SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 33

portance only in the distribution of crude iron to foundries and other
industrial plants outside of the great syndicated steel mills.
The results attained by combination.—A regulation of production
to meet the demands in the market without exceeding it; reduction
of the cost of selling; the maintenance of a price which enables the
members to make a reasonable profit, the health of the entire economic
 life being dependent upon the healthful existence of many
industrial plants, which is only possible when such plants receive an
ample reward for their efforts and risk.
Dutsiders—No smelters are excluded. Any furnace which is desirous
 to join the syndicate can do so at any time. Norddeutsche
Hiitte, Bremen, Oberscheldener Hochofenwerke, Siegerlinder Hochofenwerke,
 and the group of the Luxemburger Hiittenwerke, except
Deutsch-Luxemburgische Hiitten A.-G. are concerns that are not
members of the syndicate. Export competition from the outsiders is
of no importance. There are no governmental discriminations between
 members-of the syndicate and others.
Tre Porasa INDUSTRY,

Name and location of syndicate—The German potash industry is
controlled absolutely by one organization, the Kali-Syndikat (Potash
Syndicate), the main office of which is Tocated in Berlin, Dessauerstrasse
 28.
Organization.—The German Potash Syndicate is the ultimate development
 of a series of experiments in the organization of the potash
industry, which began as early as 1865, when mining was declared
free in Prussia in an effort to combat selling difficulties and overproduction
 which at that time obtained in the totally unorganized
 industry. From 1865 until 1879 the attempts at organization of
the industry were only indifferently successful, but in this year, 1879,
an agreement fixing the total amount of production, designating the
participating mines and the amounts to be contracted for by each,
regulating prices and terms of payment, was entered into by most of
the then existing mines. This convention, although loosely formed,
and in many respects one-sided, is easily recognized as the precursor
of the present strongly centralized combination. i
Again, in 1904, in an effort to make conditions still more favorable,
a new treaty was concluded by the potash mines regulating production
 and sale until June 30, 1909. This treaty fulfilled its object
during this period, but at its expiration another treaty was not immediately
 agreed upon on account of controversies which had arisen
between the mines. Thereupon several potash works, notably the
Aschersleben, Sollstedt, and Binigheit mines, took advantage of their
freedom to conclude independent long-term contracts with potash
importers of the United tari and upon the formation of a new
syndicate, organized as a limited liability company by the potash
mines of Germany, these three works combined to form an independent
 “ rump fndjuste, The resulting. competition brought danger
 to the entire German potash industry, and it was only through
ear that a prohibitive export tariff would be placed on potash that
the “ rump ” syndicate was brought to terms and agreed to combine
with all of the German potash mines in forming an entirely new syndicate.
 Th is was brought about the organization of the Potash Syn-27941°—pr
 2—18——p