 000 , 250,000 ,450, 000 500, 000 760,000 2,685, 000 575,000 429, 000 ., 125,000 1,370, 000 2,159, 000 275,000 510, 000 250, 000 74, 000 , 060, 000 , 000, 000 1145, 000 *, 500, 000 300,000 62, 500 225, 000 , 500, 000 2,275,000 335,000 556,000 150, 000 538, 000 85. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 551 TasLe XII1.—List of British organized or controlled ‘companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. ‘foodie’s Gold Mining & gy Go, (TAL) evuvunenass “Yount Boppy Gold Mining Co. (Ltd.).. - wp {fount Brown Tin Mining Co. (Ltd.).. ow Iount Cuthbert (Ltd.). Jount Elliott S148 ps Mount Lyell Blocks pi MiDEl ennnenn crams 1 an fount Lyell Mins & Railway Co. (Ltd.)euccececenaranaces Iount Lo Gold Mining Co. (Ltd.)ccsevearreioceree nee fount Oxide Mines a Mount Read Mining Co. (Ltd.).......... _ ‘fount Zeehan Silver Lead Mines (Ltd.}...eueeaemvacenr +e Mountain Queen (Ltd.).......ceeeer cevevensoenees SE Youramba Oogrer Mines (Ltd.). Vow ew ‘fozambique Co. (Ltd.)....... RADAR mn Iozambique Macequece (Ltd.)...ccereererncnncccnsnencasen vlulwarrie Exploration Co. (Ltd.).. ce vee Zungana Mining Co. (Ltd.)...... Mysore Gold Mining Co, (Ltd.).. Namaqua Copper Co. (Ltd). ............ Naraguta Extended Tin Mines (Ltd.)... Naraguta Tin Mines (Ltd... cveceveneaneneenneevannencnnonas National Spanish Silver Lead Mines & Mining Co. (Ltd.)... Nechi Mines (Ltd.)........ sin New Bavley’s Mines (Ltd.)... a New Boksburg Gold Mines Et nese wer mm New Brilliant Freeholds Gold Mining Co. (Ltd.)............ New British Transvaal Mines (Ltd.)..... os ww New Callao Gold Mining Co. (Ltd.).ccccnnvneennnerenennene. New Centenillo Silver Lead Mines Co. (Ltd.)euecueerenrennn. New Chuquitambo Gold Mines (Ltd). .cccvevemmeennne wee New Emeralds Co. (Lay, To Fo New Era Consolidated (Ltd.® rene New Found Qut Mines (Ltd.\... New Geduld Deep (Ltd.)... . New Goch Gold Mines (Ltd.)..... nw New Heriot Gold Mining Co, (F4d.). ovuueenneeaeenannannn New Jagersfontein Mining & Iixploration Co. (Ltd.).... New Kempinkote Gold Field (Ltd.)......-- o New Kleinfontein Co. (Ltd. a New Lafon Tin Fields (LtC CARRE New Lisbon-Berlyn (Ltd.).....cceeeeinraennniocmnanaannsee New Lydenburg Minerals Exploring Co. (Ltd.)..ocoaea. ... New Lyell Consols Coy Mine... cineereerencosacancecanan New Modderfontein Gold Mining Co. (Ltd.).eeeseesecnsanses Net Nimrod Co. A REPL meon=rnsenes yw New Primrose Gold Mining Co. (Ltd.).. wo New Queen Cross Gold Mines (Ltd.). wens New Rand (Ltd.)..........- PERERA New Ravenswood (Ltd.).cueeueeeens vereeeneonsoeceonens New Rhodesia District Development Co. (Ltd.)............. New Rhodesia Mines (Ltd)... ...eeeeruereennnnnenen. New Rietfontein Estates Gold Mines (Ltd.). .. New Bp Gold Mining Co. (Ltd.) New Sabinas Co. (Ltd.)........... ... rn, a wei New Spes Bona Gold Mining Co. (Ltd.)..eeeneeeennvener nn New Steyn Estate Gold Mines (Ltd.). . New Timbiqui Gold Mines (Ltd.) ... ENE New Transvaal Gold Farms (Ltd). eeeeerencrnnnneanananns: New Unified Main Reef Gold Mining Co. (Ltd.).......u.0.o. New United Reefs. (Sheba) (Ltd.)..........coomorrmmenr os New Vaal River Diamond & Exploration Co. (Ltd.).... New Ventanas Mining & oT Co. (Ltd.).ce..... on New Zealand Crown Mines Co. (Ltd.).... wm New Zealand Mines Trust (Ltd.).. | Newdwarf Gold (Ltd.). ouieeeeinnnn iii iirneennnnsoen. Nioatams Development Syndicate (Ltd.)......oueenn.. oo Nigel Gold Mining Co. (Ltd.).......... - Nigeria Proprietary Co. (Ltd.).... Nigerian Tin Corporation (Ltd.)............. Nigerian Tin Trust & Exploration Co. (Ltd.)... Nile Valley Gold Mining Co. (Ltd.) Ninghi Tin Co. (Ltd.)........... Ce. North Anantapur Gold Mines (Ltc.). rT North Broken Hill (I4d.)..u.uueeninieniiennnnoooonnn, North Charterland Exploration Co. (Ltd.). esueeeono North Cobar B13 qrremmennnronessnannos North Kaleurli (Ltd.* Location of property. South Africd..ceceeessnence. Australis. ..ccceeiver ear veerl0ucuintaienrnnnneacnnas savot Puuseengriigrassdnsmons cee CD. sown RRR, 1, TE nwa TasmAania..cceeeeseansonsas Australia...... enemy. eye dese ARERR. Tasmani...c.ceceemuecnansse. J Australia. . Fr vee ed0n iii Postma Southeast Africa ceeeO cniiieeiin nae Australia wor ....do.. sree M08 severernapronnapnney South Africa...cev 2v1-ees. West Africa... . PT sani ok SW St Jnited States of Colombia. . \ustralig......c.ue... ws South Africa. ..cceeececee eo Australia. ...cnnnequesnn- on Jouth Africa... - or “enezuela. ..- “ pain. . - JOMDaciiosseiiisannnrnnsinnn Jnited States of Colombia... South Africa. .....ccccveean. ndia...... South Afria..ceceececee = West Africa....coeecnneness. South Africa... Tene we JR [+ SO Australia. ...ceevenncanee.. South Africa.... wo wwe West Africa... on South Africa... ..e.ueeeu.. Australia. ccvevenusenveiconas South Afriea.... . .. ... Australia...... ..iceeeenen 30uth Africa. ccuccncceceenn. ceuCon sear ee ~ORICL vu rman no South Afriea.... pe” wanes www peunegnsempenipeny United States of Colombia. . South ARPIOn. coieuwnsns Mexich...oooh ieeeneeeees New Zealand..- sma. gues OB giwians RN South Africa. cceeevecncenan. Nicaragua. ...eeneessescsncs South Africa.. we we West Africa.. ve ...do... rem sn A RE RY South Afriea....-- -._...... West Afric... receaeecnn-Ndi... ciiienienronnnnse Australi. ccc veeenencnannes South Africa. .cecanneencace. Australia... awn Approximate capitalization. R1, 200, 000 755,000 58,000 1,145,000 3,687,000 1,500, 000 3, 500, 000 5,000, 000 2,500, 000 150,000 365, 000 850, 000 500, 000 3,110, 000 583, 000 182,000 750, 000 1,525, 000 943, 000 755,000 875, 000 400, 000 560, 000 215, 000 2, 700, 000 127,500 162,000 1,300, 000 500, 000 224, 000 253, 000 3500, 000 285, 000 150, 000 t, 500, 000 565, 000 1,250, 000 , 200, 000 5. 755,000 177,000 577,000 £00, 000 750, 000 7,000, 000 30, 000 1,625,000 115,000 765, 000 160, 000 750, 000 800, 000 3,050, 000 1, 400, 000 315, 000 750, 000 1,500, 000 1,000,000 237,000 .. 250, 000 250, 000 345,000 312.000 200, 000 50, 000 315,000 180, 000 1,120, 000 250,000 397,000 110, 000 1.525, 000 400, 000 500, 000 3,000, 000 1,470,000 1,000, 000 150. 080 552 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TaBLE XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. North Higherles Diamond Mines (Ltd.)..c.cosenrsaccsnasas North of Brazil Finance & Dordlogenms Co. (Ltd.}ueceeenne North Swazieland Syndicate ea, — - eae North Tarkwa Syndicate (Ltd.). as North Ural Mining Co. (Ltd.).c.ocn: suireie ver rovacenasens North White Feather Gold Mining Co, (Ltd.)..ceeuerecncean North Minerals (Transvaal (Lid... recosceanas! North Nigeria Tin Minses BY... enigie ns issppssbnsrabonsns! North Nigeria Mining & sist Co. (Ltd.)eecnecnec-nae Northern Nigeria Trust (Ltd.).ceceeee--. . Northern Transvaal Lands Co. (Ltd.)... me Mourne Mines (1d. ) y ee wiwgms swngoncrogmmmss ners sss snag uoewe No.1 Southern Oriental & Glanmire Gold Mining Co. (Ltd.).. No. 2 Southern Great Eastern Gold Mining Co. (Ltd.)..- .. Nundydroog Co. (Ttd.)...cesreeccucecnncnaceassoncnn Daxaca Mines Development Co, (Ltd.).. Obbuassi Mines A Dbbuassi Sriita 4 td.)...... , Oceana Petes Co, (Ltd. )ecenceeacremcrsocnar-nssresnn Offin “tiver Gold Estates (Ltd.).... we Olea Sulphur Co. Gide we Jlga Exploration Co, (Ltd.)...c..cc..... Ceanse reseamen Ooregum Gold Milage. of India (T4d.)...oeceeicnecanne-Orange Free State & Transvaal Diamond Mines (Ltd.)..... Oriental Consols Gold Mining Co. (Ltd.).. wor Orion Mines (Ltd.).. en Oroya Links hte . Orsk Goldfels (LAA), coun sepurmssmvssnipenopsanpns spmins dtavi Exploring Syndicate (Ltd.) (German concession)..... Jtavi Mines & G0 (Ad) ou aaiwgesns duro Preto Gold Mines of Brazil (Ltd.) Pahang Consolidated Co. (Ltd.)....... ccceevevcensssen Palenque Gold Mining Syndicate (Ltd.)...ceeeececesersases Joimerejs pnd Mexican Gold Fields (Ltd.) eevee -cecnner coe ’aringa Mines (Ltd.)...... SS ———— Paris Gold Mines (Ltd.)...-.-..... wn pr EEERE TTA ato Mines (Ltd)... euanen. a Yena Copper Mines (Litd.).. 2engkalen (Ltd). ceaneseceane 2eru Mines & Estates (Ltd.).. 2eruvian Mining Trust (Ltd.). pHi Dredges (L1d.) .vee.enrescuaie seessrasnssnnecss Jiggs eak Development Co. (Ltd.)... .. .. . ececene ee. 2inhel Wolfram Mines {-. . a 2joneer Co. of Siberia i a - Alanet-Arcturus Gold Mines (Ltd.).......cceeevreecacannene: Slatinum & Gold Concessions of Colombia (Ltd.)...ceeeee.. 2oniel’s (Ltd.) veeesennan. Crrweciues 2oderoso Mining Co. (La. ne suvessescacsns 2olongeni Tin Mines Ltd irene, - JS >ontons Zinc & Lead Mines (Ltd.)... 2orco Tin Mines (Ltd.)........... 2ort Lincoln i C0. (Ltd.) cc eeeerveenrceernnsanonanns Potchefstroom Exploration Gold Mining & Estate Co.(Ltd.) >remier yum Co. (Ltd.)...... ?remier Tati Monarch Reef Co. (Ltd.)euue .uve.. remier Diamond Mining Co. (Ltd) ecuemenenancennnncfannns 2rostea BOCK A (Ltd.)c.ccereeccenerncnconcensaconancer >rincess Estate & Gold Jing Co. (Ltd.)..... ‘rogress Mines of New Zealand........... prema 2using Bharu Tin Mines PF 30mare Ce ceessesesssena >using Lama Tin Mines (Ltd.). wos “yrenees Minerals (Ltd.)..... SARE Tay Juasie Gold Mining Co, (L1d.)....-cecenrevecansnsencaocsans Queensland Copper Freeholds (Ltd.)...ccescneeacncsser Aafinpa Tin Co. (Ltd.).... Rambutan (Lid) Rand Klip ir Rand Mines (Ltd.)....... Rand Nucleus Gold ie, (Ltd. )eeeemoonmenanni. Randfontein Central Gold Mining Co. (Ltd.)eeeercresse. landfontein Deep (Ltd.).......ecceveaeecnaceccescscne: Randfontein Estates Gold Mining Co. (Ltd.).... .. ... Randfontein Extensions (Ttd.).. .ceeeseca-- aecces Sonn COPPBL C04 csi ivesunnaissvisensesanenonisnneesns Ravenswood Deep Mines (Ltd.)eeeee-an -cccnrcescenr-Rayfield Tin Fields (Ltd.)...- - Location of property. Jouth Africa. ceceeeacc--ue 3razil.......ocieneeencaneener South AfriCa..ccvesnacsesee: West Afric. .ccevaoncaccnsen RUSSIA. .cecriraannancasannns AUStIalin. ..ccicverancsennen: South Alrien. cequvenvun cou West Africa..ceoceancvanrss sasdOhuieepse sami nansen es ne. CACC South Africa. ..ceeeeceer-se ees-@0.ueiiciiencnconconovear Australif..e.cececacecnecees sordQBunars onpmymenawy wane AID v ve mrnemnnernemnersnns Moxl00., . conusnnnnpmsnanany West Africa... cceeeceecenas veer@0nciiiiiicncenneenr ae South Africa. .ececaseecses West Africa...ccaceescacaces Chile... ae ndia.... PERRYS Ta gral] Bpsuperninsnseannoppes South Africa. cceeeeaccenes: Australia......ceceecene or Jouth AfriCa..ccveeeeacaces: Australia... recscnssenan Siberia. ....cocececnacnce ser South Africa. .cevcsceneccan: veel Mcepee © cree--nar SIRE lus p ie insnninsanene ue traits Settlements.......... Jnited States of Colombia .. ‘fexico... FE Australif....oceee-South Africa. .eceeecanseees Jnited States of Colombia. i Straits Settlements.... Par. CREAR RENEE dl TINeS. i ceeuarsenn-ane Jouth AfriCh..cescccccnceae 2ortugal.. famemear ee siberia....... re South Africa.....ccecenennns Jnited States of Colombia.. South AffiC8..-eanneas 1a DOM. jinsinsinminmens wo Jouth Africa...eeceessoneen: pain. .cciirrornnssavencen. Bolivig.cco. vrecscscecenee Australia....ccceceenacccncan. South Africa...eeeeeeccanss: swf Bun vemeseeves wrest Mess. sesesscssecses 301d Coast. .euensnnsernnsesr South Africa ..ceenecenennans New Zealand......c.ceeeuese Straits Settlements.......... veeelOneeeir cre recone drance. .. —_ Fold Coast... . egw Australig....ceeereecacnanes West Africa.c.ceucscenconar Straits Settlements..eee:- oa. Bouth AfICa.cecesasorrvsnns Woeaaungs SRR de I cecrcresaranes Norway. connmansssnvnnnsnns Anstralln, ocvsnnnosare=- aes West Africa. . Approximate capitalization. £170, 000 155,000 260, 000 185,000 1,300,000 1,075,000 120, 000 1,125,000 50,000 180, 000 220, 000 1,135,000 232, 000 12,000 '. 410,000 14,000 250, 000 125, 000 355, 000 1,535,000 460, 000 200, 000 1,800, 000 2,750, 000 250,000 75,000 ., 445,000 3, 395, 000 315, 000 1,000, 000 258, 000 2, 370,000 295, 000 2,345,000 200, 000 650, 000 ., 630,000 3, 685, 000 500, 000 750, 000 300, 000 , 000, 000 1,195,000 250,000 500, 000 3,375,000 30,000 00, 000 300, 000 222, 000 50, 000 550, 000 +, 750, 000 1,945, 000 50,000 1, 500, 000 400, 000 3,250,000 2,875,000 , 555,000 100, 000 500, 000 800, 000 280, 000 1,165,000 £85, 000 500, 000 2,160,000 2, 655, 000 1,300,000 15,965,000 3,339,000 24, 800, 000 860, 000 260, 000 328,000 92.250. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 553 PaBLE XIII. —I4st of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continusd, ayfleld Tin Syndicate D400 cammane-Rein River Tin Mining, 0, (Litd.)eeeencscenc ce sesnsas jnony Tin Dredging Co. (Ltd.)eeesr-vsec---acacnaccassoaslezende Mines (Ltd.)...... FS Rhodesia & Ashanti ge). eee ee a 5 hodesia Broken Hill Development Co. (Ltd.)...... . .. Rhodesia Consolidated FLA Fedral pert apa Delis Copper & General Exploration & Finance Co. td.). Rboosta Gold Mining & Investment Co. (Ltd.)....ccc.... Rhodesia (Ltd.)..ceanceriiiereerrsnmnceecccacsscncconnac-as Rhodesian & South African Syndicate (Ltd.).... ----a Rhodesian Oo ien (Ltd.}. .-. ibon Yelle in Fields (Ltd.r... Rietfontein Central (Ltd.).. tietkuil Gold Mines (Ltd.)...... . lio Plata Mining Co. (X4d.)- oo -- anaes Rio Tinto Co. (Ltd.).cc...... toberts Victor Diamonds (Ltc.)... *obinson ig Gold Mining Co. (Ltd.).. ,obinson Gold Mining Co. (Ltd.)..cueeurear +o >omola Nigel Gold Mining Co. FALL nase. oodepoort United Main Reef Gold Mining Co. (Ltd.)... - "ooiberg Minerals Development Co. (Ltd.).---.... .oper River Land & Minerals Co. (Ltd.)..-. cresvanas opp Tin (Ltd.)... eedeenenes Jose Dr (LAY pe nvesinpspprnsummssssaysmsrs sss sunnmpan ns "ose of Sharon & Shamrock Gold Mines (Ltd.)ecececcce see AE Irs ras . Rukuba Tin Mining Co. fir. we Russian Gold Fields (Ltd.)....c.cccaeaaer RRR Russian Mining Oofrgion (Ltd.).... RARE 3. A, Proprietary (Ltd.) eee ceceecacecantacarsossveonsanar-oo 3A. ae & Concessions Syndicate (Ltd.).... 3abi Gold Mining Co. (Ltd.)...coeeuse. Sacke Estate & Mining Co. a St. George & Moonstone Gold Mines (Ltd.)... we 3t. Ives Run Co. (14d. ) eco cumunav- = ow. GE Jt. John Del Rey Mining Co. (Ltd.)...caeerseconeanccceccaes Jan Carlos Gold Mining Co. (Ltd.)... -cecseeareseccece: oa Janta Rosa Mining Co. a i 3 Jan Francisco Mines of Mexico (Ltd.)...-Jantana Mines (Ltd.)...... feseneeanes 3awhee Gold Mines (Ltd.)... ae aes Santa Gertrudis Co. (Ltd.)e.eieeaeeies. we Saxon Tin & Wolfram Mining Co. (Ltd.)eeeee veacacncacens 3cottish-Australian Mining Co. (Ltd.).... yews me we Scottish Gympie Gold Mines (Ltd.)......cccveeeaae-Jeottish Mashonaland Gold Mining Co. (Ltd.)...... Sebakwe & District Mines (Ltd)... -oooc i iiiiimreacann Sefwi Goldfields (Ltd.) ........ Wp Sekondi & Tarkwa Co. (Ltd.).......... . 3elukwe Columbia Gold Mine (Ltd.)....cceeceacncnccancnan. Jelukwe Gold Mining Co. (Ltd.). ..coeveccaceccncecsacnanaines 3empam Tin Mines tay = Seremban Tin Mining Co. (Ltd.). . thamva East (Ltd.)... Shamva Mines (Ltd)..... rT Shashi & Macloutsie Expl. _tion & Mining Co. (Ltd.).. Sheba Gold Mining Co. (Ltd. 3iamese Tin Syndicate ( ad “ones Siberian Proprietary Mines (Ltd)... iberian Syndicate (Ltd derra Co. (Ltd.)......... 3ilati Gold Mining Co. (Adena immer & Jack Proprietary Mines (Itd.}............. dimmer Deep (Ltd). Sinti Reefs (Ltd.)......... ., Siputeh Tin Mines (Ltd.)........cceeemeerncenconncoennee Socorro Gold & Silver Mine (Ltd.)......-.. — Sons of Gwalia (Ltd.)..... South African Co. (Ltd.)..........ccu.. Hn BEAR South African Copper Trust (Ltd.).......c.eeeeececnareaces South African Diamond Corporation (Ltd.)...ceeeeeseeeanen. South African Gold Mines (Pty em South African Land & Exploration Co. (Ltd... eeveeeoeness South African Mining Syndicate (Ltd.).. Location of property. West Africa... I Ttraits Settlements. ......... South AffiCa.......ceuemenn South and West Africa...... South Afriea.........-eeaadng, Ana swvillBuen mmegmmimageneune —T carmsmneene: Sc ~wweemm wopnQ0es senssmaone: ORE West AfTiCa...ccenececenanns South Africa. ....ceeenccecae ....do..... + wwndinnd MeXICO..ueurrsenesnecnsaanan BPall. pooper vnromerenenenes South Africa. .eoeernceeean eee len wn Sod NRE Gold Coast...eeuucmncancenan West AfTiCa.ccereccascesnnns South Africa. eeencececrosnes ve..do.. Rem DL J West Africa. ceeine: -eenee Russi CRRA seesQ0.us.iieecencernnonnnns South Africa.. , wind avsnves: grees w emmmensepmaseew Australia. ...eee- p— South AfTiCBe.cecesecasnasee. Brazil. c.oivesnnnanonsanenne Meaxi~~ a pees80acnnienaeszesnansannn United States of Colombia... Gold Coast.eecennanaa--Mexico. ...... 3 JOIMANY..cavecenncoenern. I: grsell0uoronse South Africa........ . eeesl0.iineiiacnnccennnann Gold Coast.. mnee-esena ceeedOli.aiiae ae South Africa... .- cevesses mye 2G Bue nse pea gega en Birolts Settlements..... -. Sout™ Africa. ......ceeeeeee J penal --Siam... acccccccceieneen iberi~ ceimencmes — ven ADM cp nupnrmmmsie wme wow South Africa. co cccceenasas pCR SPICES 8 Straits © _.lements...cece... 3ritish Honduras. aa....... \ustralia.... we jouth Afriea.. 1eenscevesrcenes cacccccscess oo . teceecssccan Approximate capitalization. $375, 000 260, 000 470,000 600, 000 275.000 800,000 3,000, 000 1.320. 000 1, 500, 000 1,500, 000 145, 000 139,000 750, 000 34,000 450, 000 1,872,590 {7, 500, 000 750, 000 5,000,000 13, 750, 000 195,000 2,300,000 900, 000 1,020, 000 250, 000 3,500, 000 1.250, 000 375, 000 500, 000 600, 000 ss 200,000 1, 000, 000 12125, 000 135, 000 227, 000 3,310, 00 195, 0¢ 875,000 2,750,000 240,000 385,000 , 500, 000 300,000 +, 250, 000 1.300, 000 315,000 810,000 105, 000 250,000 $00,000 280, 000 400,000 120,000 100,000 3,000,000 2, 500, 000 ’ 350,000 600, 000 580, 000 260, 000 .. 410,000 600, 000 18,000, 000 12. 425,000 100,000 187,000 600, 000 ,625, 000 3, 950,000 1,310,000 500, 000 1,200, 000 3,000,000 275. 000 5564 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TABLE XIII. —List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. South African Option Syndicate (Ltd.)..ccicecrrnescnanene. South African Territories (Ltd.)......cccuceevconnancrae: oo South American Seppo; Syndicate (Ltd.).ce.cecenenenesr 3outh Bukeru Tin Co. (Ltd.)......... ———— 3outh Kalgurli Consolidated (Ltd.).......ccecrmnencasencan, South Mount 5% y Gold Mining Co. (Lt@.)eeeeeceennnn. South Orofu (Lt A FO South Rand Exploration Co. (Ltd)eceeeieeerarecncacacncnns South Village Deep (Ltd.).cc.curvicraraencrnsncesannner on Southern Lands Corporation (Ltd.)... ...c..c.... .. Jouthern Shan States Syndicate. . Jpassky Copper Mines (Ltd.)..... Fnjeten Farm Gold Co. (Ltd.).. Spring Mines (Ltd) ac. vuuieceiiiiiiacanaancaniens Standard Consolidated Tin Mines Co. (Ltd.).ceueacecac..... Star FD td oy pg Lr vam asap Straits & General Development Co. (Ltd). cceuacanene. .-. Sub Nigel (Ltd.).. pee Sucre Mine (Ltd.)...... wie Sudan Sings (Ltd.)... Sudan Gold Field Co. (Ltd.} Sulphide Corporation (Ltd.). ceccacer a Jungei Besi Mines (Ltd)... voceemeeraannnneennccarnnnnnn. Surprise Gold Mining Co. (Ltd.)........ senna Jusanna Mines (Ltd or Swazi Gold Fields (Ltd.).... 3wazicland Corporation (Ltd.)...cceeeeenneeennaacane: Swazieland Gold Exploration & Land Co. (Ltd.).... Jwedish Metals Extraction Co. (Ltd.).... SHer 3ybu Syndicate (Ltd.)......... hw wh Py Syndicat du Yunnan (Ltd.).... friresesssesssr ses Taiping Tin Properties (Ltd.)... sw laitapu Gold Estates (Led). _-Talbot Alluvials (Ltd.)......... rou Talisman Consolidated (Ltd.)....- wn Panganyika Concessions (Ltd.). ue BW Faquah Central Mines (Ltd.)...ceeecnireaiaacecasaccncaans Taquah Mining & Exploration Co. (Ltd.)..cvecarveeenee: .v larapaca Coupe Quarries (Ltd.)..veeoiecnadavaaes Parkwa Banket Mining Syndicate (Ltd.)... Parkwa Banket West fd). lasmania Gold Mines (Ltd.)...... Pasmanian Copper Co. (Ltd.)..c.vccaann Fasmanian Metals Extraction (Ltd.).cveee .evuceonee. Pati C0. (LAA,] yuevgsrmmmmmeronnanins panes arnss ssnunans Taxco Mines of Mexico... - Tekka (Ltd.)......-... Tekka-Taiping (Ltd.)...... chr cnn Tetela Mining Co. (Ltd.)....oeueeiiicncinnnaccaecronoane un Tharsis Sulphur & Copper Co. Pe cer aes Thistle Consolidated Mine (Ltd.)..... © .. ..eceeevenece.n Thistle-Etna Gold Mines (Ltd.).... .ccuceveeenenanensens Tin Areas of Nigeria (Ltd). -.cocceriveneanaronneriaooas on Tin Fields of Northern Nigeria (Ltd.)... » Pin Trust (Ltd). eceeeveneceracacannnn Pe Tingha Consolidated Tin Mines (Ltd.)... EER lolima Mining Co. (Ltd.)...... Cee E RRR Tominil Mining Co. A I Pongkah Harbour T. Dax Co. (Ltd.).neccreercnnnannn Zoora Props Tin Fields (Ltd)... .vcueiennrnnrone- oe loro Tin Co. {Za} Gk ding ee Coronto Syndicate (Ltd.)..... . . .coiioiiiiniicinnnnnnnn, ‘ransvaal Consolidated Land & YX onion Co. (Ltd.).... ‘ransvaal Diamond Development nan. SR ‘ransvaal "states & Deyn: 0. (Ltd.)... 1 . ‘ransvaal ixploration Co. (Ltd.)e.o.ciueurnenneiinenannen.. ransvaal piloting 1nd & Minerals Co. (Ltd.)........... ransvaal farms & Finance Co, (Ltd) ecveerov-cvrae: ou “ransvaal Gold Mining Estates (Ltd.). . fransvaal Gold Trust LT Dsl 0S AY sees inna, Transvaal er} Gold Mining Co. (Ltd.}eeernenueness Transvaal Northern Estates (Ltd.)....-Primetallic Syndicate Lil) awn Proitzk Goldfields (Ltd.)eeacesccseccuananecenacsecevenanane: Tronoh Mines (Ltd.)....- — . Tronoh South (Ltd * Location of property. South Africa....cccveveenees eeeel0iiiiiiiceonsnnanneener Venezuela....vevenenceccnae West Africa. .ceearaacace er Australif....coeennceccncens: grilling won vovegeginnnvenae West Africa..co. -iimeceenan: South Afrit..cccecacesscen. cepellDusgsr vopinenvevsieny ....do.. wo 3urme THRE Siberia. ........ PP South Africa. .cccereaeeneen. ween@0ys sts sommes Australia...... — West Africa. .coccemcnnensnn Straits Settlements..... ... South Africa......ccec.enen. JInited States of Colombia... Toynt. ...do.. australif.....coveeneen oer 3traits Settlements.......... South Africa. .ccvvencnennan .. fo “ sow Jun hv nsETE Tey ....do.. JEN dweden...... HER LRW West Africa.... abe ChiDA.....ocvvennaseenoc-nn traits Settlements...... .. New Zealand...... os Australia. ..ceeeeecancocaner New Zealand....eeeeseenean: Sotith Africa. ceerececeer oe West Africa. ..ceenanceasee. ....do.... HARRIE Chile........ ® WestAfrica.... To eee waren pm vin umn wn smmmmmn—n Tasmanis.... ceeveeveecens ....do. we A —_— South Africg..... -.eeeren. Mexi00.. oui cinssnmnna rams Straits Settlements......-... veer@0iniiiniiiieeinnieaean, MOXICO. uur -renncennsennen: 3Ipain......... fearraeec South Africa....ceeeeenanan. LL RN. West Africa.. “mmwnene weuellDis svmvsensuvnvenss sees Straits Settlements...... ... Augiralia....ccinvnvsezinene United States of Colombia... “exico... Py HAM... this ceesaeenas aad Australia. ...comnernereenss West Africa. ceerecuenaer 1ue South Africa. . ae PO so sin QB ww resane Pasmenia..... .eeveeveeen. NBD peppers wa straits £«ttlaments...... .. Approximate capitalization. $350, 000 2, 400, 000 75,000 220, 000 625, 000 685, 000 31,000 1,395, 000 2,525, 000 300,000 600, 000 4,895,000 725,000 4,725,000 250, 000 225, 000 345, 000 2,155, 000 65, 000 295, 000 320,000 1,810,000 545,000 1,298,000 175, 000 1,259, 000 1,000,000 15,000 425, 000 60,000 175, 000 400, 000 825,000 133,000 1,725, 000 5,875,000 1,525,000 ,935, 000 925,000 600, 000 234,000 1,250, 000 (, 750,000 1,950, 000 2,000,000 250,000 100, 000 325, 000 670, 000 8, 250, 000 687,000 150, 000 150, 000 350, 000 350,000 1,000,000 500, 000 1.250, 000 844, 000 375, 000 210, 000 235,000 1,855, 000 175, 000 £,925, 000 1,000, 000 1, 750, 000 185, 000 3,410,000 600,000 1,210,000 900, 000 175, 000 275, 000 3,125, 000 800, 000 500, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS... 555 Tapre XIIT1.—Zist of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. Tudor Gold Mining Co............ -Jlundi Gold Mining Co. (Ltd.)...... Jmeari Gold (Ltd.). cee oevureanenerene-raen we Jnited African Exploration (Ltd.).....- z nited Excelsior Mines (Ltd.)....... oe Inited Exploration Co. (Ltd). ...uueueeiiiiirnnacmeceasae Jnited Gold Coast Mining Properties (Ltd.)......cee.... Jnited lS i LTS wa. wy United Rhodesia Gold Fields (Ltd.). .oveeeeeuecernnnnnenn.. Vaal River Diamond Co. itd) anenransrraeanenns cae Van Dyke Proprietary Mines § td.)...-- 5 Van Emden Gold Mines (Ltd.)..... PR Van Ryn geen (IAQ) sos vimesmnnenanasn ios an BRS Van Ryn Gold Mines Estate (Ltd.)eee.eseesncnneaneneennan Victoria Proprietary Qiad, — [I Victory Gold Mining Co. (Ltd.)... rm ———— Village DOD (td reenact Village Main Reef Gold Yung Co. (Ltd.)eeeneeeeerncacneens Viziamgaram Mining Co. (Ltd.)........ “RE ERE 7ogelstruis Consolidated Deep (Ltd.).....ccceveeeevencnens Vogelstruis Estates & Gold Mines (Ltd.).eeeeenseceecnenns-W. A. G. Assets Do. FA Jgpreees CANE EAR Waihi Gold Mining Co. LS dnp FAC Sp Waihi Grand Junction Gold Co. (Ltd.)eeuuueeeeeenemeneaanns Wallis Co. Ee crmmm——————————— Wanderer Gold Mines (Ltd.).. wae ame “Jassau Mining Co. (Ltd.)...eueenennnn.... ER. Wassaw West Amann Mines (Ltd.)...ccueervevenee-Waterfall Estate & Gold Mines (Ltd.).... Dp Waterson Gold Mining Co. (Ltd.)