60 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

man civil law and unincorporated “societies” (having no legal
status). In general they are subject to the regulations for “companies”
 without actually being such, as they lack the limitations
confining them to a definitely limited number of persons.
The important decisions covering the cartel are decided by the
general convention of all the members. In addition there is a permanent
 directorate or committee presided over by a chairman. whose
duty it is to transact routine and urgent business.
All measures of importance affecting individual members, such as
changes in or canceling of agreements with customers or contracts
with other organizations, must be passed upon by the general convention.
 Usually a simple majority of the votes of those present or
represented by proxies—in case of very important decisions a qualified
 majority—is required. Some cartels allow a plurality of votes
to the larger members, who thus enjoy a privileged position.
The committee is elected by the general convention. It represents
the cartel in all matters concerning relations with customers, members,
 matters of competition, and agreements, and its decisions are
binding for the members. The committee, and in particular its presiding
 officer, represent the cartel in legal proceedings.
The administration is carried on by a salaried manager or person
of confidence who sees to it that the members of the cartel live up
faithfully to their agreements and who aids and advises members
in matters concerning their common interests.
This manager is usually assisted by a special attorney to the cartel,
who serves in the capacity of arbitrator, legal adviser, and advocate
in the case of disputes with external parties.
The manager may demand inspection of books and business
methods of each member.
Foreign markets—The Velvet and Plush Cartel operates in all
foreign markets. With the exception of North America, Austria-Hungary,
 and England, this cartel, through an agreement of January
1, 1908, with the velvet and plush manufacturers of Lvons. France,
has established a virtual monopoly.
The Velvet Ribbon Manufacturers operate chiefly in Germany,
Luxemburg, Italy, Spain, Scandinavia, Switzerland. Holland, Bal.
gium, and the Balkan States.
The Manufacturers of Cravat Materials, Crefeld, are not very successful
 in France and Italy, because of local competition, but have
a good business in Scandinavia and Russia.
The Muffler Association operates in Germany and Switzerland.
Products.—The goods manufactured by these eight cartels comprise
 all varieties of staple, standard, and fancy articles of silk and
velvet, compounds of silk and cotton, and trimmings, but laces and
silk underwear are not included. These goods are usually of excellent
 quality.
Extent of monopoly of home market and of en parsy Moy of these
cartels of silk manufacturers have the control of the German market
except for a few independent manufacturers in South Germany. The
cravat material manufacturers are all in the cartel.
The various cartels control even a higher percentage of the entire
silk textile exports than of the production at home. i
Selling methods at home.—Sales are made by each mill independently,
 there being no cartel selling office.