SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 78
Artificial Silk Trust.—The United Artificial Silk Factories
(Vereinigte Glanzstoff-Fabriken -A.-G.), Elberfeld, is by far the
greatest company of the German artificial-silk industry. Although it
nas existed scarcely 15 years, it already exercises an international
monopoly. The Artificial Silk Factories paid in the 10-year period
preceding 1913 a cumulative dividend of 343 per cent. puring the
same period the capital stock was raised from 2,500,000 marks to
3,000,000 marks ($595,000 to $1,190,000), and the new stock was quoted
at par. The great profits in this industry rest principally upon patents
 which cover the best methods of production (according to the
copper-oxide ammoniac, process). In May, 1913, the issuance of
2,500,000 marks of gratis stock was announced.
The stoneware combination.—The Association of German Stoneware
 Factories (Ltd.) (Vereinigung Deutscher Steingut-Fabriken,
G. m. b. H.), which was promulgated in October, 1911, to regulate
sales conditions and prices, formed in 1911 and 1912 a trust composed
of 27 factories, which represent about 95 per cent of the total German
production.
The unsuccessful German rice monopoly.—The rice-trading company
 (Reis &amp; Handels A.-G.) was established at Bremen in the
year 1901 by a combination of German rice mills. The expectations
of the founders were not realized. The capital stock had to be reduced
 from 80,000,000 marks to 15,000,000 marks ($7,140,000 to
$3,570,000). In the division of profits (according to participation
quotas) at the end of the year 1911 the names of 12 rice mills were
mentioned, among which 10 were in Germany.
The concentration movement in the storage-battery industry.—A
prominent manufacturer of storage batteries (Akkumulatoren-Fabrik,
A.-G.), located at Berlin-Hagen in Westphalia, has succeeded in
affecting a relatively complete monopoly by absorbing several independent
 concerns. Largely on account of the competition of the
Berlin-Hagen combination the firm of Boese &amp; Co. was dissolved.
The profits of the Berlin-Hagen company are unusually large. For
the seven years immediately preceding 1910 its dividends amounted
to 123 per cent annually. In 1910 they were increased to 15 per cent,
and in 1911 they were again raised to 25 per cent. The capital stock
was raised from 8,000,000 marks ($1,904,000) to 12,000,000 marks
($2,856,000) in October, 1912, and the new stock was offered at par.
The board of directors of the Berlin-Hagen combination is composed
 of the following organizations: The Berliner Handelsgesellschaft,
 the Deutsche Bank, the Pester Kommerzial-Bank, the General
 Electric Co., of Germany (A. E. G.), and Siemens &amp; Halske.
Many complaints have been heard concerning the lack of publicit
on the part of the Berlin-Hagen combination. The increase of oy
which was officially announced in September, 1912, was known in
certain circles before the announcement was made. The combination
 in 1912 made the statement that it employed in the manufacture
of electrotechnical specialties at least 8,000 laborers and employees.
Since only one or two outsiders are known to exist, the Berlin-Hagen
 company is regarded as a virtual monopoly.
The Jute Syndicate—An, association of German jute manufac
turers (Verband Deutscher Juteindustrieller, G. m. b. H.) was
founded at Brunswick in 1901 for an indeterminate period. The
association can be dissolved by the withdrawal of any single com-