... ARERR Welgedacht Exploration Co. (Ltd.).......ccocvmonunnsomonnns West African Enterprise Systane (IAQ onic nriunmnesomnsd West African Gold Mines & Estate (Ltd.)... ............. West African Mines (Ltd.).ceeeeeeeonne oto, West African Mines Selection Syndicate (Ltd.)...ceveune... West African Proprietary Fra l i WR West African py Ltd.) cen... we sw West Rand Central Gold Mining Co. (Ltd.)e cuueeeeereanne. West Rand Consolidated Mines (Ltd.). .....uoessosoooooonn’ Western Andes EA Ey we wee Western Frontier Goldfields (Ltd.).. PE Western Rand Estates (Ltd.)e....ovuoonn.... P=#estern Transvaal Derciyprant Co. (Ltd.)e. -- cvvenmmeen. ¥him Well Copper Mine (Ltd.).... a. White Water Aluvials (Ltd)... ..uouns verse eeeeeeeonaens Williamson’s Pioneer & Development Co. (Ltd.)............ Jonnie Consolidated Co. Rta. on rE witkopje Gold Mines F102. x Witwatersrand Deep (Ltd.)......... Witwatersrand Gold Mg CO. (EAA) cosnnmimeipos vos Wohlfahrt Lead Mines (Ltd.),.............. . Wolfram Mus Smelting Co. (Ltd.)... JETS Wolhuter Gold Mines (LAS. orem Worcester Exploration & Gold Mining Co. (Ltd.)...... ... Yuanmi Gold Mines (Ltd.). . ...ceeseuunn... wey Taaiplaats Tin Mamgo (Ltd.).. we zalamea Copper Co. ( i) HY ET Tamhesia Exploring Co. ( 130 rpesssnaanyes we y Zaruma Mining Corporation (Ltd.).... Zeehan-Montana Mine (Ltd.)........ Zeehan-Queen (Ltd.)......... _ Zeehan-Western (Ltd.)..... . Zinc Corporation a) ap ws Zuma Tin Areas (Nigeria) (Ltd.: “wartland (Transvaal) Co. (Ltd.)..... African Freehold Coal Lands (Ltd.)... y \Ignife Mines & Ry. Co. (Ltd. yeaa, Anglo-French ( Tovah Navigation Coal Estates (Ltd.) .. Bacares Iron Ore Mines (Ltd.).. Blackhall Coal Co. (Ltd.)....... Blythe River Iron Mines (Ltd.).. Breyten Collieries (Ltd.).... TI runner Collieries (Ltd.)............coveumrmennmoons Caramanian Iron Corporation (Ltd.)......... Cassel Coal Co. (Ltd.)............ Clydesdale Collieries (Ltd.)... Location of property. South Africa. ..cccieeeennne. aaa dO. iiiacianean. Philippines. .......ccc......l Spain and Africa. ....ceeeeee. South Africa. .....ceveereeen Gold Coast. .eeecsnncannnnnan wend, 4a CARRE A0Stralin....cconmmnumavanses South Africa.....cceeueennnr ceende. PE cee B0. titi irnraeraenne Dutch Guiana.........c...... South Afric8....cceecacenns. ....do.. vn Australia... vsH TREY vere sprees CARE RRS South Africa........qceeueen weuveQBos FRR A SR Indin..,. .;cooummnensoninnnns South Africa. .ceeeeeceennna. ....do.. —areeets een Australig......cceeveencnnann. New Zealand......oeveneen.. wong w vgn rm Gold Coast.... a South Afric8..ceeecsacnacnes Gold Coast..eeuneanennaone-. praises, - Hedbtitatins South Africa....ceeceanen... Mexico... .ounnireennancnse. South Africa. .cvecvaceraean. Gold Coast. .... - Sout Africa... ceei0 ieee, United States of Colombia.. Gold Coast. ..ueeanaanan oo South Africa..cccevauur vouellOy 2 uu spe w AStralla. cove ninprensuninn. Dutch Guiang....ceeeeueen.. South Africa. & wm WE Hm —————s ....do.. we FEIIANY cunnvvuapwansns sens Portugal, ,.eonveignumees sw South Africa. . % ....do... PY Australia. .....ccceeeecanensn. South Afric8.....ccecceenee. 2:0) + HR South Afric...cccecereen... Ecuador. cereeecearenecanns. Australis .cceeeenenon wei wml Mase _— wal Vaca vi exe gy curren R SRR West Africa. uceeeceennnaen. South Afric..ee cc vane o.oo LL Pa... eiicieiinaiiaas outh Africa...ccceeceen..... ew Zealand... ............ Australif..ceeecaeeniecionas Jouth Africa ...ccceceeeann.. New Zealand........c cau... TUEZBY vy wns ons iunnonanenss South Africa......---Approximate capitalization. 210,000 Bs 1,325, 000 615, 000 114,000 > 080 000 1,625,000 ’ 150,000 5,984, 000 2,500,000 Be 3,335, 000 * 300,000 1,884, 000 25 2,500,000 * 960,000 750, 000 784,000 155,000 575, 000 780, 000 125,000 355, 000 100,000 00, 000 165, 000 520,000 2 12, 400, 000 110, 000 380, 000 1,375, 000 538,000 gt 3, 260, 000 2,348,000 300,000 gL 1,750, 000 oe 5,620, 000 500, 000 100,000 750, 000 698, 000 4,950, 000 1.150, 000 675, 000 “745,000 133,000 450,000 1,000, 000 925. 000 556 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. . TapLe XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. Jonsett Spanish Ore Co. i. IRR rare Jowie Harbour Coal Co. (Ltd.)..c.emeeenee-- © eens Delmas Estate & Colliery Co. (Ltd. Jueccesaceracscsccenavacan yundee Coal Company (Lid. PRR SERRE a Junderland Iron Ore Co. gl d.)... FREER OWE Jurban a Collieries (Ltd.).. hs nn Hane East Indian Coal Co (Ltd.)..eeu virnsniieececrnccencaceacnces East Rand Gold Coal & Estate Co. (Ltd.).... ems EER Elands Laagte Collieries LE — — Glencoe (Natal) Collieries (Ltd.)eeeceecscncosccsonncnanr Great Northern Coal Co qu, wy — Greek Iron Ore Corporation (Ltd.\ pow Harris Coal Estates (Ltd.).... Fn an Heury rE au Fr "ndian Collieries Syn bape SLM). pp free saenoees rwin River (West Aliens al Syndicate (Ltd.).ceeeeeeeens Labuan Coal Fields Co, (L4d.}.cceueernircuriacinoncancanns darbella Iron Ore Co. (Ltd.)...... ESS “Letropolitan Coal Co. of Sydney (Lia... rym. aise Steam Coal & Coke Co. (8 Jeon A Aillers & ys Sons Verde Islands (Ltd.)...ccccvencencaner Mount Kembla Collieries CLIT Natal Navigation Collieries & Estates Co. (Ltd.)..caceuurens Natal Steam Coal Co. (id). in J New Dunderland Co. (Ltd.). Creer wee New Russia Co. (Ltd.)......... Niddrie & Benhar Coal Co. (Ltd.)..... ae North Zambesi Coal Syndicate (L4d.)cuecercacracncncecaensn Jrconera Iron Ore 0 A Sqr esrrsoesserssase awe Queensland Collieries Co. (Ltd.).. JE—— Rand Collieries (Ltd.).... CHR NERR WEE odez Coal Co. 89 ey 4 REE RRB Russian Anthracite Collieries (Ltd.).......... San Salvador Spanish Iron Ore Co. (Ltd.)... Soria Mining Co. (Ltd.).....-jtraffontein Syndicate Paty oe 3ydney Harbour Colliery (L Transvaal Coal Trust Co. (Ltd.)... T'weefontein Colliery Lh _ Jitkyk Collieries (I tds, Jnited African Lands (Ltd.)........... Visacaya-Santander Mining Co. (Ltd.).... Prpger Wallargh Coal Co. (IAA. )e.ccinirsnissaivnsrnanasinsnnasesans Westport Coal Co, (Ltd.)... WE mi African Saline Co. (Ltd.» SES 1 Agua Santa Nitrate & Ry. C0..... .ccviecenverreneranconnes Aguas Blancas Nitrate Co, (Ltd.).... .—cvec-iiieneener --Ain Zeft Oil Co. A ELE +1geria Consolidated Oil Estates (Ltd.)...-*1gerian Oil Fields (Ltd.)....-\lianza Co, i: SERRA Ancon Oil Co. of Ecuador (Itd.).. Angels Nitrate Co. (14. Yo cosy vansvunpssnossnsessonnns ‘nglo-Chilean Nitrate & Ry. Co. (Ltd.).ceueeecnaeaacaes -nglo-Dutch Petroleum Co. J wn Pr nglo-Egyptian Oil Fields ¢ ta nglo-French Oil Fields (Ltd. nglo-Greek Magnesite Co. (T ~ nglo-Italian Petroleum Co i, nglo-Maikop Osan { 4 nglo-Mexican Oil Fields (Ltc.. .nglo-Bulgarian Oil Fields (Ltd > ‘nglo-Persian Oil Co. (Ltd.).... ‘nglo-Roumanian Oil & Geners., aglo-Roumanian Petroleum Cr inglo-Russian Maximoff Co. (C Anglo-Russian Petroleum Co. ¢ Jose goad Salt Syndicate Xie erek Petroleum Co. ga Antofagasta Nitrate Co. (Ltd.)... Appollinaris & Johannes (Ltd.) Arauco Co. (Ltd.)...cnenuunnn, Asiatic Petroleum Co. (Ltd.).. vevsenne: Assam Oil Co. (Ltd.)......... S—— Associated Estancias I TE I Australian Coking & Luss Co, (Ltd.)eseosceses Australian Maikop Oil Co. (Ltd.)....-p— std A Seuss oes Location of property. pain. Lacienicsinnieanceanen British North Borneo....... South Africa..ccouuneeenoane ceeel0iiuicieiiiiiiiannanees Norway and Sweden........ South Africa ..ccuceennnr 4a India ipeniuons vee South Africa. ........zz00e0 Lee COL. CRRA EARS fustralid...cccoceeaccneccene 3TOOCB. «.rveresssoncacamsnne South Africa. .ccceeeceee ver New Zealand.... ..eueec -o-Ndaciicinrernvuvovnnenhes Australia.......cccceeeeaanean ‘sland of Labuan.....cceee-.. PAIN, coiinisninnnnsansnnie Australia. ..... [RPP South Africa........cceeeer Jape Verde Islands........-Australis. .cccieimnicnnnnns, South Africa...ccaccceceeee ope vQ00ae Jp TOIWAY..ccarreacunanaacnnur Jussis ARERR SEAR ndig......cae APRRRE South Africa. .ceevuceeacs + PAIN. ceiiiiiienianiconannns AuStralif...cceecnaenasnaane: louth Africs...eieecencneees "LANCE... crronsancencnsans FOB, drersnpansnrnsza nes pain... REE ing i Qnen smn Te Jouth Africa. .ceccuvruccaces Australia. cc ccocaveneniarnes South Africa... ......ccv.. pain... srecrecssenr Nustralia....cceeaeveeenneas New Zealan@..eeieeeenseoner Jouth Africa... “ewan Chile. - EP rar ICO, Sa SERA AlgP Reecrerevr-an-rerasen wml 2 re Chile..... revnerusenn Ecuador. . SR Chile... wpm ——— wrnsBBuarsvngosennnnnnunnnnn J OSS ey npr agres AfSoria.. ‘reece. . etaly..ceeeee. ceeieseesss AUSSIB.cecrensecanenranecnss AOEI00 ci svmsmienns nssnen PUTKeY.ecerseeecacaconsnnene DOrSiB..icrcanereragooanannas ROUMADIB..er--vrsnnsvanannr LeeOn0, a Rus — suid Fn wmm wwa———-——————_— “8D... cceeeeneonnnenienene ussia.. Ee ‘hile.......c eR R Reese. HOITNANY cc caeaveosncovennns Wile, cvvsin venus onni Ra Jutch colonies......cecruces NdiB..coveecenconcesensnaes Argenting...coeeucsnconacane JRIT17 41 | 7: YRS assis . Approximate capitalization. $7, 500, 000 613,000 500,000 1,183,000 3, 500, 000 791,000 500, 000 250, 000 825, 000 1,250, 000 250,000 460, 000 1,511, 000 (\ 500,000 800, 000 18,000 500, 000 375,000 -, 233,000 875,000 775,000 1,750,000 2,065, 000 500, 000 753,000 8,907, 000 1,250, 000 194, 000 1,000, 000 60, 000 3,150,000 2,765, 000 2,125,000 450, 000 1,000, 000 347,000 1,024, 000 2,750, 000 675, 000 572,000 1,970, 000 100, 000 603, 000 2,250, 000 1,215,000 3,313, 000 1,645, 000 128.000 100, 000 1,516, 000 1,999, 000 405, 000 350,000 8,375, 000 250, 000 8, 750, 000 750, 000 519, 000 400, 000 1,934, 000 1,140, 000 152, 000 24,290, 000 26, 000 375, 000 1,000, 000 680, 000 375, 000 813, 000 :6,000, 000 6,150, 000 5, 625, 000 7, 500, 000 2,000, 000 300, 000 600, 000 1.307. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS, 557 Tasrx XII1.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued, MINING AND SIMILAR COMPANIES—Continued. zov-Grosny Oflflelds (Ltd). .....coeveecemmeeraiannc--aa Jaku Russian Petroleum Co. (EAA 3ren een arrenechea Nitrate Co. (Ltd.)....cceeaveas ‘atavia Oil Fields (1255 or seciu Oil Fields (Ltd.). *ibi Eibat Oil Co. (Ltd.}. slack Sea Oil Fields Ph Yasar 3orax Consolidated (Ltd.)......-. British-Australian Oil Co. (Ltd.).............. 3ritish-Austrian Oil Investments Co. (Ltd.).ccaeeeeiac. British-Burma Petroleum Co. (Ltd.).ceeereineccececccncnanr British-Colonial Petroleum Co. (Ltd.)eccuecrceececcscnncenes British Maikop Oil Co. Sd Cevanes en British Taman Oil Fiel 5 2s peg Brunei Petroleum Co. (Ltd.). ccc cceeeecisesvssrcncccmsccanas Bruseh Tin & Rubber Estates (Ltd.). Brens Vga Rie Co, (Ltd) urma y dy wns ons nnn nnn nnn GEREN IEE Can sista Land Mining & Power Co, (Ltd.) (being wound up). a Asbestos Co. (Ltd.).. apaining Oil Co, (Ltd.). Castellon Oil Co. SL i. Caucasian Ofl Fields (Ltd.).. pr Central Cheleken Oil Fields (Ltd.)..cvs. on secncmcncnss Jentral European Oil Fields (Ltd.)-.. .---cecesaemencen tae Sentral South African Lands & Mines (TAd.).ccceeeine- neene >hatma Oil Fields Co. dd 3, teaans aes ~heleken Oil Fields Co. (Ltd.).......ccucer tvescenn. ’hiciura Oil Fields of Roumemia (Ltd.)ceeeencecenencene 1a. “hijoles Oil (Ltd). ..eouoene- wr Chinese Eng. & Mining Co. (Ltd. semneruey Jolorado Nils i nL ge ERR Jommonwesa rporation Jeemncsessancananes mee Jonsolidated Oil Fields of South i eo po Consolidated Oil Fields of Trinidad (Ltd.). - SNES SCpsianiine 0 Fields (Lia)... 4% ir SE Cuban Petroleum Co. eco ce. eseensansmssnananeer ~o East Rand nie Gold wstates (Itd.)eeeeercen uns Eastern Petroleum Co 5019) (LAA) ecmsmunnreennmeanyens: Egyptian Salt & Soda Co. (Ltd.)...c..ecucaecmnanaacans Elektra Oil Syndicate of Mexico (Ltd.). rare Emba Tou Oil Co. qu. ww Esperanza Nitrate Co, (Ltd.)......ccceemeacracrancanen European Oil Fields Soran (Ltd)eeer ceeveen Ferghana Oil Fields (Ltd.)... vent Fortuna Nitrate Do. did, tececceseses iessesssescesencs G. M. Oil Fields (Ltd.) (wound up).. FR fadiohy Cheleken Oil Co. Lid wpgn Galician Victoria Petroleum rE General Oil Fields of Galicia (Ltd.)... --cccecencecnee: Ghizela Nitrate Co, (LtA.)..ceucrcncseer ceenececsasancen. Gouria Petroleum Sorpquation (Ltd.).. ¥ we Se Gouria Syne (Ltd.)evucanrcenaen gromy- funda Of Fidias (Ltd.).... avana . Jeecsasesceensaseses feawood Tin Fodder Estates (Ltd.)... Vo ieee Jelouan Petroleum Co. (Lid.)....veeeecucnnceececncccconan. Hungarian National Petroleum Co, (Ltd.).ceceercueacaaen. ternational Oil Lands, (Ltd.).cevveereccecaaranenternational Russian Ourporsdien IA.) oc evnnsrvavensn nternational Russian Oil Fields (Ltd.).cseeceescaccnee [ora Oil Fields rn Ts i Java & Borneo Co. ( i.) [oping Bajo Nitrate Co. (Ltd.).... Junin Nitrate & BY, COmurer-- - <azan Oil Bialdng i Ty Kerteh-Taman Oil Fields (LtQ.)..cecveaaanenic vie. u. Lotuku Oil Fields 2 (TAR Jeers vousvannvsnmnonninns Luban Black Sea Oil Fields (Id. )eeeecacaeiaiinenes Kuban Refining Co. (Ltd)... ) Lagunas Nitrate Co. Faia. — Lagunas Syndicate (L*~ .* FERRE SRR Lagunitos Oil Co. (Ltd.) ARERR RARE Sy Gries, Lautare Nitrate Co. fo Re SR un nm Leonor Nitrate Co. (Ltd.)..c.eec.eomeenncracannnecrnaconses Lavanovakoa Petroleum Co. (Ltd... Location of property. RussSificeer-ccnceanarnun ..o-30.. ile, coo pevgoornmmvsmmun dutch colonies..eeeeaee.-loumania....- seaslBuc vay Sn FR Joneral. .cceesceecreccncnanr Australia. . iE \ustria. . - SUITS. teeeeneenenancnnnese Nest Africa and Roumania set eves vuaanne dutch colonies....ceceveeens straits Settlements,......... BiB, vein ovanie -nenimesns SUMMA. cease receccscasses South Africa. .eececeecenaans Austrif. ...ceveesccecnrenes, Epa. conrnenmrnannennnpvane Tustidie: wr seecneseeene eeel0 ceeacennecaciannaneee AUStIia. ...ceeceneencccnnaas South Afric..ceceeraess eae Russia. . . renelOn ieee ieeenens UMANIB. ccaneasenaconanns “exico....- [ER JhiNA..cceeevecenencccnnnnse 0. seu venenwenenvesnuarie Australis. ...cceeereeecececnns South Africa... i Trinidad. . 2 Algeria... Sn 0251 + SE Jouiand West Africa...... Texice.. {ussia... lle, sons psnnnipsmensenis .ussia and Austria......... ussia. . le ccieeinenarainicnnaenn oumania and Algeria...... Jussi. wo Austr’ oy ....do... “EE Chile.... . ENN) Russic po nisl” SEARO mint ausC came kane: ‘uba.. nx amma . gadis Looaements..... ... gypt....- — LE ww Russi — Dutch Colonies. - Chile.... ceee@O.aaen, Russia... -. sav eSWernmreg enn New Zealand. ....cccee... RUSSIA. seennacacncacecs-....do.. Chile... ceeslCinnnecs VERE Perl... .ececemcccncacasann 4: +11 BL ‘1yea’ Approximate capitalization. 2400, 000 4.000, 000 225,000 357,000 500,000 ., 656, 000 i,824, 000 1,099, 000 2,250, 000 1,176, 000 3,900, 000 100, 000 300, 000 350, 000 3,538, 000 250, 000 350, 000 4, 525, 000 £’ £00. 000 361, 000 128,000 591, 000 1,400, 000 1,518,000 1,126, 000 3,023, 000 1,417,000 1, 500, 000 758, 000 700, 000 10, 640, 000 933, 000 3,158, 000 526,000 175, 000 374,000 300, 000 1,410, 000 518,000 2, 885, 000 60, 000 3,700, 000 1,202, 000 2, 618, 000 2,975,000 770,000 560, 000 3, 355,000 600, 000 170,000 £00, 000 730,000 75, 000 1, 500, 000 385, 000 500, 000 150, 000 t, 500, 000 326, 000 275,000 1,451, 000 748, 000 750, 000 1,600, 000 2,025,000 400, 000 323, 000 339, 000 741,000 913,000 +,500, 000 1,767, 000 1,450, 000 2,750,000 1,265,000 1, 280. 000 558 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Tare XIII. —List of British organized or controlled companies whose properties ure located outside of the United Kingdom. United States, and Canada—Continued. MINING AND SIMILAR COMPANIES—Continued. Lilita Nitrate Co. gals. CNSR reno Nitrate Co. (Ltd.).eee..- ve Loa Nitrate cL — 4 uobitos Oil Fields A TIL sw tnsmes ie ondon & Buda-Pest Oil Syndicate (Ltd.)ceeeerecnacrenenes London & Maikop Oil Corporation (Ltd.).ueeeemeccecane uns wondon & Pacific Petroleum Co. (Ltd.)... re ww .ondon Nitrate Co. NEL Sv wondon Oil Sa LAL Year omy AEE Yagadi Soda Co. {141) wa ny Maikop Central Co. L dase oor faikop Somme x rr) faikop Deep Drilling Co. (Ltd.). Maikop District Oil Co. (Ltd.)..... .... faikop Kuban Oil & Trading Co. (Ltd.)... Haikop Midland Oil Fields (Led)... - - Maikop New Producers i — Maikop Orient Oil Co. (Ltd.).eecenennncnucueec-n —-Maikop Pipe Line & Transport Co. (Ltd.)eceecreieernnennnne Maikop Premier 1 Sypdiens Lb) avon svaviwenvenenvins Maikop Boiss Coy (Ltd)eeeennn-- ro Maikop-Taman Qil Co. ans. Maikop Valley Oil Co. ( Om Maikop Victory Oil Co. (Ltd.).. Maisels Petroleum Trusts (Ltd.}. Mexican Eagle Oil Co. (Ltd.)..... Moctezuma Oil Fields (Ltd.)......... Motor Owners Petrol Combine (Ltd.).eeoeeennse.e.. nse Mount Dzyshra Caucasus {i leation Co, (LA. evn annnanes New Chatel Asphalt Co. (Li J) neene LAAN AR New Caucasian Oil Fields (Ltd.) ee.eee oiemiocnencasesnnans New Paccha & Jazpampa Nitrate Co. (Ltd.)eee..- ....- ... New Schibaieff Petroleum Co. (Ltd.)cce. soevecnecccvncnen New Tooumas) Nitrate Co. LAA go mmrnees aes New Trinidad Lake Ue Co. (Ltd.). carer sees New Zealand Coal & Oil Co. (Ltd.).. JR—— NIZOr Co, {IAN Jue cnnannpne ec eapnmegsss Honsemsrsvewennnes North Caspian Oil pie JIA). roxasacnmeammmmennuses North Caueasian Oil Fields (Ltd.).... 0il Concessions of Magar (LAA) cas wnivmnis sunscnevusvurns Jil Fields of Emilia (Ltd.)...ureceiansecceeeceaneaannnnaens Jil Shale Development Co. (Ltd.)....-- CS 2acific Phosghets Co. (Ltd.).... ve 2acific Salt 0, (4) a TS reasons an de Azucar Nitrate Co. (Ltd.)..cencecoracromcsncancanna-Tih Syndiaie (0) TALS wr yew *etroleum Co. of Lldokani (Ltd.).eeeu.- ERROR ‘etroleum Co. of Roumania (Ltd.}esseesecaceccnsasaseasnnes etroleum Options ye EY ‘iastowe Petroleum Co. (Iitd.).... J Port Said Salt Association (Ltd.)... Cras. aves ‘remijer Kuban Oil Co. (Ltd). cauc- oi vit tenvrnceanas remier Oil & Pipe Line Co. (Ltd.)... IR —-— iatoczyn Extended Oil Fields (Lid.).... .cevecvscncanan. jason 0il Co. yp prs ee gears thine Valley Oil Concessions Syndicate (Ltd.)....cc........ thodesia nese Jad. RARER tosario Nitrate Oo. 41: yr} anne nine eREL SAR. loumanian Consolidated Oil Fields (Ltd.)sceecececnenne-u. tussian & Eastern Agency (Ltd. ).ce.vcicceisenimacnner oe. Russian General Oil Corporation (Ltd.).... ,e tussian Petroleum Cor (LAL) meron rm ———————— Russo-Asiatic ool (Ltd.)eeeen ce ieceranacnnncnnec alardel Carmen Nitrate Syndicate (Ltd.).... rmveer 3alinas of Mexico (Ltd.).....-San Lorenzo Nitrate Co. Ju A an Pairicio Nitrate Co. (Ltd. -cicecacaca-srceacas 3an Sebastian Nitrate Co. (Lt. ...--Santa Catalina Nitrate Co. Ste. . Janta Rita Nitrate Co. Js i Li Nitrate Co. i d.). Jeottish-Maikop Oil Wells (Lite. .-3econd Sakhalin Syndicate a7 : cevevsvaseesnannen Shagirt (Cheleken) Oil Co. (Ltd.). .cccceeececsecarncnnnns Southern Caucasian Syndicate idly: rams Southern Naparima Oil Co. (Ltd.)...-3phinx Petroleum Co. (Ltd.) Location of property. ChllR, . cvenpommss a venssl0cuunavasmmunsrns sonny cwreBBuiins 556 IBER EVER Se POrl..cvecocaccennnconnauens LUO: 172 I SO Lussia. - war wm ‘eru.. wwe chile..... PERE Yo cnimemps suns e esa jritish East Africa.......... fuss’ LAER Mexi-z... + cus wa ....de ye Austri oH RUSSIA. are iieeainaaes switzerland and Italy...... Lussia. - i. ‘hile. ..... WIESIB evn mmm ecm hile. ..... ime Prinidafd. ou cvsmenmunins ox New Zealand....cecuessacn.. West Africa. ccicencnaennn.. Russia. pha . veeodOneaees careenacans Llidad.iecieeccenneanas daly. iiiicricirieseenen South Africa.... ......... Mexico........ Spee sn edlBrummn iver samvinesrsnns Chile. ... . i hina... cvesemmeann BR oumania. .- [EP rinidad. we ustris. [r—— BYDleeeencainaniiiannnnia, AUIRIY eo pnimmwcmprpern wany Austrie Sesrererariees, sail Ieivavnerenwoves sides sreal0 secur prs ns Ra mR FOIMANY.cceaeer rise oo South Africa... WE mm Chile. ..ssiecereienemeneenns 20UMNANIB. ceeeerceannansnn Russia... hmmm ea resssem wa-"hile. smeeve “exit Ll. SETI Ihr cu cccunmssnrnncenianmnis et die remem idon.. lll Trinidad. .ecmmeeenens sons Trinidad... tn 1ot Approximate capitalization. $582, 000 300, 000 3,853, 000 2,000, 000 120, 000 2, 241, 000 5, 000, 000 800, 000 98, 000 8, 560, 000 163,000 . 580,000 237,000 146,000 750,000 639, 000 1, 180, 000 1,135,000 2,951,000 608, 000 221,000 171, 000 1,479, 000 785,000 1,219,000 $2, 500, 000 135, 000 |, 585,000 6,000 3, 235, 000 1,000, 000 356, 000 5,800, 000 2,720, 000 3, 767,000 1, 664, 000 3,750,000 1,235, 000 3,934, 000 250, 000 142,000 283, 000 1,875, 000 750, 000 550, 000 8, 214. 000 373, 000 800, 000 35,000 £00, 000 100, 000 300, 000 8,215, 000 487,000 101,000 150,000 175,000 3,000, 000 5,890, 000 255,000 2, 500, 000 7,410,000 1,500,000 550, 000 2,908,000 225, 000 535, 000 719,000 400, 000 500, 000 800, 000 266, 000 382,000 825,000 125, 000 250,000 588. 00N MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 559 TFaBLe XTII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued, MINING AND SIMILAR COMPANIES—Continued. Spies Petroleum Co. (Ltd.)ccececececcanesccccccocroans: Sudd Fuel (Suddite) (Ltd.)ecererecasaoer nvaseessa. sn Suez Oil Co. 8d ye Sunja SYidicated Las LIS IEE Ruvoroff Taman Oil Fields (Ltd.).ccceaecuececcneecracer Tampico Oil (Ltd.):ccuecinionsncarmensee JompitaTanud Oil Fields (Ltd.)...-- : reser Tanalyk pte (Ltd.).enen- sesecesonscasanas Taranaki Oil Wells (Ltd.)...c.uee cuceesccnacassscnccanans. T'arapaca & Tocupilla Nitrate Co. (Lt@.)eeeecuccncoeneceas « Tcharken-Cheleken Oil Co. (Ltd.).... wy Tchengelek idan Co. (Ltd.)- cero Terek General Oil Co. org Traian Roumanian Oil Co. LAs) me Transvaal Qil Shale Byline [917% BS TO Transvanl & Delagoa Bay Investment Co. (Ltd.) ceeueee.... I'rinidad Cedros Oil Co. LEG eee Trinidad Central Oil Fields (Ltd.)....... RI. Trinidad Grand River Oil Co. (Ltd.)eeseessccsncrceasacans ‘Trinidad Leaseholds (Ltd.)..... - Trinidad Oil Fields (Ltd.)..... war rinidad Silver Stream Oil I {:1de (Ltd.)oececersnconnees-_rinidad !'nited Oil Fields Led) saps SAA Jnion Oil Co. of Roumania (Ltd.)..ceeeruceer v-ronene ae Jnited British Oil Fields of Trinidad (Ltd.)...cceceaencenns Jnited Crude Oil Producers & Refineries (Ltd.)..c.ececees.. Tnited Egyptian Balt (Ltd). uv eeeoennriieniencemneeeanan /nited Limmer & Vorwohle Rock Asphalt Co. (Ltd.)....... ‘pper Burma Oil Co. (Ltd.)...cccaecvananen ERE ‘ral Sain 0il Corporation (Ltd.).... RR ral Emba Oil arses 2 1a] Ry., Navigation & Mining Corr “ration (Ltd.)....... roz Oil Fields (Ltd.)..cueerennan in mm ‘enezuelan Oil Concessions (Ltd.)...ccucueeeeeeencencacsven ‘enezuelan Oil Fields Exploration Co. (Ltd.)eere.. .\,.. . 7era Cruz Mexican Oil Co, (Ltd.)... swmnrany TeRine Estates (Ltd.)..eeu.... wy ow we Vryheid Ry., Coal & Iron Co. SAR dal Ls West African Maps Petroleum & Gold Co. (Ltd.)... West Caucasian Oil Fields {138 )1 cesunnnmasasursavacante West Indian Petroleum Co. (Ttd.)ueeceearaen West Ural Petroleum Co. (Ltd.)... Yomah Oil 05 Liha Zapiga Nitrate Co, (Ltd.).... New Rand (Ltd.)...... Anglo-French Exploration Co. (Ltd.)..ceeeccoceccsncsonsses Total. ... Location of property. Russia. “ Tgypt. -e RUSSiB. cvsreerorncncarennen [FN 1) nr aww Mex’ nN e-.do... cesatesnscene AUSSIA. .cvescacenssasnnsane New Zealand... --.eceecene. hile. ...... seecevecnnnn Russi. .c.c-ceveneconnncncnie uli nn .--go... “ecesececesnane R0UMANiA..cveeaearececenas South Africa. .ceeveen vances aclu ERE Trinidad... seenssee A nN, ar -esmas eendO... veerecnnran .oumanie . se Trinidad. ...c ceeccneceee Roumania. . o IZM cnn snsnennovnanns vue licily and Germany......... JUrM8.c.veaenceccenenmonnns RUSSIA. evnuennas we. eeel0il eerie neceeese grenlBeevennemnereyenor runny AuStTia. covieenvencannn oar Venezuela....--- ve ie 2 29080 cureremrnps TREY MeXiC0....cccreencannnancaas South Afric..ccecacenn: oun vas 0, 0 in GRRE CRI h AE va West Afric8.cececcscarannree Russif....ocenenemsnncasanes West Indies.cueeeencanecanas USSIB..ceveecnancnsnranenae SULA. e0n--- «muy LL Jrange Free State, South Africa, South Africa. cveceenceoaoan, epee nsemeea Approximate capitaliza~ tion. +, 000, 000 1,097,000 $30,000 100,000 875, 000 150, 000 780,000 2, 668, 000 1,342,000 #, 490,000 1,110, 000 1498, 000 ,000,000 1000, 000 250, 000 225, 000 189, 000 250,000 450,000 3,088, 000 2343,000 486,000 916, 000 1,005, 000 2,750,000 2,110, 000 (; 500, 000 450,000 179,000 5,000,000 635,000 1,416,000 1172, 000 $50, 000 534,000 1,000,000 ,400, 000 337,000 868, 000 500, 000 287,000 1,500,000 838, 000 507, 000 834, 000 5,000,000 1,738, 211, 000 INDUSTRIALS. Argentine Iron & Steel Co. (Ltd.)....... Bengal Iron & Steel Co. (LEG.)eeeeeererrenrecccscanns Jnion Steel Corporation of South Africa (Ltd.).eeemeunecan.. Anglo-French Textile Co. (1.td.).eeeecuneenccacsassnomoen Anglo-India Jute Mills Co. (Ltd.)...eeeua.... \nglo-Russian Cotton Factories (Ltd.).. ven Argentine Seapery Lo CE Aron Electricity Meter (Ltd)... vueroeeuuecuesnonnnns Associated Cotton Ginners of Egypt (Ltd) ueennvnonoooomon, Australian Coking & By-Products Co. (Ld.).... . wooveomnn. Australian Trimetallic Co. (LA Jone J i 1 Jute Factory Co. (Ltd.).. renemunse yy Bengal Mills Co. Aamo British Aluminum Co. (Ltd.).e.eueeeuunnn...., 3ritish South African Explosives Co. (Ltd.).... Jriiany China Clay Co. rR fe Suchholtz & Co. (Ltd.)