Comptoir Métallurgique de Longwy

The Comptoir Métallurgique de Longwy (Longwy Metal Sales Counter) was a cartel of iron producers based in Longwy, Meurthe-et-Moselle, France. During the late 19th century and early 20th century it had a virtual monopoly on sales of pig iron produced in the region to metallurgical firms that relied on other iron makers for supplies.

History

Baron Renaud Oscar d'Adelswärd (1811–98) and Jean-Joseph Labbé co-founded the Comptoir de Longwy in 1876, with Alexandre Dreux as the first executive director. Dreux was a poor farmer's son who had worked as a clerk at a foundry in Le Mans, then as an accountant for the foundry owner Armand Chappée, who recommended him.^{[1][lower-alpha 1]} The Comptoir de Longwy was the first joint sales organization of the French steel industry.^[3] It allocated shares of domestic sales to each of its members, which had the same effect as setting production quotas.^[4]

The Comptoir de Longwy proved sustainable despite some serious internal tensions.^[5] Another comptoir was founded in Nancy in 1879, but it was soon absorbed by the Comptoir de Longwy.^[6] In 1891 the comptoir represented 12 factories with 31 blast furnaces. The organization was the subject of a heated but inconclusive debate in the Chamber of Deputies in July 1891 about whether the cartel caused any damage.^[7] By the end of the 19th century the Comptoir de Longwy controlled 30% of pig iron produced in Meurthe et Moselle and had 14 members. It had an effective monopoly of sales to metallurgical companies that did not make their own pig iron.^[6] There was a crisis in the supply of coke from Belgium and Westphalia in 1899-1900.^[8] In response the comptoir installed a battery of coke ovens at Auby beside the Deule canal that could produce 250,000 tons, rising to 500,000 tons the next year.^[9]

The social economist Paul de Rousiers investigated the Comptoir métallurgique de Longwy. Based on this research he published Les Syndicats industriels de producteurs en France et à l'étranger (1901).^[10] The socialist deputy Jean Jaurès attacked the pricing fixing practices of the comptoir, which was defended by Jules Méline. Jaurès noted that Méline was opposed to labour unions, but saw nothing wrong with a cartel of manufacturers.^[11] The trade-unionist Alphonse Merrheim publicized the power that the Comptoir de Longwy and the Comité des Forges exerted in breaking strikes.^[12] However, two well-publicized court cases in 1902 confirmed that the Comptoir was acting legally.^[6]

Booth at the 1909 Nancy Exposition

At the Paris Exposition Universelle (1900) the Comptoir de Longwy showed an elegant salon decorated with paintings by Édouard Rosset-Granger that mainly depicted the picturesque aspects of iron ore mining, although one showed the casting of a blast furnace. At the 1909 Exposition Internationale de l'Est de la France in Nancy the booth held three large paintings by Rosset-Granger that were usually hung in the Comptoir's directorial office. They represented exploitation of Côte Rouge ore, a view of a blast furnace and a casting of metal.^[13]

In June 1916 Edward N. Hurley, vice chairman of the US Federal Trade Commission, spoke to the American Iron and Steel Institute. He said,

Official Government investigations in several European countries make it clear that cartels have succeeded in reducing both the cost of production and the selling expenses, which permits the consumer to purchase the finished product at a lower figure. In the case of the French Comptoir de Longwy, cooperation in selling has reduced selling expenses to from 3 to 4 cents per ton. It is maintained that the cartel organization also enables manufacturers to equalize supply and demand, to adapt their prices to demand, and to regulate the prices of their products in accordance with the cost of raw materials.^[14]

Leadership

In 1888 Alexandre Dreux became the Director General of the Aciéries de Longwy, a position he held for almost 50 years.^[15] He was succeeded by Philippe Aubé.^[6] Rémi Jacquemart (1860-1909) of the Société métallurgique d'Aubrives et Villerupt later became administrator of the comptoir.^[16] Count Fernand de Saintignon (1846–1921) of the Société des Aciéries de Longwy was one of the presidents of the Comptoir Métallurgique de Longwy.^[17] The geologist and industrialist Georges Rolland (1852–1910) was a director of the Comptoir métallurgique de Longwy.^[18] The iron companies of Lorraine were linked by mutual interest to those of neighboring countries. On the eve of World War I (1914–18) eight of the seventeen directors of the comptoir represented German or Belgian companies.^[19]

Notes

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Sources