290 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,
Hochst concern and the Riga branch of the Cassella also joined the
sombination,
The combination was formed by the Cassella concern, and is a
limited-liability company, with a capital stock of 20 million marks
and 10 million marks of bonds. The Cassella concern transferred
5% million marks worth of its shares to the Hochst concern, and
received in return from the latter an equal amount of Hochst shares.
In 1914 Cassella stock amounting to 6,985 million marks was held
by the Hochst concern.!
GENERAL RESULTS OF CONCENTRATION.—The results of this process
of concentration in the German dye-color industry are:? (1) Out of
16 concerns engaged in this industry two powerful groups or rings
have developed; (2) the two groups are able to control largely the
prices of raw materials; (3) the mutual exchange of processes. of
manufacture, business methods, relations with customers, and of
experiences in general, result in reducing expenses—it is said that
within two years after this combine was organized the costs for
traveling salesmen and for advertising were reduced one-half; (4)
the limitation (restraint) of competition abroad? When in 1907
England through its patent legislation compelled the German industry
 to establish plants in England, only two branches were located
there, one by each of the two German groups, instead of five or six
representing as many individual German companies.
Prorirs.—The combined capital stock of the five leading coal-tar
dye firms on December 31, 1912 (the figures for the Cassella firm
being for 1911), amounted to 147,000,000 marks.
The profits of the German coal-tar dye concerns are so large that
they are generally considered as wielding a monopolistic power, due
largely to theif control of patents, efficient organization, and financial
 resources. From 1902-1911 the total dividends distributed by
the Hochster Farbwerke, Badische Anilin, Elberfelder Farbwerke,
and the Berliner Anilin ranged from 196 to 300 per cent. . The profits
of the leading companies in recent years are given on the next page.

1 Redlich, op. cit., p. 20, fol.
tTbid., p. 21.
)Chem. Ind., 1906, 8. 487, cited by Redlich, op. cit., p. 21.
+J. Singer, op. cit.. p. 21L