CARTELS IN GERMANY

Press, Volume XC, Issue 27434, 21 August 1954, Page 7

CARTELS IN GERMANY

< I Of Ruhr’ Z( : Back Again” 1 (Special Correspondent N.Z.P.A.) . \ (Bee. 9 p-m.) LONDON, August 20. • Discussing the return to the cartel ( system in Germany, particularly by 1 the regrouping of big steel interests, , the Bonn correspondent of the “Man- s Chester Guardian” says that this will ] result in an exact reversal of Allied i policy in the Federal Republic, which was based on the intention to break ] tip “undue concentrations of economic < power.” i “The Allied High Commission is un- : likely to offer any objection to this J regrouping, which is now fully under 1 way. Its first manifestations have - been the adoption of interlocking ' directorates by major Ruhr steel firms, the purchase of coalmining interests by steel combines, and the systematic exchange of shares in steel companies in order to secure controlling interests 7 for single companies in a number of concerns. “When the Occupying Powers carried out the ‘deconcentration’ of German heavy industry, two of their principal aims were to create new unit companies in the steel industry and to divorce coal from steel holdings. “The directorates of steel companies were to be kept separate, but a loophole was left lo the shareholders enabling them to revise the operative clauses of their companies’ statutes. The shareholders of several big concerns have now voted to revise their statutes and appoint directors with outside interests. “It may now be unlikely that Krupps will—-as required under Allied legislation—sell out its coalmining interests. So far, Krupps have disposed of only one of their coalmines. • “The process of ‘reconcentration* may leave fewer than a dozen firms . dominant position in the German steel industry. “With the old giants of the Ruhr regaining their stature it must be asked what will be salvaged out of the Allied efforts to ‘deconcentrate’ heavy todustry. “Allied expert? are resigned to the ’ foct that the power of only a few cartels has been finally broken. There it every sign that chemical, coal and Steel combines are already arranging .19 divide up markets and to concert common policies.”