Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-04-30
TALKS Of CARTEL PLAN
IN EUROPEAN TRADE
J. E. Davies Says United States Must
Meet Conditions or Confess
Weakness.

CHICAGO, April Scatter describing
the workings of the European cartel
system Of trade organizations to MEM
bers of the Industrial Club of Chicago
at banquet here last night, Joseph E.
Davies, chairman of the federal trade
commission, told them: 1T would be
a confession of unf1tness II this coun-
try should be unable to meet conditions
such as these in the world trade
Mr.. Davies said, in part:
I'm international commerce a dis
tinctively significant fact Of recent
years has been the appearance Of the
international European cartel in for
eign trade. The cartel system of Or
ganization in Europe preserves de-
gree of independence as we'll as an ele-
ment of cooperation among the units
which go to make it up, and differs in
that way from consolidation, or merger,
characteristic of the American form of
capitalistic corporation organization
Purpose Is to Fix Prices.
1T nevertheless effects combination,
the object and purpose Of which are,
frankly. to fix prices, control the output
and divide territory. not only in intra-
national commerce. but international COM
merce as well.
Within the last few years prior to
the war there occurred a practical
obliteration of international boun-
The products of the international
wall paper cartel. composed of Ger
man. Austrian, French and English
factories, up to the precipitation of
States and Canada extensively. Prices
were fixed upon these articles. binding
upon the dealers. by this cartel. Aus
trian, English and italian producers
organized a graphite cartel. which con-
trolls the trade on all lead pencils
which bear the designation "Faber."
France, Italy and Switzerland were
practically controlled in the electrical
industry by the German electrical
ufacturers who had working
agreements with Canada, Russia, Fin
land. Holland. Belgium. Sweden. Nor
way. Denmark, Switzerland, Turkey
and the Balkan states Again. the
manufacturers of glue, the silk dyers
the manufacturers of sewing thread,
the producers Of zinc, the manufac-
turers of agricultural implements and
hardware and the dealers in diamonds
had international cartel agreements.
Conditions for Consideration.
These are conditions which in the
readjustment of world commerce.
American industry and enterprise must
consider If American foreign trade is
to develop consistent with the great
hess of our resources our people and
our opportunity"
In speaking Of monopolies as they
| exist in American. MIR. Davies said
Generally speaking, self governing
peoples of the world have held in
dustrisl private monopoly to be in
dustrial tyranny and Incompatible with
seh-government. In the South African
Union the republics of South America,
New Zealand and Australia, Canada
and the United States monopoly is for
hidden.
"A significant fact in this develop
ment has been that under these widely
differing conditions which prevail in
these different parts Of the earth there
has been practical concurrence in the
development of this policy among self
governing people. and the policy of
each seems to have been developed
practically Independent of the other"