SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION. 53
motors, and other electrical apparatus used in that district by refusing
 to allow any other than their own electrical appliances to be
attached to their mains. As the number and size of such overland
central stations have grown, the danger seems apparent that an absolute
 electrical monopoly would be established. The regulation of
this danger on the part of the State met with immediate opposition
from the municipalities, because in the cities, in which franchises for
the construction of electrical public utilities were granted, a new
form. of company called the mixed company (Gemischt-wirtschaftliche
 Unternehmungen) had arisen, in which the city and the electrical
 constructing company build and operate the particular plant
jointly. The municipalities, which are very jealous of their local
self-government, which they have enjoyed for more than a century,
maintain that if the State should take over the right of granting
franchises they would be losing one of their inalienable rights. So
far, the mixed enterprise seems to be a fairly satisfactory solution of
the public utility problem.
Relations to other business interests at home.—The system of interlocking
 directorates has been highly developed by both the A. E. Gand
 the Siemens-Schuckert. The late Dr. Emil Rathenau was president
 or vice president or member of almost every board of directors
connected in any way with the electrical industry, except the Siemens
group. His son, Dr. Walter Rathenau, was also in practically every
board of directors with his father and is carrying on his father’s
connections since his death.
Relations to foreign Governments. —It was impossible to ascertain
to what extent either one of the German electrical companies have
understandings or arrangements with foreign Governments; however,
 such arrangements occur seldom in European countries, except
in the form of franchises. Even then the State or municipality
usually retains entire or part ownership in the work. -
Relations to foreign business interests.—The list of companies in
which the A. E. G. is interested as given above shows many companies
 ebroad. The question, however, is not fully answered by
this list. An example of how far the influence of the electrical companies
 extends abroad may be had by considering for a moment the
institution called the Bank for Electrical Enterprises in Ziirich (Bank
fiir elektrische Unternehmungen in Ziirich) controlled by the A. E. G.,
whose report for the twentieth year, ending June 80, 1915, was issued
November 2, 1915. This company has a paid-up capital stock of
75,000,000 marks ($17,850,000), on which they have paid a dividend
of 8 per cent for the past year in spite of the war and their international
 character. The president of the board of directors is the
president of the Schweizer Kreditanstalt in Ziirich; the vice president,
 the owner of the Berliner Handelsgesellschaft in Berlin; the
second vice president is director of the Deutsche Bank in Berlin,
and the largest part of the 25 members are bank presidents or directors.
 The institution is a bank for financing electrical plants, and,
of course, such plants are to be supplied with A. E. G. products.
The companies which have been financed by this bank and which
therefore, indirectly, are under the control of the A. E. G. are ‘with
their capital to be found in the report of the “ Bank fiir elektrische
Unternehmungen.”