Evening star., 1921-06-17
FRANCO-GERMAN COMBINATION
TO CONTROL INDUSTRIES SEEN
Pooling Resources Expected to Follow
Conference Gould Undersell u. S.
Brands Shift Explained.
By Gable to The Star and Chicago Daily News.

By Cable to The Star and Chicago Daily News.
Copyright, 1921.
PARIS. France, June 1.-THE most
formidable industrial combination in
the world is foreseen here by some as
the possible result Of the Loucheur-
Rathenau conversations at Wiesbaden.
between the French and German min
listers of reconstruction on technical
reparations matters. but these gentle
men represent par excellence the big
industries of their countries.
1t is believed arrangements for the
economic cooperation of France and
Germany which has been Paris gos-
The Paris newspapers. though re-
served, hint that these conferences
eventually may result in "close
| Franco-German cooperation" This
would mean, according to the inter-
probation most prevalent here, a huge
cartel" or written agreement. BY
which industrial France and Germany
will supply each other freely with
raw materials and sell under a COM
mon "'.'iHrstanding.
Krupp Underbids World.
This scheme would create a for
-.fitor for American for
eign trade In many lines, but chiefly
stnn"e the krupp
works are already underbidding the
Oh iarge contracts
! because of the low production costs
| resulting from the excessive deprecia-
tion OF the mark, which. it is said,
was artificially depressed by German
big business" FOR this very purpose
German industry in certain lines is
now feverishly active, while. on the
other hand. French industry is Ian
Mo hi
nation of business men. more. or less
Independent of politics, has been dis
cusSed here for many weeks under
the stimulus of large French indus
trial interests. These assert that the
french and German interests in COM
petition might ruin each other. as
| they are dependent upon each other.
Could Agree on Prices.
For instance. France. as a result
OF the war, has most Of the iron;
Germany has most of the coal. They
have become. since the war. serious
competitors for the first time in the
same lines of production. Why not.
ask the French industriaIists. pool
forces. the Germans guaranteeing to
France all the needed coal. and
France guaranteeing iron for the
Westphalian smelters? Then they
could agree on selling prices. bids
and general commercial methods.
Thus Germany, which is now able to
undersell France, would be permitted
to raise prices to the French level.
Or. the Germans. when necessary,
could underbid the French minimum
In order to kill of competition and
agree to pool profits and losses.
1t Is evident that such a combina-
tion with a policy directed by the
French and with technical matters
controlled by the Germans. would be
able to underbid the American in
construction Of railroads and public
power stations in South America. The
potentialities of such q combination
are infinite. 1t might become a COM
petitor of British industry or the
latter might be admitted. Although
it might bring in its train political
consequences leading, perhaps, to a
close alliance. 1t may be considered
as a substitute for a Franco British
alliance.
Brands Change Of Policy.
An eminent French diplomat in dis
cussing the Franco-German parleys
said:
From a general political point of
view 1t would be puerile to belittle |
the portent of this interview, which |
is the second time since 1871 that a |
French and a German minister have ,
met face to face. 1t is an effort to
try a new pollcy. Until now france
has counted chiefly on constraint to
insure the execution of the peace
treaty-the so-called Ruhr menace.
But. as France was unable to OBJ
tain the unreserved support of the
allies in this policy, and as French
efficacy Of the proposed action. no
other recourse remained to NJ. BRAND
save to attempt to win from Ger
many's consent and good will what
could no longer be demanded from
Germany by obedience alone. 1t is
has marked M. Brands recent
speeches. the particularly conciliat-
ing tone Of which has caused sur
prise here after the bravado OF the
previous month.
at is practically certain that the