The International Cartel Movement

Report Outline
Types of International Cartels
The Leading International Cartels
National Governments and International Cartels

A new “trust problem” of world proportions has been raised by the formation of international combinations and cartels and the rapid expansion of their operations since the World War. In banking, manufacture, transportation and mining giant mergers have been carried out, and international cartels now link up leading industries in all parts of the world.

Curtailment of production, price agreements, joint selling arrangements and delimitation of markets by private interests have never been attempted on so wide a scale before or assumed such political, economic and social significance as is given them by the operations of the international cartels. Factors contributing to this world-wide movement toward industrial centralization, combination and coöperation have been the development of mass production, over-expansion of plant facilities, lack of capital, dumping, ruinous competition, customs barriers, new political boundaries and changes in control of raw materials. It represents a “get-together movement of businessmen of all lands” to counteract the disruptive effects of the war upon commerce and trade, and to help themselves where governments and legislatures have proved incapable of remedial action.

Post-War Development of Cartels

Prior to the World War, 114 international cartels were known to be in existence, most of which were limited to two or three adjacent or neighboring European countries. They were distributed as follows: