CONDITIONS IN PARTICULAR INDUSTRIES. 349

[n July, 1905, various United States works are said to have become
parties to the agreement! and in 1906 the Austrian and Italian
works joined. In May, 1907, the syndicate was renewed for five
years. The following allotments of the total quantity of rails exported
 by the syndicate were made: United Kingdom, 37.36 per
cent; United States, 25.70 per cent; Germany, 20.13 per cent; Belgium,
 12.34 per cent; and France, 4.47 per cent, including a guarantee
 of a minimum of 59,500 tons. In 1908 certain Russian works
joined the syndicate. In 1909 Russia’s share in the world’s exports
of rails was fixed at 7.2 per cent and corresponding adjustments
made in the other quotas.
The central bureau for the syndicate was located in London, and
there were local bureaus for each national group. Besides allotting
different countries of the world to its members the syndicate also
seems to have had a pooling arrangement to cover the trade in neutral
markets, which provided for the payment of bonuses by countries
exceeding their allotment. Thus in 1907 the British members paid
to the Belgian members a bounty of 10 shillings per ton, totaling
about £2,200.
All markets are divided by the international syndicate into three
classes:* (1) Protected markets, which include the domestic markets
of each national group; (2) favored markets, which consist of foreign
markets granted to members in a given country in preference to those
in others, as the colonies and protectorates of England and France
to English and French members, some of the Latin republics of
America to the alleged United States members, the Scandinavian
countries to German members, and Egypt, Japan, and part of South
America to Belgian members; and (3) ‘‘neutral” markets, or the
remaining ones, which were left free to all. Separate agreements were
made with the Austrian, Italian, and Spanish works. The Austrians
were given their country as a protected market and also a share in
the Balkan Peninsula trade. The Italians were given their domestic
market, but to supply any deficiency other parties to the syndicate

The conn~ction of various American works with the International Rail Syndicate at this time has been
frequently and specifically asserted by foreign authorities. It was admitted by Mr. Corey, who was president
 of the United States Stesl Corporation at that time, and denied by Messrs. Gary, Farrell, Schwab,
and Bacon. (See transcript of record United States v. United States Steel Corporation, Vol. vin,
pp. 2045, 2048-2051, 3035-3036, X, 3834, 3848-3849, 4054-4056; XI, 4188; XTI, 4807-4809; XIV, 5497-5498.)
The chief published foreign statements are Berliner Tageblatt of Dec. 1, 1904; Deutsche Industrie-Zeitung
of Dec. 9, 1004, and Jan. 20, 1915; J. Kollman, Der deutsche Stahlwerksverband, Berlin, 1905, p. 47; Kartell
Rundschau, 1905, pp. 390-392, 440. The American participants of the pool were alleged at various times
to have been the United States Steel Corporation, and the Pennsylvania, Lackawanna, Maryland, and
Cambria steel companies.
Industry and Commerce (St. Petersburg), Sept. 1, 1910, p. 62. Kartell-Rundschan, 1809, No. 3, p. 212,
8 F., Walker, Quarterly Journal of Economics, vol. 20, p. 396; C. Hood, Iron and Steel (London), PD
132-133; Industry and Commerce (St. Petersburg), Sept. 1, 1910.
4 Industry and Commerce (8t. Petersburg), Sept. 1, 1810,