"Cessation of Competition"

While other European statesmen were talking about reprisals against the U. S. tariff last week, Signor Benito Mussolini acted. He signed a Cabinet decree which appeared in the Official Gazette five days later.

Importers of motor cars, who had received absolutely no previous warning, were thunderstruck to read that the Dictator had jumped the Italian duty on their stock in trade more than 100%.

Especially severe in the lowest price brackets, the decree raises the duty on Fords and Chevrolets from $350 to $800. Said dealers: "A prohibitive increase."

Senator Giovanni Agnelli, president of the great Fiat works at Milan (the Mussolini family bailiwick) announced:

"I have promised the Government not to take advantage of the cessation of American competition by increasing the prices of Fiat cars."

Last year 95% of all cars made in Italy were Fiats. Senator Agnelli presented Il Duce's daughter Edda with a Fiat on her wedding day, has bestowed upon the present Pope five Fiats.

"Rolls-Royce of Italy" is the Isotta-Fraschini while Fiat goes in for "Fordized" mass production. But it was announced last week that Mr. Ford has contracted with Isotta to make Ford cars in Italy, at Firso to some extent, from parts shipped from Detroit, later from 100% Italian parts. Since Italy's duty on parts is now much less than on cars, Mr. Ford should be able to worst all U. S. rivals in the Italian market. To complete the Ford-Isotta agreement, Ford's Export Manager Charles E. Sorensen and Sir Percival Perry, general Ford representative throughout Europe, were en route last week to Milan.

"Americans love Italians," said Senator Modrone of Milan last week, returning to his home from a tour of the U. S. "Even though there are instances to the contrary, Americans love Italians, and Italians should love Americans."

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