..ccceuuenn. Jatalana Tin Plate Co. (Ltd.).. Rs Sharron a) ee RAR Chilian Mills 0 LA). snes ceneennnnanns “hilian National Ammunition Co. (Ltd.)eme.enun- 0. Daveniere & Co, (Lt1,)._ IE —_ BH wrunserersons ivenns we Jouth Afric8..ceeeeesceaas ue ABs csesravarevansnsvernss Fo | + EO Js USSR. conan is 0% HR Argenting...ceseeecsesncanas A Aaa. cerecsnenasl vearf0ueeneesarsasamroncanns MF Bppuus imvuummvrannonnannn ...do.... aeuveasunne UTOPO.-.cceoeeeen wesune ‘outh AfricB..eceecn.ieeaees TYPE sininsme sa REAR SRS "Oli Me suvnsnsnssnunnsossme D8I0accicecrcecnccccocnaroer [5,21 A Chile, .c.ceiaeerencnnccenane ress@O0ac.- - 16, 150, 000 2, 875, 000 2, 000 3,000, 000 1,890, 000 3, 500, 000 1,742, 480 1,480, 000 $99,030 +,210, 000 000,000 £102,940 150,000 250 350,000 330,000 265,000 500’ 000 560 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe XIII. —List of Ts Pnived or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. INDUSTRIALS—Continued. D6 Bruyn (Ltd.)..scccecuceracscenccncacanoonsonsccansarsne Fast India Distilleries & Sugar Factories (Ltd.)..cceeeeeesn. Tastern Chemical Co. (Litd.).cceeecrnceessearconcacaner- un Tdward Lloyd (Ltd.) (wood pulp)... . ome ron Gard . Tlectric Construction Co. (Ltd.).ccceauececvecnsarcnscesconen Slmore’s German and Austro-Hungarian Metal Co. (Ltd.).. T.& C. Osler (Ltd.)eceeerecnemnanesn - Fred Brdlik Meat ng] CO. (LtG.)euccicnsens Jorgona Island Coconut Estate (Ltd.)...cecceanenceneens Javana Cigar & Tobacco Factories (Litd.)..... {enry Clay & Bock Co. (Ltd.).ceeecreas iacsscancer ~uon Lumber Co. (Ltd.)..ceeeeecnnssnnsscccnesacosccoconcs Iydraulic Power & Smelting Co. (Ltd.)eceeess socssanccans <uban Refining Co. (Ltd. )eereeernnnaneacenar PEER “a Guaira Harbour Corporation (Ltd.)........ HG ads Ga Liwadzi (Ltd.)....... anne b BARAT ‘fanaos Harbor (Ltd.).... meen Natal Ammoniom (Ltd.)..cceveennea. oo caesvesennt National Match Factory of Bolivia LE National Match Factory of Venezuela (Lid.)e-eecsccccreenen: Nestor Gianaclis (Ltd. ).ccceveercrcenes A New Transvaal Chemical Co. (Ltd.)ececraneenanciveacsns vas Nitrogen Fertilizers (Ltd.)...ceceeeeresacacasnsncucsrcncenncs Nitrogen Products & Carbide Co. a ERR North Brazilian Sugar Factories (Ltd.)..... eencanel oe Orient Co. (Ltd.)oceeeeeenenncusenan reesececsacnes Jriental Carpet Manufacturers (Ltd.).... reeomenc en Peruvian Cotton Manufacturing Co. (Ltd.)e.ccemcanceas oo Rio do Janeiro Flour Mills & Granaries (Ltd.)..ececvecaccaan Russian Chain Anchor & Testing Works (Ltd.).eceeencecear Jamnugger Jute Factory Co. (Ltd.) “we 3ansinena Frozen Meat Co...c.eeeacn Santa Gertrudis Jute Mill Co. (Ltd.)eee. = -v-eeveccasenas Santa Rosa Milling Co. (Ltd.)...- nmi WE Sens Sugar Factory Lg Ther ey . Southern Patagonia Sheep Farming Co. (Ltd.).... Tolteca Portland Cement CoO.eeeeee----Victoria Jute Co. (Lid.). Vienna Works (Ltd.)...... 2 40, SR ET ; Castlemaine Brewery Co., Me.bourne (Ltd.)eeccusneeeenasnen Dortmund Breweries Co. §IA8 J cargraennner wcrestsanas Tancock & Co., New Zealand (Ltd.)... Dhlsson’s Cape Breweries (Ltd)... ~ 3t. Pauli Breweries Co. (Ltd.)..... sesrenvesenns Sociedad Anonima Bodegas Arizu... rreseveenee South African Breweries (i Degas pba ens pwr Inter-Russian Industrial ration (Ltd.)... Total _.___ Location of property. Approximate capitalization. Belgium.... [ndia.... esea00nuecnan 2 NOIWAY.eeneeosesonaasesnnss RUSSIBucsre: nevensocaceananes NAB. ceeececorsarer-ranenne FEIMANY ceecnercascavcsronce ndia...... eae AUSETIB.seneceennosrnssacnan Jnited States of Colombia... Jub cessesevesseeue ...-do... fasmenia...... ‘weden..cceeeesassccnccsenns LUSSIBaserec rmccsecsccees Yenezueld...ceeeene- - South Afric8.ceeenracceeceae Brazil......cceeeeanceccncane South Afric..eeceerecenccnes J0liVIB. .ceae-cecneaircn see EE T reemcsecemsesseracanase Ay Africa.ceeencecesaa-ae SWedeN..eecees. sess ie JOTWAY eer ~veneccsnncacsses 3razil.. teesesnsscnans Jeylon...... yp - UrKO@Y.acaaeanaacaacsssr sar VI razi’ Seas USS ae fo A408. creases -rrmvesanioanes rgent’na.. cevessmacane: 10XiC0.ecuecncacanasanecen: jouth America....ccaceeencs. Portugal...c.ceevececocacennr South Americg....ceeoccees 16XIC0.- eevcvesmarens ndia..cccenenencsccacesen ue AUSETIB. cenecnconsassacecenns \ustralia.... ceesvasinnc JerMANY.ccaceavasacssarsans Vow Zealand....ccecceencces Jouth Africa..ceseeccnosncene FOrMANY.coeacvesnnsaner ro Argenting....ceceeveoses oo Jouth AfricB..ceccececcnscas-A $2, 590, 000 2,110, 000 305, 000 8,375,000 177,250 2,284, 900 749,150 764, 000 500,000 375,000 3,900, 000 2,497, 000 850,000 8,875,000 799,930 8,976,445 200,000 5,000, 000 1,625, 000 800, 000 1,100,000 1,000, 000 1,600, 000 1,100,000 10, 000,000 811,000 276,000 5,000, 000 500, 000 3,400, 000 1,637,965 2,625, 000 5,345, 000 1,411,000 3,000, 000 %, 800, 000 1,061,015 12200, 000 750, 000 270, 000 896,000 570,000 1,294, 000 8,000, 000 1,239, 000 8, 750, 000 9, 826, 000 125.000 revessmesssl + 173,055,160 PLANTATION AND SIMILAR COMPANIES. Abaco (Selangor) Rubber (Ltd). ..ccconmnoocreenacennraner -boyne-Clyde Rubber Estates of Ceylon (td.)oeeenennnene iengsono Cava) Rubber Plantations (Itd.)..ceeceneennnes = gilete Lagos Rubber Estates (Ltd.).ceeesmeenceecucnceccen gua Santa Coffee 00, B40) LS ss renaseneanrre ne Rp Rubber & Trading Co. (Ltd.).cecececccoca-reccerans Ibheel Tea Company A llagar Rubber Estates { forges esos lliance Tea Cepnppny of Ceylon (Litd.)eeececascocecocecans lluta Rubber & Produce Co. (Ltd.)ee. 1 ieeveecenses ‘Hynugger Tea Co. (Lid.).......ccceccecacocecnceccancdecs. Jor Pongsu Rubber Estate (Ltd.)..ccccecessacnaaccccscacs \malgamated Tea Estates Co. SLE Jormsencrmeenennmrecess \matongaland Rubber Corp, (1td.)..cccszucaceenccaccen oo Amherst Estates {Slenger) Rpeet Co. (Tt8.)ecccenvancnnn. Ampat JST) Babi, state (Ltd.).eecnrconcsccccnnen Anamalal Coffee Co. (Ltd.)ee.canernceconemcemcesecacsconcan: Anglo-American Direct Tea Trading Co. (Ltd.)..cecevereess TR Corp. (Ltd.)...eercrscasesccuscnccenoonconnncs Anglo-Bolivian Rubber Estates (Ltd.)..c..ccceeteecosns ie Anglo-Cevion and General Estates Co. (1.td.)..... Straits Settlements.....ceu.. 2eylon...ev.erecccccsnnnane: Dutch colonies...eceascacsse West AfTiCB..cencecoseeccenr Brazil, ......eeeceescasonencs West Africa..coeecvencacenes MAI. eearrenr-acacasorreen Straits Settlements.......... Cevlon....- Lee. ee 00. sepeecns ndis... ceeervensossnces ‘traits Settlements... cece... ndia and Ceylon...ceceeeene South Africa......ccecanasa Straits Settlements... cece... Dutch colonies.....eerecece. NdiB..cvreaeescacancacaancss {ndia and CeyloD.....cc..... West Africs..cceecaevncrocnn. Bolivia. cieoseecaarencncenn Cevlon and Mauritius. ...... $95, 650 670,000 150,000 461,500 752, 500 500,000 114,000 350,000 572,500 256,250 800, 000 200, 000 |, 491,750 1923) 400 170,000 162,500 50, 000 4,550, 400 1,250, 000 575,000 1.870. 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 561 TasLe XTII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES—Continued. Anglo-Dutch Plantations of Java (Lfd.)......cceenavencnnn.. Anglo-Fast African Rubber Plantations (Ltd.)..ccecuee--... inglo-Java Rubber & Produce Co. (Ltd.)..ceccreecanesnnas. inglo-Johore Rubber Estates (Ltd.)... - ww inglo-Malay Rubber Co. (Ltd.)... Anglo-Sumatra Rubber Co. SL sre Ankola Tea & Rubber Co. (I.td.)... Asahan Rubber Estates (Ltd.). Assam Co. eenrnnnnnen,nn. \ssam-Dooars Tea Co. {341) ww Assam Frontier Tea Co. A on ems od \ssociated Tea Estates of Ceylon (Ltd.).... Cees dttaree Khat Tea Co. QU srgransansasanssmiannaresnnasas Ayer Kuning Rubber 2.9 FB cue vnvcnmepenemr nnn ene wwe 3adek Rubber Estate 4 Yowwen - ve 3adulipar Tea Cv. (Ltd.).... RRR Jon Boral Co. (IAA). ines ~-envmsmupmsssssnnsrcasn “oy 3ah Lia Tobacco & Rubber 1 sates (Ltd.).ecceace...-3ahm i Co. (Litd.)... DARE ps 3ai Rubber Cocoa Estate (Ltd.)cceeueruorircencccaaanannnas joe Kidoel Rubber & Produce Co. (Ltd.).-.ccuceecanc-e.. 3akap Rubber Plantations (Ltd.).... ww ye 3alijan Tea Co. (Ltd.)....ceun. SA Jalmoral Estates Co. (Ltd.)....ccceneuecececncacnceneeen +o 3ambrakelly Tea & Rubber Co. (Ltd.). .eeecuvasnaarn: son Tea Co. (Ltd). eereennecnnns - Sander Sumatra Rubber Co. (Ltd.).... or ARERR RR Bandarapola Ceylon Co. (Ltd.)....ccnceverermsrnacancee nar Bandjarsarie Rubber Co. (Ltd.) (Java).. a Bangawan Rubber (Ltd.)....cceoevir vrsvnnccecccnansas 3antam Rubber Estates TLE) Ss cure cavmrssrnnerane jantardawa Rubber Brisas dt A) coy ems mennsmanvunges wg lanteng Ce states (Ltd.).... . we taraoora (Sylhet) Tea Co. (Ltd.)...- SHAE Sargang Tea Co. (Ltd.)........ CHMER ERS 3aru (Java) Estates (Ltd.)....... Bo Batak Rabit Rubber Estate (Ltd.)...... ERR Sn hm mn 3atang Malaka Rubber Estates (Ltd.}.cceveecacaccacneaceas 3atang Selangor Co, (Ltd.)..........ccveieecnsansconcnees 3atavia Plantation Investments (Ltd.)....- ——— RL Estate Co. (Ltd.)......-- wean 3atu Caves Rubber Co. gL). EE ———— Batu Kawan Rubber & Cocoanut Plantations (L.td.)....... Batu Yoiang Rubber Plantations (Ltd.).......cccevevnenen-Batu Rata (Sumatra) Rubber Plantations (Ltd.)..cceeeu... 3atu Tiga Son Rubber Co. (Ltd). ..ccvrienrereennns 3eau Sejour (Ceylon) Tea & Rubber Co. (Ltd.)..ccereue. ven eaufort Borneo Rubber Co. (Ltd.)...-. [. 3ehubor Co. (Ltd.)eueeraeanae- nr 3ekoh Rubber Estates (Ltd.)..........e vay 3enar Le Rubber Estate (Ltd.).. Jengal United Tea Co. (LAd.).cvueeeerecsneeeacenaonvannan Jeranang (Selangor) Rubber Plantations (Ltd.}.ccceeeenann. 3er nam-Perak Rubber Plantations (Ltd.)cucevee «2 2cqene 3esoeki Plantations FLY, ya “4 Edm desverley Tea & Rubber Estates (Ltd.).... salon mmm Bidor Rubber Estate SI) onnrannarennn. creessecuscsren 3ikam Rubber Estate (Ltd.)......... - 3ila (Sumatra) Rubber Lands (Ltd.).... How 3lackwood Coffee Co. Jide mE ERIE EE ode Rubber Estates (Ltd.}. .oc.c.cueccvncecencanrnase sone Jogawantalawa District Tea Co. (Ltd.).... wah 3orbheel Tea Co. gas. 3ordubi Tea Co. (Ltd.}.. 3orelli Tea Co. (Ltd.)eee.runrueeneannan 3orholla Assam Tea CoM (Ltd.)...ccauenr Borjam Tea Co. (Ltd.).c.carecnerecenncananns 3orneo Propristeny Estates (Ltd.)......-..-3oroi Tea Co. (Ltd.)......-Borokai Tea Co. (Ltd.)....... Bradwall Rubber Estate (Ltd.)..... RRR 3rahmapootra Tea Co. (Ltd.)..cceerareencrnensenneacar Jraunston (Malay) Rubber Estates (Ltd.)..........-Brieh Rubber Estate (Ltd.)..u.eeensisininnainennenaann... #ritish & Brazilian Rubber Planters & Manufacturers (Ltd.) 3ritish Assam Tea Co. (Ltd.).......... 27941°—pT1 2—16——28 Location of property. Dutch colonies. .....c.cueue.. British East Africa.......... dutch colonies. ....ccaeeea.-Sirasy Settlements... ........ sre Che viL Eu RS CE Dutch colonies......ceeu... seeedo... RR AR wenn nd. J——— anal nn ae Jeylon.. senennse NB oy punponnncmummeonin sve itraits Settlements....s....-Dutch colonies. Sewee bas BOB. 15 5.00.00 ce SRNR emt Araits Settlements ......... dutch colonies......cceeue. straits Settlements. ........ West Africa....cocuveveceee. Dutch colonies. ......ceee... straits Settlements.......... JIB. ov evvansnivevsarsinny “avlen, - Wi ndia.......... seesesce Jutch colonies....eecuvnee.-20¥I0D ce. cei crieneacr rane. dutch colonies. ............. British East Indies.....c.... Dutch colonies..... ........ cen Bana pei nnussssmanas sad “rafts £ °° —mis.......... dia... rR odo... .... Sirreee Dutch colonies. .....cceeuc..-Sirelts Settlements.......... sedllBccyprngen on Jutch colonies. . ce aes REVI pin pesniusnennpmnn ing Btraits Settlements..... ... lla. SR 220: B0iiaciiiiiricciresacnses Juteh colonies............. traits Settlements.......... SOYION. oni iaeiiaae-as 3ritish East Indies.......... BB wn ping env snsnnnswenn Straits Settlements......... era BOunvis sur PARR Bou gine sn mn Hn Sirajis Settlements..... eerel0mieinniiiiinns dutch colonies.....c.ec....-coylon.....cveneinennenan Bidets Settlements.......... rv slBveiy veguvn rs vasa eR Dutch colonies......cieeeue. J0YlON. iii iavencenns jritish East Indjes..... ... Jeylon. - we di ... RA “y Fast Indies... straits Settlements......... MA opp cunsvirmpressnenmnee Sirah Settlements. ...c....-rns Bsc h nasi ses nan NRE Ireailecennarunannnana. nr Approximate capitaliza~ tion. $5, 747, 400 350, 000 2.425, 000 645,000 750, 000 100, 000 562, 500 517, 500 1,000, 000 £25, 000 1,887,500 550, 000 333,700 B45, 000 137,500 400, 000 250, 000 000,000 91,700 400,000 750,000 300,000 175,000 10,175 £00,000 65,000 171,250 250, 000 285, 400 B25, 000 750, 000 503, 000 300,000 875. 0 1 38% 00 375,000 347.000 135,000 952, 750 95,000 133,750 667, 600 421, 8%0 495,150 371,500 289, 000 381,500 150, 000 105, 000 141,500 1,050, 000 375,200 275, 000 399, 400 175, 000 250, 000 300, 000 370, 000 94, 200 282’ 500 1,000, 000 74, 000 200,000 129,200 160, 000 163,800 195. 000 140, 000 217,800 150,000 572, 500 122, 500 246, 400 159,100 225.000 562 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES8—Continued. 3ritish Borneo Para Rubber Co. (Ltd.).cecceennrecearenons. British Darjeeling Tea Co. (Ltd.)eeeceer-nenai as - British Guiana Balata Co. Gd bres British Honduras Produce Co. (Ltd.}.cer reavesenncaees oo British Indian Tea Co. ga cone . - British Malay Rubber Co. (Ln Ji cen ¥ 3ritish Rubber Listates of Java (Ltd. )ecvaecescenenanacnenns. Jrooklands Se.angor Rubber Co. (1.td.)......cccuenncnneenes 3roome (Selangor) Rubber Plantations (Ltd.)....cc.ce: 3ruas-Perak Rubber Estate (Itd.)eceecarencacecaaaanacns. 3runei Estates (1 TT E— 3udla Beta Tea Co. (Ltd.).. 3ujong Rubber Estate (Ltd.).... 3ukit Cloh Rubber Co. (Ltd.)..... ....... 3ukit gor (Selangor) Rubber Co. (4d... Bukit Kajang Rubber Estates (Ltd.)....... Bukit Lintang Rubber Estates (I.td.)eccceenren Bukit Mertajam Rubber Co. (Ltd.).. Bukit Palos Syndicate La, > Bukit Rajah Rubber Co. (Ltd.)... Bukit Selangor Rubber Estates x Cifenan — Bukit Semdawany Rubber Co. (Ltd. )ecc.ucernvesnncncar on Suki Sympa Rubber & Cotton Estates (Ltd.)eieeeane. 1a Bukit Tambun Coco-nut Co. (Ltd.}eeenrereecuceecananceees Burnside Tea Co. of Coyion (Ltd). Crrecerest eer Buxa Dooars Tea Co. (Ltd.).... . Caamano Tenguel state (Ltd.).... Cachar & Dooars Tea Co. (Ltd.)curicnrverearansnensannsar Caledonian Tea & Rubber Estates (Ltd.)...ceceaeneeecnnnnr “aledonian Rubber L state of ry Ltd Yesanins = = wis Carey United Rubber Estates (I.td.)....ceveeveaceaanses Carnarvon Rubber Co. rid) (Selangor). . din din dake Jarolina Tea of Ceylon (Ltd.)..c......... re astlefield (Klang) Rubber Estate (Ltd.)... .. Ceara Rubber states (Ltd.)...coccecveccecrcocensonsonnioas Central Province Cevion Tea Co. (Ttd.)ceeenresneneaanaannns Jentral Sumatra Rubber Estate (Ltd.).eees -vacomcans. Le. Central Tea Co. of Ceylon (Ltd.)....cccceuenrecncecncncnanes Central Travancore Rubber Co. (Ltd.)...ececeeacensccccnse. Jeylon & Indian Pianters’ Assn. (Ltd.).... Yn SEW TORR Jeylon Cocoa & Rubber Co. (Ltd.)...... Tadd Td “eylon Consolidated Estates (Ltd.)......ccccreieceearenss? Jeylon Estates Investment Association (Ltd.).c.ceenuuen... Ceylon Land & Produce Co. (Ltd.)...... ” Jeylon (Para) Rubber Co. (Ltd.).veceeaeeccecae coccnsanan. Ceylon Proprietary Tea Estates Co. (Ltd.).ccceececnceanenn: Jeylon Tea Plantations (Ltd.)...cceniericcnneennmcaee oo Jeylon Timber & Rubber Syndicate {Te Janes we Jeylon Upcountry Tea Estates (Ltd.)ecesceeacuseaiueas uae Chandpore Tea Co. (Ltd.)ue..ounruncierennaicocecsncnanr san Shangkat Salak Rubber & Tin (Ltd.)..... ren Chardwar Tea Co. (Ltd.)......ciciet teeveececsencncoeneses Shargola Tea Association (Ltd.).....ccceveerennanancneans Jhembong Asiey Rubber Co. (Ltd.)...... —_— Sherakara Tea Estates (Ltd.)...... Cheras Rubber Estates (Ltd.)... Shersonese Estates (Ltd.).. Cheviot Rubber (Ltd.).........cvu. Shimpul Rubber Estates (Ltd.)ceeeceeecuencan oF Chota Rubber FAL perenenansssnnnnnsnanses Shristineville Rubber Estates (Ltd.).....- I Shubwa Tea Co. (Ltd.).....cecuvee. yor Cicely Rubber Estates Co. {pas. . ww Sluny Rubber Estates (Ltd.)...cccucircanaiiiieeenes Colombian Indian Rubber ADloniis Co. (Ltd.)eeenennaen. Colonial id & Rubber Co. (Ltd.). ame. Sas consolidated Estates Co. (Ltd.)..cccomvueiee ceencccnansses Colsolidated Mpiay Bupner Estates (Ltd.).....coeeennee-Jonsolidated Rubber & Balata Estates (Ltd.).... Jonsolidated Tea & Lands Co. (Led). a Costa Rica Coffee Estates (Ltd.)......... sesssenc oraighond Ten Co LIA. Yo vp cvsrrsmogensnponpnsspnoswnnsnnms Cromlix Rubber Estate & Produce Syndicate (Ltd.)........ Daejan (Java) Rubber Estate (Ltd.)....ccecevnvenerorcccncs. Dalkeith Rubber & Tea Estates JLEA J prsmsnnernnaves: jo Damansara {Belangnr) Bibuer Co. (Ltd.)seeeee---- - Dangan Rubber Co. (Ltd.)... - I.ocation of property. British East Indies.......... dif eeeeecemnnsnoncennoaces 3ritish Guiana.....ceeeeeee. 3ritish Honduras. .ecaveeaes Straits Settlements.......... Dutch colonies. .....ecaene.. Birnie Settiements.......... Sn, BRA eeelOiie iin iiianaaaa. Jritish East Indies.......... DB cicrcrrmrmmmnnnanesns Straits Sett.ements.......... wena? pup - aed Feenwgunns sessnannns “Tost Africa. ..c.ieinnennnn. “raits Settlements..... .... J8YION .cvvarerericnenanncanes 0A18ereee— secemeeas cuador. rene ndia.... carwnes PION, surnrunnanaosn an rans Straits Settlements... .. eaeC0aus roeB0iunyeylon.... traits £. 3razil... SeVION...eiiincennannen Dutch colonies. ......-Jevlon... ndia....... ceylnn_. cee RAUB, cies ivenear eee nas traits Settlements... . ndia..... ceee@0e rien iiiceeaaa straits Settlements......... Upp ciirnnnmmmmmmnnn ww Straits Settlements......... seas Meorasvresscancasesscnuar crimp ue SESE NE OE Jouth Africa....ccccavecnaee Ai. cece erenvnananseaonee-Seralis Settlements.......... vee el0nieeernnniriieaaanans United States of Colombia... Australis... -- ce JBYIOR ante aicaanan, we “traits Settlements.........-3ritish Guiana......c...... ‘evion...- Pe ‘osta Rie JBVION. ceo. iii. ‘traits Settlements......... Yutch COlONIES. vuvereasenns Jeylon. ccceiiiiiiiiiaanees traits Settlements.......--“aylon Approximate capitalization. £320, 000 305, 000 172125 173,885 386, 600 500, 000 354,600 675, 000 840,000 138, 800 252,300 150, 000 185,600 250, 000 226, 650 500, 000 150, 000 794,100 215,000 333, 500 305, 250 |, 574, 800 237, 500 300, 000 175, 000 250, 000 1, 173, 600 765, 000 810, 000 225,000 750,000 200, 000 480, 500 225, 000 (50, 000 500, 000 520, 200 250, 000 279, 500 513, 200 85,500 500, 000 140,625 625, 000 350, 000 580, 600 1,410, 000 268, 000 215, 000 160, 000 150, 000 75, 000 315, 000 375, 000 230, 000 250, 000 1.125, 000 441,350 350, 000 250, 000 355, 700 530, 000 80,000 122,500 +, 298, 300 250, 000 882, 000 350, 000 :, 232,300 2, 750, 000 202, 500 190, 150 120, 000 250, 000 738, 200 525, 000 351, 250 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 563 Pare XIII.—List of British egal or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES—Continued. Location of property. Darjeeling Co. (TAd)e..ovvee neemamarecocene. Jarjeeling Consolidated Tea Co. (Ltd.)... Jeamoolie Tea Co. (Ltd. * dehane Plantations (Ltd. - Dejoo Tea Co. (Ltd.).. cee Dekhari Tea Co. (Ltd.} ssn Spa Del Rey Tea Co. (Ltd.).....covemun. ... Bp Jeltota Tea & Rubber Plantations (. td.)..... -.... De Mello Brazilian Rubber Co. (Ltd.)....... oe Demerara & Coverden Produce Co. (Ltd.)... pr Dennistown Rubber Estates (Ltd.) HARA derby Tea Co. (Ltd.).... [ Jesang Co. (Ltd.)..o.ocoeceenan. © oa.es ise ees Jevitural Rubber & Tes Estates Co. (Ltd.)....cccuieeranse. Devon Estates (Ltd.).... mg —“ Dhamai Tea Co. (Ltd.).... J Dhendai Tea Co. fi). CARES Dickella Rubber Estate (Ltd.)... HEARERS Jima Tea Co. (Ltd.).......... RRR Jimbula Valley Tea Co. (Ltd.)... vi vjaboong Rubber Estates (Ltd)... cceiinens senvnenns see Jjasinga Rubber & Produce Co. (Ltd.).ccceuvamnreccnsar on. Jjemder Rubber Estates (Ltd.)....-. - Dolok Rubber Estates (Ltd.). - Doloo Tea Co. (Ltd.).... Dooars Tea Co. (Ltd.)..... Doodputlee Tea Co, (Ltd.)....... Doolgalla Rubber Estates (Ltd.)..veeceraaccacanacanen. Dooloogram Tea Co. (Ltd.)ccerraceenrracanoncnncsrsscann-an Doom Dooma Tea Co. TTR Doranakande Rubber Estates (Ltd.)..... Duckwari Tea & Rubber Estates (Ltd.).-Dumont Coffee Co. (Ltd.)...euueenuenreiesanansanacnns Junkwg Deyelopment Silicate (Ltd.).. Dusum Durian Rubber Estates (Ltd.)... eRe. 5 East Africs Bataleon (Li0.) . co covesnrarsrrasnensusssvanssnnns East African Rubber Plantation J403ssnsnnsrrrranans ¥ East India & Ceylon Tea Co. (Ltd.).ceee-- --- ..--East Indian Tea & Produce Co. (Ltd.)..... East Java Rubber Co. (Ltd.)eeuee auanranmnccnnscescrananen East Malay Coconut Co. (Led). Ceainesener: res Busters Asean fo ad, games - Eastern Produce & Estates Co. (Ltd.) cevcevecvarenncnuacuan Eastern Sumatra Rubber Estates (Ltd.)eceuerearaccaasiven Ederapolla Tea Co. of Ceylon (Ltd) CEASERS. SRR Edinburgh Rubber Estate, Selangor (Ltd.}ceeereraeanas wo. El Palmar Rubber Estates (Ltd.)eccceerearannransancacaccns. Elak Ha orm aesassiaasananases f]lawatte Cylon Tea Estates (Ltd.)....... PR Elmshurst Tea & Rubber Estates (Ltd.)e-cceeeacanceecanaan Elphil Rubber Co. (Ltd.)..c.ccucuinienernccncnnncecancanan Emerald Rubber & Cocoanut Co. (Ltd.)cueeeceacencn.s Jrpive of India & Ceylon Tea Co. (Ltd.).- y Endogram Tea Oo. (Led by puNy WEY Eow Song uber 0. aa. SERRA £scot Rubber Estates (Ltd.)...... .. fF. M. 8S. Rubber Planters Estates I Federated Malay Estates Rubber Co. (Ltd) .veeeenaeen - Federated Sern) Rubber Co. (Ltd.)...- --....-Filisola Rubber & Produce Estates (Ltd.) Futtickcherrie Tea Co. AY esses wwe Gadek Rubber Estate (Ltd.).cveccaiccuieienreecconanscane. Galaha Ceylon Tea Estates & Agency Co (Ltd.)eeceraee. .. Galang Besar Rubber Plantations (Ltd) ee. vu iceeananen Galkandewatte Tea Co. au ALE ARRAN SS Galphele Tea & Rubber Estates (Ltd) cceeneccucna... Galvez Rubber Estates fg wkd Gan Kee Rubber Estate (Lt Js gpa nnneass Gangwarily Estates Co. of Ceylon (Ltd.)cceecnusancenene Garing RUDDEr EState (Ltd.)...eenecr rasan roanmenomes Gartmore Ceylon Tea Co. Qra 5 —_— SE Gazi Rubber & Fibre Estates (Ltd.)..... Unpepe aT Jedi; Robbe: Batabo CIA.Y. . cprgr risen inpmannanmmnmnnnns General Ceylon Rubber & Tea Estates (Ltd.).ceeeeeeeacene Georgetown Cocoanut Estates (Ltd.) ee-cvcenceavessanner Gingia Tea Co. i hee spiarapees Glen Bervie Rubber Co. (Ltd.). wospnaneel [NB ae-...de.. senalOumenannn West Africa... oaeeeanaae.. India... -_ tla... we pene ylon....-- CER eeadoa. TE all, oiiinnenes po Jritish Guiana. ............ Straits Settlements.........-FR I J wn Ceylon. ....uiiieiiiniaannn Straits Settlements...... .. mdig..ee.----....do. Zeylon..-- Aveda india.... a 3 [0:02 (0) + DP Dutch colonies. ..........-.. eee elUuivanne- —— win i md: .... HERR sre sQOsupyne yes AAR NS se wad Jeylon..... SR CRS man, DIB. creeenncreesaensennone ....doo..... NS Ceylon. . RL. oven wrazil.o...... [RR West Afrion.. covvsnsnnsveny Straits Settlements.......... 3ritish East Africa.......... rerman East Africa......... di~ ae POE a desemr -utch colonies......cceeeues traits Settlements.......... ndia. nw VION «op vivir sg ppmpnnurnn Jutch colonies......ceccene. JOFION 0 wernnneensnsnannsnnn traits Settlements. ........ Mexico....... - Sm h Ey ve tees Ceylon, J ieeal0ueiciieiiireiiacncnnes 3traits [attlements.......... 'ndia. Pm Straits Settlements.... swf Rive win AAR spencers ernnsnve traits Settlements........ Jeylon. EE. 'ndia,.. ip Ceylon. . REA ...do... HAR 3olivia coemecnmnnonanes sue Straits Settlements... ... 07:34 [) 1 WR Straits Settlements ......... DeYION.. ieee icine. 3ritish East Africa...ceaeae. traits Settlements.....c.u.. Jeylon...cieiinciniccnnenns British Guiana...ceceeenne-BAB cawyevarreravsnvensne Dutch colonies... Approximate capitalization. $657,100 600, 000 175, 000 25,000 a3, 550 5, 000 145, 000 2,610, 750 175,000 569, 250 217, 500 he 175, 000 2, 000, 000 475,000 £, 000, 000 +, 423 000 "193,300 413,965 300, 000 . 200,000 5, 810,000 830 1, 250, 000 358, 500 375,000 t, 026, 500 L216, 300 008 166, 045 : 81, 400 5,000 212,500 725,000 155, 950 350,000 oa 000 % 210, 000 000 133,600 199, 500 28 132,000 328,125 000 144, 000 760, 000 a 155,000 152, 50 140, 450 381, 500 240,000 326, 800 315,000 32/395 125,000 260000 564 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TapLe XIII.—List of British organize] or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES-—Continued. “len Rubber & Tea Co. (Ltd.).. enmity AR Yendon Rubber Co. (Ltd.)..... cmesasecsnn ‘lenshiel Rubber Estates Co. Juste Ege I—— oleonda Malay Rubber Co. 3 TCE -olden gps Rubber Estate (Ltd). -ccsvansnncn ‘oomera Tea Estates Co, (Ltd.).... srand Central Rubber Estates (I.td.)... ‘reenwood Tea Co. (Ltd) oneenenn + SRE uayule Rubber Co. (UA. feecresssecesenssensansnnass uh lsnimpeng Rubbe states (Ltd.).cecoeenenncannee. anipha Tea & Rubber Co. (Ltd.)...-- Ce imc-ecsnecne aputale Co. Jad Ceylon..cceee- rave arewood Rubber Estates (L.td.).... RARER we arpenden Rubber Co. (Litd.)ceerereeacaronrer - aydella Tea & Rubber Estates (Ltd.)ecueecvececncenas ayoep Rubber Estates (Ltd) eeeeonnenenncccsnscscacaconsr enerietta Rubber Estate (Ltd.)