Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1928-03-09

OF France, Germany, England, BEL
GUM and Luxembourg; the operation
of the European Rail Makers Asso-
citation; the completion within past
months of a cartel agreement be-
tween the the French and German
producers of dyestuffs, with Eng
land probably to join later and fur
Their agreements now in the max
ing regarding artificial silks and
nitrates, caught the popular imagi-
nation and awakened Europe to con-
seriousness of the scope and impor-
lance of the cartel movement.
Governments, including the United
States Department of Commerce,
followed the movement with interest
from its inception. 1t was evident
industry in the United States could
not remain continually aloof. Months
ago legislation was reported to be
brewing to facilitate the participa-
ton of American industries in car
tells affecting their markets. For
three years American commercial
agents abroad have kept Washing
ton informed of the major cartel in
progress of formation.
There is a story of a young Amer
lean whose employer detailed him
to confirm the organization of the
great steel cartel year and half
ago. He found the offices in Paris
where the leading French, German,
Belgian and British steel producers
were in conference, saw the cham
payne glasses on the table, was in
vited to drink, and was sent away
with no information.
Nevertheless, within the hour his
cable was in the home office declar-
ing the steel cartel had been formed.
Later he was asked where he found
the leak.
"In America" he said, Eve some
times take a cocktail to sharpen our
wits for a deal. In Germany you
might serve beer while things were
being talked over. When the French
bargain they trade first and toast
when they've succeeded"
When widespread cartellization
began to win attention there was an
inclination to describe it as "aimed
at American industry" and to see in
it a threat to crush United States
competition. Inquiry among Amer
lean representatives abroad in the
large metallurgical and chemical in
.dustries, the subjects of the most
important cartels, revealed that
scarcely an agreement had been
formed without the actual participa-
ton of American interests in some
manner, and that none had been
formed without invitation to the
Americans to join.
Through the holding of stocks or
the controlling interests in European
companies industry in the United
States easily became a part of the
cartel movement whenever its in
terests demanded. Restrictions i'm
posed by Federal laws at times made
participation difficult, but never i'm
possible.
The governments of Europe have
developed definite political policies
regarding the cartellization of their
industries. M. Bokanowski, the
French Minister Of Commerce, sane
toned from the platform such COM
binations as do not tend to raise
prices artificially or Cypress work
ers. German cartel legislation is a
model, and the government has done
much to inspire tie heavy industries
toward cartels erasing as much as
possible the effects of the loss of
territory of great economic worth.
Out of somewhat indefinite begin
rnngs Great Britain is shaping a
clear policy in accordance with
which it believes its industralists
should enter or avoid agreements
with those of the Continent. The
International Economic Conference
at Geneva last spring dissected the
politico-economic connotations of the
cartels with enthusiasm.
The cartel is an opportunist's in
strument. As a business agreement
it usually is loosely knit, flexible.
Unlike the trust, il requires no great
concentration of capital. 1t does re-
quire large concentrations of bust
ness friendship, overcoming the OBJ
stacles of conflicting national senti-
ments.
Despite the Importance it has as
sumed it remains a fragile and vo-
lathe form of international alliance.
Scarcely more than year old, the
steel cartel was all but wrecked at
its meeting last November in Brus-
sells, when the French and Belgian
producers demanded increased sales
quotas.
Less rigidly bound than trusts or
monopolistic corporations, the car
tel is susceptible to the interplay of
national rivalries and all the baro-
metric changes of national markets
and industrial conditions. In indi-
vidual instances its career usually
is checkered. Today two-seore of
the industries suffering from chaotic
markets may have entered some
form of international agreement.
Tomorrow half dozen or more of
them may have sickened and waned
away.
This fugacious nature of their
structure is in one respect their
saving quality. 1t is a barrier
against too much acquisition of
power.
In this regard, the findings of the
Geneva econonnic coufararca a,o II,