Evening star., 1944-09-09

Cartel Note to Hull
Seen PuzzIing to Many
Writer Asks il Administration
Seeks Federal Trade Control
By Dorid Laurence
VIII the New Deal be able to per-
suade the other governments of the
world to put their businessmen under
antitrust laws? Will the foreign gov
ernments which have themselves been
maintaining carte,s give up their mo-
nopolies?
These questions are suggested by the
rather remarkable letter that President
Roosevelt has just written to the Secre-
tary of State asking him to keep his eye
on the whole subject of International
cartels because we are approaching the
time when discussions wiz amost Ger.
tainly arise between us and other na.
tions"
For several months now the admin
istration has been blasting away at
private cartels as they have related to
the Axis powers. But very little has
been said about the cartels permitted
by Great Britain, Brazil Holland and
other countries. 1t will be recalled
that President Hoover conducted q cru
sade against the price fixing maneuvers
of the British-Dutch rubber monopoly
and the coffee monopoly 0f Brazil as
well as certain govGnment-supported
cartels in European countries. But his
crusade failed because the United States
Government has no way OF compelling
other sovereign nations to adopt laws
| similar to ours.
Letter Seen Puzzling.
1t is, therefore, puzzling to see Presi-
dent Roosevelt writing letter in which
he states definitely that cartel prac-
tices will "have to be curbed and that
this objective can be achieved only by
collaborative action by the United Ma
tions"
1t the President really intends to un-
dertake this mammoth JOB of reform
ing the business practices Of other gov
ernments as well as the citizens OF
other countries, he will certainly be bit
ing OF large chunk. 1t may be, OF
course, that this is merely . step on
the part of the Roosevelt administra-
lishnent of the biggest cartel in the
worli, namely, the American Govern
mems complete control of its own for
eign trade.
FG it might well happen that If the
othG governments of the world de-
clind to restrict their own citizens or
to stop financing and otherwise sup
porting government cartels, the admin
istrstion here-assuming Mr. Roose-
velts re-election-might take the posi-
ton that tn order to compete in the
word there must be American cartels
Then, inasmuch as the New Deal does
not believe in any monopoly except those
entirely controlled by the New Deal
itself, the next step Is obvious. The
cartels would have to be Government
controlled in America, too.
The division of trade throughout the
world, and the ALLEGATION of territories
so as to avoid competition as between
areas and regions is one Of the oldest
problems in foreign trade. Unquestion-
ably, American producers and shippers
have been at disadvantage because
many Of these foreign cartels have di-
vided up the trade of the world between
themselves and would like Americans
to come In only under certain reciprocal
conditions
Congress recognized this dificulty
more than 20 years ago when 1t enacted
the Webb-Pomerene law granting to
American producers the right to COM
bine and consolidate and fix prices to-
getfHr whenever they were up against
foreign combinations. Undoubtedly
som, American businesses became so
entsngled with foreign cartels that
when Axis governments wanted to get
information, they tried to do 1t through
some of their business sources in the
United States.
| Cooperation rs Cure
This is political aspect which can
be sured by a greater cooperation be-
tween the War and Navy Departments
on the one hand and our businessmen
on the other, SO that the latter would
never be duped or deceived by requests
for economic information that could be
used against us in a military way.
Il certainly does look as If there is
great deal more behind the Presidents
letter to Secretary Hull than appears on
the surface. For it doesn't seem pos
sihe that the Roosevelt administra-
tioo thinks it can persuade Great Brit
air or Holland to give up their monopo-
lies in rubber. and Brazil its monopoly
In coffee. Nations which have control
of raw materials will insist on fixing
thdr own prices in the world markets
conpetitively as they have before and
all,cating their own production.
!, Certainly the Russian government for
many years has conducted practically
all It's trade through a government
corporation. Maybe that is what the
Roosevelt administration Is planning.
Only the first step in the scheme has