CONDITIONS IN PARTICULAR INDUSTRIES, 263

national market, but once they had succeeded in reaching the foreign
market, aided by bounties, business relations there established continued
 after the export bounty had been withdrawn.
A price agreement was made in 1902 by the members of the cartel,
which was renewed several times, and at last accounts (1908) was still
in existence. It was difficult to elaborate a tariff of prices sufficiently
varied to suit the great variety of twists of the same number in flaxspinning;
 but prices were fixed for the ordinary quality as a base, and
the members in a series of conferences with the sworn agent of the
syndicate succeeded in establishing satisfactory prices for the varieties
©f spinnings.t

ITALY.

The Istituto Cotoniero Italiano.—The Italian Cotton Institute was
organized in May, 1913, by an agreement among the producing mills
with the immediate object of relieving the pressure of a crisis which
had resulted from overproduction in 1908 and 1909. The geographical
 situation of the spinning mills was very favorable to such an
organization, as out of four and a half million spindles three and fourtenths
 millions were concentrated in the Provinces of Piedmont and
Lombardy.
The terms of the convention provided for the division of the combination
 into certain sections, according to their functions, spinning
and twisting to embrace 3,800,000 spindles; weaving, 100,000 looms;
printing, 9 printing machines; dyeing and finishing, about threefourths
 of the concerns. All members were required to stipulate in
their contracts for conditions of payment in conformity with a fixed
uniform standard. Members were also obliged to furnish such statistics
 of their business as might be required by the syndicate in order
to obtain an exact knowledge of the state of the industry.
It was provided that as soon as organization took place an initial
“short time” period of 1 day out of 15 should be instituted, the
power being conferred upon the council to make whatever further
reduction in output it might deem necessary after having examined
the statistics submitted by each of the members. At the same time,
however, it was made incumbent upon the council to use every means
possible to increase exports and thereby avoid any further reduction
of output. A provision was also made whereby, if the council agreed,
the spinning and weaving mills were permitted to pay an indemnity
instead of observing the ‘‘short time’ regulation, if they wished to
keep their production up to its normal level.
The plan provides for export bounties and the formation of exporting
 ‘‘consorzii’” or bureaus. The establishment of price cartels and
selling agencies is another feature. In order that strict observance
of the terms of payment as agreed to by the members might be carried

Revue Economique Internationale, 1808, vol. 8, pp. 149, 152-157.