El Paso herald. (El Paso, Tex.) 1901-1931, 1910-08-16

Id ERLIN, Germany. Aug 16.-The
III industrial development of the
German empire dates from 1880,
the year after the first protective tar
if was enacted The same genius for
organization, the same capacity for
thoroughness, the same subordination
of the individual to the collective will
which characterized the rehabilitation
of Prussion military power under Won
Moltke and which obtained Prusian po-
litical dominancy under Bismarck we're
applied to the problems of industrial de-
velopment and trade expansion. When
German union was accomplished in
1871 and when it had been made per-
manent, as Bismarck thought, by the
forcible repression of the social demo-
cratic party, the whole attention of the
state was turned toward its industries.
The Protective Tariff.
The first movement was the erection
of a protective tariff wall about the
country This resulted in relieving the
German manufacturers from foreign
competition. and permitted the appli-
cation of the Prussian system of org
anization to business. As was planned
and expected, there was an immediate
tendency toward combinations of rival
concerns resulting in the present sys-
tenn of cartells and syndicates, which
German industries as do the trusts to
American industries. The radical differ
ence is that the German trusts were
fostered and encouraged by the state,
while the American trusts have had to
encounter at least the pretended en-
nifty Of the government.
In Germany cartel is an organiza-
ton for fixing prices and determining
conditions of sale, but leaving its COM
moment
vidual Judgment, and to make much or
little profit as the case may be-
The German syndicate is a more
highly organized concern 1t acts as the
sales agent of its affiliated concerns
and not only fixes prices but through
the pooling system exercises control
over the distribution of profits German
business. men, leading their own system
OF syndicates and cartells pretend to be
Mortified by the mere suggestion of the
possibility Of forming in Germany
trust of the advanced Amexican type
However, the board of trade of the
city OF Essen, a quasi-public associ-
alton. has recommended seriously the
amalgamation in Germany of the coal
and steel syndicates, suggesting that
such merger by negotiating an agree
ment with the American steel trust
would be able to rule the whole world.
As a matter of fact the differences
between the German syndicate and the
American trust are even greater than
Is apparent on~~the surface The Ger
man combinations were brought into
existence by the deliberate and we'll
considered action of the state, while the
American industrial combines have re-
suited partly from economic evolution.
partly from special public privileges
and partly from special private privi-
leges. Germany made its laws in ad-
vance and required the industrial COM
bines to shape themselves to meet the
requirements of the law while the
United States has not succeeded in dis
solving and has not tried to regulate
its trusts.
The German trusts" are made the
beneficiaries of tariff laws. ship sub
sides. and otfser special legislation en-
acted for their particular encourage
ment: but they are prohibited from
preying upon weaker organizations
within the confines of the German
states. The German syndicate is per-
mitted and encouraged to incorporate
in itself every concern interested in any
particular industry, but each individual
concern must be taken in on terms OF
absolute equality. 1t is not permissible
for a syndicate to crush a small inde-
pendent competitor. The guaranteed
rights of the small concern are pro-
tected by enforced and enforcible laws,
both on the statute books and in the
code of accepted business morals.
State Control of Railroads.
The state owns or controls absolutely
every means Of transportation, and