Saturday, May 10, 1919 THE REVOLUTIONARY AGE Imperialism the Final Stage of Capitalism (Continuation) ETWEEN 1908 and 1912 all those groups conibined into two or rather one single group. The combination took place as indicated below. E M E. 53 n 3. E. as: a.
I40 II :5 320 41 as 3 5: 1:. wa u E: as: an as Ibo 17. 1 o Eu gm m m. if. 1: as 5. as a L) 1 Eu! :5 36 r» E1: E as Eta to 5: 1:5 3. 3 u. 5 The well known Allgemeine Elektrische (iesellschaft controls now (by way of participation. between t75 and 200 societies and a capital amounting approximately to 17; billion marks. It has 34 direct foreign representatives, among them 12 stock companies in ten different countries.
In 1904 the amount of capital invested in foreign countries by the German electrical industry was estimated at 233 million marks (62 millions in Russia. The Allgemeine Gescllschaft is. in other words, a gigantic combine comprising as many as 16 manufacturing concerns alone, producing everything from cables and insulating material to automobiles and ﬂying machines.
Concentration in Europe was only part and parcel of the process of concentration in America. This is what mean: General Electric Company r.
America lIompsmn. Houston The Edison company orgCompany organized in united in Europe the Europe the ﬁrm: French Edison Co. which gives the use of its patents to the German ﬁrm: Allgemeine Elektrische Gesellschaft. g Allgemeine Elektrische Gesellschaft Germany Union Electrical Co.
Thus. two electrical powers combined. There does not exist any electrical company on earth independent from them. writes Heining in his article The Wavs of the Electricity Trns.
The following ﬁgures will give us an idea, although rather superﬁcial. of the magnitude of the returns and operations of thc two electricity trusts: Goods product Net proﬁts ill millions of Wu rking in millions America: marks men of marks General Electric Co. 1907 252 28. 000 35. 1910 298 32, 000 43. Ui ll lany: Algcmeinc Elektrisohe Gescllschaft 1907 :16 30, 700 14. roll 36: 60. 800 21. In 1907 the, American and the German trusts came to an understanding for a division of the world between themselves. Xo more competition: The General Electric Compauv received the nitcd States and Canada. The Allgemeine Elektrische Gesellschaft received Germany. Austria, Russia, Holland. Denmark.
Switzerland. Turkey. the Balkans. Special arrangements. of a conﬁdential nature. were concluded as re»
gards the daughter concerns opening new ﬁelds of industry and new territories not as yet divided up.
Inventions and experiments are to be pooled. 65)
One can understand how difﬁcult it would be to compete against what practically amounts to a world trust. disposing of several billion marks and having its own branches. agents and representatives in every corner of the globe. But a division of the world between two powerful trusts does not exclude a redistribution in case uneven development. wars, failures, should change the distribution of power.
By Lenin Translated from the Russian by Andre Tridon. The petroleum industry gives us such an example of redistribution accompanied by strife. The petroleum market of the world, Jeidles wrote in 1905, is still divided between two large ﬁnancial groups: the American Oil Trust (the Standard Oil Companylkcontrolled by the Rockefeller interests and the Rothschild Nobel combine, exploiting the Baku oil ﬁelds. These two groups are closely united. but their.
monopoly. is being threatened from ﬁve sources. 66) the exhaustionbf the American oil wells: 2, the competition of the antashef ﬁrm in Baku: 3, the new oil discoveries in Austria: 4, in Rumania: oil ﬁnds in the Dutch colonies. controlled hv the wealthy ﬁrm of Samuel and Tell. allied also to English banks. The last three are backed by large German hanks under the leadership of the Deutsche Bank. Those banks have systematicallv developed the petroleum industry, in Romania, for instance, in order to secure important points of strategic importance to them. In 1907 the capital invested, in Rumanian oil ﬁelds amounted to 185 million francs out of which 74 millions had been invested bv German banks. 67)
Then began a struggle which economic literature signates as the war for the partition of the world)
On one side there was Rockfeller oil trust, which.
bent on controlling the situation. founded a daughterconcern in Holland and bought no oil wells in Dutch India. thus trying to deal a drath blow to its chief competitor, the Dutch English oil trust. On the other.
hand. the Deutsche Bank and other :German banks were trying to control Rumania and toiline up with Russia against the Rockefeller interests. The latter disposed of enormous amounts of capital and of an excellent system of transportation and delivery The ﬁght was bound to end, and did end in 1907, with the absolute defeat of the Deutsche Bank,. which could only do one of two things, either liquidate its oil holdings at a loss of several millions. or make its submission. It chose the later and concluded a most unfavorable agreemcnt with the oil trust. According to the terms of that document. the Deutsche Bank engaged itself not to undertake anything unfavorable to the American) interests, the agreement to be void should Germany pass a law giving the government the monopoly of the oil trade.
Then began the oil farce. One of the ﬁnancial kings of Germany, Von Gwinner, director of the Deutsche Batik, started through his private secretary Manifesto of the Communist lntemational (Continued from page eight)
of the Second International held before the war. They appear as before with proposals of compromise and onciliatton and thereby paralyze the energy of the proletariat, lengthening the period of crisis and consequently increasing the misery of Europe. War against the Socialist Centre is a necessary condition of successful war against Imperialism.
