A RESOLUTION AUTHORIZING A STUDY OF THE
POSSIBILITIES OF BETTER MOBILIZING
THE NATIONAL RESOURCES OF

THE UNITED STATES

Printed for the use of the Committee on Military Affairs

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1944

CONTENTS

Acknowledgment..

Preface...-.

Economic and political aspects of international cartels:

Part I. Economic aspects----

Principal types of international cartel_

1. The association__

2. The patent licensing agreement_

3. The combine_.

Cartels as devices to control markets__

1. Control over prices.--

2. Impairment of quality..

3. Allocation of trade territories_.

4. Restriction of supply--

5. Allocation of production and of industrial fields.

Cartels as devices to restrict production and technological change.

1. Restriction of capacity to produce---

2. Restrictions upon invention and technological change.......

3. Efforts to weaken independent enterprises..

4. The relation of cartelization to efficiency-

Part II. Political aspects--

Cartels and national commercial policy..

1. Cartels and tariff policy---

2. Cartels and policies toward industrial development..

Cartels and the evasion of national laws___

Cartels and national security.

1. Cartels and German rearmament.

2. Cartels and Nazi propaganda____

3. Forestalling seizure of enemy property----

68

4. Combines in relation to communication and trade with

3. Cartels and transmission of information..

4. Cartels and retardation of strategic industries outside

Germany..

Cartels and economic warfare__

1. Limiting the exchange of information..

2. Evasion of measures taken against Axis trade_

ACKNOWLEDGMENT

This monograph was written by

CORWIN D. EDWARDS

Chairman of the Policy Board, Antitrust Division, Department of Justice The status of materials in this volume is precisely the same as that of other carefully prepared testimony when given by individual witnesses; this information is submitted for Committee deliberation. None of the views expressed is to be construed as indicating the expression of opinion by the subcommittee or any member thereof. (Signed) HARLEY M. KILGORE, Chairman, Subcommittee on War Mobilization.