Cartels

Metadata

Gutenberg ID

78077

Title

Cartels

Language

en

Book source

Project Gutenberg

Description max 80 words

Former Assistant Attorney General Wendell Berge exposes the insidious threat of international cartels to American democracy and free enterprise. Drawing on classified antitrust records and congressional hearings, this exposé details how monopolies in industries ranging from matches to quebracho extract collude to fix prices, suppress innovation, and control world markets. A urgent call to action for a free world.

Summary up to 500 words

In *Cartels: Challenge to a Free World*, Wendell Berge, former head of the Antitrust Division of the Department of Justice, presents a comprehensive investigation into the operations of international cartels that threaten democratic institutions and economic freedom. Berge argues that unless these threats are understood and decisively dealt with, the potential benefits of a free economy will be lost, and the hope of maintaining democratic political institutions will be seriously impaired. The book serves as both a factual record of cartel operations and a plea for the vigorous enforcement of antitrust laws. Berge begins by illustrating the dangers of cartel control through specific case studies. He details the 'Quebracho' extract monopoly, a material vital for tanning leather used in the U.S. war effort. This industry was dominated by the British-controlled Forestal company, which, through its Argentine subsidiary, controlled 57% of the world's production. Berge exposes how Forestal used its dominance to influence the Argentine government and how its American subsidiaries operated with questionable financial integrity, effectively living off government funds to pay dividends while owing the U.S. government hundreds of thousands of dollars. The narrative then shifts to the global match industry, revealing a conspiracy involving the Swedish Match Company and the Diamond Match Company. Berge documents how these entities divided world territories, established production quotas, and suppressed inventions like the 'everlasting' match to maintain high profits. He recounts the infamous 'peace treaty' between American and Swedish producers, which required the destruction of American match plants to prevent competition, leaving the U.S. vulnerable to shortages during wartime. Furthermore, Berge highlights the collusion between American firms and German I.G. Farbenindustrie regarding chlorate of potash, a vital chemical for ammunition, which resulted in a grave shortage for military purposes. Berge also addresses the Webb Act, clarifying that it was intended to strengthen American competition against foreign cartels, not to provide a backdoor for American firms to join them. He emphasizes that associations formed under the Webb Act cannot legally enter into international agreements that restrict production or fix prices. Throughout the text, Berge relies on direct quotations from letters, memoranda, and public records to substantiate his claims, highlighting the efforts of the Antitrust Division and acknowledging the contributions of his staff. By weaving together these detailed explanations, Berge aims to provide the public with a thorough understanding of the far-flung ramifications of cartel control and the necessity of maintaining a free competitive economy.

LLM editorial rating

4.5/5

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Categories

• Economics
• Business