... hs evea Rubber Plantations (Ltd.)..... ewagam Rubber Co. (Ltd.) ..ccceuaensee ae idden Streams Rubber Syndicate (TAd.)ecceei i iavaaiians iggoga Rubber Estate (Ltd.)..... A ighland Tea Co. of Ceylon (Ltd.)....c.oceemcecacnaccacnaas tighland & Lowland Para Rubber Co. (Ltd)..eeemcreveaenns Spgs Tea & Rubber Estate (Ltd) ec ceacanccacane. .olyrood Rubber (Ltd.)...- LORRY * “ongkong Rubber (Ltd.)... pemaac . Iope Tea fo. 010, teeesamcessensesmassmsastontusssanasuse “ornsey Tea Estates Co. (Ltd.)........ [EP Tunasgeria Tea Co. (Ltd.)..cocv on why funwall Tea Co. Hr Lips Rubber and Tea Estates Co. (Ltd. ).cecevaaee © ro Rubber & Produce Estates (Ltd.)..... ‘ mperial Ceylon Tea Estates (Ltd.).... weet, HAE mperial Sahn Rubber Co. (Ltd.)oae. + cececaamaanana, ‘mperial Tea Co. (Ltd.)....cccvunns recececaser -ae Inambari Para-Rubber Estates 298%: recesecsmemsar = Inch Kenneth Rubber Estates (Ltd.). ceeaerecaaceceacennens Indian Pennisula Rubber & Tes (Ltd.)..- ceccvevenar oor dian Tea Co. of Cachar es pee yw nsulinde Rubber & Tobacco Estates (Ltd.)e... o.oo... ntercontinental Rubber Co..eeeevnveancccvaoccscasnceesans: nyoka Tobacco Co, (Ltd.).. AEE TR WE [sa Bheel Tea Co. (Ltd.)..- i“ faipur Tea Co. (Ltd.)... [alinga Tea Co. (Ltd.)......--.. . jamaica Copra & Estates Co. (Ltd.).. oo. Jasin Rubber Estates (Ltd.)...ccccaceeenaens pepe java Amalgamated Rubber Estates gia ARERR ‘ava Havea Rubber & Tobacco Estates (Ltd.)evceneee. java Para Rubber Estates (Ltd.)....- SC — wi java Rubber & Produce Co. (LAdYeeeeocirnnnnencnnnnensn. java Rubber Plantations Jie » cmt m ned Java United Plantations (Ltd.! Tequie Rubber Syndicate (T47* feram Rubber Estates (L* on ——————— bigs Valley Tea Co. (Lt. SE — hanzie Tea Association (1% - ‘chore Para Rubber Co. (Ltd.).- veeesnccsscecennss ;ohore Rubber Lands (Ltd.). 4 CRRERE AEE as Jokai Tea Co. (Ltd.)eceeaceeaaannn.. HEERESS AWN ions Lander Rubber Estates (Ltd.).... . Ewe forehaut Tea Co. (Ltd. )ucvreeneeann- ooo oo =onn AERA nugra Estate LI rm rey ie Ci ensenees fugra Land & Rubber Estates (Ltd.)-. a luru Estates A Se Cae ZT. M. 8. Rubber & Cocoanut Plem*otions (Ltd.)..ccecene... Tacharigaon Tea Co. (Ltd.). -..- JRONRRARNNNS ‘adienlena Tea Estate (Ltd.)...... wn ype Slang Rube Estates (Ltd.).cocucnzcaacececcconiicie conn 7ali Glagah Rubber & Produce Co. (Ltd.).ccuerauacaaccenss “alidjeroek Rubber Co. A J ‘amna Rubber Estate ( mn eiseesssessmsesmescsrsssannas ampong Kuantan Rubber Co. CEE Yensenmmnnrsnrermrssns ‘amuning Rubber & Tin Co. (L reer ensren: ‘anan Devan Hills Produce Co. (Ltd.)eccccecaccsnccacecser fodardtia Tea Co. ER etusaar starter {appar Rubber Estatas Co. (Ltd.).... Y.ocation of property. Ceylon... eose@0use. susnsesner Straits Settlements ......... cenOais ceiinecinaneranaa BY: dawson Ceeeseas endo. caeasecae 1dia. er fOXICO .-ncvnrnnnrceensncens straits Settloments ......... Jeylon... ERE veasl00.ciaeeciciiiiitnonnne tric.ts £-ttlements........ ...do.. - cesenecear eylon....c..... emsseen: Juteh colonies....ceeeenansa: Straits Sattlements......... ...do.. ememen JOYIOD eo cveniaereivensennns Straits £~4tlements...ccccees. Ceylon.... creeenrenes sis E Cupp wma gn wana ——— Straits Settlements. ..eceo... [0734 10) + 3traits Settlements.......... wer alBuesas “awnpwns omy Jndia..ie.... sn Ceylon. u.ee-ceeeeacsncreanns ir. § ond adia...... ecrcmemesanan: TION. sveenncrevnavarsaner Mest Africa.ceeeeccecncenn. Jsylon..... pm .byssinia.....- Pewee. DB vensiannns “x vnswensny 28IM eu cevevnneseanssnsconnan traits Settlements.......... NAB. .enrcreercaaracacssaces iri migraine mm A mw Dutch colonieS....ueenveenes Lo RR South Afric..c.eeeecneaann. India.. ERR ceerCee ) WY veee@O0iceaerenn: cemseacmen West Indies. ......ceceeiena. Straits Settlements... ... -... Dutch colonies... .ceeeeee: wvieolP Din cecvssnssones TAZ. ceviaecraracannceii on Araits Settlements...... .... NAIA eaanreaear: .coseasen veeelOi tear eiiiiianneaen traits Settlements.......... rin AOhug ww cennnre BA peer m mmm nme straits Settlements......... ndi8.....ccvncnnunccannnnan. traits Settlements......... EC ER .af “enn ~sbesvssncscane serge Femi d RRR ndig.....-.- [PPR 26FI0N .uceernrcnncarancannn. traits Settlements.......... DU COJORIAS cc anennvenn EO —— German East Africa......... traits Settlements.......... naes80icccesiisensearennenne. caeelOiaae. ‘« aesvennss. Ceylon...c.ieeeecnncaner Atppitg §* 7 — = Approximate capitalization. $175,000 260, 000 175,000 440,000 220,000 57,750 5,125, 000 300, 000 2,000, 000 2,250,000 300, 000 376,900 200, 000 150, 000 75, 000 975,000 412, 500 889,100 200,000 120,000 170, 000 160, 000 \547, 400 190, 000 76, 400 169,850 840,000 155, 000 143,600 326,200 220,000 285,750 625, 000 425, 000 2,959, 800 1.675, 000 250, 000 898; 900 £70,000 275,000 29,031, 000 90,000 155, 000 150, 000 110,000 132,800 276,500 807, 650 138,560 809, 750 275,500 212,250 750,000 282, 660 262, 650 543,800 500,000 325,000 2,000, 000 1,997,500 385,000 500, 000 180,000 1250, 000 400, 000 422,900 156,350 133,750 375,000 325,000 175,000 550, 000 150, 000 910, 000 8,500,000 310, 500 ame’ nnn MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 565 Tasie XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMP ANIES—Continned. Kapoewas Tobonlo (Tad deer=coneres 5 Kargk Rubber Co. (Ltd.)......... ye Kasintoe Rubber Estates (Ltd.).. pe Kawie Rubber Estates (L1d.)...ccveeeerannnann i. Kedamakal Rubber Syndicate (Ltd.).......... ee Kelani Valley Tea Association (Ltd.).. Ceieessaca aes Kelantan Kopra Co. 5) Nan Sopa sree res enn Zelantan Produce & Development Co. (Ltd.)...cuuueen. ... {elantan Rubber Estates (Ltd.)eveeeeeacneraennstoenr: au. Lenny Rubber Co. IA airs {epitigalla Rubber Estates i Kepong Rubber Estates fu J eseren vei Keraia Rubber Estates (Ltd.).. Kerala Rubber Co. hak TTT Khota Tampan Rubber Co. (Ltd.)......... Sibwezi Rubber Lands (LATS suns - <ifulu Rubber Estates (] 2d. )eeereecnnens Killinghall Divsirmar “-ndicate (Ltd.)..... Kimanis Rubber {34 Sig Rubber ( Ad.) w Kinta Weillas Rubber Estates (Ltd.)..... Kintyre Tea Estates Co. Thay. ARBRE Kivuvu Rubber Co. (Ltd.)...-{labang Rubber Co. (Ltd., §ionang Produce Co. (Ltd.: {lian- alsin). win Kombot Rubber Co. Lili we Xong Lee Plantations (Ls Jee: Soomsong Tea Co. (Ltd.)... Korale Tea Estates (Ltd.)..... CS Rubber Co. (Ltd... Krian Rubber Plantations Co. ( Sabony Rubber Plaatations ( {uals Klang Rubber Estate (© Kuala Kubu Rubber Estate § Kuala Lampe Rubber Co. ( <uala-Nal Kelantan Rubber Co. {uala Pahi Rubber Estate (T.t¢ {uala Selangor Rubber Co. * “tr {urau Rubber Estate (Ltd. Zurunegala Rubber Co. (hk ~waloe Rubber Estates Led.) . sree ssesecrerecassaancrese La Libertad Rubber & Cocoa ¥<tate Co. (Ltd.)..ceeeeeacen-La Bu a ET Lafayette Rubber Estates (Lt¢ .- oe amag Rubber Estates (Ltd.).. a .anadron Rubber Estates (Ltd.)........ SEVERE <andscape Rubber Estates Co. (td .... a a angen Rubber Estate Co. (Ltd. al Hy AngEanees Rubber Estate (Lt¢. ..cievoceveavcrceocann. angkat Sumatra Rubber Co. (LtG.)eeueeeerannenoronnn: angkon North Borneo Rubber (Ltd.)... anka Plantations Co. (Ltd.)..--Beis Tea C. {Rd 3g .ankat Rubber Co. (Ltd.).... .aras Rubber Estates er nee avant Rubber & Tea Co, (Ltd.).ceeceneenins venvenncunen BBOnE Ten 00, (LAN, scorispnnn: annsauisses sHawenass «os anny Rubber Estates (Ltd.).. ny .e0sh River Tea Co. (Ltd.).... vee sendu Rubber Co. (T4d.)..cccoiveennvrneesescsevosccsanann sethenty Tea Estates Association (L8d.)eee..eevescecacocees -ewa Rubber Estates (Ltd.)............- po Aberian Rubber Corporation (T4d.)...eeeseese. oo coneoues [ndoola Tea Co. Ped Sopra AR REESE ARR E gel Plangseions (L 2 ns ww sochnagar Produce £oi§ td.) i po i a I — So sondon-Asiatic Rubber & Produce Co. (Ltd.).....ceeeneese. sondon Langkat Syndicate Gad rere ree wis -ondon Sumatra Rubber & Produce Estates (Ltd.)..... Longai Valley Tea Co. (Ltd.)- sssecssssnsener Locksan Tea Co. 21a.) ERAS essa r ranean. + Lower Perak Rubber Estates (Ltd.)...cceeeeecncaccenr Lumut Rubber Estates (Ltd.).....--Lungla Tea Co. (Ltd.).-ceewesansancee Location of property. Dutch colonies......ccece... Straits Settlements.......... Dutch colonies......ccueeue-....do..... rive India. . we DBYIOI wu sce a BSR Bizaits Settlements.......... ....do.... .e Seylom................ .. Straits Uettlements...... .. 3ritish West Africa..e...... Di. oneiiiiiiiiiiiaeenn jtraits Settlements......... British East Africa..ceeee.. erman East Africa......... traits Settlements.......... Britgh North Borneo....... sen 0n a iiciiciaeaae Straits Settlements.......... COYIOM . yeeteiieiiiinienanas British East Africa.......... Straits Settlements......... www gpmnunorvs rapa nes alt = incia. . Ceylon.............. Straits * -ttlements...... cea. l U Ceylon........ . Dutch colonies. ............ United States of Colombia. . traits Settlements...... .. Brae vi cum anonis nnnnman ne British North Borneo....... Straits Settlements.......... [6137 10) + WR Dutch colonies... ...ceauu. vere aiieereeiae 2d Ap vw wm British North Borneo. ..... DOYIOR cone» cuvnsrvnwmsmun dn. vpn prvinernereneas Dutch colonies....... Lauer, Ceylon. - SERawnn MAI. i iiieireircennasae Straits Settlements..... -. Ndifeeseencnarennnrennn-‘traits Settlements......... VIO rs vapunasrrnsumanne Yerman East Africa..... ..-iberia... AVION co nnvusvsronenvenvie traits Settlements..... -. JOYI0n. . iinianieiaaans 3ritish North Borneo....s. traits Settlements.......... Dutch colonies... ceue Lea Gr [ndir seaevans ceed. iiiiicicoaeen Straits Settlements...cceaee. + » ndt-! Approximate capitaliza~ tion. $463, 500 282,300 841,700 340, 000 161,500 210,000 863, 165 147,500 500, 000 190,000 1,250, 000 125, 000 153,200 228,200 166, 250 129, 250 350, 000 165, 000 300, 000 100, 000 182, 900 239, 400 150, 000 250, 000 158,125 332,700 150,000 161,500 185,300 304, 600 27,500 200, 000 205, 000 125,000 250, 000 ,050, 000 261,650 372,500 53,000 87,500 240, 000 517, 500 100,000 500,000 170,130 155,000 \613,000 90, 000 348,300 392, 500 375,000 396, 600 900, 000 250, 000 500, 000 414,600 500, 000 328,300 543,000 200, 000 337,500 477,450 :, 100, 000 270, 000 205, 000 550, 000 21,100 500, 000 800, 000 525, 000 245, 000 £35,000 187,500 160, 700 1,057, 400 1, 000, 000 566 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. / Tasre XIII.—List of British geitsed or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES —Continued. anuva Tea & Rubber Estates (Ltd.).. | auskerpore Tea Co. (Ltd.)......- in ———— Aabira Forest Rubber Co. (Ltd.;, £0 Ee fadingley Rubber Estates PLA, pi Ree ray dadulseema Coffee & Cinchona Co. (Ltd.)....ceeeeseeacsner ahawale Rubber & Tea Co. (Lad. -- 1 Majedie Rubber Estates (Ltd.). rat dajuli Tea Co. al) N—, Makum Tea Co. (Ltd.)..... sr dalabar Estates & Planting Co. td.).... dalacca Rubber Plantations (Ltd). oecveeeninaa. © or oan valang Rubber Estates (Ltd.;..- FRARPR GEE Malay Cocoanut Estates (Litd.,)-- a Malay Rubber Planters (Ltd.) Malaya General Co. (Ltd). .cee venennnnen Malayalam Rubber & Produce Co. (Ltd.).ceceecacree-ear oan Malaysia Rubber Co. (Ltd.) inom Maleber Tea Estates (Ltd. ue Maliboda Tea Estate (Ltd. _ Mambau Rubber Co. (Ltd.)............ wwe Manchester North Borneo Rubber (Ltd.)- a Mandalasari Estates (Ltd.)............ rae Manihot Rubber Plantations (Ltd.)......c.ccovveeimennanans Mano-Marques Rubber & Tobacco Estates (Ltd.)...eu.-- -... ‘{fapalagama Rubber Estates (Ltd.)eeeer venacrearavenas von farangu Coffee Estates (Ltd). ..ccccaer: cmereecnsenacanns Marawan Rubber Dlaniions id)ec. we erTEeyweewe: Matale Ceylon Rubber Co. (Ltd.)... vg Maturata Tea & Rubber Co. (Ltd.)... Mayfield Tea Co. of Syn (Ltd.).. Mazdehee Tea Co. (Ltd.).. ‘{eenglas Tea Co. (Ltd.).... {embakut Rubber (Ltd). ................. vendaris Rubber & Produce Fistates (Ltd.)........ fengkibol Rubber Co. (Ltd.)....... Meppadi Wynaad Tea Co. (Ltd.)...... Merbau Rubber Estate (Ltd.)... Merbau Rubber Co. sg wblh gh ‘ferchiston Rubber Estate (44), morenumamenioll 1 Mergui Crown Rubber Estates (Ltd.).ceceuaeeecemncenennnn. Meritini Rubber Estates gi) cae © ae Merlimau Rubber Estates (Li: ge en Merton Rubber Syndicate (Ltd.).... Midland Tea Plantations Co. (Ltd.).ceeeuaeanna-o Moabund Tea Co. (Ltd.)............ Monerakelle Rubber Estates (Ltd.)......... Mooply Valley Rubber Co. (Ltd.)...-Moran Tea Co. (Ltd.)..c....... Morib Plantations (Ltd.)........... Mount Austin Rubber Estates (Ltd.)...... Mount Vernon Tea Co. JL) oo Muar River Rubber Co. (Ltd.)... ‘fuhesa Rubber Plantations gas. ARR \iundakayam Valley Rubber Co. (Ltd.).eeeereeenneacancnan: Munga Tobacco Plantation (Ltd.}....c.cceervrenreereer— o Nagolle Rubber & Tea Plantations (Ltd.)..... ” Nahalma Tea Estate Co. ag oman Namunakula Tea Estate Co. (Ltd.)e.-. -vecerervennanesn Narborough Rubber Estates (Ltd.).... ' 5 A Neboda Rubber & Tea Estates (Ltd.)...-Nedeem Tea Co. (Ltd.).ceeeenannn. Negombo Coconut Estates (Ltd.).. New Colombia Rubber Co. (Ltd.)....... yuo New Crocodile River Rubber Co. Jas GEESE New Darvel pay Tobacco Plantations (Ltd.)eeceeeereeen. New Dimbula Co. (Ltd.)............. ERTS New Kali Selogiri Plantations gay. Gi ws New London Borneo Tobacco Co. (Ltd) cecvaccaccacac-New Sylhet Tea Estates (Ltd.)... JI pe Nilgirl Plantations Co. do. EI comid Nirmala Plantations & Lands Co. (Ltd.).... eas Nordanal Rubber Estates (Ltd.)....... 1ceceeven. vivsuase North Borneo State Rubber (Ltd.).. ARE Teese rs North Jone Brating 00 SAL) | CREE en ewe North Hummock Rubber Co. (Ltd.)....ccceacececeacrocncas North Labis Rubber & Preduce Co. (Ltd... Location of property. Ceylon. Idi. cceeciiennceer Lu British East Africa..ce..-... Straits Settlements.......... Ceylon..... — in a0 4 Si SRE AER RR Straits Settlements ......... [ndis oh wand RN, + SA, traits Settlements....-..... Dutch colonies... ....eecaa. Straits Settlements.......... J np straits: _.tlements.......... dutch colonies. - Ap Seylon...o.ooiiiini anaes 3traifs Settlements.......... 3ritish North Borneo...... Dutch colonies..........e... Jerman East Africa........ Mexico. . ae EemYne Zeylon.....ciieoiiiiaeananas Serman East Africa........-Dutch colonies...c.eevereane Ceylon..... tneesees hi - amma adr wr i 0 EI BR British North Borneo....... Dutch colonies........c..... Straits Settlements.......... J + Ts | £- SR Straits Settlements.......... ryt reeves DUB. spennis censor vnnes British East Africa.......... Straits Settlements. ........ AS,» Sie eylon.. 8 BE fndia en -. . rmebndomnd Ceylon... PRN India... ER sus ills gcumseerrnannaemamene Straits Settlements.......... sawe@0auy wp COYlon.....cevererenenanenn: Straits Settlements.......... Ferman East Africa........-ndia.... SAR hodesia.. Pree Ceylon..- cresesvesane I seeeeens sit pwn wim an wh A on Straits Settlements.......... Ceylon.. va (ndia.. cen 0VION es cosnsnsinmnnane sus Susi Settlements.......... print le #0 denn A AHEHE RR British North Borneo....... Jo7:3°4 10) (HOU, Dutch colonies.......ceuu... sritish North Borneo....... ndi-~ oe Sd, vera Dutch colonies.............. Straits Settlements.......... britip North Borneo....... ceeel@0iiieiiiiiiciranaen.. Straits Settlements..... .. Approximate capitalization. b1,031,300 129,700 672,600 254, 900 540, 000 200,000 550, 000 579, 850 150, 000 73,100 .. 269, 800 300, 000 503, 650 199, 000 500, 000 2, 500, 000 187, 500 125,000 173,100 225,000 325, 000 358, 000 527,900 192,300 150, 000 60,400 186, 900 137, 500 150,000 318, 250 81, 600 400, 000 500, 000 , 000, 000 500, 000 530, 000 225,000 200, 000 200, 000 500, 000 200, 000 1, 249, 800 125,000 184, 600 311, 000 150, 000 300, 000 127, 500 350, 000 3,250,000 200, 000 300, 000 395, 000 226, 300 212, 500 925, 700 118; 900 213, 500 350, 000 1,300, 000 2,025,000 726, 240 153, 500 575, 000 630, 000 383, 000 281, 400 550, 000 223,000 400, 000 500, 000 1,400, 000 500, 000 627, 500 400, 000 200. 080 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 567 TasvLE XIII. —List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES—Continued. . North Perak Rubber Estates jis, aeee Northern Tjiliwoeng Plantations (Ltd.}......ceevrvracena.. Northumberland Rubber & Tea Estates (Ltd.).ccecccanenan. Nuwara Eliya Tea Estates Co. (Ltd) eueeeneerennrnannnn - Nyassa Plantations (Ltd.)........ —— Offin Rubber Plantations (Ltd. ).cce.cverereecerrerenacacacnr Oriental Rubber Co. (Ltd.).... SAREE Duvah SY Estates (Ltd.)... £3 Hn P. P. K. Rubber Estates (Ltd.). 2abbojan Tea Co. (Ltd). .cuo eer nrneerecarasncrannenr nae 2acific & Papua Produce Co. {Le)- ees www we Padang Jawa Rubber Kstate (Ltd.)..... ER. *anagula Rubber Co. (Ltd.).... vedas eel “anawall Tea Co. A >anawatte Tea & Rubber Estates (Ltd.).... 2anora Tea & Produce Co. (Ltd.)... orl Pantiya Tea & Rubber Co. (Ltd.)..ccuciuivenreenenrenenannen 2ara Islands Rubber Estates (Ltd.)eeee.eceueieiennnenecaons Parembe Rubber & Tea Co. of Ceylon (Itd.)..eeeeerennoanan Parit-Bruas Rubber Co. (Ltd.)... ccuueuenreiiinranecncanes ataling Rubber Estates Syndicate (Ltd.).... ---uceeeena.. >athini Tea Co, (Ltd. )euemaeenerannneeieaeneinienanncnanaes ‘eacock & Nilambe Tea & Rubber Estates (Ltd.)..ceeeuee-n REO TIAA Louw non sommpovgsmn ramps pores me eve Cer EA a ‘elepah Valley Rubber & 3t. 288 (Ltd) ecernrenrennnnenr ue >elmadulla Rubber Co. (Ltd. . wi ’eneiro Rubber Estates (Ltd.).... AR cmenceeence enggoong Java Syndicate (Ltd.)..ceeerencnnnenerrnnecnonn erak Rubber Plantations (Ltd.\ vee 2¢ermas Rubber Co. (Ltd.)....... oe oni Java Rubber Estates (Ltc.).. SEER SY ?iccadilly Rubber & Tea Estate (Ltd.)..cceeeeceeenennannar ‘indenioya Rubber & Tea Estates (Ltd.).... 2jtchikawa Rubber Estate (Ltd.)... ‘ongola Rubber Estates (Ltd.). ontian Rubber Co. (Ltd.)..... ‘ontianak Rubber Estate Jun, . ‘oonagalla Valley Ceylon Co. (Ltd.).. erie ‘oonmudi Tea & Rubber 00. (Ld). ones cnecrane ‘ort Dickson-Lukut Rubber Estates (Ltd.).... . wr *ortmore Tea Co. of om (Ltd.). —— Jeangen Rubber Co. (lid. Yc ocvne ruimsvpmmmsnoeveeneasnes ’rye Rubber & Coconut Plantations (Ltd.).. .eeeeeene- ... ullangode Rubber Estate (Ltd.)....a..--- - pre ‘undaloya Tea Co. of Ceylon (Ltd.).. 7 urpabpore Co. (Ltd.)......... rennee “agalla Tea Estates (Ltd.)........cccaeueenn iaja Musa Rubber & Coconuts (Ltd.)...... *ajawella Produce Co. (Ltd.)..-injmal Tea Co. (Ltd.)......... pay >ampah Coconut Estates {Ling . - tangalla Tea Co. of Ceylon (Ltd.).......... oF Jungess Para Rubber Estates (Ltd.}eeecees. coveecsneen tani Travancore Rubber Co. (Ltd.)..eeeereesecsnecaner -or 1atanui Rubber Estate (Ltd.).. we tembia Rubber Estates (Ltd.).. lim Rubber Estates (Ltd.).. ree ini Rubber Estates (Ltd.)...ccu.. cevruncennn.. we io Bravo Plantations & Timber Co. (Ltd.).... wor diverside Rubber Co. (Ltd.).. IE oma Tea Co. (LAA) c.eveeruee veereerneserareoncsananennen “osehaugh Tea & Rubber Co. (Ltd.)...... von .osevale Rubber Co. (Ltd.).... REE totterdam-Deli Hevea (Ltd.), ARRESTS «oweka Rubber Co. (Ltd.).... Cinta iain ‘ubana Rubber Estates (Ltd.’ oe ver .ubber Estates of Boncota (L paar lubber Estates of Ceylon (Ltd. tubber Estates of Johore (Ltd.)....... lubber Estates of Clian (Ltd.)... ~ Aungajaun Tea Co. (Ltd.).. ressamassee Rupai Tea Co. (Ltd.)... reeevenaseeeene Rupajuli Tea 00 (LE). ene aneeenartaaneine ee Sabaki Cotton & Rubber Co. (L40.). .cceerenenononsonns 1ren sont Borneo) Rubber (Ltd.).eeeeeescecnecnenne. vee Bagga Rubber Co. (I4d.).c.evueecanae avecunnommmens -onn Ek Rubber Estates (Ltd. Location of property. Straits Settlements.......... Dutch colonies.............. Ceylon..... Ne RRR I FE we South AfriC8..cccccuruenn.. Gold Coast... .....ceeveennn. Straits Settlements......-... Ceylon... J 1 mmm ndia...... | —-New Guines............... Straits Settlements.......... COIN nvnnnscnmnsinenminnn wns? Opn . wes My . ndia... Sera ——— Jeylon.... . reemsesnenn. Brazil. . ww Ceylon. c..uciinrinennennen Supe Settlements......-..-wer O0yuie wun - India... COYION cosnnmmnvymnsum ass Straits Settlements......... ....doo.. ves 2eylon.....eiiiinainnan Straits Settlements.......... Dutch colonies. .....eeuevas Brags Settlements....... ... wer elDiscpeenversnsnusnnevive Dutch colonies... . _........ Ceylon.. 0 a itraits Settlements.......... South Africa. ......cvceeeue traits Settlements. .....- ... Juteh colonies. . - Jeylon.. cesnannens TMB sy mggmenscompwnnmumnnns traits Settlements.......... SYMON vos in nmn wma womans ‘utch colonies. .......cuee.-‘traits Settlements...... .. adia.. came evior rreessuss 2dia...... SU evlon.....iiiiiiieaner en traits Settlements.......... ‘sylon. PREC S RY BI Bsn wvgss sannmnmans on Juteh colonies... . -.-Jeylon....- iba 3urma..... FE elon. iii iiiiriennenans Straits “-4tlements....... vo. ceee80ieiiiiar crecranerae Dutch colonies... .. ... Fuatemala......c.cceeseres “traits Settlements.....eu... ndia... [PP JVION pu vnvis me AE “traits Settlements....c.c..-Jutch colonies.....cccaeeees Yerman East Africa...q.... Straits Settlements....-. .. Jeylon. - ieesl0irnrearcrnrerasoane Seale Settlements......-ees. India... wwnoliOupue oe: cwniillusas wawmnp nun wovusnnnn 3ritish East Africa.....eee jritish North Borneo...... straits Settlements...cce... Dutch colonies Approximate capitaliza~ tion. $125, 000 545,000 375, 000 1,189, 500 1, 247, 800 75, 000 275, 000 300, 000 425, 000 400, 000 431) 400 325, 000 500, 000 122, 500 575, 000 325, 000 150, 000 500, 000 200,000 100, 200 112, 500 465, 000 £40, 000 550,000 462, 500 134, 000 246, 500 25, 000 45, 000 375, 000 262, 500 130, 000 350, 000 206, 250 1,184,100 200, 000 438,000 355, 000 266, 500 870, 300 200, 000 250, 000 300, 000 225, 000 195, 000 210, 350 530, 000 300,000 2,690, 600 280, 000 366, 400 110, 000 937, 700 1,375, 000 197,350 400, 000 411, 500 220, 000 1,110,750 375,000 0, 000 2,597, 500 133, 00 500, 000 125,000 ,250, 000 383,340 712, 000 525, 000 300, 000 180, 000 250, 000 81, 300 55, 900 1,000, 000 115, 000 287’ 500 568 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE Tare X1I1.—List of British organized or controlled companies whose properties are located outside of the United Kingdom. United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES8—Continued. 3t. Sore Rubber Estates (Ltd.).. wd Salonah Tea Co. (Ltd.)....oeeeezvenr. — Pmpng Rubber Plantations (Ltd.)...cceceeearcnanamcaeaes San Cristobal Rubber, Tobacco & Estates Co. (Ltd.)........ Jan Paulo Coffee Estates Co. (Ltd.).....cceveeevreaanaceaanas Sapong Rubber & Tobacco Estates (Ltd.)ececesernanacar con Sapumalkande Rubber Co. (Ltd.).- sar Sarawak Rubber Estate 31.0. . Scottish Assam Tea Co. (Ltd rpeemmw Scottish Ceylon Tea Ze lL 5 nen Scottish Yay Rubber Co. (. 00s genannincrasscnery Scottish Trust & Loan Co. of Cevlon (Ltd.)..eeceeeccnceans. Seafield Rubber Co. (Ltd.)... ERC Seaport Rubber Estate (Ltd., oe Sedenak Rubber Estates (a) '. 7 Sedgley Rubber Co. (Ltd.).ccuces -omvee-Jegamet Rubber Estates (Ltd.).-Sekong Rubber Co. (Ltd.).....- nn Selaba Rubber Estates GIS epi tea rs tase nnacane Selangor River Rubber Estate Co. (Ltd.)..cceerrerecnccesnn Selangor Rubber Co. (Ltd.)...ccovinnn.n. A Selangor United Rubber Estates (Ltd.)... “gy Seletar Rubber Estates (Ltda) cveeerececscsccnsncionena. an Sembilan Estates Co. mn ann SAAR Smenyl Rubber shied] td)... Joana Rubber Estates (Ltd.)....... Sendayan Rubber Co. (Ltd.).... . .. Sengat Rubber Estate (Ltd.) Sennah Rubber Co. (Ltd.)...... Sephinjuri, Bheel Tea Co. (Ltd.)..... wo Serangoon Rubber Co. (Ltd.) .cciccereecncacncssosesnnsnnres Serdang Central Plantations (Ltd.). Serdang Tabok RY A Fe Fry Seremban Rubber Estate Co. (Ltd.).s.ceciarcncencccncace. Jerinha Rubber Estate (Ltd.) ....cccceeivaccarcnccosscncnnss Jeychelles Rubber & Coconut Estates (Ltd.)eceveesenar ae. Jhawlands Estates Co. of Seriom (Ltd) cu vo vrsvrssnveencmens Shelford Rubber Estate (Ltd.)..cceccr-vacneserancocaconen: Tw Rubber Estate (Ltd.). RRR 3iak Rubber Estates (Ltd.)... ' 3ialang Rubber Estates (Ltd.)..... ARERR Jiginting Rubber Estate (Ltd.).- Sas vRR TERE Simo Rubber Estates (Ltd.)......... SHARY Ra Singapore Para Rubber Estates (Ltd.).....ccoeevuecaars ven Singapore United Rubber Plantations (Ltd.)..cccececcoces.. Singlo Tea Oo Gio yyy Lsessscsesces Society Islands ng AY ivevsunzan rr rpm Soconusce Rubber Plantations (Ltd.)...ceccecesscnanncecans Joekapoera Tea Estate (Ltd.)...c..-veeee-rescassaarcnasans Joember Ape Rubber Estates (Ltd.). po - Jonosekar nO ss pgisusaiss “% Southeast Borneo Rubber Plantations (Ltd.)ssceccsscsssacs Jouth Malay Rubber Plantations (Ltd.)....ceeceacnscencanes South Preanger Rubber Co. (Ltd.).... i oda Senesl South Wanarajah Tea Estates (Ltd.)... reesre- wes Jouthern India Rubber Co. (Ltd.)e.. --reececrccncscnmcsasna Jouthern India Tea Estates (Ltd.). ST — Spring Valley Ceylon Estates ad - vw Jtagbrook Rubber & Tea Estates (Ltd.). - , . Standard Tea Co. of Ceylon (Ltd.). ERTS TTS swe ey Straits Plantations 5 EASE RE Straits Rubber Co. (Ltd.)eeeceee ver iiones i 3traits Settlements Rubber Co. (Ltd.). ceuceerreccecncacnen. ‘trathisla Rubber Estates (Ltd.)