The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-09-29
GERMANY DOESN'T
MIND TRUSTS
Continued from Page 81

some generally desirable end is to be
attained point out, as has Gustav lie
Bon, that
Socialism is much less dangerous
in reality in it's absolute form than
when it takes on the aspects of sim
pie projects of amelioration by regula-
ting labor. Under it's absolute form
one sees the dangers and may control
them. Under its altruistic form one
does not see them and it is accepted
easily"
The German courts have repeatedly
ruled, according to Richard Calwer,
the socialistic writer, in his Cartelle
und Trusts, that the syndicates do not
violate the principles of trade liberty
as they tend to protect the interests
of the whole nation against the selfish
ness of individuals, and to protect the
products of industry from the many
disadvantages which arise from price
cutting.
Under these rulings absolute or par
tial monopolization by many cartels
has been brought about, the national
output being reduced, with a conse-
quent lifting of prices to a remunera-
tive level. The danger point would be
reached, from the point of view of the
law, should a cartel of this character,
on the possible refusal of one outside
producer to accept it's terms, under
take by unfair means to drive him into
! its fold or crush him if he refused it's
terms, and the difficulty of the prose
cution would be to prove that any such
result had been contemplated, even
though it's effect had been attained
German Cartel Unlike American
Trusts.
The very forms of commercial or.
ganization most common in Germany
and America correspond to the Nemper-
amental qualities of the two peoples.
In Germany the commercial trust or
cartel, is usually a federation in which
! each member retains its commercial
identity while abandoning its free
dom of action to the federation for a
contractual period of 3 or or 10
years or perhaps longer, but expect
ing eventually to get it back, AMI then
perhaps make another contract if the
results of the first have been satisfac-
tory. A German cartel is, as rule,
open to all those who submit to its
provisions, and the control of the men,
bers is confined to the limits traced
in the federal pact. In the typical
American trust, instead of this asso-
citation of units with influence usually
rated according to productive capa-
city, who observe generally me per-
manent ownership of large part of
the enterprise by small grouD II per-
sons in which there is ordinarily some
dominating personal element.
The basic notion of the German Or
ganizer has been to control production
definitely, leaving it to the resource
fuJness of the individual producers in
the cartel to make moro or less profit
lcut of the proportion 81 the produc-
ition allotted to them; the oasic no.
ticn of the American organizer has
been, usually, to create a perfected
and consolidated instrument, success
following naturally as raesult OF lis
welI-balanced and sllillfmlly organized
proportions. German caltel organiza'
ten has contemplated that all its
constituent firms should remain in
business; American commercial cen
tralization usually has meant that the
weaker or for any reason undesirable
clements should go out CT business
suggesting that the strong native in
Idividualism of our people rises to the
surface even when an effort tending
toward pure collectivism is attempted
Opinions of the German Courts.
Having thus discussed the subject il
its broader aspects it will be interest
ling to read a few extracts from the
decisions of the imperial supreme
court, from which can be gathered
the rights and duties of business com
binations in Germany, rather than IN
the statutory law, which is silent on
the question.
The court, after acknowledging thai
foreign countries mentioning author
titles in France Russia ami rhe United
States) follow contrary principles
bases it's opinion that it is to the bene
fit of the public that prices should
be kept in normal state on the fol
lowing argument (Ciyil S., BID. IS
1859:
"If in any branch of business the
prices SO decline that a profitable