110 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,
pulsory syndicate! The present syndicate was incorporated June 7,
1910, as a stock company with limited Liability, with a capital stock
of 741,800 marks. On March 30, 1915, this was increased to 1,267,700
marks. Tt is organized similarly to the Coal Syndicate. A separate
selling agreement of the same date constitutes the Potash Syndicate
(Litd.) the exclusive selling agency of syndicate members, and provides
 a heavy penalty for violations of the selling contract?
CONCENTRATION WITHIN THE SYNDICATE.—A marked trend toward
concentration within the syndicate has been noticeable for some
years. Through interlocking directorates, the influence of banks
and the absorption of smaller by larger works, certain large groups
have gradually succeeded in obtaining a dominating control. The
leading omnes are the so-called “ Fiirstentrust,” operating through the
Paléistinabank; the Deutsche Kaliwerke concern; the A. Schaaffhausen’scher
 Bankverein; and the Burbach concern.*
Several of these large groups have adopted the holding-company
form of organization, and this type of concentration is apparently
becoming more and more characteristic of the potash industry.’
Behind these concerns stand several large banks, especially the
Deutsche Bank and the “mining banks” controlled by it, to whose
support is due in large part the rapid development of the potash
industry.® Largely through these banks the leading interests in the
coal and iron industries have established connections with the potash
 industry.
RELATIONS BETWEEN THE SYNDICATE AND DEALERS’ COMBINES.
Among the potash dealers several combines have been formed, of
which the “Kalikontor,” combining nine wholesale dealers, is the
most important.” The syndicate grants certain rebates to the dealers,
 but imposes numerous restrictions upon them: for instance, the
requirement of a bond deposit as security for fulfilling their obligations,
 and the filing of a list of their customers as well as their
prices.®
The potash law of 1910 seems not to have given entire satisfaction.
 The chief complaints have been (1) that the number of new
potash works, for which there was no need, has increased continuously
 since the passage of the law; (2) that the State-owned works

tJ. Flechtheim, op. cit, pp. 129, 133.
!R. Passow, op. cit.,, p. 214 fol. and p. 228 fol. For a copy of an agreement hetween
the Potash Syndicate Co., Ltd., and an Algerian firm, making the latter exclusive sales
agent of the former in Algeria, see Pt. II, pp. 479-482. Tor a copy of the contract of
the Potash Syndicate with American buyers of potash salts, see Pt. II, pp. 509-515.
3H, A. Giebel, op. cit., p. 89 fol.
4K. Wiedenfeld, op. cit, p. 2014 fol. Berliner Jahrbuch fiir Handel und Industrie
912, I, p. 140. :
5 Berliner Jahrbuch fiir Handel und Industrie, 1912, 1, p. 127.
8 Kartell-Rundschau, 1914, p. 386.
TJ. Schdnemann, op. cit, p. 90 fol,
YH. Bonlkowsky, op. cit., p. 103! 165,