... - - ---ceecceeacsccenn itrathmore Rubber Co. (Ltd.)..... FEARS RRR ER ‘umatra Consolidated Rubber Estates 4). EA EVCRE" 18 Tumatra Para Rubber Plantations (Ltd.)...c.ccaeenaer jumatra Proprietary Rubber Plantations (Ltd.) cecceeeea Jungei Bahru Rubber Estates (Ltd.).. na. 3ungei Batu Rubber Estates (Ltd.)-Jungei Buaya Rubber Co. f151:-. GTS Sungei Buloh Rubber Co. (Ltd. Jesasecerasesesnase 3uhgei Chinoh Rubber Co. (Itd.).....ccc00e. semeyn. ow Sungei Choh Rubber Estates Co. (Ltd.)eececocr -rirecacs or 3ungei Dangar Rubber Co. {ui Jesssvesaneccsnsseancacncses Bungei Kapar Rubber Co. (Ltd.}... SR —_ Bungei Kari Rubber Estate (Lid * Location of property. Peylon... ae ndia.......... \.. Jutch colonies...ccaeessaes. f0XiCo..ceucnn. row: maw Brazil. cap cinsrnivarunan mana: Jritish North Borneo...... SOYION ..reierniinannanannan 3ritish North Borneo. ..... 1dia.....- A oylon...iiiiiiniiieceeen, “traits Settlements......... FIM srrgeesivmennnennme Sunlis Settlements...e..e.. A 3ritish North Borneo...... Straits Settlements... # saenel a" Juteh cclonies.. | .eee-n-Nid... ccneniinarscsnnacnas Straits Settlements....e..... Dutch colonies......cceeeeas sanliBesscucerenuunvessenmes “traits Settlements....cec..-razil....cceecneensccccnnean ndia... a eylon. ..ccereeorsocnnnrans Straits Settlements......... SUDA. .ceernnssaroncacases Dutch colonies... . .eeeeae veeOiiieniieiaccincennnn traits Settlements.......... Dutch colonies.....ceeeeaee-Tas Settlements....- -.-NAIA. ..ccrsveeccscnsacanas Society IslandS...cecceccacar VexiCO.e.nuevcancnnennanncar Dutch colonies...ceeeeeeenns Straits ~ _ .omentS...... .. Dutch colonies...c.ceeersse-Ceylon. india.. een Na nn ww Seylon.. --- - - .- a ndis.. - Ceylon. .ceeueneerannner Straits Settlements...cce.... veer{ Yeraersanasencacaneces: Jute colonies. . geet Wa mon GR GRR 0% Tras Settlements......... 20e80unsinreeenneennnes sus Jutch colonies. .....cceue.. Straits Settlements.......... rrr rm Dutch colonfer Approximate capitalization. 1350, 000 693,750 365, 000 244,300 , 739, 000 500, 000 825,000 -, 000, 000 397,950 250, 000 272, 500 300, 000 300, 000 937, 500 612,600 187,500 599, 000 £00, 600 525,000 246, 400 150,000 £00,000 163,000 440, 000 80,000 370, 000 299, 500 850,000 2,260, 000 180, 000 312,000 312,300 680, 000 1,000,000 200, 000 475, 000 160, 000 400,000 225,000 481,400 1,600, 000 171,300 157,300 854, 500 1,075,000 1,227, 500 150,000 874,000 135, 000 862, 500 83,800 277,000 242, 500 195, 000 117,500 215,400 250,000 175,000 350, 000 127, 500 183, 000 ., 750, 000 1.000, 000 225,900 373, 500 5,750 325, 000 350,000 386,250 275,000 125,000 250,000 148, 000 250,000 300, 000 500, 000 330, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 569 Tape XII1.—List of British rgatind or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES—Continued. Junge. rian Kubber Estate G1 Jessnoninns Sungei Kruit Rubber Estate (Ltd.). Sungei Liang Rubber Co, (Ltd.).. Sungei Mssrg Runes Co. {Lf seranennnnnansnnnsen Sungei Purun Rubber Co. (Ltd.)... Sungei Reyla Rubber Estate Lidde ~p cpm Jungei Rinching Rubber Co. (Ltd.)eeeeaccscecacaracesenen: Sungei Salak Rubber Co. (Ltd.)... CR SE Sungei i a Co. (Ltd.)..... Jungei ou ubber Plantations (Ltd.).... Jungei Way Rubber Co. (Ltd.)..cucceeesecnenneceen Jungkal-Chumor Estates (Ltd.) cceee.. Junnygama Co. (Ltd.)..coveveen. --il) Valley Tea Co. (Ltd.)..-3ylhet Tea Co. (Ltd) ee.eecvanreannre-Taiping Rubber Plantations (Ltd.). Talawakelle Estates Co. (Ltd.).... Tali Ayer Rubber Estates a Lo Estates ( eT po Tannah Datar Rubber Estate (Ltd.).... “andjong Rubber Co. Jeg En Tangga Batu Rubber Co. gag. EAR Pangkah Rubber Estate wa Tangoel Rubber Estates (Ltd.).. Panjong Malim Rubber Co. (Ltd.). Tara Tea Co. (Ltd.)..uonerneeencann Tea & Rubber Plantations (Ltd.). Tea Corprasien gaa). SLR Tebrau Rubber Estates i Sawin poor Rubber Estate (Ltd.)..... Pelbedde ox Estates (Ltd.)........ Pelopopil nited Plantations (Ltd.) .... Telok Rubber Co. (Ltd.)e.e..ueannn. Peluk Piah Rubber Estate (Ltd.)... PFempeh Rubber Plantations (Ltd.)...cecceuuieecnnnean. nu. Tenasserim Hevea Plantation (Ltd.)..cccceeererecnnannanes Tenom Rubber Oo, ad ST seveveRER- I¥ Third Mile Rubber Co. (Lie § Tikam Batu Rubber Co. i Ye, Tillyfour Rubber Co, (Ltd.)...-Tingri Tea Co. (Ltd.)........ Tismoda Estates Co. (Ltd.).......... jiliwoeng Java Plantations (Ltd.)...... Jisadoa Tea Co. (Ltd.)......... Jiwangie Tea Estates (Ltd.)........... | ju wwe s'obacco Co. of Rhodesia & South Africa (Ltd.)eeeeceeen.... Toerangie Rubber & Produce Estates (Ltd.)..c.cceeeeeenn.. Travancore Rubber Co. (Ltd.)........... ee Travancore Tea Estates Co. (Ltd.)... Tremelbye Rubber Co. (Ltd.).... Trincomalee Estates (Ltd.).. Troesan Estates (Ltd.).... Trolak Plantations (Ltc ® Tyspane Tea Co. (Ltd)..crueececnnannan Udabage Tea & Rubber Co. (Ltd) ........ Jganda Plantations (I.td.).. Jkuwela Estates Co. (Ltd.).......... flu Rantau Rubber Estates Co. (Lt Jnited Batang Rubber Estates (Ltd.).. Jnited Lankat Plantations Co. (Ltd.).. Jnited Yainysion Rubber Co. (Ltd. Injted Planters Co. of Ceylon (Ltd.).......... .ceceeu--r Jnited Serdang Rubber Plantations (F.td.)eeue vee . .. Jnited Sua Betong Rubber Estates (J.td.)..uzueenanae- .o Jnited Sumatra Rubber Estates (Ld.)eeemueueeeeeennnn..n /nited Top iang Bure Estates AER PRA Jpolu Rubber & Cacao Estates (Ltd.).. np Assam Tea Co. (Ltd.)... val D’or Rubber Estates (Lt¢ Vallambrosa Rubber Co. (Ltd. Vellikellie Tea Co. of Ceylon ( Victoria Rubber Estates (Lt<.) eameeonnn Wallardie Tea Estates (Ltd.).eeeece vauenernnscenannecns Wampoe Tobacco & Rubber Estates (Ltd.)...c.e.u..... Warriapolla Estates Co, (Lt.).ceeeeescrriccanerannesaan Waverley Plantations (Ltd.)..-PEMA Estates (Ltd.). Location of property. Strait~ Settlements... ,ae-de... Jey’rr.. seamaur India... swan coer ponn ui eiienis vns ae traits Settlements......... BevIOn uu sueninensssunanine Straits Settlements......... Dutch colonfes...... . .. «..do.... ten seel0niiiiicnniiasonneenan Berails Settlements.......... rao Qnepungsvinne wwpane Yutch colonies........cceu.. traits Settlements......... .ndia... i Ceylon... aay LRT pA AER Se EE mm traits Settlements... ... ndia.... ee veylon.......... seen Dutch colonies............. Snails Settlements..... .. swe susan aumypws we ‘utch colonies. .......c..... SMB sons cevnnssvervinnan British North Borneo...... Biesiie Settlements..... -.. -eeed0.cen.- cesenae Ceylon... J— India... Je¥lOn. civ... eeeavecennee Dutch colonies. .uceeecenan. — TT jai imenliBesnnps NE South Africa..... ..ecc.... Dutch colonies... -........ [ndia...... .e peeel@0iiiiiiiiiiet rae aa Straits Settlements......... DOFION. ae iiiiniierrrracnanae Dutch colonies. .....coeeuen Straits Settlements.......... DOYIoN ou suvurnarenvennnnen veo ellBuyens utp ns vas RRR British East Africa.......... Coylon. ,.coruisiesnssanvanas Tialty Settlements.......... veralOuiii iii mem colonies . . Jeylon........ wma dutch colonies.......cceeen.. ‘traits Settlements......... yutch colonies .......cu.e... traits Settlements.......-. ‘amoe “nie BB cansuvivanmuevins sus ‘traits Settlements.......... peee@Oumianiiiiit iineene. Jeylon....eoeiiiiiiiaia, Straits Settlements.......... DAiBernncacereercacnononea. Jutch colonies. ...eceeneean AOTIOR muni n wr we wes apn Dutch colonies..... cea@Ouoo. Approximate capitalize~ tion. £500, 000 325, 000 267, 500 284, 500 250, 000 282, 750 137,500 325,000 224, 900 240, 000 294,330 200, 000 450, 000 200, 000 75,000 1,021,000 223,350 1,500, 000 720, 000 221,800 750,000 95, 000 304, 800 375, 000 2, 500, 000 150, 000 89, 900 544, 400 525, 000 370,000 280,000 750,000 32, 500 145, 800 514, 600 171,200 500, 000 207, 500 130, 200 327, 500 282, 500 115,000 500, 000 825. 000 475,000 1. 000, 000 400, 000 399, 500 739, 700 345, 000 52,200 800, 000 125, 000 112,000 216. 000 £50. 000 133,250 165.000 265,000 +1300, 000 0, 486, 400 1, 629, 000 132,100 519, 000 549. 800 360, 000 111,200 375. 600 170, 300 253,000 200, 000 75.700 300,000 750.000 220,300 250, 000 258. 800 570 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TasLe XIIT.—List of Eras panied or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. PLANTATION AND SIMILAR COMPANIES—Continuned. West African Rubber Plantations SA) nares Pr West Indian Copra & Produce Estates (Ltd.)eceeercceene-.. Western Coconut Estates (Ltd.).cecceeveecrrscssscsssananann Witu Rubber vials (Ad) liTY. RE Woodend Rubber & Tea Co. (Ltd.).cecceeeemececaneercnnnsens Yam Seng Rubber Co. (LtA.)......ccnsanenconscnssosarsnens Yataderia Rubber & Tea Co. LL TE Yatiyantota Ceylon Tea Co. (Ltd.)... Zaloni Tea Estates A Zongo Rubber Estate (Ltd)... Total....... Location of property. West Africa. .....ccuceveeee-British West Indies........-gritish Guiana. ......c..eee.. British East Afric8...cccene. DYMO, poo va snus sn awemoene traits Settlements......-.. Ceylon o.oo... mn DEB. ceneenieeaaiaiee 3olivia. oo. sewaees| Approximate capitalization. $182,200 130, 680 50,000 185,000 150.000 210.000 700,000 750, 000 151, 800 500.000 427,127,540 TRADING, BANKING, AND MISCELLANEOUS COMPANIES. ‘damson Gilfillan & Co. CLAD wmmrenanss *frican Association (Ltd.).....cceeuen, . “rican Lakes Corporation (Ltd.)..ecceeeeeeerrnnecanenss - rican Produce Co. 403. eee -frican Traders Co. (Ltd.) ae ‘gar Cross & Co. (Ltd.).......... Algerian Esparto Grass Co. (Ltd.)....cceereeeeueincnnn. Aito Parana Development Co, (Ltd.).... Amelia Nitrate Co. (Ltd.)........... ul Anglo-Belgian Co. of Egypt (Ltd.).ceeceenreracneeecencennns inglo-Brazilian Meat Co. 01 3 wen CR SERRE \nglo-Chilean Pastoral! Co. A si snaun > . \nglo-Continental Supply 0, (Ltd.). Jo *nglo-Cuban Mercantile Co. (Ltd.)..... reese sac “nglo-Egyptian Commercial Co. (Ltd.). ve. an we anglo-French y ryiiny Co. (Ltd). eeeennicancanannai rans Anglo-Netherland Sugar Jofpoiin (LE). ovnverummvnnnmwns *.nglo-Portuguese Motor & Machinery Co. (Itd.).ceeu.... nglo-Roumanian Produce Co. Jud.) RAAT GR ‘nglo-Russian Contract Co. 2 a)uw i pollinaris & Johannis (Ltd.)........ wn BBR rgentine Estates of Bovril Lr I rgentine Hard Woods & Lands Co, (Ltd.)eeeeui ne, 0 .. rgentine Stone & Brick 0. {L20.) igor svanssrennssensress rgentine Timber & Estates Co. (Ltd.}.eeeaureeccvrencun rgentine Tobacco Co. (Ltd.).. » «rracan Co. (Ltd.)........ Atlas Corporation (Ltd.)... ... .e......... Australian Chilling & Freezing Co. (Ltd.)..... Swe Aux Classes Laborieuses {ds wh . Axim Yhopny Co. (Ltd.). - sseeseneisant Bank of Australasia. .........cooiiiiiiiiiiinninenenneeen-Bechuanaland Trading Association (Ltd.)..... Sells et —— “ 3ergvik Co. (Ltd.).. ws 3orneo Co. (Ltd.).. we wa Bovril (Ltd). ceeeoncncnnaannn., oe Bovril Australian Estates (Ltd.)............ RE, aE Brazilian Land, Cattle & Packing Co. (Ltd.).....cceeuueuen. Jrazilian Extract of Meat & Hide Factory (Ltd.)......- -. jrazilian Warrant Co. (Ltd.)........ --3ritish & Argentine Meat Co. (Ltd.)... rae 3ritish & Chinese Corporation (Ltd.)... svasencscee-3ritish Central Africa Co. (Ltd.)... Cresneeeneer oes Iritish Cotton Ginning Co. (Ltd.)... .. veeen rae 3ritish Cotton Growing Association (J4d.).eeueneeeneear =o. jritish East Africa Corporation Sem emenseree saan British Lianosoff White Oil Co. (Ltd.)...ccccmueeceanar ou British New Guinea Development Co. (Ltd.).. i British Sugar Co. (Ltd.) Pr Buckley & Nunn (Ltd.) . a Burma Rice & Trading wo. | - . Burnie Timber & Brick CO. (utd.)eeeecreeransanaaers. . caima Timber Estate & Wood Pulp Co. (Ltd.)... ccc... .. Cairo Exchange (Ltd.)... Canary Islands Co. (Ltd.)... Casino Municipal-de-Cannes (Ltd.)........eee.ououu. . central Produce Market of Buenos AireS.....ccceeeeconaen.. Sentral Queensland Meat Export Co. (Ltd.)eeea-ner -un .. “hilean Stores (Litd.). China.... ven South Afriea........ccccneues 3ritish East Africa. .ceueeea. South Africa. .... .cconanene Nest Africa... Bae WZenting... cian sasensvusne JBOrID, cues ereirenprnessnynn .rgentina. . Swen Ae JB, ins imnnan snes see snn SEYDE cus semi wna dives PAZileceeiiiiinniieannn hile. .... ireman rance.., reeanaanee oa, sre South Afeica. soli Dutch colonies. veeeeeeeaa.-Tortugal.. coc cinsiinininnn .oumania. . we See tussia..... ee Germany. coe. -eeeeeses Argentina... cveneena _...do... oo wwenlD opus: CorvvEEET wesol@Bugn _— ....do. Jae «ndia. .. i Australia. .. Bad ....do. mmm mri France.......cceeetmencnns South Afric... c.ccvueeens Australi. ...cvecececamean-South Africa. ....c.cenaaen wwe llBesiue renew we BWOABN., ; ov cs innsesmnnpe vos Dutch colonies.....ceeeee.. Australid.... ..ccceae-aes aneslfo, FRR RRRRR BIaZilovs cin sunnns sans wwnnns ...-d0... reecans Argentine ... seeeenn Chia. .....cccinvecrnnnnnens Central Africa.....cuveeee-e. Heat AfPIon... conser oossaae i Jritish East Africa. ........ selgium and Holland....... Jew Guinea....... AE POI usivneisiinenssensmonnns Australis... ...eccveneeenn.. BUIME. «eeiirncnnanenenan Jouth Africa. .cooecevaanen.. ortugal....... EE SEYDE wis yennyrsnnnmannmnnn ’anary Islands.............. TAN0B, , cusivsivavsivbnriies TZenting....cicaciinennaen. ,ustralis.....oeeeen ee $480, 000 2, 703, 960 781, 250 212, 500 1,030, 000 5, 393, 500 183,000 3, 300, 000 1, 630, 000 1, 728, 450 850, 000 518, 000 3,000, 000 500, 000 445,340 5, 000, 000 2, 000, 000 623, 500 575,115 163, 350 8,150, 000 9. 344, 570 125, 000 117, 875 i, 568,390 1,105,710 375, 000 125, 000 257,750 1,276, 200 125, 000 10, 000, 000 263,795 93, 850 3, 095, 650 1,500, 000 1,000, 000 1,176,385 32, 897, 500 220,545 1,250, 000 .0, 653, 360 1, 250, 000 £0, 000, 0600 500, 000 2,262, 090 1,000, 000 375, 000 3,179, 800 2,484,200 ., 563, 690 .537, 000 211, 250 295, 625 325, 700 187,900 500, 000 3,275,900 1, 000, 000 1, 505, 000 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 571 TasLe XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. TRADING, BANKING, AND MISCELLANEOUS COMPANIES—Continued. Chimbote Coal & Harbour Syndicate (Ttd.).cecccrreesanne. City of Santos Improvements Co. (Ltd.).cevacenccneoacaacs Cleghorn & Harris (Ltd.).... NEA WR Cold Storage Trust (Ltd.)........ ew Colombo Commercial Co. (Ltd.)eeeccrecracanacececacnsanann. Colonial Bank... .....c.ccurecnczeen tresesanencraner Commercial Co. of Salonica (Litd.).. pe Josta Rica Markets Co. (Ltd.). et ruse Syndicate (Ltd.)eee.coeiiune nmenacees oivacuenen delagoa Bay, Development Corporation (Ltd.).ceeeeeeceen.. doeuillet (Ltd.). co veeiiininan..n. vewe amen Jominica Forests & Saw Mills (Ltd.)eceeuun. cveicrenarann. Joys 2 00. + TL Juff Development Co. (Ltd.)... . PREY 2. Rich & Co. (Ltd). ...couue wai East Africa Syndicate (Ltd.)... vo fastern Development Corporation (T4d.)....ceeevenncace.-. og Markets (Ltd). .ccvevurnnsnencancccannasres oo English, Scottish & Australian Bank (Ltd.).ceeceecnneenea. Espartillar Estancia Co. 43 wy mA Esparance Bay Co. gad. we Istates Control (Ltd.).. ve Fairbairn Pastoral Co. of aust:aHa (LAG) eee eeenanannnan Fonotipia (Ltd.) (holds all shares of International Talking Machine Co. (Ltd.), Weissensee, Berlin). Forestal Land, Timber & Rys. Co. (Ltd.) ceciaercaianr une Foucar & Co. (Ltd.). - RE 3. Beer (Ltd.)......... sesanerrne. Fermania Estancia (Ltd.) oe Griffiths & Co. (Ltd). ......... - Harods (Buenos Aires) (Etd.)..ccoeecee nice amesmes wee Imperial Cold Jirage & ig 00, (TAQ. Yeo cmrvemanonpuns hopes a ocks, enals & Naval Construction 0. 2). [nternational Mexico Syndicate (Ltd.). [vory Coast Corporation (Ltd.).............. Johannesburg Office & Safe Deposit Co. (Ltd.)... gordofan Trading Co, (Ltd.)e.eeanceeennaans. Rruger & Co. (Ltd.)..... i, P, Johannessen (Ltd.)... “az Cabezaz Estancia Co. (Ltd.)... cree seach’s Argentine Estates yap rans ET ECs BECO JAghterage Co. of Montevideo ( a CEPR AERERE sondon, Singapore & Java Bank (Ltd) ie ouis T, Leoniowens 50) wae ’ Lovell & Christmas (Ltd.)...... Lena Iacedonian Tobacco Co. A Ear a ian Yclwraith, McEacharn & Co. Proprietary (Ltd.) ....... ... aison Virot (Ltd.) ..vecccecnes rusiievenccccnsosoncscnss. [anaos i gua wr J larovoay Rice Lands (Ltd)... - en CLE er Iatabelelan Bi ancaing 00, (X48 Yswanr upper svwpvenmmons ay Morn Estates (L4d.).eeceevrneniiiicnnsercerenccacennens vexican Cotton Estates of Tlahualilo.....- - ca.ccvene-nen ‘fillars’ Timber & Froging C0. (TA) susssirssssnnnessnrnnes Miranda Estancia Co. (Ttd.).cceucneriiirenncnaencecanc-naes junlinaliny 2 Para Improvements (Ltd.)...- we - Murchison ociated (Ltd.)........ ret Mutamba Sugar Estates (Ltd.). coo cooooeeeetieiirnanaan. New African Concessions Syndicate (1.td.) (German concern. North British Australasian Co. (Ltd.).....-Orange River Estates Co. (Ltd.).... Papug Co. Ls SERIE >apuan Industries (Ltd.).. Fh a ns ‘atagonian Sheep Farming Co. (Ltd.)... ‘aterson, Laing & Bruce (iid. ace ‘eruvian Corporation 15 Jar 2ranges Estancia Co. (Ltd.)... Privilege Co. to Protect Production . Sutna Forests & Saw Mills Co. (Ltd.)...ccceneaceracscercsos Quarhin International Bridge Co. (Lid.)..cececesesccnsnc-coc Rambla Co. of Montevideo td) na aeereemmsenssenurar Read’s Drift Land Co. (Ltd.)...-Reid Estancias (Lid.).. Location of property. Peru.... ve Brazil.....coens csrssseriaan South Africa. ..cecuvemenneas ....do... sunaweEe Se Ceylon. ....covvrencnnensnae: West Indies...cceeeeemeaeas FTEECO. . nneesccnmsossacanns Josta Rica. sesnecneacacaanns rinidad....cceeacececanccas Jouth Africa. .cevmesceanca-TIANCH, «vine vnnnennmesnmmons 3anto Domingo....eeeeaaeer South Africa.....ceeeeecace. Straits Settlements... ... Australis. ...cooennvmnnaaan, British East Africa, India, and Far East. Jeylon.. ...ceeneenscvecnefgypt... a Australis. .cceoeereeane oc Argenting..ccecaeeervenecacen Australia. . Sem EN waa Italy: . Argenting.ceccarace--- neo UIA. ceancceccesasac ne “LANCO. cee. censaceremroanne Argenting....cecceceses ven Jouth Africa. .ccecencenasees ATZENting..covceensscacennn-South Africa. - «me Tuarke— MexiCO...crneeeicnrerecnnce. British East Africa......... Jouth Africa...... - igypt... 3urmsa. .. .. Norway... Ie Argenting.... - Hi heer anesvassen TUZUAY «ec 2-veervanrssvaracs Jorogis Qettioments. or. we ji EE a AUStralif.ceeeeeccancenaane. MITKOY .eecennsnsssncaasasan-LustTalifeeee reeeans = eee TANCO..eeneocacnsnsocsc: ra irazil...cceceenvensencncncas 1adagasCar. cuceeescacnccces Argentina... eeceeceenne oes South Africa. .cocaeveuanr ov New Zealand....veeeeeucnen. MeXiCO..vnecr-ennnecnranses Australifeeee. cai meiinaines Brazil....ceecencenacsnac-vnceeeOueecnr i caariancnnenan Ceylon. ..vuneienairiaccoaner Portuguese East Africa...... South Africg..c.... pr Australia. cc.ceveecescenceer South Africa....... 5 New Guines..ceeeeceaer oe eeal0innncecceceanncccanns. rance.. -resscessscserrend ‘hile. .... wo wr we .ustralia. .- [RO ‘TU.ceveccancsccossscnsvosas JTUEUAY eee c-ronosesesesaras 3Te8ce..... meveene 20umMANiA. ..cvieceonnsenane srazil and Uruguay..eeees.. TIIBINYL 5 sureenecraRiys outh Afric. .cueenecra-a Argentina, . Approximate capitalization. $751, 535 8, 906, 500 2, 891, 500 3, 840, 000 1, 099, 350 10, 000, 000 1,146, 250 459, 500 230, 200 1,510,000 738, 000 296, 400 1,375, 000 8,087, 350 990,185 635 535 1,149, 906 1,059,000 4,772,985 750, 000 93,090 1,250, 000 2,112, 500 300. 400 27,345,000 599,810 1,375,000 750,000 937,500 7,560, 000 3,951,530 L750. 000 72, 500 272,000 150, 000 159, 400 783,500 209, 845 983, 410 1,711,000 208, 500 306, 500 575,000 1,750,000 750, 000 2,750, 000 1,050, 000 1, 426, 500 527, 500 875, 000 151, 500 520, 000 3,102,345 10, 203, 705 800, 000 1,833, 365 146,345 490, 050 R00. 035 702, 650 502, 330 171,235 182) 800 %, 500,000 000, 000 4,150, 000 08) 058, 750 600, 000 8,001,000 582,000 550, 000 1,539, 600 332, 500 1,615,000 572 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. TaBrLe XIII.—List of British ia or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. TRADING, BANKING, AND MISCELLANEOUS COMPANIES—Continued. Renard Transport Seperation (TAd.)eeeeennennnocaneee “hodesia Cotton Co. ( 5 ——— *hodesia Trading Co. (Ltd.)...... shodesian Cattle & Land Co. a ‘io de Janeiro City Improvement Co. (Ltd.).cceececnnaarees liver Plate Land & Farming Co. (Ltd). .eeececacancne: oa Yosario Drainage Co. LE RHE Russian Tobacco Co. ( WE, se. snesnevaconans Saldanha Deg Harbour & Ry. Co. (Ltd.)eeer- women. Siam Forest Cn, (Ltd). euecececerersanenciriasssnneeannnns: Sociedad Anonima Quebrachales Fusionados (Ltd.) (Frerch) South American Cattle Farms (Ltd.).cceciernicansanee South American Stores (Ltd.}eeeeerecnnnann- 5 3uchi Timber Co. (Ltd.)............ - 3udan Plantation Syndicate (Ltd.)...cceeesceccecsscnncones How, Exploration Co. (L8d.)eeccerireraresceasesenscnancar chos. Cook & Sons (Ltd.) TD Ay reasbanaieme ‘erra del Fuego Peveloprient 0. (TA) ons ai nenmsad Limber Corporation (Ltd.)... ssvsevecenae Tongaat Sugar Co (Ltd.).... cresesscassens Trinidad Estates Co. (Ltd.)... wm wan Trinidad Produce Co. (T48.).ccvceceenrecrceenannncrs we ‘rinidad Shipping & Trading Co. (Ltd.)ucecevrencncannnases ucuman Sugar Co. irs ‘nion Bank of Australia (Ltd.).. Sees seas 'ruguay United Estancias Co..... SORE _alparalso Drainage Co. (1td.).cceecevucecerccnacrscscacons: Van den Yo (TAA. ). swine nnimnins STII IH W. & A. McArthur he rani ade down Tangtse Tony Co. (Ltd.)eceevecnnen srev.sesmensessunoes wg td.)...- eee A. Lager td.)eeennn.- rm Sow Cap Martin Hotel (L6C.).veeerecnnne. oy Jarlton Hotels (Ltd.) (South Afric)...c.eeevecvonccsnscrsens Egyptian Hotals (LAL Yu cavsvnsnsninnnsnmosmenvnnmonars “sus Elysee Palace Hotel Co. JAS penne ane STREET RR Grand Hotel Monte Orla it El Hotel St. ed RRR RRA RRR ARR RRO 2aris Carlton Hotel (Ltd.). -. whremininie be Ritz Hotel (Ltd. {Faro}. Ritz Hotel (Ltd. Feypt). cere ve Roumanian Hotel Co. (Ltd.).ceeemeeiiureaeiriocenaensncas Sociedad Anonima Bodegas y Vinedas Domingo Tomba South African Hotels (Ltd.).-.------- a. A. Goerz & Co. (Ltd.).. o> 4 boukir Co. (Ltd)... .... coven: iy re african & European Investment Co. (Ltd.}ec.. ..euvese-s “frican City Fropains Trust (Ltd). eves coesecvencenene African Land & Investment Co. (Ltd.).. crane Agricultural Bank of ar BT “nglo-French Land Co. of the Transvaal (Ltd.).ccececececa. pglo-Malay Investment Trust (Ltd.)e..--. --- . cocnr-near +nglo-Palestine Co. 41, campo crremr ‘nglo-Russian Trust (Ltd.)ecereenii- se-venrcacscecesncner nglo-South American Real Propuy Co. (Ltd.)eeerenosenns nglo-Straits Rubber & General Trust (Ltd.).e.ececcesceeer “nglo-Swedish Trust (Ltd.)..... Be aw rgentine Eastern Land Co. (LY ;..... ccveccnccccencsnses rgentine Land & Investment Co. ‘Ltd.)eceececnnnecer -se rgentine Northern Land Co. ge Feramnrrraranrgentine Southern Land Co, (L’-uckland Park Real Estate fis Svan “ustralian Agricultural Co. (Ltd.)..... SECT ERE pe sustralian Popost & Mortgage Bank (wtd.)ueecccncsces en \ustralian Estates & Mori nge LAE RR Lustralian Mercantile Land & Finance Co. (Ltd.)..eeeec-ex Lustralian Pastoral Co. S38 Jursasnneses Lustro-African Estates (Ltd.). Jae 3eira Town Sites a canes Brazilian Trust & Loan Corporation dy 3ritish & Australasian Trust & Loan Co. (Ltd.)...cccevenae. 3ritish & Continental Tea Plantation Trust (Ltd.)eceec .« 3ritish & Mexican Trust Co. (Lad iy NEHER 3ritish Borneo Development 0: {140 esr nunnumenannnmnnes 3ritish North Borneo Co. (Ad). eeeoseeeseieenanarannesnans Jritish North Borneo Rubber t (Ltd,).. 4 ‘witish Para Trust (Ltd) Y.ocation of property. Ai8...ce.eiarerescnnnccones South Afric....cseeenecene. spol Weunpepnueunmeneyvgeyoss nepilcew sumssusamenuweney [17 + | A SN Argentina... vesueveser ....do.. [ 2USSIB. oevnenenceerbacecnce: Jouth Africa. .ceceenaeer-ee JAM. ceiiecni veneer © ue Argenting.......... cceeeeeer irgentina and Paraguay.... Argenting.cceesrercacccccns: Dene “ wt LEYPYeveccosevosnc.comecenefag “HARE Egypte.ciaeeriasiiaacenes Chile and Argenting.....- -.-AUStTAlIB. cc ce navenencarncens South Africe..cceeevceeneee-Trinidad... iceeenenceas werilBigir sesenmemenpenye wns ill iara era ECR Argentin®...ccececececscecen A 0Strali. er ronee seen UTUZUAY cearene: tovavencaiven Silas sre "elgium and Holland....... Australig.e.ee..-- .-Mind. curs vopenepmmvrerenee Tolland, Sweden, Denmark ssi, - ciceenesmnenraa-TANCE, we-e srenevesers outh Afric8....ceeceencenee gypt..