38 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

to include them all, although, as stated before, it does not encourage
the indiscriminate organization of new mines. A new factory is not
compelled by law to join the syndicate, but the advantages of belonging
 to it are so evident that none remains long outside. All potash
factories'in Germany are at present members of the syndicate.
Tae CarTELS OF THE GERMAN PorTr.AND CEMENT INDUSTRY.

Names, location, and preliminary remarks—The German cement
manufacturers in various parts of Germany are organized in eight
different groups as follows: Stettin, Silesia, Berlin, Middle German,
Lower Elbe, Hanoverian, Rhenish-Westphalian, and South German
groups. The location of the principal offices of the Stettin, Berlin,
and Hanoverian groups are at the respective cities from which the
group takes its name. The principal office of the Middle German
‘ement Works is at Halle. The Rhenish Westphalian Cement Syndicate
 has its principal office at Beckum. The location of the South
German group is at Heidelberg, with agencies at Frankfort on the
Main, Metz, Munich, Stuttgart, and Wirzburg. The names of the
firms composing these groups will be found attached (p. 46).
Organization.—The conditions in the German cement industry
were particularly favorable for the formation of cartels. The number
 of factories in the various groups is not large and the production
 is largely centralized in the hands of the great Aktiengesellschaften.
 The first cartel in the German cement industry was only
a loose price convention. It had all of the faults which such organizations
 generally possess, and consequently was of very little commercial
 value. It did not exist very long because it could not
improve the unsatisfactory conditions existing in the industry.
The Union of Silesian Portland Cement Manufacturers (Der Verband
 Schlesischer Zement-Fabriken), which was first organized in
1893 for a period of 10 years, and then was extended and still exists
to-day, was the first higher developed cartel which had for its object
the regulation of sale, prices, and production. It was organized with
a central selling office, a general convention, a president and two
confidential men, as well as assistants for the latter. The president
was chosen from the number of companies belonging to.the syndicate.
 The general convention performed the te duties: It
formulated instructions for the selling agency, especially as to
standards and fixed selling prices, new improvements, and formed
connection with other groups of manufacturers, considered ideas
for lowering the cost of production, fixed the maximum credit to
be given to purchasers, and attempted to improve and develop favorable
 export regulations. Each factory had a definite number of
votes in directing the management. In case offenses were committed
by particular members; their cases were decided before .a court
composed of three members and one of the substitutes. The ‘confidential
 manager kept and revised the books and business negotiations
 of the association and the selling agency. The central selling
agency sold products in the name of the various works. When an
order was taken for a customer, the firm which was to furnish the
goods approved and guaranteed the order. Payments were made
direct to the manufacturer. Small purchases, up to 10 barrels, were
permitted directly to consumers at prices fixed by the selling agents.