Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-08-16

BERLIN, August 2.-The modern IN
dustrial development Of the German EN-
pire dates from 1850. the year AFTER the
first protective tariff was enacted. Inc
same genius for organization, the same
capacity for thoroughness. the same SUD-
ordination OF the individual to the col
lective will. which characterized the re-
habilitation OF Prussian military power
under Won Moltke and which obtained
Prussian political dominancy under BIS
marck, were applied to the problems Oh
industrial development and trade ex-
pansion. When German union was &C
complished in 1881. and when 1t had been
made permanent, as Bismarck thought.
by the forcible repression OF the social
democratic party, the whole attention OF
the state. was turned toward its Indus
tries.
The first movement was the erection OF
a protective tariff wall about the coun-
try. This resulted In relieving the Ger
man manufacturers from foreign COM
petition, and permitted the application, OF
the Pr1,ssian system OF organization 10
business AS was planned ana expected.
there was an immediate tendency toward
combinations Of rival concerns resulting
In the present system OF cartells and syn
dicates, which sustain practically the
same relation to German industries as 90
the trusts to American industries: Inc
radical difference Is that the German
trusts were fostered and encouraged by
the state. while the American trusts
have had TO encounter at least the pre-
tended enmity Of the government
In Germany a cartel Is an organiza-
ton for fixing prices and determining
conditions of sale put leaving us e ;Ua;-
ponent concerns free to exercise inoi-
viduaI 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 It's affiliated concerns ana not
ing svsfem exercises control over the
distrihution of profits. German business
men. lauding their own system OF synoi-
Gates and cartells, pretend 70 De hofri-
fed by the mere suggestion OF .ne posi- y,
bility OF forming in Germany q trust OF
the advanced American type. however,
the hoard of trade Of the city OF Essen, q
ouasi-public association. mas recommeno-
ed seriously the amalgamatfon IN Ger
many of the coal and steel syndicates.
suggesting that such a merger by ne
yot;ating an agreement with the Ameri-
can steel trust would be able to rule the
whole world.
As a matter OF fact the differences BE-
tween the German SyuoiCdlS anu eho
American
The German Syndicate trust are
and the American Trust. greater
than IA apparent on the surface. The
German combinations were brought INTO
existence by the deliberate ana Wen con-
s,dered action Of the state. while the
American industrial combines nave re-
suited partly from economic evolution.
nart,v from special public privileges. and
nav tlv from special private privileges.
germany made it's laws in advance and
raou,red the Industrial combines to shape
to meet the requirements OF
the law. while the United states mas not
succeeding In dissolving and has not tried
to regulate its trusts.
The German trusts are made the
Of tariff laws. ship subsidies
ana other special legislation enacted for
their particular encouragement, but they
are prohibited from preying upon weaker
vaccinations within the confines OF the
Gernan states The German syndicate Is
nermitted and encouraged to incorporate
IN itself every concern interested In any
rs IA rticniar Industry, but each individual
CONCERN must be taken in on terms Of alb
soiute equality. 1t Is not permissible Tor
a syndicate to crush a small Independent
The guaranteed rights OF the
small concern are protected by enforced
and er,forcible laws, both on the statute
books and In the code OF accepted bust
ness morals.
every means Of transpostataon. and neith-