Erma, Irma

It last week appeared likely that Erma would soon change to Irma. Born in 1926, Erma grew very rapidly, but last winter it appeared that her constitution had been undermined and that she was likely to collapse at any moment. Should Erma actually become Irma, however, the change would be a potent augury of future good health.

Erma is the European Rail Makers' Association, a cartel which includes British, French, German, Belgian and Central European rail manufacturers. It was last week reported that U. S. railmakers were on the point of formally entering the cartel. Thus the cartel would no longer be European but International, thus Erma would evolve into Irma.

U. S. participation in the rail cartel would be chiefly the official recognition of a working agreement which has for some time existed between U. S. railmakers and cartel members. U. S. industry on the whole has been somewhat wary about joining cartels, fearing prosecution under anti-trust laws. But the government is much more broad-minded concerning what U. S. industry may do abroad than concerning what it may do at home and one obvious method of meeting cartel competition is to become a cartel member.