62 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

trol sales to the most remote ramifications of the trade, it would
require such complicated supervisory machinery that the enormous
costs of administration would be greater than the advantage gained
by direct selling prices.
Terms of sale and delivery—(1) The terms of sale of the Cartels
of Velvet and Velvet Ribbon Manufacturers are:
(a) For wholesale dealers: Cash, end of first month after delivery
6 per cent discount. Cash, end of six months, net. Five days of
grace are allowed, and possiniy for anticipation a discount at the
rate of 6 per cent per annum. If the six months’ limit is passed. interest
 is demanded at the rate of 6 per cent.
(5) For retailers, 2 per cent discount for cash in 30 days; cash
in 90 days, net.
(2) The silk manufacturers give for cash: End of first month after
the month of delivery, 6 per cent discount; end of second month
after the month of delivery, 5 per cent discount; end of sixth month
after the month of delivery, net. A more extended limit than six
months is inadmissible.
After six months the mill has the Tg to sue, and after seven
months is obliged to do so. Five days of grace are allowed.
Dumping —Sales abroad at sweeping price reductions have been
avoided by the silk cartels. In some cases an international uniform
price has been agreed upon. In other cases the domestic exporter
receives his goods from the cartel mills at the price which is in proportion
 to the price he is to receive in the foreign market.
Special relations—(1) None of these cartels enjoys special privileges
 except the customary reduction in freight rates from the interior
 to German ports on goods for export to enable them to compete
 with manufacturers at coast points.
(8) Direct dealings between weaving mills and thrown-silk mills
are quite exceptional, as are direct dealings with silk growers. All
business is being done through nriddle men. Similarly the auxiliar
industries, dyeing and finishing establishments, occupy an ay
ent position toward the weaving industry. They usually have their
own organizations and make agreements concerning wages and business
 relations. A combination of auxiliary industries and weavers
ander one head occurs occasionally in the crape-weaving branch, but
is not common in the other branches.
(4) The Velvet and Plush Cartel has agreements with the Lyon
manufacturers and the Lister Works in England. The Cravat Material
 Cartel has valuable relations abroad, particularly in Secandinavia
 and Russia.
The results attained by combination and the effect on outsiders.—
Most of the results desired have been attained. The cartel, it should
be said, does not endeavor to exclude, but rather to include, all competitive
 concerns. The Cartel of Velvet Ribbon Manufacturers, to
successfully combat outsiders, made an agreement with the Association
 of Wholesale Velvet and Silk Dealers. This agreement assures
preteen] terms to the dealers and prevents the manufacturers
om dealing with other groups of wholesalers. The dealers are not
permitted to underbid the retail prices of the manufacturers. In
the case of South German ribbon mills, which specialize in silk-back
ribbons, an exception was made, and the wholesalers are permitted
to deal with them, but only to a certain anmual ratio.