Evening star., 1928-03-04
By JOSEPH b. PHILLIPS.

- II pays dividends. That truisn
has given reason TO- the count
i less assertions by ilfdustrialists
from Berlin to Brussels and
Paris, that the tendency of European
industry toward International combina-
tions III the form of cartel agreements
Is the framework for a structure of in
ternational peace. 1t lies also at the
heart of the still nebulous creation upon
which much oratory and ink has been
showered--a United States of Europe" ="
The reason for and justification of
the cartel movement were to be found
in the map of Europe left by the
peace conference. From that map.
drawn to political hypothesis rather
than economic facts. sprang another. of
q Europe sliced and mutilated by alb
normally high tariff walls. Behind them
smoldered and famed the old ma
fional antagonism and jealousies. Across
the dangerous barriers of the two the
cartels of industry have drawn new
lines Of alliance based upon mutual
need.
IndustrialiStS First.
The heads Of the great producing in
duStries OF Europe are industrialiSts
first and peacemakcrs after. They are
no more inspired by illuSory dogma for
ccctoring the postwar world than their
prototypes west Of New York. Yet their
followers in both the civil and political
fields gradually are finding powerful
instrument in their work for the weld
Ing OF sound peace.
The fact that industry and not peace
making was the moving factor of the
cartel is emphasized by the critical lit
erature that has grown up along with
the movement.
mo international cartel" saws one
paragraph of this literature, "is stronger
than its Belgian link. Your Belgian in
6ustrialist, caught between France and
Germany. has learned to drive one Of
the hardest international bargains you
ever saw The Belgian motto Il, We
are not satisfied" 1t was applied to
that country by Charles N. Hallinan.
II could be fitted as we'll into any other
national boundaries on the European
side Of the world.
1--WE Are Not Satisfied"
We are not satisfied" was the secret
OF that stirring OF industrial giants
which has given the cartel signifl-
cance. political as well as economic. IN
the task Of reconstruction.
There were three sources OF dis
markets and the remnants of wartime
snimosities still lurking in political
memories Obliterating the first two
has made inroads upon the third.
NationakSr1, which remained intensely
bcllicose. shackled the efforts of peace
makers and cost European industry
much In lost profits Fighting TO over
come economic difficulties through the
cartel. industry has accomplished
task before which governments faltered.
Today the great producers in two or
more EUROPEAN countries are known TO
be operating under cartel agreements in
the ma jority Of the heavy. mass-produc-
tion interests. and In numerous s7fcial-
tied industries. There are cArtels Eor
rails. steel forms. tubing5. bolts and
screws. dyestufis. cement. Tie cartel
agreements controlling the production
and marketing OF electric light bulbs
and OF looking glass are remarkable for
their strength. A cartel has been formed
70 acquire and use the Owens machines
fer blowing bottles. The aluminium car
tel. which has had sensational past
snd at one time Included the aluminium
Company Of America. has been re-
formed since the war.
Most OF the 30 or more cartel agree
n1ents In effect before the war among
ti.e marine transport companies nave
h-an revived. The North Atlantic
6 eamship Conference and International
r'"rcantile Marine are examples Of their
r.esent power There also are cartels
e..ercisirg various degrees Of contro!
orr production marketing or prices Of
R,fIc. copper zinc. aagn2sia. wire tacks
snd rolled wige.
siany CarteIs Formed.
Ty> long battle in every corner Of
- xnrid between English and Amer
~ I'll companies has produced many
ts:.e! agreements. Eight months ago
- izfgcai German synthetic chemical
~ sy2sts completed an agreement with
'ne t"o lc4ding Engio-Saxcn oil COM
r,c fc- pooling Of patents and pro-
o;~tlon c! synthetic petroleum An
-. ,fg2ent unequaled In potentiaiities.
T9s agreement In existence before the
Wy betwccn the General Electric Co.
ss.I The German A, z. q. was revived
- 1870. and vas extended TO include
+. Jag 81 patent processes. The cartel
O. fan3z@C 70 take over the Nobel pat
f'4j@ .cr the manufacture Of explosives
= o.lc Jf the strongest In existence. Be-
te4,&c nucil of It's WORK Is for the go"-
s-n:nentS concerned. IL is one about
Es'EI4 lA%lJ| As Ei%C6b
the agreements In vogue today are
oi three general classes They may be
iuf the protection of domestic markets
sDo he division o! sales In other mar
Eets They may attempt price fixing.
ciTectly Or by control OF production.
Control anc fzing Of production quotas
LeE. IN practice, been one Of the essen
t.@is Of virtually every agreement IN en-
l>t@nee.l The third type provides for
the pooling of patents and commercial
+ l-Dcessts.
New al the word Is IN daily parlance.
the International Industrial cartel Is not
postwar innovation. Such eJmbiua =
tons may be traced back " 1893 Forty
cf more we're IN existence during the
c'pSing decade of the last century, and
~ were known " be IN effect at the
outbIeak VI the war Cartsls before the
NsF were considered from the purely
economic view II is the part they have
p'ayec IN the political scheinf whicn
hsS attracted attention ~ them since
tlIt var
Little Known Of Them.
C'nff ilan the tact III their ex3<tI.nce,
very bttie Wss Known II the eaIiy m
cAhtf.sl alliances Tney were hec!efig",
sDinetln1es fUrtye. Popular imagination
%bs s1sspEp'hE 81 anything BEARING the
LaiTt of gigantic coinblnstjoIls and great
tfHlceiatfsnons u Industrial power
Lartels CID htt!e advertising AID nc
blasting Me. ii them faded away al
'ne f3fst sign II armed comhst. feH
kJr9lFeG the waf.
Ihf sSigebcles of reconstruction.
plsEeC many institutions which wete
regarded with skept.cis,n Il decace ego
oE. wss washed Xhitef than The
FsEIei H0Tld markets were in CHAOS
1gncnhnprs were effatlc FTi,durtlou
Atstfipped buying power. Dumping
-. I'd High tariff wsilk arose ~ pro-
'.t national Industries from tne egiie
&, ljlth dumping by suffciJed raflgnLoIs
NY ot the producing Industries n
ny cDuDtTy, particularly those en-,
Z -2eG IN tie uLEks uICuILClilLl II AehN