CONDITIONS IN PARTICULAR INDUSTRIES. 289

harmony. Thus the leading company in each of these groups manufactures
 synthetic indigo, and its price is fixed by agreement between
the two. In other matters the groups act together.
The Badische group.—The Badische Anilin- und Sodafabrik and the
Friedrich Bayer concerns formed a community of interests, of which
the Agfa also became a party, for the purpose of avoiding competition
among themselves. The agreement was made for 50 years beginning
January 1, 1905. According to this agreement the members retain
their independent organization and deal independently with outsiders
 on their own responsibility.
In 1908 the smaller firm of Kalle &amp; Co., in Biebrich, joined this
group.!
The reasons for forming this combination are alleged to be: (a)
[noreased strength to meet competition, (b) joint buying of raw
materials, (c) the supplying of certain products to each other, (d)
joint protection in patent ahd license matters, and (e) joint establishment
 of factories in foreign countries?
A special board has charge of important matters of mutual interest,
The common profits are computed annually according to a uniform
system, and of these the Badische Anilin- und Sodafabrik and the
Friedrich Bayer concerns receive 43 per cent each, while the Agfa
receives 14 per cent, after taking into account the various amortization
 and reserve-fund arrangements. The financial policy of the
three concerns has always been kept secret.’
This community of interests does not constitute a juristic or legal
person. The members jointly participate in various enterprises,
Since 1908 they have owned the Auguste-Viktoria coal mine, for which
they paid 17.7 million marks, the Badische Anilin- und Sodafabrik and
Friedrich Bayer concerns each holding 475 shares, wnile the Agfa
holds 50, out of the total of 1,000 shares of this mine. Until recently
they also held an interest in Norwegian concerns for the production
of air nitrate. In England they have a common branch establishment,
 with a capital of £200,000, on whose board of directors the
Badische Anilin- und Sodafabrik and Friedrich Bayer concerns are
represented by three directors each and the Agfa by one.
The Hochst-Cassella group.—A second community of interests was
organized in 1904 by the Héchster Farbwerke and the Leopold
Cassella concerns. These two concerns combined because the former
manufactured certain products which the latter used but did not
manufacture itself, and because it was feared that each concern would
intrude upon the sphere of the other. The Moscow branch of the

- = - er. rm ————————————
tJ. Singer, Das Land der Monopole: Amerika oder Deutschland? (Berlin), 1913, p. 210,
‘Redlich, op. eit., p. 21.
abid., p. 19.
‘Ibid., p. 20.
27941 ®1B—muu 90