- seasesnseseiueen TBICB.esvvarsscnsananne- sen {0NACO. cescoracscesccancnee TAD. coesnnsasscssancsncns 2eaf0.eencrranoncunssenensan pl crresseser ver LEYPYccecerasocacarcsancaan SE aia mr Arcenting®. ... cecess-s-120e Bouth Africa..ccecececn cece Hae [A ZYPeeeuscrersennconnananes oath African ooo ceesl0iiaunennsnnecacnnacnes 0m sn J 4 Africd....ccecaenencer traits Settlements......... toners’ . REE MSSIB. ceeesenerar crrerae outh America. ...cceeaeenee traits Settlements...c.c.... Sweden. .cueene-srsreranrens Argentif8.eceececessroracaaas saesf0.cceeeceaececancnccnnne a [pp seer@0iriirvanaerscncecenraas 3outh Africa.cceceesecenonee Australi. .ccceesoescnscocacns sath Teva cnrmmeannsane suena ing Darah ermmusarsnonavens Youth Africa...c.eceeceenus. ATPIon. ca oo rons avnens n 3razil...... wee \ustralis.ceecrronsuncseenner ndia..... cas MeXiC0. ceuurenrecrcecsansar British North Borneo....... a ————— neues « reg Approximate capitaliza~ tion. $76,100 151,920 1,214,000 435,420 9,088, 400 200, 000 1,547,100 11,016, 895 667,450 425,000 2,284, 500 £, 890,000 4,462, 500 400, 900 965, 000 362, 500 1,284, 000 3,575, 000 421,140 800, 000 1,020, 000 245,275 750, 000 3, 695, 000 13, 240,190 350, 700 1,530, 500 10, 375, 000 1,991, 000 241,515 933,000 525,000 581,750 1,000, 000 1, 200, 000 3,181,325 443, 600 332,900 1,000, 000 810, 000 1,001, 250 253, 500 4.400.350 750,000 7,000, 000 2,125,000 5, 841,730 2,726,670 2, 500, 000 1, 550, 000 400, 000 129,125 497,270 ?, 500, 000 2,421, 500 246, 500 152, 800 750,000 8,024,410 1,647,435 1,400, 000 74Q, 000 4,000, 000 1,000,010 4, 502, 770 24, 561, 700 1,662, 500 78,000 185,000 1, 250,000 319, 385 750,000 2,795, 000 198, 855 14, 220, 920 1,959,935 A232. 500 MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 573 TasLE XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. TRADING, BANKING, AND MISCELLANEOUS COMPANIES-Continued. _ British Settlement of South Africa (Ltd.)ececeenceacecee-ee-Bristish South Africa Co. ...ccceeeeisevisienannnconoasenr Sunway Town Stands Syndicate (Ltd.).... - Burma A i Ly a PRT Caledonian & Australian Mortgage & Sency Co. (Ltd.)..... Catalinas Warehouses & Mole Co. (Ltd.).ce.- ceeuee--Central Bahia Ry. Trust............. % City of Buenos Aires Market Co. (Ltd.)..ceceeeueennancan. oe City of S80 Paulo Improvement & Freehold Land Co. (Ltd.).. Commercial & Agency Co. of Egypt (Ltd.)ee.ceveencane- ov Compagnie Anglo-Francaise Marocaine (Ltd.)..... Compagnie Sud-Africalne (Ltd.).....cccceeunvaarre-o Le Comptoir Financier et Commercial dBeyp:e. SR Constantinople Land & Building Co. (Ltd.).caveecceaserann-Cordova Land Co. i PE - .e ration of Western Egypt (Ltd.)....- . Credit Foncier on «ERE Credit Foncier of Mauritius La hh BG a WS SE VE Eastern International Rubber & Produce Trust (Ltd.)...... Eastern Morigegs & Agency Co. (Ltd.)eceveecesconannar Ecuador Land Co. (Ltd.)....... Ecuadorian Corporation (Ltd.)... Egyptian Agricultural Co. (Ltd.).... wu Egyptian & Foreign Trust (Ltd.)....ceecerruiccrennnnen Egyptian Delta Land & Investment Co. (Ltd.)....... Entig Land & General Trust (Ltd.).... Falkland Islands Co. Faas yas Farm Lands of Rhodesia (Id)... --cevevecneennee-Gharbieh Land Co. YT I Glasgow & South African Co. (Ltd. ).ecceeceemcasinscoanan Goldsbrough, Mort & Co. i NR Guatrache Land Co. (Ltd.)... Hevea Rubber Trust (Ltd.)...... . veep TAREE pera) & Foreign Dermpravion (Ltd.) (mercantile)..... [ndian & General Investment Trust B00 neg se ai International Ethiopian rr Trust & Construction Co. (Ltd. lava Investment Loan & Agency (Ltd.)... Tewish Colonial Trust TO Iohannesburg Consolidated Investment Co. (Ltd.)...... .. Johannesburg Estate Co. (Ltd.)... i a (Aden masnennnnss finn Land & Mortgage Co. of Egypt (Ltd.).c... . <reecenaee--Land Bank of Eg¥pt....cc.ocvecunener Land Co. of Chiapas, Mexico A on oe ~.ondon & Australian Investment Co. (Y4d.).......cccueee.. London & Colonial Investment Corporation (Ltd.).......... London & South American Investment Trust (Ltd.)........ Malayan Rubber, Loan & Agency Corporation (Ltd.)....... Mauritius Estates & Assets Co, (Ltd. )e.veciccennnerean ae Melbourne City Trust Properties (Ltd.).... cen Melbourne Real Estate Co. (Ltd.).... ~felbourne Trust 3c Sexe Aran td.) inser La Mexican Central Ry. Securities Cc. ( Ltd.)... Mexican Land & Colonization t'c (Titd.)... Midnapore Zemindary Co. HAa5. en Montrose Exploration Co. (Ltd.).. vr Mortgage Co. of Costa Rica (Ltd.).. _-Mortgage Co. of Egypt (Ltd.)..... CAA PS Moiese Co. of River Plate A HLS pan Mount Yagahong Exploration & Finance Co. (Ltd.)... ... Natal Land & Colonization Co. ung. La, National Mortgage & Agency Co. of New Zealand (Ltd.).... New African Co. (Ltd.) (mercantile . New Eastern Investment Co. (Ltd. . New Sante, (Ltd.)........ irmesesrmsas New South Wales Land & Agency Co. (wd.)eeeeruen.-. .. New Zealand & Australian Land Co, (Ltd.).....c.coouunnn.. New Zealand & River Plate Land Mortgage Co. (Ltd.)...... New. Zealand Loan & Mercantile Agency &. (Ltd.)........ Nitrate Securities Trust (Ltd.).eeuceeuiemnnennnianenvennon, North Queensiand Mortgage & Investment Co. (Ltd.)....... Nyassa Co. (Ltd.)ecouuen.n-Nyassa Consolidated En)diny J Jceana Consolidated Co. (LtA.)...cccveaneearerronncconnens Peel River Land & Mineral Co. (Itd.)....cveun.veneasennns. Port Argentine Land & Pevglonmant Co. (Ltd.)eucencenesn. Port Madryn-Argenting Co. (Ltd.)..-Location of property. South Africa...coceeer ue. sewn cermin immn nnn gonoB0evir: wnyeyey po BUTEA eu wus smsnmnpver oann Lustralin, cccevssisnssorsnses Argenting...ccececececneaces Brazil.....,, cednens Argenting....ceceeteeceenans PTAZil. ceniiininensenenanonan Egypt... wens foroceo. .. .... <r. ST Allie... EES EYP ews weneonsronenssnnnvee a — [rN Are ina.... on boone Mauritius. . [ndia, ete. NR eseadOoae.. creveececcens Ecuador... we cpedQBuieens suvwsnasonsnns Boypb. cs covennsenninununnnnn sa? Dron ! Redd spelt Doinizanenmunienssnssnes .alkland Tslands....cceeee.. i rw caw Di epee rammrane Stalin, sesso wer anni ine Argentina... ......ceu0 a. Jtraits Settlements... ... Jeneral.... cewmer-ee ‘ndia...... . Abyssini8....corvennenae nar Dutch colonies...ceeeuo. ou deneral........ -..ee South Africa. . a se nQOuennnnn SRE I at MexiC0..cuuen Australia... ‘ndia...... Argenting. ..c.ccorurnniveves Straits Settlement........... Mauritius. ..... soy Australia... Te Br wallB edi AR bh nn eei80.L reiiieniana Vex: r pra Powe nnuven seven yr rine Bia. ice vrivnnnn ve South Africa........ . ... sto Ricteurssssvmsenriin FIDL. bo saves ede Araontinm, YEA South Africa... -..... . ceeelOL i iicieiieiiiianen New Zealand.....ceeeveaees South Africa... ce ea Turkey... re oY eens Te eereseeeansn-New Zealand and Australia Aronia and New Zealand I LP Shile.....c..- ve Australia....- res ifrica... sessecaseecans veen@0. Cl iireeenannean.. Jouth Africa. .ceecece.. Australi...ceececncecee Argontinf..cec-eeuconnsrr Approximate capitalization. $421, 460 56, 418, 000 247,335 3,789,040 487,235 7,915,000 1,137,000 2, 328, 500 21,136, 800 19,815 365,900 144,015 ., 500, 000 416, 644 7,686,910 2,490, 840 18, 506, 900 2,701,415 2,166,180 .,930, 540 580,000 3,031,315 2,005,875 946, 585 1,621, 250 839,950 715, 000 942, 000 3,060, 000 75,000 11,724, 275 8,407, 400 375, 250 3, 639, 200 ?, 500, 000 1,793,000 ,505, 350 .300, 485 =, 750,000 1,000, 000 £,938, 350 2,376,000 =, 749, 500 1,125,000 446,610 1,338,700 2,500, 000 982, 560 2,000,720 1,624, 850 199, 750 2,151,800 1,386,806 19,075, 145 13, 712, 700 1,264, 560 258, 545 1,054,500 21, 250, 000 10, 089, 500 653,935 2, 160%050 8, 885, 200 ,418,800 -,000, 000 2,226,160 2,107, 250 &,909, 250 1,208,570 19,117,570 500, 000 1,505,600 ¥, 182, 650 ,844, 220 +, 126,325 ', 800, 000 1,401,250 1, 225, 000 5'74 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, TasLe XIII.—List of British organized or controlled companies whose properties are located outside of the United Kingdom, United States, and Canada—Continued. TRADING, BANKING, AND MISCELLANEOUS COMPANIES—Continued. Pretoria Estates (Ltd.)......--Pretoria Tt (TA) canes oe fe RS AER 3 Jueensland Investment & Land Mortgage Co. (Ltd.)....... Rand Investment Corporation (Ltd.).....cecvivvevrecracnnn Real Estate OURaikn of South Africa (Ltd.)......ccc0 ne Rhodesia Land Bank Jad deen coma ae Rhodesia Railways Trust (Ltd.)....... [ Rhodesian & General Corporation (Ld)... .-Rio Claro BY. & Investment Co. ¢ ER Awa. Rio Noms rgentina) Land Co. (Ltd.)...ccvnrniicncacnnnn. River Plate & General Investment Trust (Ltd.)........ River Plate Trust, Loan & Agency Co. G2 Duss SHEE Rubber Plantations Investment Trust (Ltd.)...eceienecaann. Russian Corporation a, oe SHER TARA EAR 3t. Petersburg Land & Mortgage Co...... . Scottish Australian Investment Co. (Ltd.)..ees ecceaner Societe Anonyme du Behera. ....ccc.uveueaeccnaneneenrncan: Sonora-Mexico Land & Timber Co. (Ltd.)...c.oveuzzunnnnn. South African and General Investment & Trust Co (Ltd.)... South Africa General Syndicate (Ltd.). South Africa Gold Trust (Ltd.)...... South Africa Real Estate Trust (Ltd.)...cccceeerunnn. South Australian Land Joris & Agency Co (Ltd.)....... Spanish & General Wireless Trust (Ltd.)eeccaereecnecaen or Submarine Cables Trust {Lady haa Tecka fargeniina) Land Co. ( 13 Town Properties of Bulawayo (Lt ku cee Town Properties of West Australia (Ltd.).ceceeecrcaes.. Pransvaal & Rhodesian Estates Fs rrpeerseens Fo Transvaal & South Africa Land Trust (Ltd.)e..cecneeeer.. Fransvaal Northern Estates Co. (Ltd.)...cccmecnaraacnannns Transvaal United Trust & Finance Co. (Ltd.).....ccece... rust & Agensy Co., of Australia (Ltd.)cceceeeeceenacaa Union & Rhodesian Trust (Ltd.).. Cee see United Egyptian Lands gi. .- mm Van Djemans Land Co. ( i 3y we West African Gold Trust (Ltd.).... Western & Hawaiian Investment Co. (Ltd.).....ccuv....... NW ibystersrand Township Estate & Finance Corporation African Bonking Jomonsiion (Ltd). PE Anglo-Austrian Bank... ....coemnuiieiiiiiiiiiiiannanan. Anglo-Central American Co.mercial Bank (Ltd.).... .. Anglo-Egyptian Bank (Ltd.)... p Anglo-Levantine Banking Co.......... ‘ RT Anglo-South American Bank (Ltd.)...coceucmaacanennn. ... Banco de Chile......cc cen... re Banco del Peru y Londres.. 154 3ank of Abyssinia. ..v.ceceinicnroann. UREN Bank of British West Africa (Ltd.).cccerecne-ranctrneas a. 3ank of Mauritius (Ltd.)..-... . Bank of Moroceo......... Bohne vam Bank of Roumania (Ltd.).cceiereeenecemcncnennecncnnennn. 3ritish Bank for Foreign Trade (Ltd.).cevevecan... . British Bank of South America (Ltd.)... ceeneer se British Oriental Bank (Ltd.)....ccciiceecnrinvneccsrnanans. Chartered Bank of India, Australis, and Ching. ....ee.... .. Commercial Bank of Spanish America (Ltd). eeeneees .. Delhi & London Bank (Ltd.).......-Eastern Bank (Ltd.)....c...- — .mperial Ottoman Bank. i [onian Bank (Ltd.}............ ee London & Brazilian Sk i eiseensenes uondon & River Plate Bank (Ltd.).ceceeecerenecneannnnan. sondon Bank of Australia (Litd.).....cocaeaen. .. London Bank of Central America (Ltd.)..cceecacecncnns ou Mercantile Bank of India (Ltd.). cc -ve-vuecerceccccnseen: ra, National Bank Ls . National Bank of India (Ltd.)....... National Bank of New Zealand (Ltd.).. National Bank of Turkey...........cccccecececcanssn Standard Bank of South Africa (Ltd.)... China Traders Insurance Co. (Ltd.)... I'otal...... Location of property. South Africa...cocurenv vue wenelBOuunusur se cus ape rE Ra Australia... ....cccnsinvnes South Africa. ....ccceavenee. . teseessacesnens 207k cwn pmo ns sear ereaIny ATEON iar ons-sraversesrance india... hmm m————— Russia. ..- .ocecocunnerenen. eee dOoiiiiaan se i Me South Africa..... ......... POE 1 -..doo.l. Cece Australia.....ccovveeeenon.. SPAHR: rman sms eneral. .... we Argenting.....cccevevevaneen South Africa...cccveevaaan.. ANSEPaliB. cc oimmerverunvanns South Africa...... .cceee... FEIN | SS ....do., [ weee@0iut. enicncaiennn Australis. ....ci-vaeennnnn., SOUAN ALTER... overruns BYPE. onan weirs warpemies Tasmanig..... -1eceeaee.. West Africa....cccveencan.. Hawaiian Islands......--... South Africa. ve Jouth African colonies...... AUStHiB. ceeciiieraaiianan, Central American States. ... “urkey and Egypt...... .. ~gentina... po file... Mousse byssinda. .c.coceeanennaao ... Test Afriea...oeennen. L. BUritiUS. seveerannne: oo, TOTOCCO..evvevmnannacarnnna: OUMATB.« cvveenencanns an Jussia...- www gy 3razil...... ws EOF vivuiinivcarmr vanes traits Settlements........., Central and South American countries. MA. snvasissnanng Yeneral...... ‘urkey. iTEECO. eeu racaaannerees Irazil oeeecenneeeene Jruguay...e.... ue I: Jentral American countries RIB pe ensavassseessus igypt... Tew Zealand...cceeeeanaans ‘UrKeY...vcenseenanens .o ;0uth Africa. .cceecuecacs. Yhins Approximate capitalization. $625, 000 3,700, 000 1,036, 750 130,200 985, 000 1,250, 000 10, 028, 835 389,530 2,859, 355 1,500, 000 3,750, 000 9,689, 475 7, 000, 000 3, 000, 000 3,750, 000 7,381, 750 1,373,510 , 840, 000 2,076, 540 135,455 5,400, 000 750, 000 2,656, 530 1,245,035 1353, 000 1, 000; 000 1,147, 500 202,025 3,638,170 56, 800 175,035 331,540 7,460,055 376,035 1,676,495 1,150,000 203,255 2,250,940 L. 000. 000 8, 000, 000 20,833,350 276, 500 7,500, 000 125,190 22, 500, 000 10,000, 000 2,500, 000 2, 500, 000 5,000, 000 627,750 2, 500, 000 1, 500, 000 6, 000, 000 (0, 000, 000 134,970 8,000, 000 1.307.085 1,688,125 7,500, 000 0, 000, 000 2,427,900 3, 500, 000 ", 000, 000 ~* 383, 740 136, 250 2,625,000 28, 500, 000 10, 000, 000 15, 000, 000 5,000, 000 30, 950, 000 2.000, 000 1,774, 739, 836 APPARENT INTERRELATIONS IN THE EXPORT COAL TRADE OF THE UNITED KINGDOM. The following data in regard to the more prominent British coal companies has Foon compiled in answer to the inquiries of the Commission by an important American coal company. The information is taken from a number of British statistical publications and from rivate British sources open to the American company. It is printed hero in full because much of it is thought to be of much value and not available in like form anywhere else. The matter relating to Lord Rhondda (D. A. Thomas) and the Cambrian Coal Combine, Cory Bros. & Co., and the Wilson interests is of course especially pertinent to the discussion of American and British competition in certain foreign coal markets. (See Part I, pp. 345-352.) 7, NAMES "AL COAL COMPANIES IN ENGLAND AND WALES EXPORTING 0 SOUT '" MEDITERRANEAN, OUTPUT AND EXPORTS OF THOSE COMPAN. rn. _ICH GOLLIER, DOCKING, STORAGE, AND DISTRIBUTING FACILITIES ARE OWNED RY THEM. The following is a list of companies in South Wales producing more than 250,000 tons annually. On account of the position isp J by middlemen, it is almost impossible to say what proportion of each company’s coal is exported, but the product of companies marked (E) is well known in export markets. This list accounts for approximately 44,000,000 tons out of a total production of 57,000,000, or 77 per cent, and it is safe to assume that the balance consists of anthracite and the very low volatile (“dry”) coals that are used in some parts of the United Kingdom for steam Dreduation, particularly in some of the southern cities for electric plants. SOUTH WALES, MONMOUTHSHIRE. Barpwin’s (Lrp.). Annual production 415,000 tons. Directors: Other affiliations: Col. J. R. Wright, chairman...... See under D. A. Thomas (p. 594). Stanley Baldwin, M. P........... Director, Aldridge Colliery Co., Alexandra (Newport & South Wales) Docks & Ry. Co., South Wales Mineral Ry. Co. Col. W. C. Wright.... ... .« See under D. A. Thomas. E. L. Evan-Thomas.............. Shipowner. Also operate in iron and steel. galvanized sheets, and tin plates. Bepwas NavieatioN Coruiery Co. Annual production 450,000 tons. See Glasbrook Bros. Directors: H. T. Bailev... Other affiliations: Stephenson Clarke & Co. (see p. 585). Director, Askern Coal & Iron Co., Billings. ley Colliery Co., Great Eastern Ry. See Penrikybur Navigation Colliery, See Powell Dufiryn. See Barry Docks Co. J. Glasbrook..... ; J. SHAW. .cnciiineiirrinrannnna. Sir W. J. Thomas. . B7E 576 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Braenavon Co. Annual production, 600,000 tons. Directors: Other affiliations: G. M. Ritchie. . - -.---. Interested in iron and steel and ship: Prine companies. : 0. C. MaCrae...cceee--vasaceees. Interested in railways and insurance. M. Deacon. ... ... Interested in six other coal properties. Also operate two blast furnaces, a rail mill, and a locomotive-tire mill. Manufacture and sell by-products. BurnyeaT, Brown & Co. (E). Annual production, 1,250,000 tons. Coal is handled for export by Watts, Watts & Co. Directors: Other affiliations: F. S. Watts, chairman. . See Watts, Watts & Co. Col. A. K. Wyllie. .... See Watts, Watts & Co. J. A. Jones. See Watts, Watts & Co. EBBw VALE StEEL, IRON & Coal Co. (E.). Annual edison, 1,800,000 tons. Coal handled for export by T. Beynon & Co. For directors see under D. A. Thomas (p. 592). Also produce 185,000 tons of steel annually. Guest, Keen & NeTTLEFOLDS (E). Annual production, 2,000,000 tons. Directors: Other afhiliations: A. T. Keen, chairman...c.es.... Director, London City and Midland Bank. E. Steer... .aess.. Director, Alexandra (Newport and South . Wales) Docks & Ry. Co. Controls Crawshay Bros. Cyfarthfa (Ltd.). jorN Lancaster & Co. (E). Annual production, 1,270,000 tons. See D. Davis & Sons. Coal handled for export by T. Vivian-Rees, of D. Davis & Sons (coal exporters) who is also a director in Welsh Navigation Steam Coal Co. LaNcASTERS STEAM CoArL CoLLIERIES. Annual Spdufion, 750,000 tons. Directors: ther affiliations: G. W. Lancaster. . - ----e-. Director, Askern Coal & Iron Co., Llwydcoed Collieries. J. Lancaster....- -eses. Director, Cardiff Collieries. NEWPORT ABERCARN BLACKVEIN STEAM Coal Co. (E). Annual production, 500,000 tons. . Coal handled for export by T. Beynon & Co. Directors: Other affiliations: I. W. Beynon, chairman......... See under D. A. Thomas. -. F. Beynon.....c..c...ceee... See under D. A. Thomas. ".'T. Halford... See under D. A. Thomas. Japt. J. C. Kirk.... See under D. A. Thomas. F. Mills.. Ebbw Vale Steel, Iron & Coal Co. OAKDALE NAVIGATION COLLIERIES fo Annual production, 575,000 tons. See also Tredegar Iron & Coal Co., who are their sales agents, ParTrIDGE, JONES & Co. Annual production, 900,000 tons. Information not available. Power. DurFrYN STEAM CoAL Co. (BE). Annual production, 3,950,000 tons. Also operate by-product coke ovens and brick works. Control a French selling company, with depots at Rouen, Bordeaux, Havre, and Nantes. Directors: Other affiliations: J. Shaw.. es ee. Director, Bedwas Navigation Colliery Co., chairman Billingsley Colliery Co., Chislet Colliery Co. Director, Central Argentine Ry., Primitiva Gas Co., Buenos Aires. .. Stephenson Clarke & Co. (coal exporters). Powerr’s TiLLERY STEAM CoAL Co. (E). Annual production, 775,000 tons. Information not available. (Negotiations for the acquisition of a controlling interest in this company by the Ebbw Vale Steel, Iron & Coal Co. were reported in June, 1916.) Rayuney Iron Co. (E). Annual production, 1,300,000 tons. See D. A. Thomas. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 577 Te PeNTWYS BLACK VEIN STEAM CoAL Co. (E). Annual production, 350,000 tons. Information not available. TrEDEGAR IRON & Coar Co. (E). Annual production 2,650,000 tons. Directors: Other affiliations: Lord Aberconway, chairman... Director, Barry Ry. Co., Cortonwood Collieries, Dalton Main Collieries, Firbeck Main Collieries, Maltby Main Colliery Co., Newstead Collieries Co., J. Brown & Co.; chairman, Oakdale Navigation Collieries, Rossington Main Colliery Co.; director, Sheepbridge Coal & Iron Co., Wagon Finance Corporation (car trust), Director, Oakdale Navigation Collieries. Director, Oakdale Navigation Collieries. Director, Bolckow, Vaughan & Co., Oakdale Navigation Collieries. Sir A. B. Markham, M. P... -... Chairman, Brodsworth Main Colliery Co.; director, Bulicroft Main Collieries, Hickleton Main Colliery Co., Oakdale Navigation Collieries. ,o Chairman, Wagon Finance Corporation. (See Watts, Watts & Co.) Unrrep Namonan Corireries (E). Annual production 1,750,000 tons, See Watts, Watts & Co. GLAMORGAN. ALBION STEAM Coal Co, (E). Annual Drdugisa 500,000 tons, Closely affiliated with L. Gueret (Ltd.) and Gueret, Gait & Co., see in connection with D. A, Thomas (p. 593). Bwiira & MerTEYR DARE StEAM CoLLIERIES (1891). Annual production 650,000 tons, Director: W. Davies... Other affiliations: +«+. Director, Rhondda & Swansea Bay Ry. CamBriaN Coiiieries (E). Annual production 1,000,000 tons, See D. A, Thomas. Carper Corrieris (Lrp.) (E). Annual production 600,000 tons, Directors: Other affiliations: J. M. Strain....-- Strain Bros. (colliery owners), Glasgow. Bir John Gunn. Rove (8 cargo steamers); director, ardiff Ry. Co. -- -eee. Director, Lancaster Steam Coal Collieries. Cory Brorrers & Co. &. Annual production 1,450,000 tons, See under exporters (pp. 584 and 585). OrawsHAY Bros. CyrarTHFA (Lrp.). Annual production 600,000 tons, Information not available. . Controlled by Guest, Keen & Nettlefolds. CwumauaN Coan Co. Annual production 525,000 tons, Information not available. D. Davis & Sons (E). Annual production 1,600,000 tons, Directors: . . Other affiliations: F. L. Davis, chairman.. . Director, Barry Ry. Co., Vale of Glamorgan Ry. Co.; chairman, John Lancaster & Go., Welsh Navigation Steam Coal Co. Director, Welsh Navigation Steam Coal Co., John Lancaster & Co. Sales agent, D. Davis & Sons. Seles agent, Welsh Navigation Steam Coal 0. FeeNmEnL Coruieries (E). Annual production 700,000 tons, See under D. A. Thomas. 279241°—p1 2—18——°17 578 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE, Gramoraan Coan Co. (E). Annual production 1,000,000 tons. See under D. A. Thomas. GrasBROOK Bros. Annual Jradueyon 260,000 tons. Apparently allied with Bedwas Navigation Colliery Co. and Penrikyber Colliery GrENAVON GArw CoLLiErIES. Annual production 400,000 tons. Information not available. : GREAT WESTERN CoLuiery Co. ®. Annual Srodystien 1,100,000 tons, H. Wallis is also a director in Locketts Merthyr Collieries (1894). Hrs Prymourr Co. (E). Annual production 500,000 tons. Information not available. Insores (Lirp.) (E). Annual production 800,000 tons. See under exporters (p. 585.) INTERNATIONAL CoAL Co. Annual production 260,000 tons. See Rhymney Iron Co. under D. A. Thomas. Lzwis MerraYR ConNsormpaTeED Coruieries (E). Annual production 2,000,000 tons. Directors: Other affiliations: : E. O. Jones, chairman............ Director, Taff Vale Ry. Lord Merthyr... .. Director, Cardiff Ry. Co. T. G. E. Lewis.. See under D. A. Thomas. Lookers MerTEYR CoLLIERIES (1894) (E). Annual production 750,000 tons, Directors: Other affiliations: W. Ronnfeldt, chairman.......... Coal exporter. ’ H. Wallis....... .. Director Great Western Colliery Co. John Cory... .«. See John Cory & Sons. Man Corniery Co. Annual production 500,000 tons. Directors: Other affiliations: Sir 8. G. White, chairman....... Chairman, Western agon & Property Co. C. C. Savile... Director, British & South Wales Ry. ‘Wagon Co. ... Director, Western Wagon & Property Co. Navar Coruery Co. (1897) (E). Annual production 675,000 tons. See D. A. Thomas, Nixons Navigation Coruszrries (E). Annual pooduyiiog 2,200,000 tons. Directors: Other affiliations: W. H. Bell, chairman........--. Deputy Rhymney Valley Ry. Co. H. E. Grey......... Director, Penarth Harbor, Dock & Ry. Co. H. 8. Streatfeild. Director, Ryhope Coal Co. W. Wright... Director. New Sharlston Collieries Co. Norras NavieaTion Coruieries (1889) (E). Annual Dintien 1,225,000 tons. Directors: Other afhiliations: J.J. Smith, chairman........... Director, Pt. Talbot Ry. & Docks Co. E. L. Evan-Thomas. ..ccevesse.. Director, Baldwins (Ltd.), shipowner. Bir Robert Harvey... ........ Director, Anglo-South American Bank, Antofagasta & Bolivia Ry. Co.; chairman of a number of nitrate companies. G. A. Lockett......-.....-...... Director of a number of nitrate companies. Capt. W. C. 8t. I, Partridge.... Director, Coytrahen Park Colliery (1909), Ton Philip Rhondda. Ocean Coat Co. {®. Annual production 2,125,000 tons. See under Wilson interests. PeNrIkKYBER NavieaTioN Corurery Co. (E). Annual production 500,000 tons. Closely allied with Cory Bros. & Co. Directors: . Other affiliations: John Glasbrook, chairman... . . Director, Bedwas Navigaan Olliey Co., illisely Colliery Co., London City & Midland Bank. Director, Graigola Merthyr Co., Strick Steamship Line. 3ee Cory Bros. & Co. Glasbrook Bros. Director, Field Steamship. Line. 8 White. