CONDITIONS IN PARTICULAR INDUSTRIES. 329

These figures indicate that about 55 per cent of the coal exports of
the Empire in 1911 were handled by the syndicate.
SerLiNG ARRANGEMENTS AND Price Poricies.—The Rhenish-Westphalian
 Coal Syndicate is itself a central selling organization. The
sale of the entire output of the members is concentrated in the office of
the syndicate at Essen, where purchases are made by the large
dealers’ associations, which in turn distribute the coal to the smaller
Jealers in their assigned districts.! The mine owners obligate themselves
 to sell their entire apportioned output of coal, coke, and
briquets through the coal syndicate, which guarantees to market
these products in accordance with the policy adopted by its administration.?
 The total sales of the syndicate are distributed according
to a certain scale among the individual members, the syndicate being
obligated to take over only the quota allotted to each member.
The syndicate pays to the mine owners a so-called calculated price
{Verrechnungspreis) which is determined by the board of directors
of the syndicate for all qualities and grades of each mine. The calculated
 price is based on the norm-price (Richtpreis), which is fixed
for the year from April to April, by the directors. It is the minimum
 price to be asked in districts free from competition.® In determining
 the norm prices the directors take into consideration, among
other factors, negotiations of the syndicate with outside mines,
market conditions in the iron and steel and other industries, as well
as prospects of new cartels being formed in those industries.* If a
higher price is obtained in the market, the difference goes to the mine.
Prices lower than the calculated price are made to purchasers in
districts where competition makes it necessary. These price reductions,
 the running expenses, and any deficits are covered by a pro
rata monthly assessment (Umlage) against the mine owners.®
Following the organization of the operators in the coal syndicate,
various coal dealers’ unions were formed, e. g., in Hannover, Utrecht,
Bremen, Dortmund, Magdeburg, Berlin, Hamburg, and Antwerp.
At first these organizations were opposed by the syndicate, but
eventually it recognized the advantage of dealing with them and
has encouraged them. Moreover, by making the chairman of each
such union an officer in the syndicate the latter has obtained a direct
influence in their activities and has formed a strong organization for
the marketing of coal on the basis of exclusive sales.
Tue CoaL SYNDICATE AND TRANSPORTATION ON THE RHINE —
The water traffic is a most important factor in the coal trade

1 pt. 11, p. 24. .
2 R. Passow, op. cit.,, p. 44, and Pt. II, p. 21.
i Flechtheim, op. cit.,, p. 16.
4 K5lnische Zeitung,’Jan. 29, 1912, No. 77.
5 Flechtheim. on. cit.. po. 17: RB. Passow, op. cit., p. 53.