Spurning the half he artedness, hypocrisy and corruption of the decadent ofﬁcial Socialist. parties, we. the Communists assembled in the Third International. reel ourselves to be the direct successors of the heroic efforts and martyrdom of a long Series of revolutionarv generations from Baboeuf to Karl Licbkuecht and Rosa Luxemburg. As the First Intemational foresaw the future development and pointed the way; as the Second International gathered together and organized millions of the proletarians. so the Third International is the International of open mass action of the revolu tionary realization, the International of deeds. Socialist criticism has sufﬁciently stigmatized the hourgeois world order. The task of the International Communist Party is now to overthrow this order and to erect in its place the structure of the socialist world order. We urge the working men and women of all countries to unite under the Communist banner, the emblem under which the ﬁrst great victories have already been won.
Proletarians of all countries! In the war against ilnperialistic barbarity. against monarchy. against the privileged classes, against the bourgeois state and bourgeois property. against all forms and varieties of social and national oppresion unite!
Under the standard of the Workmen f ounci under the banner of the Third International. in the revolutionary struggle for power and the Dictatorshi of the Proletariat, proletarians of all countries rmirr. To be continued)
an agitation to bring about the oil monopoly. All the giganticmachinery of the largest Berlin bank was put in motion, all the strings were pulled, and the press was ﬁlled with patriotic declarnations against the tyranny of the American trust. On March 15, 1911, the Reichstag passsd an almost unanimous resolution calling 1an the government to prepare :1 Lil estab lishing the governmnt monopoly of the oil trade.
The government welcomed that popular idea; and the Deutsche Bank. which was endeavpring to strangle its American competitor and to close a proﬁtable deal thanks to a government monopoly of. the oil trade, had almost won the game. The Germn oil kings were already dreaming of proﬁts as huge as those made by the Russian sugar manufacturers. Only, the large German banks fought over the division of the spoils, the Disconto Gesselschaft exposed the greed of the Deutsche Bank, and then the German Government was afraid of ﬁghting the Rockefellers: it had to count on them for its oil supply, the Rumanians needed billions for war preparations in 1913. The monopoly plans were postponed till some future time.
The Rockefeller interests came out of the ﬁght with all the honors.
The Berlin review Bank stated on that occasion, that Germany could ﬁght the petroleum trust by simply establishing a monopoly of electrical power and transforming all water power into cheap electrical current. But it added: that monopoly will be etablished whenever convenient to the producers of eléctricity, That is when, a large crash will be impending in the electrical industryI and when the enormous and expensive electrical stations which are being built everywhere by private concerns and for which those concems are already securing monopolies from cities and governments will no longer prove proﬁtable. Then we shall have to rely on water power; but it will be impossible to transform that energy into cheap electrical power through direct government management: we shall give it over to private monopolies controlled by the government, because private industry has already closed a number of deals and secured for itself large rewards. This is what happened in the. case of the potash monopoly and this will happen when the government acquires the monopolv iof electrical power. It is high time our state Socialists who allow themselves to be blinded by ﬁne principles should realize that in Germany monopolies are not means to beneﬁt the consumer or to secure for the govemment a share of the operating proﬁts, but merely to rehabilitate. at the expenses of the government. private in. dustrial enterprises on the verge of bankruptcy. 66)
Such is the remarkable admission which bourgeois German economists are c0mpelled to make. We see clearly how private and public monopolies arc entangled one with another in this era of ﬁnance. capital.
and how the one and the other are simply details of the struggle raging among the large monopolistic groups for the division of the world.
In the ﬁeld of mercantile navigation the giant growth of concentration has also brought about a division of the world.
In Germany we ﬁnd two large companies. the Hamburg American and the North German Lloyd with a capital of 200 million morks. stocks and bonds and a ﬂeet costing 185 and 189 million marks On the other hand there was organized in America on January 1903, the sounded Morgan trust. the International Mercantile Marine Co. comprising American and English lines and disposing of a capital of 120 million dollars. An agreement was signed in 1003 between the German colossus and the Anglo American trust with a view. to dividing up the world and trade proﬁts. The German lines agreed not to compete for freight and passages between England and America. Lists of the available ports were established, and a general committee of control was created. The agreement was to be in force for 20 years with a clause specifying that in case of war it was to be void. 69. Very illuminating is also the history of the international rail combine. The ﬁrst attempt at combining English, Belgian and German rail plants was made in 1884 at a time of great industrial stagnation. The Iiatiqns joining the combine agreed not to compete in their home markets and divided among themselves the foreign markets on the following basis: England 65. Germany 27. and Beloium 17. England was left entirely in possession of the Indian market. One English ﬁrm which remained outside of the combine was subiected to a concerted attack for which funds were sunolied from a certain percentage of the gen eral proﬁts. In 1886. however. the combine broke up when two English ﬁrms withdrew from it. It Is to he noticed that no agreement could he reached during the following periods of great business activity. To be continued)