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 579 Troepyrmiw CoaL Co. Annual production 275,000 tons. Apparently allied with Albion Steam Coal Co. WeLse Navigation Steam Coan Co. ly Annual production 375,000 tons, Apparently allied with D. Davis & Sons (see p. 877). WinDsor Steam Coar Co. (1901) (E). Annual production 500,000 tons. See Insoles (Ltd.). Directors: Other affiliations: . G. F. Insole, chairman.......... Difpetor, Barry Ry. Co.; chairman, Insoles (Ltd.). Director, Albion Steam Coal Co. Director, Insoles (Litd.). Geo. Insoles & Sons; director, Insoles (Ltd.). Director, Insoles (Ltd.). On account of the prominence of South Wales coal in the markets covered by this report, the other fields will not be treated in as great detail, but we now give a list of prominent companies in the northeastern English fields. The production figures are quite roughly estimated from the number of men employed and therefore probably err on the high side. No information is at hand as to the exact production of the different companies. THE NORTHERN FIELD. DURHAM (NORTH). JoBN Bowes & PARTNERS. Annual production 1,500,000 tons. Directors: . Other affiliations: Rt. Hon. Sir H, C. Plunkett, Director, Pelton Steamship Co. (10 cargo chairman. Siaamand ’ Sir L. Wood. Bifcten, arton Coal Co., North Eastern ¥y. R. 8. Gardiner... Director, The Danish Gas Co.; deputy chairman, European Gas Co.; director, Framwellgate Coal & Coke Co., Pelton Steamship Co., Dadnoy Steamship Co. European Gas Co. has concessions for supplying gas in many of the smaller cities in northwestern France. Oonserr IzoN Co. Annual production 1,500,000 tons. Also prominent in iron trade. Directors: Sir J. B. Dale... Other affiliations: Director, Horden Colleries, Pease & Partners. Vice chairman, Pease & Partners; director, North Eastern Ry., Wm. France, Fenwick &- Co. (shipowners); chairman, Wearmouth Coal Co.; director, Washington Coal Co. Harton Coan Co. (E). Annual production 2,250,000 tons. Directors: Other affiliations: H. Philipson - Director, Burnett Steamship Co. (8 cargo steamers). Director, Hickleton Main Colliery Co. Director, Manvers Main Colleries. See Bowes & Partners. Heworta CoaL Co. Annual production 500,000 tons. Information not available Jas. Joicey & Co. (E). Annual production 1,575,000 tons, Information not available. Cras. Perkins & ParTNERS (E). Annual production 1,275,000 tons. Information not available, PriestMAN CoLLERIES. Annus! production 1,000,000 tons. Information not available 580 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Stews Coan Co. Annual Jroltuetion 1,000,000 tons. Information not available. WaLLseND & HesBURN Coan Co. (E). Annual production 350,000 tons. Directors: . Other affiliations: H. C. Embleton. .. Director, Bedlington Coal Co., Old Silk. stone Colleries, Southern Coalfields of Divester, Co Coal Co., 8 irector, wpen .. Scremerston Coal Co. Chairman, Prince Line Blndsn Co. Dirgeto, Elswick Coal Co., Walter Scott td.). J. C. Straker... Director, Straker & Love (coal exporters), WasmiNgToN Coal Co. (E). Annual production 500,000 tons. Directors: Other affiliations: W. J. Branfoot.. ... Tyzack & Branfoot (coal exporters). F. Stobart. ... ve <eeeen. See Consett Iron Co. Tyzack & Branfoot control Well Steamship Line (6 large cargo steamers), Yrarmoura Coar Co. (E). Annual production 1,250,000 tons. Directors: Other affiliations: F. Stobart........-.-cceeuse.... See Consett Iron Co. Capt. Sir C. W. Morrison-Bell... Director, Southmoor Colliery Co. H. C. Stobart... . Director, Horden Collieries. DURHAM (SOUTH). Bzir Bros. Annual production, 900,000 tons. Directors: Other affiliations: Sir Hugh Bell, chairman......... Chairman, Horden Collieries; director, North Eastern Ry. Co. .a=«~ Director, Horden Chilieries. Borcrow, VaucHAN & Co. (E). Annual production, 3,000,000 tons, Also iron and steel manufacturers. Directors: Other affiliations: Sir J. E. Johnson-Ferguson....... Probany interested in Tredegar Iron & Coal Co., Cardiff, H.D. McLaren.... - See Tredonir Iron & Coal Co, {Cardiff). Hon. R. D. Kitson....ccc...- Director, North Eastern Ry. Co. Hon. J. Parker-Smith. . Director, banks and insurance companies. CaARIAW & SacrisTon Corueries (E). Annual production, 600,000 tons, Information not available. Horpen Corrieries (E). Annual production, 1,300,000 tons. Directors: Other affiliations: Sir Hugh Bell, chairman...... See Bell Bros. E. R. Whitwell. Chairman, North Name Coal OCo., West Durham Wallsend Coal Co. Bir J. B. Dale. See Consett Iron Co. A.J. Dorman......ceeem--aaaa.. See Bell Bros. W. R. I. Hopkins... - Chairman, North Bitchburn Coal Co. A. F. Pease........ See Pease & Partners, H. G. Stobart... Director, Wearmouth Coal Co. John Temple. ..cceeeeer -...... Director. North Branspeth Coal Co. LamsroN & Herron Corrieries (E). Annual Doauchn, 4,000,000 tons, Director: ther affiliations: Lord Joicey, chairman. . ........ Deputy chairman, North Eastern Ry. Co. This is a private company. LonponDERRY Coriieries (E). Annual production, 1,750,000 tons, Directors: Other affiliations: Lord Londonderry, chairman. ... Director, Seaham Harbor Dock Co. M. Dillon. ..... . Director, Seaham Harbor Dock Co. 8. J. Ditchfield.... -- Director, Blackett & South Tyne Coal Co., Hetherion Coal Co., Boies Harbor A private company. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 581 Norte BrrcasurN Coar Co. Annual production, 800,000 tons. Directors: Other affiliations: W. R. Hopkins, chairman. ...... Director, Horden Collieries. W. H. Hustler. . Director, Bank of Liverpool, Elswick Steamship Co. (8 steamers). Pease & Partners (E). Annual production, 2,000,000 tons. Also operate extensive iron and steel plants, Directors: Other affiliations: A. F. Pease, chairman. .......... Director, Horden Collieries, Lloyd’s Bank, North Eastern Ry. Co. F, Stobart. ....ccecoescasesscese-. See Consett Iron Co. Sir J. B. Dale...- -sve---. See Consett Iron Co. Perron Coruiery (E). Annual production, 475,000 tons, Information not available, but probably allied with Pelton Steamship Co. Rynmore Coan Co, Annual production, 675,000 tons, Information not available, but probably allied with Broomhill, Easington, and Weardale companies. Warrer Scorer (Urp.) (E). Annual production, 650,000 tons. Directors: Other affiliations: Sir W. H. Stephenson, chairman. Director, Bank of Liverpool, Cairn Line Steamship Co.; chairman, Throckley Coal Co., Tyne-Tees Steamship Co. J. B. Simpson... --2es See Wallsend & Hebburn Coal C. W. 8. Vaughan... .. Director, Sheaf Steamship Co. Sourm Herron Coan Co. (E). Annual production, 1,100,000 tons, Directors: Other affiliations: W. B. Hawkins, chairman... ... Director, Alexandra (Newport & South Wales) Docks & Ry. Cor: chairman, Brecon&MerthyrTydvil Junction Ry.Co. Director, Brecon & Merit Tydvil Ke tion Ry. Co. W. 0. Wood.... .. Director, Seaham Harbor Dock Co. Sours Moor Corriery Co. Annual production, 1,150,000 tons. Director: Other affiliations: Sir C. W. Morrison-Bell.......... Director, Wearmouth Coal Co. H. StoBarRT & Co. Annual production, 500,000 tons. Director: Other affiliations: G. F. Mounsey... -« Director, Bullocks Hall Sy Co., North Wylam Colliery Co., West Durham Colliery Co. Strakers & Love (E). Annual production, 450,000 tons. Apparently allied with Wallsend & Hebburn Coal Co. WeaARDALE STEEL COKE & Coar Co. Annual production, 1,500,000 tons. Also prominent in iron and steel trades. Directors: Other affiliations: Sir J. 8. Barwick, chairman. .... Disease, Broomhill Collieries, Easington oal Co. Chairman, Furness, Withy & Co. Pease & Partners. Director, Bank of Liverpool; chairman, Broomhill Collieries, North Walbottle Coal Co., Seaton Burn Coal Co. Director, Broomhill Collieries, Easington Coal Co. NORTHUMBERLAND. AsmnaToN Coan Co. Annual production, 2,000,000 tons. Director: Other affiliations: C.T. Milburn...._ .eceeeeve... Wm. Milburn & Co. (shipowners). BackwortE CoLLIERIES. Annual production, 850.000 tons. Information not available. BepuiNeTON Coal Co. Annual production, 900,000 tons. Information not available, but see Wallsend & Hebburn Goal Ce, 582 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Broomnrn Corrieries. Annual production, 650,000 tons. Directors: Other affiliations: Sir J. 8. Barwick. .. See Weardale Steel, Coke & Coal Co. I. E, Rogerson.... .. See Weardale Steel, Coke & Coal Co. Lord Furness..- .. Chairman, Furness, Withy & Co. BurrapoN & Coxrooee Coan Co. Annual production, 550,000 tons. Information not available. CowrEN CoaL Co. Annual production 900,000 tons. Information not available, but see Wallsend & Hebburn Coal Co. CramMuiNgTON Coar Co. Annual production, 675,000 tons. Apparently no alliances. Seaton Burn Coan Co. Annual production, 600,000 tons, Information not available. : BeaToN DELavaL Coar Co. Annual production, 725,000 tons. Information not available. TarockLEY Coan Co. Annual production, 450,000 tons, Information not available, but see Walter Scott (Ltd.). Warrsenp & HeBBURN CoaL Co. Annual production, 400,000 tons. This list accounts for approximately 40,000,000 tons against a total fra for Durham and Northumberland of 56,000,000 tons (see able I, Northern Field). YORKSHIRE, Ackron Harr Coruiery Co. (E). Annual production, 625,000 tons, Information not available. Barer, WALKER & Co. Annual production, 500,000 tons. Information not available. Barrow HEmATILE STEEL Co. Annual production, 700,000 tons, Director: Other affiliations: Lord Knareshorough............ Chairman, North Eastern Ry, H. Briaes, Son & Co. (E). Annual production, 1,200,000 tons. Apparently no affiliations. Bropsworta MAIN CorLiery Co. (E). Annual production, 600,000 tons. Directors: Other affiliations: R. Armitage.. Director, Dearne Valley Ry., The Wan Finance Corporation, Hickleton Main Colliery Co. uirector, Hickleton Main Colliery Co., Man vers Main Cal Co. Director, Bullcroft Main Colliery Co., Hickleton Main Colliery Co., Oakdale Navigation Ooiery Co., The Wagon Finance Sparse, redegar Iron & Coal Co. Hickleton Main Colliery Co., Hodroyd Coal Co., Llay Main Collieries, New CL Collieries, Stavely Coal & Iron Co. Director, RN rort Colliery, The Wagon Finance Corporation, Stavely Coal & Iron Co. . Director, Stavely Coal & Iron Co., Yorkshire Main Colliery. J. Brown & Co. (E), Annual production, 3,000,000 tons. Directors: Other affiliations: Lord Aberconway... See Tredegar Iron & Coal Co. B. A. Firth.. Director, Great Northern Ry., Rossington Main Colliery Co. Director, Dalton Main Colliery Co., Rossington Main Colliery Co. Director, Bolckow Vaughan & Co. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 585 CarrroN Man Coruiery Co. (E). Annual production, 1,175,000 tons. Directors: Other affiliations: T. E. Vickers, chairman... Director, Dearne Valley Ry. J. Jaddy.eenuennrn--- Director, Dearne Valley Ry. Col. Sir C. Allen. Cysimsn, Ebbw Vale Steel, Iron & Coal 0. Director, Mitchell Main Colliery Co. Director, Midland Railway Co. J. & J. CHARLESWORTH. Annual production, 1,225,000 tons. Apparently no affiliations. Darron Main Coruieries (E). Annual production, 1,100,000 tons. Directors: Other affiliations: . Lord Aberconway..c--es-seees. S€0 bing Iron & Coal Co. F. J. Dundas. v Digester ew Silkstone & Haighmoor Coal 0. C.E.Ellis.c..ocusr --.-----a.. Director, J. Brown & Co. : Controlled by J. Brown & Co. DENABY & CADEBY MAIN CorLieriEs (E). Annual production, 1,500,000 tons. Director: Other affiliations: J. C. Cuninghame..- .. Director, Glasgow & South Western Ry., Southern Yorkshire Junction Ry. DinNiNgTON MAIN CoaL Co. Annual production, 600,000 tons. Directors: Other affiliations: M. Deacon, chairman..-- Director, Sheepbridge Coal & Iron Co.; chairman, Maltby Main Colliery Co.; director, Newstead Ottery Co., Rosgangton Main Colliery Co., Tinsley Park Colliery Co. Director, Firbeck Main Colliery Co., Muy Main Colliery Co., Newstead Colliery Co., Rosgnn Main Colliery Co., Sheepbridge Coal & Iron Co. . Director, Sheffield Coal Co. Grass HouarToN & CasTiEForRD CoriIERIES (E). Annual production 675,000 tons. Information not available. HicgreToN MAIN Corriery Co. (E). Annual Podugnn 800,000 tons. Apparently closely allied with Brodsworth Main Colliery Co. HouvarroN Main Coruiery Co. Annual production 575,000 tons. Directors: Other affiliations: C. E. Hunter... Director, Charlaw & Sacriston Collieries, Dearne Valley Ry. Chairman, Manvers Main Collieries; direc. tor. Manvers Main Collieries. ManveErs Man Coruiery Co. Annual production 1,250,000 tons. Apparently closely allied with Houghton Main Colliery Co. Mrrcaerr, Main Corriery Co. Annual production 600,000 tons. Information not available. New Moncron Coruiries. Annual production 625,000 tons. Directors: Other affiliations: C. E. Rhodes... +. See Brodsworth Main Colliery. ] C. C. Ellison . Director, Wharncliff Silkstone Colliery Co. NEw SmksroNe & HaigamMoor CorLiery Co. (E). Annual production 500,000 tons. Director: Other affiliations: F.J. Dundas......coeeeee.n- ... Director, Dalton Main Colliery Co. Newton, CEaMBERS & Co. Annual production 1,075,000 tons. Apparently no affiliations. Nunnery Corriery Co. Annual production 575,000 tons. Information not available. Roreer Vane CoLLiEriEs. Annual production 575,000 tons. Information not available. 584 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. SeerrieLp Coan Co. Annual production 500,000 tons. Director: Other affiliations: W. D. Gainsford....... ....c..... Director, Dinnington Main Coal Co. Sour KirBY, FEATHERSTONE & HEMswoORTH CoLuiERrIES (E). Annual production 1,650,000 tons. Apparently no affiliations. TinsLEY PARK Coruiery Co. Annual production 550,000 tons. Directors: Other affiliations: M. Deacon......... see.» See Dinnington Main Coal Co. J. H. W. Laverick...ccceces..... Director, Askern Coal & Iron Co., Shirebrook Colliery. W. H. McConnel... ,se«« Director in five small collieries. Wate Main Corrieries Co. Annual production 500,000 tons. Director: Other affiliations: C. H. Moss, chairman. ... Director, Wharncliff Woodmoor Colliery. WaARNCLIFF SILKSTONE CoLLIERY Co. (E) Annual production 500,000 tons. Directors: Other affiliations: R. W. Percy... -. Director, Barnsley Main Colliery Co. (coal exporter). ... Director, Don Coal & Iron Co. WaeLparLe Coan Co. Annual production 775,000 tons. Information not available. D. J. Williams... This list accounts for only about 24,000,000 tons out of a total production for this field of 74,000,000, there being a large number of small companies. The other fields mentioned in Table I do not export to any great extent, extant the Scotch, records for which are not available for the purpose of this report. (2) FACTS REGARDING THE INTERRELATION OF BRITISH COAL OPERATORS, DEALERS, AND SHIP LINES WITH EACH OTHER AND WITH RAILWAX AND INDUSTRIAL COM-PANIES IN FOREIGN MARKETS. (a) Coal. ®) Dealers. . (c) Railways serving the coal fields. (@) Docks. (e) Shipping. A Consumers. . . a) Coal.—The lists of companies given under question 1 show the large extent to which directorates in the coal-producing companies interlock with each other and also to some extent with railways, which are dealt with under a separate head. . (b) Dealers.—A list is given below of the most prominent London houses, some of whom are simply middlemen and some also producers: Cony Bros. & Co. } Large exporters and bunkering contractors with offices in London, Cardiff, Liverpool, Glasgow, Paris, Genoa, and fo and connections in many ports. European agents for Berwind White Coal Mining Co., New York. : Authorized capital, £1,000,000. Directors: Other affiliations: 8ir J. 0. Cory, M. P., chairman... Aden Coal Co.; director, Barry Ry. Co., Vale of Glamorgan Ry. Co., Brazilian Coal Co., Cory’s Madeira Coaling Co., Eagle Coal Co.; chairman, Millers & Cory’s, Cape Verde Islands fa); director, Penrikyber Navigation Col- MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 585 Cory Bros. & Co.—Continued. Directors—Continued. Other affiliations—Continued. H. B. Cory... Director, Millers & Cory’s, Cape Verde Islands (Ltd.). Dinas, Lockett’s Merthyr Collieries 1894). Director, Millers & Cory’s; also director of Field Steamship Line (5 steamers) and Redcroft Steam: Navigation Co. (4 steamers). LAMBERT Bros. . Coal exporters and bunkering contractors, ship and insurance brokers. Maintain a bunker depot at Gibraltar and offices in London, Cardiff, Newcastle, Hull, Grimsby, and Glasgow. Also interested in steamers, but extent not known. Agents for Smokeless Fuel Co. and Morrisdale Coal Co., American companies. Directors: Other affiliations: N. Dunn, chairman... ----.. Director, Burradon & Coxlodge Coal Co. F. D. Lambert.. » biten Elands Laagte Collieries (South ca). InsorEs (Ltd.) (and Geo. INsoLE &SoNs). Large exporters. Directors: G. PF. Insole, chairman... ....-Other affiliations: Director, Barry Ry. Co., Vale of Glamorzan Ry. Co.; chairman, Windsor Steam Coal Couto. Director, Windsor Steam Coal Co. (1901). Director, Taff Vale Ry. Director, Windsor Steam Coal Co. (1901). Director, Windsor Steam Coal Co. (1901). Director, Windsor Steam Coal! Co.; also chairman, Albion Steam Coal Co. STEPHENSON CLARKE & Co. A private company. London agents for Rome Gas Co. (Italy). Largeiexporters, particularly of gas coal. Complete list of members of firm not available, but among them are— {ol. 8 g! Clarke. Director, Brecon Merthyr Tydfil Jet. Ry., Malta & Mediterranean Gas Co., Ottoman Gas Co. Director, Barranquilla Ry. (Colombia), Cambrian Rys. Co., Chislet Colliery, Powell Duffryn Steam Coal Co. . GC. B. 0, Clarke Frank C. Strick (Ltd.) (and Strick Sreamsare Line, 15 steamers), * Bzpors mostly to bunker depots. Among the directors of the Strick Line are the following: J. Mesnier (Paris), chairman, . Director, Craigola Merthyr Coal Co. H. C. Albino... Director, Oran Coal Co. F. V. Japp... Shipowner and broker. F. C. Strick.. Director, La Tunisienne Steam Nonige tion Co., London & Paris ng 0. lh Director, Penrikyber Navigation Colliery 0. They are also Persia merchants. Hvuir, Buyre & Co. A private company. Quite important exporters and bunker contractors. Managing directors of bunker depots at Port Said, Las Palmas, St. Vincent, St. Lucia, and Colombo. Maintain offices in London, Cardiff, Glasgow, Liverpool, Newcastle, West Hartlepool. Agents for Castner, Curran & Bullitt and Pennsylvania Coal & Coke Corporation, American firms. Worms & Co. } A Jrivate company with an extensive French connection. Maintain bunker epots at Port Said, Suez, Algiers, Marseille, Bordeaux, and Havre. H. 0. Vivian & Co. A private company. Bunker depots at Marseilles, Malta, and Nice,and offices in London, Liverpool, Newcastle, Paris, and Genoa. 586 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. Moxey, Savon & Co. * close corporation controlled by French interests. One of the directors also Interested in Taff Vale Ry. dole agents for bunker suppliers at Marseilles Tunis, Port Said, Suez, Buenos Aires, La Plata, Genoa, Azores, Algiers, and for Sterling Coal Co., of New York, Also do an extensive trade in salt from Port Said. Warts, Warts & Co. This is an excellent example of the varied activities of the coal trade. They are shipowners (21 large cargo steamers), ship brokers, colliery proprietors, importers of mine timber, exporters of coal and coke, and manufacture and sell sulphate of ammonia, tar, and benzol. They maintain 7 offices in the United Kingdom and a bunker depot at Algiers, with other bunker connections in various parts of the world. Directors: Other affiliations: F. 8. Watts, chairman.. Chairman, Britain Steamship Co., Burnfeat, Brown & Co.; director, Century teamship Co. (Harris & Dixon); chairman, United National Collieries, Director, United National Collieries, Britain Steamship Co. Director, Britain Steamship Co., United National Collieries. Director, United National Collieries, Burnyeat, Brown & Co. J. A. Jones...--BRITAIN STEAMSHIP CO. See foregoing. See foregoing, Director, United National Collieries. Director, United National Collieries. UNITED NATIONAL COLLIERIES. (Controls Burnyeat, Brown & Co., see p. 576): F. 8. Watts, chairman.. S. H. Burgess......... _._ H. 8. Sanders Clark «nev. onner ER Watta F. S. Watts, chairman....cecc..... 8. H. Burgess....... J.A.JODeB.ccu.ncnecnincnnana-H. 8. Sanders-Clark .. . E. Watts. c.cceoeiccrnnecaanear » Col. A. K. Wvllie.. See foregoing. See foregoing, See foregoing. See foregoing. See foregoing. Director, Markham Steam Coal Co., Oakdale Navigation Colliery Co., Tredegar Jon & Coal Co., Burnyeat, Brown & Evans & Rem. Do considerable business in English coal; also agents for Pocahontas Consolidated Oe jerjea Co., of New York. Their chairman is also a director in Celtic ollieries. LysBERG (in. See under D. A. Thomas, who owns about 65 per cent of the stock, the other important director being 4. Plisson. J, Cory & Sons (and Cory’s TrapiNg Co.). These interests control the Seville & United Kingdom Carrying Co. (22 large ~argo steamers). They are roan exporters of coal and importers of iron oie, and have offices in London, Cardiff, Newcastle, Paris, Sevil To. Bilbzo, and xeNnoa. MANN, GEORGE & Co. ki prominent exporters and bunker contractors, with offices in London, Cardiff, Glasgow, Newcastle; bunker depots at Montevideo, Buenos Aires, La Plata, and Rosario, and connections in foany other porte. Agents for Chesapeake & Ohio Coal Agency Co., W. C. Atwater & Co., New York & Philadelphia Coal & Coke Co. and Pratt Consolidated Coal Co.. American firms. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS, 587 TI. Beynon & Co. y Sales agents for Ebbw Vale Steel, Iron & Coal Co. Export agents for Newport Abercarn Blackvein Steam Coal Co. Directors: I. W. Beynon, chairman. ..ceeeeeee l.. F, Beynon....ceeeee. J Kirk. . _T. Halford. Other affiliations: See Ebbw Vale Steel, Iron & Coal Co. See Fernhill Collieries. See Fernhill Collieries. See Fernhill Collieries. Tae WiLsoN INTERESTS. This is a very important group of producers and exporters, particularly in the Argentine; their affiliated companies are shown in detail: Wilson, Sons & Co. Directors: A. E. Bowen, chairman...... Other affiliations: Director, Buenos Aires Great Southern Ry., Buenos Aires Western Ry., Equitable Trust Co. (London), Mortgage Co. of the River Plate, Ocean Coal & Wilson’s (Ltd.), Primitiva Gas Co. (Buenos Aires), River Plate Trust, Loan & Agency Co. Director, Barry Ry. Co., Deep Navigation Collieries, Dinam Coal Co., Ocean Coal & Wilson’s (Litd.), Ocean Coal Co. Director, Ocean Coal & Wilson’s (Ltd.), Rio de Janeiro Lighieage Co. Director, Ocean Coal & Wilson's (Ltd.). Director, Barry Ry. Co.: chairman, Deep Navigation Collieries; director, Ocean Coal & Wilson’s (Ltd.), Ocean Coal Co. Director, ig] Navigation Collieries, Doom Coal & Wilson’s (Ltd.), Ocean 0. T. Evans.. A. Harley.. E.E.M. Hett...cooveeeeenene. W. Jenkins F. J. Yarrow. Ocean Coal & Wilson's (Ltd.). Directors: Other affiliations: Lieut. Col. D. Davies, M, P., Duty chairman, Barry Ry. Co.; director, chairman. recon & Merthyr Taal Jet. Ry. Co.; chairman, Cambrian Rys. Co.; director, Deep Navigation Collieries, London City & Midland Bank; chairman, Ocean Coal Co. See Wilson, Sons & Co. See Wilson, Sons & Co. See Wilson, Sons & Co. See Wilson, Sons & Co. See Wilson, Sons & Co. Director, Dos Navigation Collieries, Ocean Coal Co. See Wilson, Sons & Co. Director, Desp Navigation Collieries, Ocean Coal Co. F. J. Yarrow... E. Jones... Deep Navigation Collieries. a Other affiliations: W. Jenkins, chairman....... See Wilson, Sons & Co. Lieut. Col. D. Davies.. See Ocean Coal & Wilson's (Ltd.). T. Evans.. See Wilson, Sons & Co. E. Jones... Co See Ocean Coal & Wilson's (hd: . Lieut. Col. H. Webb...... See Ocean Coal & Wilson's (Ltd.). F. J. Yarrow. See Wilson. Sons & Co. ° Ocean Coal Co. Directors: Other affiliations: Lieut. Col. D. Davies, chair- See Ocean Coal & Wilson's (Ltd.), man. T. Evans. . See Wilson, Sons & Co. W. Jenkins.......... See Wilson, Sons & Co. Lieut. Col. H. Webb...ceee.. 3ee Ocean Coal & Wilson's (Itd.). F. J. Yarrow.. See Wilson, Sons & Co. E. Jones See Ocean Coal & Wilson’s (Ltd.). 588 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. (¢) Railways.—With the exception of the North Eastern Railway, the number of coal men who are also railway directors is not conspicuous with regard to the trunk lines, but in the feeders and the short lines connecting coal fields with the docks affiliations between coal eoppariot and railways seem to be quite close in Cardiff. . The following is a [ist of the railways serving each field, with the number of directors who are also directors in coal companies: Sours Wares Fierp: Great Western Ry. (trunk line). . .... 19 directors, 2 also in coal. London & North Western (trunk line). 19 directors, 1 also in coal, Rhymney Ry.......- 5 directors, 3 also in coal. Brecon & Merthyr Ry.... 7 directors, 4 also in coal. Taff Vale Ry... 1 directors, 6 also in coal. Port Talbot Ry... = directors, 4 also in coal. Neath & Brecon Ry...... --- .. directors. West Somerset Mineral Ry...c....... directors. Vale of Glamorgan Ry......cceaee-. directors, 4 algo in coal. Rhondda & Swansea Bay Ry... .. & directors, 2 also in coal. BAITy RY-eeeusnsennnceceeseansns... 14 directors, 11 also in coal, NorTHeRN Fienp (Northumberland and Durham): North Eastern Ry...... . 20 directors, 9 also 1n coal, In this field there are many private railways. YORKSHIRE FIELD: Lancashire & Yorkshire (trunk). ..... Great Central RY: (trunk). ...cceceeee Great Northern Ry. (trunk) ...... Midland oF (trunk)...... .eoeo--. London & North Western Ry. (trunk) Hull & Danstey Ry... Dearne Valley Ry. . Nore.—Many reference books have been discontinued since the war, so that the information on which this report is based is taken as of different dates, and there may be some omissions and contradictions. (d) Docks.