New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-11
Combine Cuts Prices so
Pc, ,Compels Exporters
10 Bring Merchandise
Back and Cease Rivalry
SHINES Is BACKING
War for Business
Piers Are Crowded With
American Goods; Many
Branches i'm Liquidation
rom The Tribune's Vushi,t0toc Rureo,,

From The Tribune's Washi,dton Bureau
WASHINGTON, Aug. 10.-Surprising
information, now in the hands of Sec
fetafy of Commerce Hoover, shows, it
was declared to-day, the remarkable
success the German manufacturing ex-
porters' combination is meeting in re-
building The foreign trade of their
country in South America and other
fields by ousting American business.
The effectiveness of the German in
dustrial campeign to capture 60 per
cent of the worlds commerce bv the
time the war indemnity is liquidated
is reflected in number Of recent re-
ports sent to Secretary Hoover by
agents Of the Commerce Departm ent.
The latest Of these tell of the disap-
pearance of American statesmen, liuui-
dations Of American branch houses and
United States Of goods pling up in
South American custom houses.
The slump in the trade of the United
States is reported to be particularly
keen in Argentina. The reason is at
trlbuted directly to underselling bv
Germans and Belgians, who have re-
cejved large orders. particularly for
textiles, steel, paper and hardware, at
prIces averaging so per cent below
the Americans best quotations.
report from the governments COM
mercial representative at Buenos
Ayres, dated July 27. declares there
American goods except for necessities
such as oil we'll equipment, railroad
supplies, textiles and Office supplies.
Ihere are few statesmen from the
United States and many American
branch houses have gene into liquida-
tion.
"The American goods that have been
congesting the custom house are being
llquldated slowly or returned to the
United States"
Cnderbidding in Brazil.
Underbidding by German firms is
also reported to be having deadly eff
tect in Brazil. During July forty-nine
ships brought cargoes to Rio dc ia
nero. Of these five had general car
goes from the United States, while
seven were from Germany.
conditions of extreme depression
have continued during the month OF
July" declares late report from the
commercial attache at Rio dc Janeiro
German imports have been reduced
but the trade representatives are very
active. They continue to offer prices
20 to % per cent lower than those
offered by American firms, especially on
electrical goods, iron and steel products
and CHEMICALS
although five important American
houses arc closing their Offices at Rio
de Janelro on account Of the deprcs-
sion, this policy does not seem TO be
advisable"
These turns in the South American
commercial field are all said to be
traceable to Hugo SHINES, Germany
picturesque industrial dictator, who is
welding all the industries of his coun-
try in one huge machine designed to
capture the worlds commerce. More
evidence of the length of Stinnes's &C
tivtics is contained in another report
dealing with the acquisition by Ger
man company, said to be backed by
him, of an oil concession on the coast
of Argentina about forty-iive miles
north OF the famous Comodoro Riva
davia fields. German equipment 81
ready has been unloadcd on the spot
and preparations for the exploitation
arc stated TO be going forward rapidly
That Secretary Hoovcr's department
is keeping its fingers on the pulse OF
Germany's huge industrial attempts is
him from Berlin telling Of the large
expansion Of German shipbuilding COM
panics during the last financial year.
Many Increase Capital
!. The combined capital of these TWEEN
tv-six companies is about 230,000,00(
marks. their loans and mortgages about
81 900 900 marks and reserves about
52 1000 900 marks. Many of these com
panies recently have increased then
capital grcatly-for example, the Atlas
Werke, from 100000 TO 25,ooo,OoC
marks; the Deutsche VERT, from
10000, 900 to 30,0OO0O0 marks; the Ho
waldswerke, from 100000 to 2l,000.
600 marks: the Vulkan- Werkc, from
$4,000, 900 to 2OO00,O00 marks, and the
Schffswerft und Maschinenfabrik A
G.. (formerly Jansen E. Schmilmski1 J
from 100000 to 11,0O0,000 marks. Sew
eral of these companies recently have
issued preferred shares, with as many
as twenty voting rights in some cases
in order to prevent foreign control
1t has been shown that the dividends
during the last financial year increased
considerably on the average, in some
cases being from 5 to 100 per cent
higher.