SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 41

that questions’ of price can be settled directly by a factory, in case
it has not yet sold 60 per cent of the product which it 1s fo furnish
to the association. The participation figures are based on the domestic
 sales of the period from July 1, 1903, to June 30, 1904. If
the sale of a factory is greater or smaller than the amount of the
portion in the total contingent, the extra sales are apportioned to
them on a plus or minus basis. Tf the demand is larger than the usual
production of a factory, the factory can increase its production or
can buy the product of another factory of the association. Money
equalizations are made according to production at the close of the
year. Works which show a higher average price than the total average
 price of the association have to pay the difference to those members
 of the company with prices less than the total average price.
The regulations concerning the directors, confidential men, assistants,
and cost of the union, are exactly the same as those of the Silesian
organization, except that each factory has only one vote at the general
meeting, and as a security each factory must deposit 10 bank drafts
of 1,000 marks each.
The Selling Union of the Middle German Cement Works, which
was established at the close of the year 1904 in the form of 4 limited
liability company, was a cartel of a higher order of the same kind as
the Rhenish-Westphalian and South German Works.
The North-West-Middle German Cement Syndicate, founded at
Hanover at the end of 1900, was just as highly developed but in a
totally different form. This organization was in the form of a
stock company (Aktien-Gesellschaft). The factories united themselves
 into a Lobos owners’ union, which closed an agreement with
the syndicate (probably Rhenish-Westphalian), The controlling elements
 of this organization were the president, the board of directors,
the general meeting, the union of factory oprietors and advisory
board, and a commission for the fixing Sl of participation
 figures. The board and commission last mentioned were chosen
by the association of factory owners: The participation figures
can be regulated by these on a percentage basis and can be changed
after the estimates have been om by the commission. The
sales are conducted by the organization in its own name and on its
own account, and it must guarantee to sell the quota apportioned to
each plant. The participation figures are not relative numbers, but
are definite amounts. In other ways, this organization resembles the
cartels previously described.
Agreements between groups—After the cartels of the German
cement industry have been considered, the agreements of combines belonging
 to particular German groups must be studied. The highest
developed of these is the agreement between the Rhenish-Westphalian
and the Hanoverian Syndicate of 1905. In this agreement it was provided
 that each organization could only furnish fixed amounts of the
manufactured products tn the district of the other. These amounts
are fixed by a sworn accountant. Certain amounts were equalized.
The prices and selling conditions of each union in their districts were
respected. In case of difficulty an arbitration tribunal decided the
amount of the fine.