The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-01-29
But American Business Success
in Foreign Venture Needs
Cooperation.

Is Of serious and great interest to note
that a very substantial part Of these
who declare that such cooperation
should not only be permitted, but
should be encouraged, are equally EN-,
phatic that this situation should de,
velop under federal regulations, so as
to assure not only that the domestic
market and the domestic consumer
shall not thereby be prejudlced, but
also that all American manufacturers
shall have fair play and equal oppor'
tunity In foreign business.
Equally important with domestic
considerations in connection with for
eign trade-perhaps even more i'm
portant to its successful projection
is the kind and character OF competi-
ton that American trade will be re-
qulred to meet in foreign fields. Typic-
al illustrations Of the effectiveness
and comprehensive character Of for
eign methods might be Illuminating.
"a combination OF non-competine
manufacturing plants Of Great Brit
ain, for instance. are equipped to es-
Itablish, and have established joint
selling agencies, with branch offices
and warehouses, and with such effec-
tive organizations that they are equip
ned to handle any kind Of service
within their lines, from the sale OF a
handsaw to the building OF a railroad
Ring Business.
Much of the Oriental business OF
Germany is alleged to have been ac-
quired through so-called rings which
include representatives of every kind
of industry whose goods or services
might be required. The markets are
scientifically studied and assiduously
cultivated. In n OF these rings,
forty-eight different German manufac-
turers participated. Its organization
with the local bank and home bank
connections was complete. 1t had
within its organization facilities for
selling to a Chinaman a five cent file,
or for planning, financing, and COM
peting the industrial development OF
an entire province, opening harbors,
building railways and telegraph lines,
sinking mines, erecting factories. in
stalling light and power plants, and
v to clothing the people and mar
keting Of their products.
but still more significant than these
isolated instances are the suggestive
activities which a survey Of interna-
tional commerce will disclose. Some
Of these facts are. briefly these
prior to the war, in Germany APP
proximately 600 cartels or manufactur-
ing and selling syndicates, OF a high
degree of Indignation in industry and
capacity, were protecting their activl-
ties into foreign markets. 1t is gen.
erallv recognized that at the same
time there was approximately 1870 in
ternational cartels OF a similar char
acter; and it may occasion surprise
10 know that the control of a smelling
and refining plant in Colorado was
owned by such a little known inter-
national organization.
AT the University OF Kiel there has
existed, and does now exist, an insti-
tute for the study Of world trade, sub
sidized by the imperial government of
Germany, and organized with a corps
of highly trained economists.
1.-THE imperial government of Japan
has projected its enterprise into for
eign countries, with its government
m%onopolies Of salt, camphor and to-
bacco.
"These manifestations of activity in
Europe and in the Orient are indicat-
i've of the kind and character Of COM
petition that will be met in foreign
trade in the future.
Subsequent to the val these condi-
tons will be emphasized and activities
will be intensified by the spur OF eco
nomic necessity in some OF the nations
of Europe.
Strong Initiative.
"Under conditions such as these,
the embarkation Of American enter
prise into foreign trade and the main
tenance Of its rightful place there. will
require the strongest initiative and the
highest order Of business intelligence.
There is much misrepresentation as
to the application of the antitrust
laws to foreign commerce. OF course.
as a matter Of fact, there is no greater
restriction upon American business in
the foreign fields than the law i'm
poses as to domestic. Nor does the
law forbid cooperation in either do
nestle or foreign commerce except
where 1t amounts to a restraint of
trade or a monopoly or a tendency TO
create a monopoly. The census taken
by the federal trade commission, di-
rected to a very large number OF bust
ness men Of all classes, discloses that
the great body Of opinion in such
is that cooperative effort in
export trade is prohibited by the law.
Our investigation discloses that more
than half OF the men who answered
our inquiry stated it as their under
standing of the law that cooperative
enterprise In export trade is prohib-
tied V as to noncompeting articles
"a situation where ordinarily there
would be no competition to be re-
strained. 1t is a fair statement Of the
fact that our Investigations disclose
that doubt as to the legality Of such
in the foreign fields
amounted in many instances to a pro-
hibition Of any action in the foreign
market. This belief is undoubtedly
one Of the factors in the situation
which hinder the development Of for
eign trade at this time.
at is the opinion Of the federal trade
commission that enterprise in foreign
trade should not be impeded by con-
+his L;nd Tn tho ohcanca