104 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
banks have been able strongly to influence German industry, and they
have used this influence to eliminate competition and to encourage
concentration.
Thus the German electrical industry, a debtor industry, has been
dependent at all times upon the cooperation of banks in its development
 and concentration. The widely ramified organization of investing,
 operating, and subsidiary companies of all kinds within the two
groups that dominate the German electrical industry has been developed
 and promoted largely by banks interested in the various companies
 and backing these two great groups! In the metal trade
the Metallgesellschaft of Frankfurt a. M., in which the Merton interests
 are centered, has built up and controls its world-wide business
 enterprises through a number of financial institutions, banks,
or holding companies in different countries. These have been organized
 for the special purpose of obtaining outside and foreign
capital for investment in new mining and similar enterprises and to
maintain control over them through majority stock ownership. (See
pp. 365-368.) The potash industry offers another good example of
the potent influence of banks in fostering combination. (See p. 110.)
Kinds of cartels.—The German cartels may be divided, for practical
 purposes, into the following three classes.®
(1) Agreements covering selling terms; so-called “ Konditionen ”
cartels.
(2) Price cartels.
(3) Selling cartels or syndicates.
SerriNe-TERMS CARTELS.—The selling-terms cartels represent the
lowest form of cartel organization. Their purpose is chiefly to establish
 a uniform regulation of terms of payment, of samples, and of
other conditions of sale. Cartels of this kind have been organized
in the silk, umbrella goods, and worsted-spinning industries, and in
various branches of cotton cloth and woolen cloth weaving.*
Price cARTELS—Under this head may be grouped all cartels that
undertake to influence prices without centralizing sales or purchases.
They are the most numerous class, and they are divisible into several
subclasses, according to their methods. Some fix prices directly;
some fix a maximum output and allot a quota to each member; some
divide their territory, alloting to each member an area in which no
other member is allowed to sell; some allot to each member the prouction
 of certain lines of goods.®
SYNDICATES OR SELLING CARTELS. — The syndicates or selling cartels
are the most highly developed type of cartel. with the most rigid and

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13. Riesser, op. cit, pp. 718 and 719.
2 See p. 865. Also, R. Liefmann, Die Internationale Organisation d. Frankfurter Metall-Handels,
 in Weltwirtschaftliches Archiv, 1918, L pb. 112,
3 8. Trchierschky, op. cit. D. 42 fol.
4 Tbid., pp. 42, 48.
Ibid. p. 45.