—The following is a partial list of loading docks operated by railways and of directors who are also in coal companies, CARDIFF. Bure Docks (operated by Cardiff Ry. Co.). Directors: Other affiliations: Sir J. Guna.. Shipowner; Director, Cardiff Collieries. Lord Merthyr. Director, Lewis Merthyr Consolidated Collieries. Shipowner. W.J. Tatem...... _ Total directors, 6. Barry Docks (operated by Barry Ry.). Directors: D. Davies, deputy chairman..... Other affiliations: Director, Brecon & Merthyr Bs Cambrian Rys., Deep Navigation Collieries, London City & Midland Bank; chairman Ocean Coal & Wilson's (Ltd.), Ocean Coal Co. Director in 11 coal companies. See under D. A. Thomas (p. 590). See under Cory’s (p. 584). See under Cory’s. Chairman, D. Davis & Sons (coal), J. Lancaster & Co., Welsh Navigation Steam Coal Co, See under Wilson's (p. 587). Chairman, South Rhondda Colliery Co. Jee under Insole's (p. 585). Jee under Wilson's. . Director. Bedwas Navigation Colliery Co. Lord Aberconway.... T.J. Callaghan. ..... Bir J. C. Corv.. R. R. Cory...... EF. L. Davis.. T.Evans....ceee-W. W. Hood.. 3 G. F. Insole... vemeamaussens W. Jenkins..... cecessan Sir W. J. Thomas. .... Total directors. 14. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 589 PENARTH Bocks (operated by Taff Vale Ry., see p. 594). ALexanpeAa (NeweorT & Sours Wares) Dock & Ry. Co. Director: Other affiliations: Sir H. M. Jackson... Director, Ebbwvale Steel, Iron & Coal Co., John Lancaster & Co. (coal), Rhymney Ry. Co., United Rys. of Havana. Director, Aldridge Colliery Co., Baldwin's Ltd.) (coal), Great Western Ry., South Wales Mineral Ry. ~hairman, Brecon & Merthyr Ry., South Hetton Coal Co. Director, Guest, Keen & Nettlefolds (coal). Total directors, 8. SwanseA HArBoUR TRusT. Operated by municipality. Porr Tarsor Ry. & Docks Co. See under D. A. Thomas. In the northern and Yorkshire fields, the docks are controlled to a large extent by the North Eastern Railway, and by the Tyne Commissioners, a municipal body. There are, however, some private piers controlled by the larger producing companies. (¢) Shipping.—~The amount of interrelation between coal and iramp shipping is believed to be very large, and certain examples may e found 1n the lists of prednsing companies, and also among the dealers, but on account of the manner in which shipping business is conducted it is not possible to give a definite estimate as to the extent. The firm of Burrell & Son, of Glasgow, may be taken as a good example of operating methods. They are managing owners for 26 cargo steamers, each one of which, for the purpose of limiting liability in case of collisions, etc., is owned by a separate company. An individual might easily, therefore, own shares in one or more of these and not in the others, and except in infrequent cases, they are private companies, issuing no reports, and giving out no information. {f) Consumers.—Except for coal distributing plants and certain zas and electric companies, the amount of British Go ps invested in coal consumers in the Mediterranean is relatively small, and examples of interlocking directorates between these and the coal business are not frequent. There is much British capital in South America, however, particularly in the Argentine railways, many of whose directorates are almost entirely British; but the coal trade, although it is believed to be interested, is not conspicuous in the directorates. With the exception of the Rothschilds, we find no English directors on any important French railway and none at all in Greece Italy, Algiers, or Tunis. In Spain there are several, but no coal men on any important line. In the Argentine railway companies we find only the following: Director, Buenos Aires Great Southern Ry., Buenos Aires Western Ry., Equitable Trust Co. (London). Mortgage Co. of the River Plate; chairman, Dcean Coal & Wilson's, Primitiva Gas Co., Buenos Aires; director, River Plate Trust, Loan & Agency Co.; chairman, Wilson, Sons & Co. Director, Central Argentine Ry., Forestal Ry., Powell Duffryn Steam Coal Co., Primitiva Gas Co. A E. Bowen... 590 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. There are none in Brazil. oo . Among the lighting companies are the following interrelations: See foregoing. Coal exporters; agents for Rome Gas Co. Members of this firm also interested in Malta & Mediterranean Gas Co., and Ottoman Gas Co. Director, Danish Gas Co., European Gas Co., Framwellgate Coal & Coke Co., J. Bowes & Partners: (coal producers), Pelton Steamship Co., Rodney Steamship Co. A. E. Bowen....... oo Stephenson, Clarke & Co. R. S. Gardiner... (3) ORGANIZATION AND OUTPUT OF THE CONSOLIDATED CAMBRIAN CO. AND THE AFFILIATED INTERESTS. NUMBER AND EXTENT OF HOLDINGS OF D. A. THOMAS IN COAL MINES. DOCKS COALING STATIONS. SHIP LINES. AND DISTRIBUTING AGENCIES. Mr. D. A. Thomas, the leading member of the Consolidated Cambrian Co., is probably the most important single figure in the South Wales coal trade. A list of his directorates from the latest information is given below and the individual properties are treated in detail, _ It will be observed that several of the subsidiary companies are simply selling and distributing agencies for the producing companies, some of them being organized under the laws of foreign countries. This is partly due, it is thought, to the fact that in many cases the depots, etc., owned by the subsidiaries were paid for in whole or part by stock of these companies and partly for reasons connected with the income tax and other corporation laws of foreign countries. [nstances are known where foreign countries have attempted to force English companies operating under their own name to pay faxes on their entire earnings, regardless of what percentage of the operations did not come under the jurisdiction of the foreign country. Amaral, Sutherland & Co. (deputy chair- Gueret, Gait & Co. sg man). Imperial Navigation Coal Co. (chairman). Anglo-Argentine Coal Co. (vice chair- Jos. Williams & Sons, Merthyr (Ltd.). man). . L. Gueret (Ltd.) gloputy chairman). Anglo-Spanish Coaling Co. (chairman). Lysberg (Ltd.) (chairman). Britannic Merthyr Coal Co. (chairman Naval Colliery Co., 1897 (Ltd.) (chairman and managing director). and managing director). | Cambrian Collieries (managing director). Plysson & loshary InsUranas, Consolidated Cambrian (chairman). Pt. Talbot Ry. & Docks Co. Cynon Colliery Co. Rhymney Iron Co. Ebbw Vale Steel & Iron & Coal Co. (vice Societa Britannico Italiano Gueret. pram Lo Societe General d’Houilles et Agglomeres, Fernhill Collieries (chairman). Paris. Glamorgan Coal Co. (chairman and man- Status Investment Trust. aging director). Taff Vale Railway Co. Globe Shipping Co. , AMARAL, SurHERLAND & Co. Capital, £60,000. This is a selling company maintaining bunker depots at Rio de Janeiro and Rio Grande do Sul, Brazil, and also operating in the Argentine through connection with Anglo-Argentine Coaling Co., see (p. 591), Directors: ] Other affiliations: T. J. Callaghan, chairman... . Deputy chairman, Naval Colliery Co. (890); chairman, Anglo-Argentine oaling Co.; director, B Ry. Co.; chairman, Gueret, Gait & So. Societa Britannico Italiano Gueret; director, Bocieta General d’'Houilles et Agglomeres. Paris. MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS, 501 AMARAL, SuTHERLAND & Co.—Continued. Directors—Continued. Other afiiliations—Continued. D. A. Thomas, deputy chairman. See foregoing, Augusto Amaral. . 8. aa O'Callaghan Director, Li. Gueret (Ltd.), Albion Steam Coal Co., Anglo-Argentine Coal Co., Gueret, Gait & Co. Director, Li. Gueret (Ltd.), Albion Steam Coal Co. W. S. Jones.... mgs Sim The stock holdings of L. Gueret (Ltd.), Callaghan, Thomas, and the O’Callaghans give them control. ANGLO-ARGENTINE Coarrne Co. Capital, £200,000. Only about £30,000 actually paid up. A selling company operating in the Argentine and maintaining a bunker depot at Buenos Aires. Directors: Other affiliations: T. J. Callaghan, chairman ....... See foregoing D. A. Thomas, vice chairman. ... See foregoing. R. W. J. Sutherland. ...... —_— S. H. O'Callaghan . See foregoing. P. H. Thomas Director, Consolidated Cambrian, Cynon Colliery, Duffryn Rhondda Colliery, Glamorgan Coal Co., Naval Colliery Co. (1897), Southern Brazil Electric Bo. W. 8S. Jones...... I L. Gueret (Ltd.) owns 2,570 shares and Amaral, Sutherland & Co. 2,000 shares out of the 5,000 issued. ANaLo-SeanisH Coarine Co. Capital, £100,000, of which about £46,000 actually aid up. P ‘This company controls bunker depots as follows: Oran, Ms operated by Societa Franco-Anglais de Charbonnages (a French company). Cadiz, Spas, operated by Deposito de Carbones de Cadiz (a Spanish comany). Barcelona, Spain, operated by Deposito Flotante de Carbones de Barcelona (a Spanish company). . Valencia, Spain, operated by Deposito Flotante de Carbones de Barcelona (a Spanish company). . . They do a large business, and at Cadiz are completing the installation of a modern plant with mechanical transporting facilities. Directors: Other affiliations: D. A. Thomas, chairman. ........ Ses foregoing, E. Plisson, Paris and Cardiff...... Shipowner Sout 20 steamers); director, Imperial Navigation Coal Co. Morgan & Cadogan (coal exporters); director, Cambo. Shipping Co., Deposito de Carbones de Cadiz, Franco-British Trading Co., Nantdyrus Colliery Co., Plisson Steam Navigation Co. (see E. Plisson), Polmanter Steamship Co. {4 steamers), Societa Franco-Anglais de Charbonnsge. Kendall Park, Barcelona...coe.. R. Bosch y Alsina, Barcelona. ... R. Miracle, Barcelona. .......... ——, Thomas, Plisson, and Cadogan are the largest stockholders. Britannic MErTEYR Coan Co. Capital, £300,000, Entire stock of this company owned by Consolidated Cambrian, see below, Directors: Other affiliations: D. A. Thomas, chairman...c..e... See foepily H. S. Berry.. ‘seeees. Director, Globe Shipping Co., Iraperial Navigation Coal ., John in {Merthyr Tydfil) (Ltd.). T. J. Evans... 592 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. BrrranNic MERTHYR CoAL Co,—Continued. Directors—Continued. Other affiliations—Continued. L. W. Llewelyn..-- - - Director Consolidated Cambrian, Cynon Colliery Co., Fernhill Collieries, Glana Coal Co., Naval Colliery Co. 1897). 0. A. G. Pullin...ecc--G. L. Thomas... CamBrIAN Cornieries. Capital, £400,000. 99 per cent of common and 96 per cent of preferred have been acquired by Consolidated Cambrian, see below. Directors: Other affiliations: J. H. Thomas, chairman... . Director, Consolidated Cambrian, Glamorgan Coal Co. Director, Consolidated Cambrian. Director, Consolidated Cambrian. See foregoing. See foregoing. ConsoLIDATED CaMBRIAN. Capital, £2,000,000. Controls practically all the stock of Britannic Merthyr Coal Co., Cambrian Collieries, Glamorgan Coal Co., Naval Colliery Co. (1897). Production, about 3,000,000 tons per year. Directors: D. A. Thomas, chairman......... F. 8. Cartwright E. A. M. Innes.. L. W. Llewelyn. T. H. Riches. . I. 4. Thomas.. P. H. Thomas. Other affiliations: See foregoing. See foregoing. Director, Glamorgan Coal Co, See foregoing. See foregoing. See foregoing. See foregoing. Cynon Coruiery Co. Capital, £100,000. Production, about 180.000 tons per year, Directors: J. Railton, chairman Other affiliations: Topham, Jones & Railton (contractors); director, Duffryn Rhondda Colliery Co. Director, Duffryn Rhondda Colliery Co. T. P. R. Richards (Ltd.) Soul exporters); director, Duffryn Rhondda Colliery Co. Swansea Steamers (Litd.) (own two small steamers). See foregoing. See foregoing. Director, Coytrahen Park Colliery Co., Rhondda & Swansea Bay Ry. Co., Jon Phillip Rhondda Colliery Co., Baldwin’s (Ltd.). Eesw VALE STEEL, IRON & Coan Co. Capital, £1,400,000. A large and important company in both iron and coal trades, Directors: Other affiliations; Col. Sir C. Allen, chairman... Director, Carlton Main Colliery Co. D. A. Thomas......-. See foregoing. J. W. Beynon. Director, Fernhill Collieries; chairman, Newport Abercarn Black Vein Steam Coal Co., T. Beynon & Co. (coal exporters); director, Bhyone Ry. Co., West Somerset Mineral Ry. do, Chairman, Alexandra New ort and South Wales) Dock & Ry. Sou director, Rhymney Ry. Co., Grand Trunk Ry. fCapsdal United Ry. of Havana. F. Mills, managing director...... Digsstor, ewport Abercarn Steam Coal 0. (This Smpay was reported in June, 1916, as negotiating for a controlling intereat in Powell’s Tillery Steam Coal Co., see p. 576.) J. P. Jacob, managing director... W. G. Morris. . ... . T. P. R. Richards MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 593 FernuiLL Coruteries. Capital, £200,000. Production, 700,000 tons per year. Directors: D. A. Thomas, chairman..... J. W. Beynon.... L. F. Beynon.. Other affiliations: : See foregoing. See Ipesiee Director, T. Beynon & Co., Nerpns Abercarn Black Vein Steam Coal Co. Director, Namo Abercarn Black Vein Steam Coal Co., T. Beynon & Co. Director, Newport Abercarn Black Vein Steam Coal on T. Beynon & Co. -«--.. See foregoing. GramoraAN Coir Co. Capital, £375,000. Practically entire capital acquired by Consolidated Cambrian, see (p. 592). Directors: Other affiliations: D. A. Thomas, chairman and man- See foregoing, ging divertor, Ww 1. lewelyn.. E. A. M. Innes.. J. H, Thomas. P. H. Thomas. See foregoing See foregoing, See foregoing, See foregoing. Grose SHrering Co. Owns two steamers. No other information available. GUERET, Garr & Co. Capital £3,000. Has varied activities, including sale and chartering brokerage, bunkering and sale of coal (bunkering at American ports for H. N. Hartwell & Son, J. T. Whitney & Co., and Willard Sutherland & Co. American firms), Directors: Other affiliations: T. J. Callaghan, chairmar See foregoing. D. A. Thomas....... See foregoing. S. H. O’Callaghan.. See foregoing, A.J. Gait...., N. McCallum............ a — L. Gueret (Ltd.) and A. J. Gait each own 100 shares out of 300 issued. [urerIAL NAvieaTion Coan Co. Capital £150,000. Production, 225,000 tons per year. : Directors: Other affiliations: D, A. Thomas, chairman. ........ See foregoing. G. W. Harrap, vice chairman..... J. Andrews, managing director... H. 8. Berry.. . T. Jones.. BE. Plisson. Director, Albion Steam Coal Co. See foregoing (p. 591). Colliery proprietor. See foregoing (p. 591). L. Guerer (Ltp.). Capital £200,000. In addition to being apparently a baiting company, it acts as sales agents for Naval Colliery Co. (1897) and with J. Andrews for the Albion Steam Coal Co.; also manufactures patent fuel and imports mine timber. Directars: Other affiliations: T. J. Callaghan. See foregoing. D. A. Thomas...... See foregoing. ‘ 2. F. O’Callaghan............. See foregoing, Ww. 8. Jones....... Sir H, Mackworth.. LysBErag (LtD.). Large coal exporters and ship brokers, Closely connected with Plisson (see Imperial Navigation Coal Co.). Sole sales agents for Glamorgan Coal Co. and Imperial Navigation Coal Co.” Extensive connections in France. Nava CoLuery Co, (1897). Capital £200,000. About 85 per cent of capital acquired by Consolidated Cambrian, see (p- 692). Directors: Other affiliations: D. A. Thomas, chairman..... .. See foregoing. T. J. Callaghan, deputy chairman. See foregoing. W. L. Llewelyn......c........ See foregoing, Sir H. Mackworth. ——— P. H. Thomas. .... See foregoing. 27941°— p71 218 OQ 594 BEPORT ON COOPERATION IN AMERICAN EXPORT TRADE. PLissoN & LYSBERG INSURANCE. No information obtainable, probably a private company. Port TaiBor Ry. & Docks Co. Small but important railway, cherie loading docks at Port Talbot, and connecting these with some South Wales collieries. Directors: Other affiliations: Col. J. R. Wright... Same as W. C. Wright. . 8. H. Byass... Director, South Wales Mineral Ry. Co. Earl of Dunraven... G. Lipscomb. J. J. Smith. Director, South Wales Mineral Ry. Co. Chairman, Norths Navigation Collieries (1889). See foregoing. Director, Pyman, Watson & Co. (note), Fialdan Collieries. South Wales Mineral Ry. Co. Note.—The apparently allied interests of Pyman, Watson & Co., Pyman Steamship Co., London & Northern Steamship Co., Raithwaite Steamship Co., J. Ww. Pyman, and Pyman Bros., control a total of 32 cargo steamers. REYMNEY IRON Co. Capital £1,000,000. Operates furnaces, iron mines, coal mines, and coke ovens. Annual coal production 1,300,000 tons. Directors: J. Varley.. Sir E. Clarke. T. G. E. Lewis Other affiliations: Banker. Mexican oil companies. Director, International Coal Co., Lewis Merthyr Consolidated Collieries. See foregoing. ? A. H. Ramsden-Tagore D. A. Thomas... Col. H. E. Tyler. 0CIETA BRITANNICO ITALIANA GUERET. . Offshoot of L. Gueret and Gueret, Gait & Co., organized to look after their Italian business: has depots at Genoa, Savona, Leghorn, Naples. Venice, and Spezia. Societe GENERALE D’HOUILLES ET AGGLOMERES, Paris. Operates briquetting plants in.France and depots at Calais, Havre, Rouen, Bordeaux, Marseilles, and other French cities; also at Tunis and Vizerta. Srarus Investment Trust. Capital, £50,000, of which about £38,000 fully paid. Has very wide powers, and can’ engage in practically any business, including banking, . Directors: J. Davies. . Other affiliations: . Davies & Hailey (coal exporters), director Cambrian Rys. Co. C. P. Bailey —— A. Leighton... — + T. E. Morel... ... Morel (Ltd.) (coal exporters), D. A. ThOMAB.eumeeeermnenansess = Thomas apparently has a one-tenth interest. Tarr VaLE Ry. Co, Very important coal carriers in South Wales, Directors: Other affiliations: Sir J. Weston-Stevens, chairman. Director, London City & Midland Bank, Guest. Keen & Nettlefolds gosh. G. B. Forrester, deputy chairman. Director, Albion Steam Coal Co. C. H. Cave... .. Banker and insurance. M. Cope...-.- we... Colliery owner. H. R. Homfray "” Director, Insoles (Ltd.) (large coal exporters). Director, Lewis Merthyr Conoolidated Collieries. See foregoing. A. McArthur....... E. R. Moxey... D. A. Thomas........-... H. G. Vasall.... H WwW. K. Wai* MISCELLANEOUS DATA CONCERNING FOREIGN CORPORATIONS. 595 Certic CoLrierirs, Capital £400,000. * } Production about 250,000 tons. This company is recently reported as having passed under the control of the Thomas interests, but the last list of directors (1915) is as follows: . Directors: Other affiliations: Sir O, Philips, chairman......... Chairman, Elder-Dempster Lines, 5 Line (7 cargo steamers), Royal Mai Steam Packet Co, Evans & Reid (coal exporters). : C. E. Evans... D. Jones. .. P. Poore. ......... 0. H. Williams. Director in various Elder-Dempster subgidiary lines, Taz ELpEr-DeMPsTER and Royar MAIL interests control the following: British & African Steam Navigation Co., Elder Line, Imperial Direct Line, Lamport & Holt, Nelson Line, Pacific Steam Navigation Co., St. Thomas Dock, ngineering & Coaling Co. (West Indies), Union Castle Line. In addition to these companies, D, A. Thomas is reported to be president of R. Martens & Co., of London, New York, Petrograd, and Paris, who are recently reported a8 being interested in the export of American coal. (4) ADDITIONAL FACTS AS TO COMBINATIONS AND INTERRELATIONS IN THE COAL INDUSTRY OF GREAT BRITAIN WHICH AFFECT BRITISH COAL EXPORTS. Other activities in the British coal and shipping trades that have not been touched on in the foregoing are marine insurance and private cars. There are few shipowners or brokers who do not engage to some extent in the former, either as insurance brokers or underwriters, sometimes as both. Lloyd's is composed of individuals and groups of individuals, and a policy will frequently have 2 or Jara signatures, each for a small amount of the face value of the policy. Avery large volume of the coal movement is carried on in private cars, both from the collieries to tidewater and also to inland points. These are controlled not only by the collieries themselves, but also by merchants, both wholesale and retail, and it is not at all unusual for even small retailers doing a ‘‘wagon’’ trade to have a few. This can be done without a very great outlay of capital, as the bulk of the cars are four-wheeled, not over 10 tons capacity, with a maximum of 25 tons; few are fitted with air brakes, and the couplings are link and hook. We also find the coal trade somewhat interested in car trusts. The following is a list of directors, with their affiliations, of the Wagon Finance Corporation, the only one of these bodies to whose records we have access: Directors: Sir A. B. Markham, M. P.. chairman. Lord Aberconway..... R. Armitage, M. P. W B M Rird Other affiliations: See Brodsworth Main Colliery Co. (p. 582). See Tredegar Iron & Coal Co. @. 577). See Brodsworth Main Colliery Co. Director, Bullcroft Main Collieries, Ox-Spat Colliery Co., Stavely Coal & Iron y 0. H. Westlake... __ .+. See Brodsworth Main Colliery Co. Apart from the quality of her coal and her geographical situation, England's position in coal export trade may be definitely ascribed to an adequate and cheap supply of marine transportation. A so-called ‘‘tramp’’ steamer ne a cargo to the United Kingdom must, in most cases, take a cargo of coal outward or go empty, and so coal cargoes are eften taken at rates that barely pay expenses, just to provide ballast for the outward voyage. In America the 596 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE. reverse is the case, and coal, a ‘‘low-grade’’ raw material, must compete in the freight market with case oil, ¢otton, sugar, and grain— particularly the latter. These commodities can afford to pay, and o pay, freight rates that make them more lucrative to the shipowner than coal, and it is a common occurrence for a coal charterer to.be told by a shipowner: ‘Wait until we have exhausted the possibilities of the grain market and if we can not find anything for our steamer, then we will consider coal.” TasLe XIV.—British coal industry—Production and exports, 1918, by fields, [In tons of 2,240 pounds.) Fleld. South WaleS..eseeunns Northern...ceeeeevesas Torkshire..veeeceeceee vancashire....cceaeeree Midland.....ceceeaeeee North Wales. ....ceuzs Other English......... 8300tCH.eenceacnrennn.-Irish. reece. Total. ceeosascess| Production. Exports. 56,830, 000 36, 352, 000 74,195, 000 24, 628, 000 4, 016, 000 3,506, 000 5,346, 000 12, 457,000 23 000 29, 876,000 43,524, 000 987,413,000 | 73,400,000 Percentage of production. 19.8 30.92 Percentage of pxports to production. 50 8 18.0 28 B Percentage of total exports. 0. 7 8.8 TaBLe XV.—British coal industry—Ezports, 1918, by destination. IIn tons cf 2,240 pounds.) Destination. Algeria l....... CHAAR [taly...cooeaaner tw S00 STEER Austria....- [— 3reece.....- [Rp Bulgaria. ... iremeasmuassessesssar Bouman, cc cccvivrreerionsnncnvnnmarsunvanansavenswnr Turkey, European... TR — Turkey, Asiatic. . coon Egypt?.......- ERR Tunis!......... SRR Gibraltar 3. ro. Malta } Total, Mediterranean 3... Par cont Pert.... conven Chile. ..... Penal] wenssnns TUZUAY «ev eue-Arrentine... Total, South Ameriean. ......._.._...._.. Per cent... Grand total. Per cent... France............ Spain and Canaries... ToBI. .vurasrsrr-cansmnrreareacosme ovary Per cent... South Wales. 746,000 5. 565, 000 322.000 386,000 20, 000 201,000 124,000 137,000 .,983, 000 168.000 231.000 RRM OND 10, 463.00, RR 244,006 1,619, 000 609,000 2 105 O00 5,879.0" Rs. 5 16,342 ° 2 0 238,0 . All other United Kingdom. 536,000 1.082, 000 735,000 342,000 37,000 51,000 9, 000 -9, 000 29,000 21,000 124,000 190 HY 7.338,00 | A1 © uw, OL . 145.000 268,000 115,000 100 000 1,0 (2 14 0 rp Ty 0 Total. 1,282,000 9,647,000 1’.057,000 798, 000 57,000 252,000 213,000 156,000 162,000 192, 000 355, 000 700. 000 17. 801.000 47,000 589,000 1,887,000 724,000 =. 604. 000 - 911.000 1 712. 000 000 649.000 25.000 i Practically all used for steamship bunkers. 2 A very large propariios for i ¢ France and Spain are omitted from Mediterranean figures on account of lack of available statistics as to proportions Shipped to Atlantic coasts where, ordinarily, American coals are not competitive for geographical reasons. e should estimate that a very large proportion of the French business is noncompetitive. To a lesser extent the same is true of Spain. MISCELLANEQUS DATA CONCERNING FOREIGN CORPORATIONS. 597 TaBLe XV.—British coal industry— Exports, 1918, by destination—Continued. [In tons of 2,240 pounds.) Destination Russia... ridsbnmniar’ bu Sweden. . . NOIWaY.eae. .e Denmark...eeeve- wma ROIMANY.. cccveccvossocrensnncncrssconsacssencaci-nen Netherlands.... vo Belgium...... y Portugal .. Total...coameerrs--Per cent... South Wales. £60, 000 217, 000 114,000 35,000 ELON 2 a (RD (NH) All other United Kingdom. i,438,000 4,346,000 2,184,000 2,999,000 3,657. 000 1,903, 000 1, 548.000 420 0 Total. 5,908, 0Q0 1, 563, 000 2, 208, 000 *1 034,000 1952, 000 "018, 000 1031, 000 «' 202. 000 30, 096, 000 The above figures are inferesting in that they show the effect of geographical position on the distribution of exports. [ 4