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Hawke's Bay Tribune, Volume VI, Issue 166, 27 June 1916, Page 4

As a concrete illustratiin of the German’s method of establishing himself and his wares in a new market. Mr. James Armstrong, in his article on which we wrote yesterday, instances the following, where cheap razors were involved. The German trader was selling a British-made razor to foreign customers at a shilling, which was fifty per cent, below its cost to himself. At first he dealt only in this line among his new customers, secured by the disregard for the truth, insensibility to affront, and, it must be admitted, admirable perseverance and tenacity, which form the basis of the German commercial code. Having once secured the confidence of the customer, he artfully introduced the German article, described as being quite as good as that of British orgm—and 25 per cent, cheaper. An assumption of utter indifference, so far as he was personally concerned, whether the customer took one or the other was his strong suit. But the customei- saw his way to a little extra profit and, disarmed by the apparent unconcern of the trader, accepted a consignment of the German article, which, of course, he found it to his interest to push. Under these conditions the German razor sold readily, and pleased with the success of the new experiment, he asked for more. The German, however, could only express regret that he feared he could not procure them. The client used both impor-

tunity and entreaty, and at length Mein Herr yielded so far as to promise to use his best endeavours to secure the favour. This was eventually granted only, however. upon the understanding that the German article was to be made the leading feature in the retailer’s stock. Thus it fell that the latter was plentifully supplied and found himself habituated to the recommendation of the German production as being “quite as good, but a little cheaper.” This method was repeated with customer after customer in different towns, until the German trader had built up a valuable connection. Subsequently it was found that he was buying the Gennan articles at five pence apiece—the Teuton manufacturer being content to furnish the goods at this figure, representing only a slight loss, merely in order to get into a field held by a rival. Having once -secured a footing, excuses were readily found, in the way of increased cost of production, due to improved wages and the like, for putting up the wholesale price to something yielding handsome profit. This affords a fair example of the approved methods of "peaceful penetration” which the German trader has used the world over, being, in many cases, at the same time engaged in ingratiating himself officially and socially by an exhibition of profuse , hospitality and cordiality, and so securing opportunity for doing a little quiet espionage on behalf of the Fatherland, with a view to hastening “D.er Tag” of Germany’s military triumph that would place the world beneath her feet.

The sensational announcement oi to-day concerning the war is certainly that which, under the High Commissioner’s seal of authenticity, tells us briefly, that “the Italians have had a great victory,” and that “the Austrians have been driven out of all conquered territory.” While this, no doubt, indicates some dramatic success, of which we shall have details in due course, it is probable that we should not read it as meaning that our Mediterranean Allies have regained all the ground that has been lost during the. last few weeks. It was to be gathered from the cables recently reaching us that, despite the Italian allegations—if anything, contradicted by the Russian reports—that no Austrian troops bad been withdrawn from the Trentino front, altered conditions on the Russian front had deprived the Austrians of the power to carry on the offensive against the Italians, who had been quick to seize the opportunity of assuming it. To-day’s cable, however, suggests something in the way of an enforced retreat of such a nature as the previous reports of Italian successes gained had not prepared us for, and we may well hope that the Italians will be able to pursue their advantage with such vigour that their position at the outset of the present campaign may be recovered. Having in view the simultaneous Russian communication telling us that the pursuit of Pflanzer’s forces in Bukowina has already developed into an incursion into Austro-Hungarian territory, we may feel assured that the Austrians will not be in a position to strengthen their forces on the Italian frontier. On the other hand, the Italians have very ample reserves, and merely require more room in which to make use of them. The Italian victory is thus sure to react most favourably on the general position, and will add very materially to the embarrassments of the Central Powers gradually manifesting themselves as the result of co-ordinated action on , the part of the Entente Allies. [A late message, received after the foregoing was in type, gives details of Italian successes practically along the whole Trentino front.]

While we may be sure that the news of the decided Austrian defeats both in the Trentino and in the Bukowina, coupled with the actual invasion of new Austrian territory from the south-east, will lead the Austro-Germans to redouble their efforts both at Verdun and in Galicia and Volhynia, there is no word toady to suggest that fortune favour, (Lem in tne latter regions. On ths contrary, the only Petrograd message dealing with, them speaks of a definite, if minor, Rusian aggressive success at one point on the Styr, and the repulse of German assaults elsewhere on the same front. Nothing is said of operations in Eastern Galicia, where, however, no great activity is as yet expected, beyond what is necessary to hold the enemy to his present positions. Nor is there any further word of the Russian advance along the Pruth which is designed to finally detach General Pflanzer’s main section from the rest of the Austrian forces. Here, indeed, we were led to- expect that the Austrians were in easily defended country that would involve a good deal of trouble in the surmounting. The only enemy report with regard to the situation on the. southern wing comes from the Austrians, who admit a substantial, though, according to them, undisturbed, withdrawal in the Bukowina. From no source do we get any information about General Pflanzer’s 50,000 previously reported as held up against the Rumanian boundary. The Russians seem to view Hindenburg’s efforts against their northern section without perturbation, and a press correspondent ventures on the natural surmise that he is short of the numbers necessary to carry out any really impressive movement. At Verdun battle is still raging, and the activity shown in the British section would seem to indicate that, at length General Joffre has deemed it prudent to create some serious diversion in favour of the heroic men who have for so many months sustained practically the whole weight of the German assault West. It cannot, however, be gathered from anything that has yet reached us that the great Allied offensive in’the West is yet in the initial stage.