258 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

nanufacture of zanella. Ever since its organization this cartel has
sroved a success and has been renewed several times.!
Prior to its formation the absence of joint observation of market
»onditions frequently resulted in overproduction, falling prices, and
anderselling. Finally a combination formed by the dyers, the ‘“ Stiicktirberei-Konvention
 des Wuppertales,” which included eight of the
leading firms in the dyeing and finishing (Appretur) industry, led the
weavers to organize the above-named Zanellakonvention. Both
cartels then entered into a joint agreement, providing, among other
:hings, for exclusive dealing and a joint board of arbitration for
settling disputes? The main provisions of the cartel agreement of
the Allgemeine deutsche Zanellakonvention are the following: (1)
Regulation of prices for half-woolen zanellas; (2) obligatory selling
by a central selling agency of remainders and job lots; (3) fixing of
sonditions of payment for linings by the central selling agency; 4)
fixing the quota of production of zanella for each firm.®
The Zanella Konvention differs from most other textile cartels in
its rigid organization. The cartel agreement covers domestic sales
only and not export sales. Each member of the cartel must, upon
demand to that effect, furnish proof that shipments to foreign coun-.ries
 are made in such a way as to preclude any duty-free reimpor-.ation
 without his being a party to it. Subsequent to the formation
of the cartel, numerous complaints arose that zanella was sold cheaper
abroad than at home by members of the cartel. All attempts to get
the cartel to cover export sales also have proved futile. In course
of time the outside manufacturers shaped their prices in accordance
with the cartel prices, but they allowed a discount of from 3 to 5
per cent higher than that of the cartel.
In recent years the demand for zanella has declined, and the manutacturers
 have turned largely to the production of serges.
An analysis of the prices of zanella goods since the formation of
the cartel shows a steady increase, notwithstanding the fact that the
cost of production, wages, selling expenses, as well as profits, apparently
 have remained the same. From 1894 to 1907 prices increased
55.7 per cent, and competent authorities attribute this exclusively
to the increase in the price of yarn.
Jute.—The jute industry is almost wholly syndicated and practically
 the whole German market is controlled by the jute cartel, the
«Verband Deutscher Juteindustrieller, G. m. b. H.,”” Braunschweig.
In 1913 Germany’s imports of jute amounted to 162,063 tons, valued
at 93,997,000 marks. Most of this came from British India. The
axports amounted to 7,822 tons, and went chiefly to Russia. Jute
yarn amounting to 4,771 tons and valued at 4,066,000 marks, was
i Mirus, op. cit., p. 42. 8 Kartell-Rundschau, 1909, p. 737,
! Tbid.. 0. 40. fol. Mirus, op. Cit, p. 42. fol.