22 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,
Products—The peculiarity of the coal industry precludes any
standardization; the quality of the Ruhr coal is excellent but varies
trom deposit to deposit and often from shaft to shaft. The scientific
department of the Syndicate has the different grades well classified
as to calories in comparison to the competing coal mines, brown-coal
mines, etc.
Prices and selling methods at home.—The directors regulate the
prices by fixing a certain “norm” price for the year, from April to
April, called “ Richtpreis.” This norm is the minimum price to be
asked in districts free from competition. Based upon the norm price.
the market prices are calculated according to quality and location of
the mine. The directorate then assigns this certain market or calculated
 price to each mine (called “ Verrechnungspreis”), which is
the price the mine receives from the Syndicate. If in the open market
the Syndicate is able to realize a higher price than the calculated
mine price, the difference is refunded to the mine. The cost of maintaining
 the Syndicate, and especially the rebate necessary in districts
threatened by competition, are covered by a pro rata deduction from
the prices paid by the Syndicate to the mine. At this point a strain
between the mines using their own coal for their own furnaces and
those selling in the open market is to be discovered, because those
firms, having only mines, must stand the brunt of the cost of price
war against competition. It works as follows: About half of all
the coal produced goes directly into the ovens and furnaces of the
iron and steel industries, without having to pass through the hands
of the Syndicate. Therefore the expenses for maintaining the Syndicate
 and cutting prices against outsiders is levied on the other half
of the coal production passing through the hands of the Syndicate.
This coal is almost entirely from the straight mines—those not belonging
 to iron and steel plants. The result is that (1) the furnaces
get cheaper coal than anyone else, and (2) that the coal mines marketng
 coal through the Syndicate must pay the bills.
nly prices and the sales policy of the mines are regulated by the
Coal Syndicate Co., the technical improvement and all other internal
affairs of the mining companies being left entirely to the individual
members. Also the relationship between the works and their employees
 is a private affair of the mine. The Syndicate desires to
interfere with the private affairs of each member as little as possible.
The Syndicate also pays no attention to the welfare of a member.
He may fail or sell out, as he pleases. Also, a member, if he wishes,
may cease working several shafts and concentrate on one, or he may
buy coal lands and sink new shafts. The only point of contact is the
limiting of production and the sale of the same on the part of the
Syndicate. German business firms, as well as individuals, are very
jealous of their personal liberty and freedom in their private affairs.
Wholesale dealers absorb only 40 per cent of the output. The
Syndicate therefore must organize the coal market, in order to disose
 of the other 60 per cent. Large dealers, who purchase direct
From the Coal Syndicate Co. are given uniform prices, these prices
being set for one year and not changed during the year. The coal
merchant must deal exclusively with the Syndicate. Agency districts
 are fixed by the Syndicate on the exclusive sales rights basis,
similar to those of the Steel Verband. In 1899 to 1900, during a
period of great industrial activity and large demand for coal, dealers