The evening times., 1900-03-29
THE OCTOPUS IN GERMANY.
Trusts in Soap and snfetE Fuses Al
ready Founeg

ready FOrmed.
Consul General Richard -Guenther has
transmitted to the State Department from
Frankfort an interesting report on the
soap trust in Germany. During the sum-
mer Of last year, he writes, trust Of the
soap manufacturers Of the sRhenlsh prov
inces, Westphalis OldeBbuEg and Bremen
was formed, with the obieet Of establish
ing uniform prices for Soft soap. The in
tention was to extend the trust so as to
embrace all the German manufacturers Of
soap and soon those Of Hesse, Hesse-Nas-
sau. and the Palatinate Joined. and uniform
prices were also established for hard soap.
which resulted in an advance Of about IA
per cent over former rates.
In the endeavor TO force ali manufactu-
rers to join the trust, certain methods
were employed which have been made the
subject Of legal proceedings. II is al
legged that manufacturers who did not join
were bOycOtted.
Essential raw materials for the manu-
facture Of their products are palm oil and
potash lye. The number Of importers OF
palm oil and OF manufacturers of potash
I've is limited, and efforts were made by
the trust to enter into an agreement with
them not to sell to soap manufacturers who
were not members
These efforts were directed mainly
against the association Of soap manufac-
turers OF Stuttgart, who proved important
competitors. The association was invited
by the trust 10 join. under favorable terms;
on its refusal it was threatened that II
circular Of the manager of the trust It
was stated that for the suppression OF
competition a remedy had been tried which
promised 10 be entirely successful. II was
soon demonstrated what was meant, as
all palm-oil dealers refused 10 sell 10 the
Stuttgart association, although many OF
the firms comprising the association had
fOT years dealt with them. Some OF these
palm-oil dealers stated openly that the
soap trust had prohibited them to sell to
the Stuttgart association.
The same method was tried with refer
ence TO potash lye, but was less successful,
for the association succeeded in making
contracts covering the year 1901. Com
plant has been lodged against two OF the
directors OF the trust with the prosecuting
state attorney al Stuttgart. and the decis-
ion OF the court will be OF great interest.
Concerning the safety-fuse trust IN Ger
D
Z from Leipzig
The eight safety-fuse manufacturers OF
/ Germany and the one Of Belgium. at a
meeting In Berlin on the Goth OF October,
I 1899. formed what may be called a safety
! fuse trust which went into effect on the
I lst day OF January. 1900. These mauufac-
/ turers have been compelled to take this
I step in order TO protect themselves as a
result OF competition. The idea Of pooling
] their interests was not a new one with
/ them; indeed. they we're only perfectiug a
| plan which was started in 1880. when they
entered into an agreement not TO sell
] fuses except At uniform prices. First one
manufacturer and then another broke the
| agreement in their effort 10 secure orders
| until in 1893 the manufacturers declared
| war upon each other. with the result thai
/ fuses we're in many instances sold below
1 the actual cost OF production.
| This state Of affairs practically con
| tinued until the 1st Of this month. when
| as ] said before. the new crust went into
effect. Now, fuse manufacturers are con-
| fIvnt that there will be return Of good
| times and OF their ability 70 make hand
| some profits. who reas heretofore they have
| been compelled 10 run their factories at q
| loss.
The trust does not fx the mark Fl price.
[ for fuses In all countries. In the United
| States. Mexico. Italy, Africa, Russian Po-
| land. and England they can be sold with
| out regard TO the prices which have beer
! hXed by the trust, This is. Of course. Il
| order 10 allow German fuse manufacturer,
to compete with those OF other countries
As an immediate result OF the formation
OF the safety fuse trust. the prices in Ger
many have advanced about p per cen
D since the first OF the wear"