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

Continued From First Page)
| be rigid agreement among the chemical
cartel members to observe indicated
minimum prices. A unit world sales
and distribution organization is now
being set up all over the world mar
ket. A single sales office will be estab-
lished at each important center, thus
materially SlaShing sales and distribu-
ton costs. One line of ships, for in
stance, will be used exclusively.
The European market unqueStionably
will be divided by agreement between
the member countries. Exact per-
centage divisions of the market are at
present merely tentative and still are
being kept secret.
The great international rayon cartel,
in which England and the Italians
have predominated heretofore, now is to
include the French rayon makers.
American mills already have been set
up by this huge cartel which has pros
pered more than any of the others.
Further cartelization is indicated
The liveneSS of the cartel method is
further illustrated in the formation just
month or so ago of a $500, 000, 900 in
ternational public utility combine, or
cartel-the Trust Financier de Trans
ports ct d'Entreprises Industrielles. 1"
Uniquely, this cartel is headed by an
American living in Brussels, Dannie
Heinenann, and Is financed by many
leading America bankers.
Mercury Cartel Formed.
A mercury cartel also was recently
formed by agreement between Italian
producers and the Spanish government,
resulting, incidentally. in higher prices
Which brings up the subject of cartels
or monopolies fostered or aided by gov
ernments.
The outlook for such government
fostered monopolies was dimmed ma
terially by the failure of the Stevenson
plan for rubber control by England,
which ceased on November /. The
coffee valorization situation in Brazil
Is also due for setback, according to
experts, as the price has been raised
in the face of the largest crops on
| record.
Chilean nitrate is lost monopoly;
| while the potash interests, in which the
French government is interested, had
to abandon their amazing attempt to
claim immunity from our antitrust
laws. on the ground that foreign gov
eminent, as an integral part of car
tel, is exempt in the United States from
amenability to its laws, according to
diplomatic traditions and practice.
What pretty sight that would have
been-a foreign cartel doing in Amer
lea what American business men are
forbidden to do!
COlIaborative System.
The latest development or applica-
ton of the international cartel prin-
ciple is collaboration" rather than
physical merger, or even a produc-
ton ALLEGATION scheme. This collabor-
alton Is to be in the matter of methods
and efficiency, interchange of expert
ence and statistics This unique form
of cartel If it can be called such, Is
an outgrowth of the International
Management Institute, organized at
Geneva. and is composed of depart
ment stores. Six of Europes largest
stores already are in the group-Har-
rods of London, Printemps of Paris
and others. It is like the Retail Re-
search Association in America, but on
an international scale. and group buy
ing will doubtless be one of its ac-
tivities
Another collaboration" is that of
the Martin thinner Lederwerke, A. G.,
of Germany, with Alpha, Ltd, of
Switzerland, with subsidiary interests
in India, Java, Paris and America.
This is in the leather industry. There
will be a physical merger, but col
liberation" will take the form of doing
business under their own names, as in
other cartelS.
Situation of America.
Will the international cartels hurt
American trade and prosperity? There
is no decisive answer. Lord Melchett,
visiting here recently, declared that he
was sure that they did not menace
| American trade. President elect
| Hoover has warned us, however, that
the recuperation of the world will re-
| quire, inevitably, more intensive COM
petition; but he also wisely added that
the worlds consumption is going to
expand greatly. And this is, in my
own opinion, the real key to the stu
alton.
do not believe the cartels will hurt
America much, If at all, especially If
our tariffs are studied closely and ad-
| justed to meet really menacing situa-
lions. So far they have done very
negligible damage, indeed. There was
great alarm at first that the chemical
cartel would injure our comparatively