6 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

from the German steel industries located inland. This was possible
for two reasons. First, the water freight rates from England were
cheaper than canal and railroad freight rates from German mills
geographically nearer. Second, the English steel industry had specialized
 in shipbuilding materials and by standardizing them for their
own shipyards were able to underbid their less experienced and more
recently established German competitors. For this reason the Shipbuilding
 Steel Office (Schiffsbaustahlkontor) was founded. This or.
ganization endeavored to collect all shipbuilding orders in one central
 point and there distribute the orders in such a way that a
standardization could be accomplished, i. e., the firms belonging to
the combination received all there was to be had of each kind of
work. These orders were then distributed in a manner which enabled
each firm to concentrate on a few kinds of material and thus reduce
the cost of production per unit. The society aimed not at profits,
but at driving out fog competition by distributing the losses
among their members. The members of the Shipbu ding Steel
Office were joined, 1912, by the Dillinger Hiittenwerke and the
Bismarckhiitte. The other firms participating are those members
of the Steel Verband manufacturing shipbuilding supplies, especially
steel ribs and plates.
The Stabeisenverband or “ Bar Iron Union” was first founded in
1893, but broke up. The Rhenish-Westphalian and Silesian industries
 combined in 1901 with 9 members Agape 50 outsiders. This
combination broke up in 1902. In October, 1909, practically all
bar-iron producers united and set a minimum price of 102 marks
($47.60) £. 0. b. Neuenkirchen. The outsiders were: Hochst, Gelsenkirchen,
 de Wendel. Also all the Martin steel works were against
the combination, so that the combination again broke up. An attempt
 was made in July, 1913, to reorganize the rod-iron industry,
but it again failed and this industry is to-day unorganized.
The Verein Deutscher Eisengiessereien {Union of German Iron
Foundries) is composed of the Deutsche Gussrohrensyndikat (German
 Cast Iron Pipe Syndicate), with an office at Cologne and a branch
office in Berlin. Originally only a Rhenish-Westphalian industry,
in 1913 it was extended to include all Germany. This syndicate is
of importance because about 18 to 20 per cent of the entire pig-iron
production is used in castings. There is also a radiator combine and
a combine of tempered steel castings closely allied with this union.
A syndicate of the producers of heavy forgings has been attempted.
but failed.
The tin-plate industry is combined in the Weissblechkontor (Tin
Plate Office) in Cologne. It was originally composed of five members:
 Aktiengesellschaft Dillinger Hiittenwerke, Dillingen a. d. Saar;
Rasselsteiner Eisenwerksgesellschaft, Rasselstein bei Veuwied: Les
petits Fils de Francois de Wendel &amp; Cie., at Hayingen; Hiistener
Gewerkschaft Aktien-Gesellschaft zu Hiisten i. Westfalen; Aktiengesellschaft
 Phonix, Abteilung Westfilische Union zu Nachrodt in
Westfalen.
If the contract under which the products of the firms are syndicated
1s not discontinued by one of its members six months before the end
of the calendar year, the contract continues automatically in force.
There is no specified quota of production, and each plant is free to
produce as it desires. The syndicate is formed not to limit production,
 but to concentrate selling. The orders are distributed as equally