New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-23
A WORLDWIDE TRUST
INIERN4TIONAL STEEL
RAIL SYNDICATE.
Special agent Finds That american
and European Nils Divide Ter
T1tOry, Despite Denials.

washington Jan. 22.-The existence of an in
ternational steel rail syndicate which was de-
MED by practically every steel man who tes-
titled at the Ways and Means Committee
tariff hearings is vouched for by Charles NJ
Pepper special agent of the Department of Com
merce and Labor who has been investigating
trade conditions in Germany. in compliance with
an act of Congress-
This syndicate. according tc Mr.. Pepper IS
an intangible but potent factor in the steel
rail industry throughout the world, and un-
doubtedly controls the entire trade in that prod
uct 1t Is understood" says Mr.. Pepper. In his
report to the Secretary of Commerce and Labor
just transmitted to Congress- that the rail syn
dfcate includes American. British German
French, Belgian and Spanish mills. Under it
germany has special privileges in the markets
OF sweden Norway and Denmark. 1t also keeps
out OF the United States, while dividing with the
mills of the United States and with Great Brit
aln' France and Belgium the South American
territory"
The report also says that at the present time
there are International syndcates in several
products. The German coal and coke svndi-
Gates have an arrangement with the Belgian
coke syndicate by which French territory is d-
vfded between them, and occasionally the syn
olcate in one country will sell to the other coke
for delivery in France. Some of the interna-
tionai syndicates are little more than price con-
NentlonS, Hnle others relate to partition o
territory"
In view Of the denials made by the more
prominent members of the steel industry in the
United States that there such thing as an
international syndicate. the Investigations of Mr.
Pepper will be eagerly scanned by those who
have held that an international combination has
for some years been Sitting all competition in
steel rails. Mr. Pepper does not go very deeply
into the question in his report, but it is under
stood that he has indisputabe proof of the
istence of the syndicate arrangement
Mr.. Pepper. who could not be seen tonight,
is the growth of the last quarter century and
ahead of Great Britain and has become second
ton In 1855 the production in Great Britain
was 1884 600 tons: in the United States il
4,1O90 600, and in Germany 3,6S7000 metric tons.
BY the end of 1907 the relative position of the
three countries, which produced 81 per cent Of
the worlds raw iron. was: United States, 2e.-
1914 600; Germany. 13O46.O00 and Great Britain.
10Os3 900 metric tons.
Germany has taken advantage OF every trade
condition 10 make her steel products i'm
portant factor in the world market. and II Is
the opinion of Mr.. Pepper that from now
Germany will continue 10 become more dan
gerous rival to the United States
It will be recalled that IN the recent govern
rnent suit against the Powder Trust a division
OF territory similar to that revealed by Mr. Pep
per in the steel industry shown to have
been arranged and respected by big American
and European powder companies. Under that
agreement foreign powder producers kept out of
the United States.