98 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

during the period, shares will be issued in the form of £10 six per
cent cumulative preference, payable £2 per annum per sharé, whilst
a certain number of ordinary shares will be issued to preference
holders, which will give such holders a share in the profits arising
from the operations of the company. No shares of any kind will be
issued to the public, and no underwriting or other flotation expenses
charged, save the costs of registration, and the policy of the company
 will be directed by a committee in Britain consisting of the
directors of individual firms making up the combine, with an office
controlled by a practical engineer, elected by. the directors. The
managing director in China will, we are informed, be a gentleman
of the highest attainment, with a thorough knowledge of China, its
resources and officials, who is acquainted with the methods used by
the German and continental houses, and the purpose of the whole
organization will be to obtain orders for engineering plant, machinery,
 materials, and contracts at the least possible cost in the
most efficient manner. We may add that we are willing to put
British engineers who desire to-obtain some share in this market,
which during the last three years has let over £90,000,000 of engineering
 contracts, in touch with the organizers of the movement.

GERMANY.

Introduction.—The outstanding feature of German industry is
the high degree of its organization. Technically production is highly
perfected, is thoroughly systematized and efficiently conducted.
Producers are usually united in cartels, syndicates, closely affiliated
groups, and other forms of combination. Limitation of output,
agreement as to prices, and regulation of terms and conditions of
sale are the custom. In most lines dealers are likewise united, and
relations between producers and distributors are broadly governed
by these organizations. From these conditions it follows therefore
that there is a notable unity of action among manufacturers and
distributors in Germany.
Moreover, as has already been shown, the relations between industrial
 undertakings and the chief banks in Germany are very close.
Not only do these banks assist in the financing of such enterprises
but they are directly represented in the management of industrial
enterprises. They use their power actively to foster the profitable
growth of the companies in which they are interested. One of their
functions is to promote close cooperation between competing or complementary
 companies which are within their influence.
In foreign trade, organization is carried still further. The combinations
 of manufacturers and distributors extend their closely
knit and efficient organizations into foreign business, and the banks
assist them in establishing branches abroad, in furnishing information
 and advice, in financing foreign transactions, in carrying
foreign credits, and in actively developing German trade abroad.
The German state railways and the great ship lines facilitate the
import and export of goods. Thus for foreign trade the great in-