Evening journal., 1918-04-27
Selected from ilankcrs' Information

The following authentic report on the
trend Of affairs IN German Industries
was prepared by G. d. Snow. assistant
chief OF the Bureau Of Foreign and
Domestic Commerce and represents
what Is probably the most comprchen-
sire statement Of German industrial
plans which has appeared
There are two outstanding features
or the organization of German com
merce as developed during the war and
as proposed for the period after the
war ono OF these Is the great con-
cehtration OF business. in banking as
ln manufacturing and merchandising.
me other is ine probability Of the for
hation OF large number OF govern
hent mOnopOlies In Germany.
mo berman cartel system-the sys.
TEN OF DIG pools of manufacturing con
Germs chieily those engaged in what
are known IN Germany as the heavy in
uustflcs iron, coal chemicals, cement.
sugar, alcohol, etc.)-has been much
taiAed OF 10 this country during the
war period. The cartel idea ran an
through the German Industry so IA
as the manufacture and sale of the
more standardized products are con-
cerned. The cartels were originally
formed for the control by agreements
or prices, the adoption of uniform price
lists, the limitation OF production and
determination OF the distribution OF ont
put As concentration had increased i'm
some of the more important cartols or
sNndicates common sales departments
Tor entire cartels had come into being
and IN some cases there We're common
centralized purchasing departments. The
cartels worked up funds for offensive
ana defensive purposes The stronger
carteis, particularly those chiefly inter
ested IN large-scale expectation. early
adopted definite cartel policies for ex-
port
In war time the concentration OF in
diNidual concerns IN cariels and the
concentration OF the individual cartels
into bigger cartels or syndicates prc
ceeded with much more impetus than
IN ordinary times. a new phenomenon
appeared, IN the formation Of the so-
called syndicates or compulsory car
tells. The government had entire con-
troll over all the Industries that had
particular war significance. This in
ciuded not only the industries that were
working on war orders, but an the
other industries that made heavy de-
mands on coal and transportation. The
government early in the war-after 10
became apparent that the German eN-
peciaiion OF quick and complete Vic
tory could not be realized-tOok the
steps mat We're deemed necessary 20
economizc in coal. transportation, raw
materials. and labor. one form OF ac-
c0mplishlng all these ends was 10 close
Funfarfaa fu
and concentrate the production in such
factories and. such centers as were
economical. In some cases it was re-
ported that an the factories in given
town would be closed up under such
an order II the machinery could he
used To- better advantage elsewhere. the
machinery was transferred where IL
was most needed The work peopIe
We're In demand for various kinds OF
WORK, were steered by the officials to
the places where their services were
most needed The Industries working
on war goods were, OF course. even
more closely under the domination OF
the military authorities than the others.
The manufacturers i'm the different nil-
itary districts soon became accu-
90 have their prices for their pro
fixed by the commanding generals
with hnes and Imprisonment for any
breach OF orders. The government It,
self formed certain big government COM
panies, such as the War Grain Com
pany TO control the grain trade, which
thus became a government monopoly.
and the many raw materials companies
working under the War Ministry.
Naturally. the compulsory syndication
OF the various industries was not car
ried through without Vigorous protest.
The Industries which had been pariicu-
larly free from syndicatiOn in the past
had been without syndication for some
good reasons, and voiced those reasons
as strongly as possible where the Min
isiry of the Interior and The military
commanders instructed them Co form
syndicates. One conspicuous example
of this was IN the leather industry,
where twenty-nine manufacturers unit
ed 20 oppose syndicatiOn The govern
ment granted a posiponement OF the
date OF syndicaiiOn, but gave no ae-
Acknowledgement as Co the permanent
abandonment OF The idea with refer
ence 90 the leather industry Appar-
entity the first industry which was con-
centraied in a compulsory syndicate was
the boot and shoe manufacturing indus
try BY government orders there had
been both In 1918 and IN 1916 consider
able concentration of particular indus
tries. but not In the definite form of
syndcaies. The boot and shoe syn
dicaie Is under Imperial control, and
a representative Of the Imperial Cham
cellor attends It's meetings Hundreds
OF factories were closed under the au-
ihOrity of The advisory committee.
which may rcQulsilion for a syndicate
company the plant materials, and fin
lshcd goods OF any manufacturer.
Provision is made for an equalization
fund 90 recompense in part the COM
panies whose plants are closed or dis
manlled. Under the central authority
of the advisory committee there ap-
peared a number OF big syndicate COM
panies. each with a given area deter
mined by the Chancellor.
Following the syndicallon Of manu-
featuring Of boots and shoes came the
syndicatlon OF the trade in boots and
shoes, The retail dealers being compul-
sorily formed into big distribution COM
panies, and it was only those big COM
panies that could distribute In 1918
it was reported that the government
was contemplating still further con-
ceniration OF the shoe trade by which
three-fourths Of an the shoe stores In