SPECIAL REPORTS FOR FEDERAL TRADE COMMISSION, 111

administrative council has full power.to arrange special rates with
the railway companies. The association, in order to facilitate the
refrigeration of cars, has constructed an ice plant. Any excess of
ice production is sold to private parties.
The ‘purchase of coal and other materials needed by the various
associated dairies is made by the association. An affiliated dairy
may, however, be authorized to make direct purchases provided it
pays to the association 4 per cent of the purchase order.
The association respects the autonomy of each of the affiliated
companies and does not interfere with their plants, management, administration,
 or selling operations.
However, in 1912, casein having become an important product of
some of the concerns, the association established a central selling
office. This office was called the “Union des Caséineries.” The head
office of the union is also at No. 1 Bis, Rue du Musée, N iort, Deux-Sevres.
 Up to this time, the leading products of. the association
had been milk, cream, butter, and cheese. Inasmuch as the market
for these products was lpcal, each dairy having a small field to itself,
a central selling agency offered no material advantages. Casein, on
the other hand, is a product having no local market and is almost
wholly an export article. A central selling office, therefore, offered
considerable advantages to those dairies which had become largely
interested in this product. The office was opened on January 1,
1918. The administration of the affairs of the Union des Caséineries
 was intrusted to the administrative council of the Association
Centrale des Laiteries Coopératives, with the close collaboration of
a delegation of five members or delegates designated by the presidents
 of the affiliated casein plants. These presidents also appoint
2 board of control of three members. A majority vote of the presidents
 of the casein factories is required in all decisions involving
direct financial engagements. The Union des Caséineries is consti
tuted for a period of 30 years beginning January 1, 1913. The nine
original members of the organization were the following “ Caséinsries
 Coopératives ”: Aigrefeuille - d’Aunis, Sainte - Soulle, Saint-Varent,
 Saint-Loupsur-Thouet, Maillezais, Le Mazeau, Uzelet, Le
Gué de Velluire, and Bléré.
The Union des Caseineries is charged with the sale of the casein
manufactured by the affiliated companies., It also endeavors to obtain
 uniformity in the quality of the product. At the time of its
formation it arranged a definite plan for the construction of a central
 manufacturing plant. To this end, stock at 500 francs a share,
yielding 4 per cent, was issued. Each affiliated company was required
 to purchase a certain (not stated) number of shares of this
stock. This central plant was located at Surgéres, Deux Sévres.
Each affiliated casein plant obligates itself to sell its entire production
 through the agency of the union. In return the union must
do everything in its power ‘to force the sale of the casein of the
various members. To this end, it is authorized to appoint a special
agent, or to have one or several commissioners as intermediaries, who
are responsible to the union for the sales made by them.
The total sum of the sales, minus a small fixed percentage for the
running expenses of the administrative council, is distributed among
the affiliated companies. This distribution takes place on the fifth
of every second month and is based on the factory accounts of the