inal law contains no provisions against cartels or industrial combinations; and cartels flourish with as much energy as in Germany.

BELGIUM

In Belgium, as in Germany, "cartels" are permitted locally, as well as those of an international form.

OTHER EUROPEAN COUNTRIES

Combinations in restraint of trade are permitted in Russia, Spain, Italy, Switzerland, Portugal, and Egypt.

MEXICO, CENTRAL AMERICA, AND SOUTH AMERICA

Combinations in restraint of trade and commerce are generally permitted in these countries, where the Government runs the monopoly for its own benefit.

An international combination is in force between English and Chilian nitrate operators,-backed by the Chilian Government,-for the purpose of forcing the nitrate producers into an agreement to manufacture only a certain amount of nitrate. The Chilian Government collects a tax on all nitrate taken out of the country, and consequently is interested in the maintenance of high prices. This industry is generally in a flourishing condi

tion, using modern machinery and improved methods of manufacture and practically has the entire world as a market for its output.

CANADA

The Canadian law makes it possible for business men to ascertain from the Canadian Government whether or not their proposed plans for coöperation are within the law. This is of great assistance, and a like privilege in the United States would be of value to our merchants.

In the United States the first duty of the Trusts is to look after the home market, and they often sell their surplus at a lower figure abroad than in the United States. An international combination naturally has a great control over uniformity of prices.

EFFECT OF LOW TARIFF ON COMBINATIONS AND THE EFFECT OF FREE TRADE

In a free-trade country, or a country with a low tariff, high prices or restrictive output would encourage foreign trusts to come in and get possession of trade and commerce.

With this state of affairs, the strong competitors in the United States would seek refuge in combinations,-secret or otherwise,-for selfprotection, and trust to superior efficiency and economy of manufacture in order to eliminate certain classes of competition by foreign Trusts operated by the cheapest of labor.

Unfortunately, many large corporations are over-capitalized, often for the purpose of forcing the basic Trust to buy them out at a stiff figure.

The free admittance of foreign-made goods into the United States naturally decreases the power of nearly every combination operating under the high protective tariff. The power of these combinations is enormously increased by the aid of exclusive contracts for a given territory, and this policy is adopted by international Trusts, and exists to a certain extent in the lines of nitrate,

tobacco, coffee, borax, thread, sewing machines, rails, tubes, oil, nails, some forms of powder, and several other articles of commerce.

In a low-tariff country an amalgamation cannot take any chances on new foreign competition, and therefore it is not advisable to raise prices. On the other hand, the tendency of a combination in such a country is to produce to the limit all that the home market and the markets of the world will consume of its output.

AMALGAMATIONS

In the United States amalgamation is followed by scientific establishments, reduction in office staff, reduction in cost of management, the forcing out of business of many small competing factories, and the result is generally continuous work for employees during the entire year.

A monopoly with unlimited powers to raise prices could soon overcome the burden of reasonable over-capitalization. American corporations have successfully resorted to these practices.

Without coöperation we would have no transcontinental railroads. An individual can run a stage coach, but he cannot build nor operate singlehanded a trans-continental railroad.

When a large organization is composed of a consolidation of many companies the fact that a Trust is in existence is a matter generally known to the public; but the most dangerous of all organizations are those conducted under policies laid out by secret "gentlemen's agreements,"-a frequent occurrence in this country. At meetings, dinners, lunch clubs, clubs, and so on these "gentlemen's" secret agreements are entered into, and a definite understanding is reached as to methods of operation, including output, prices and purchases; and as long as harmony exists among the members