Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-20

should have all the main factors as
members. AS English producers are not
in the steel cartel, it has very hard
race to run in Europe, to say nothing
Of American competition.
Has Ended Dumping"
1t has already functioned most sat-
isfactorily, however, in eliminating
dumping" and in. limiting excess pro-
duction. Total. production is not finally
fixed; it varies according to the fiat of
board, committee of four" which
adjusts the total to circumstances.
When the unit world sales organization
and the price level have been worked
out as satisfactorily as have other prob
lens, if this is possible of attainment,
the steel cartel will have demonstrated
its success. The recent quota disagree
ments do not spell failure; they repre-
sent merely the friction naturally at
tendant upon fractional adjustments in
any union of independent interests.
AS a general rule international cartel
organizations are attempted in such
shambles of competitive warfare and
mutual warinesS that efforts at union
meet with understandable initial diff
cultieS. Cartels that do not consist of
associations of different nationalities,
Oub WilACIl dkC DdoSu upOU agreements
between comparatively few undertak-
ings in new branches of industry and
upon the utilization of specific patents
under license, are more easily formed
and apparently have longer lives. A
number of international cartelS have
been formed on monopoly right basis
in the chemical. ctro-technical, metal,
petroleum and other industries
Why U. S. Has Had No Fear.
What Europe has most sorely needed
Is a technique for economic union in
broad industries across political bound
aries. and it is obviously that tech
nique which Is now being forged, with
much heat and flying sparks. Produc-
ton quotas are readily agreed upon, for
after all they are statistically calculable
from the relative positions of the in
dustries, but agreements upon the more
subtle factors involved, unit world sales
organization and price levels, come less
easily. And therein lies the real secret
OF why America has not yet had much
to fear from the cartels. For in price
and in selling European industries in
most cases are weaker than those of
America, with their business technique
and mass production.
The great new chemical cartel, oper-
ating in dyeStuffs and fertilizers, and
comprising France as we'll as England
and Germany, which had previously
combined. is now organized after many
long delays. There is reason to believS
that the Germans have agreed to with
draw from the French field altogether
when export trade develops, the Ger
man chemical trade being still so per
cent below prewar volume.
England'S great dye interests were the
last to sign the agreement. Swiss dye
stuff interests are negotiating for entry
and Belgium chemical organizations
also are expected to be brought in.
The vital quota divisions for produc-
ton. the formulation of which has taken
long time, are: France, IL per cent:
Germany, rs per cent; Great Britain.
Is per cent. AS in other international
cartels, the home markets are reserved;
and in addition there is an agreement
to purchase from other members such
dyeStuffS as are not made nationally.
The exchange of process information is
also provided for between France and
Germany, but in this England does not
agree. 1t is also stipulated that colonies
and protectorates are to be regarded as
export markets. England thus yields a
very important point.
Price methods form a most delicate
subject, and no plan as yet has any
official confirmation. If the experience
of other cartels is a guide. there will
(Gpntinued on Fifth Page.)