COMPETITIVE CONDITIONS IN INTERNATIONAL TRADE. 93

For several years the Union effectively controlled the industry;
but by 1893 the production of independents ‘had again become of
sufficient importance to affect prices, which began to drop and continued
 until in 1898 the export price reached the low level of 13.36
&lt;hillings per ton. The Union then began entering into agreements
with its competitors for the regulation of prices, and from 1900 to
1904 a level of between 16 and 17 shillings per ton for export was
maintained. The lagest of this series of agreements expired in June,
1905, and the price for that year shows a marked decline, which
continued through the next year.
The Northwestern Salt Co.—TFollowing a short period of destructive
 competition, the Union and outside producers again came together
late in 1906 and formed the Northwestern Salt Co., a “limited
liability company which was to act as sales department for the salt
trade.” This organization, which included practically all the manufacturers,
 was understood to be for the purpose of regulating prices
nnd output, and the annual sales of each firm in the association were
limited on a basis determined by its average output in a certain number
 of past years.!
Following the organization of the syndicate, prices again advanced
bo 15.52 shillings per ton in 1907 and 16.11 shillings in the following
year. It was stated at a general meeting of the Salt Union in March,
1907, that “a thoroughly sound and practical working scheme for
regulating the tonnages and prices of the salt trade as a whole had
been found.” In that year the profits of the Union increased nearly
50 per cent, as compared with 1906, although the output remained
the same. Again, in 1909, it was reported that the “ Northwestern
Company had worked effectively, * * * pag carefully considered
 the circumstances attending the trade at home and abroad.
and had from time to time arranged prices accordingly.” 2
The British Salt Association.—During the existence of the Northwestern
 Salt Co. a stable condition in the industry was maintained
and increased profits were enjoyed by its members. It expired, however,
 in 1910, and in 1911 a new organization, the British Salt Association,
 was formed “to regulate tonnage and prices.” Although
this new association covered 84 per cent of the tonnage it did not
have as complete control as its predecessor. Some of the concerns
that did not join increased the capacity of their plants and held
out for a larger share of the business as a condition precedent to
their cooperation. Confronted with this condition of affairs and
unwilling to accede to the demands, the association was dissolved
at the end of December, 1912.

Fe Tee
1 Macrosty, op. eit., pp. 186-187, and Special Consular Report No. 52, pp. 63 and 67.
"Levy, op. cit., p. 245.