The Alaska daily empire., 1917-09-04
Withdrawal of German and Austrian Merchants from Italy Opens
 New Markets.
DEPEND UPON THE U. S.
Crimp Is Put into Much Vaunted German Trade with People of the
 Italian Nation.

ROME, Sept. f. 4.-(Correspondence of the Associated Press)-"The gap left by the withdrawal of German and Austrian merchants from Italy is gradually being filled by American products" said H. P. Benton, an American who has for many years been manager of one of Italy's larg- est department stores, but if the Americans wish to hold this trade they must get around to extending credits and catering to the trade by making small-lot sales.
 q do not mean that Americans should do business like the Ger mans, because they cant. German business was often a losing propo- sition. The loss was made up in many cases by direct subsidies of i twenty-five per cent. to German firms pushing German goods. I know personally of big firm in Milan that handled German hosiery. By having this line of goods manufac- tured in Germany in it's own shops instead of in Italy, it received this subsidy and therefore undersold not only Italian but English competi- tors.
 "SO you see, the vaunted German business methods were not really business at all I think this subsidy arrangement must explain why the German turned out such a lot of poor grade goods. His big object was to make sales under all circumstance es. The more sales the more sub sidy.
 Now, at present, America is the only country which can supply many of the articles needed here. There fore, if her wholesalers demand cash at New York. the Italians must pay or go without the goods. But this system does not tend to build up steady trade So soon as these merchants get the opportunity, they will buy in France or England, or else make up the goods themselves, as they are already beginning to do. Also, it must be remembered that there are no large combinations of merchants here, that it is a country of small stores, and therefore, whole salers must be willing to sell in small lots. In reply to inquiries, an American firm will send over a handsome set of literature and ask for an order of thousands of articles in question, when the buyer has only dozens in mind.
 "I think the Americans who have looked over the field realize that Italy is really virgin soil conner cially. and offers big opportunities for the establishment of manufac- turing plants backed by foreign capi- tai and worked by Italian labor From this point of view, thorough itly is necessary and possibly long campaign of education to prove to the workmen that the employers interests are his interests. At bot tom, the Italians are gOod-hearted, kindly people and if you get their good will your way is much easier. One must be cautious in making con tracts, and not take their little tricks too seriously
 From a retail point of view, busi ness is now very good. The ma jority of my sales are made to the richer Italians. They are willing to pay very high prices for what they want, and they particularly want for eign-made goods. For this reason American-made goods go well. The American shoes have already secur. ed a fine market here. I think also that the American five-and-ten cent speciality stores would do we'll 9th. CT American specialties like mems shirts, socks. underclothing, ready.