188 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
light on facts other than the bare statements of the alleged purpose
of such organizations.
There are.certain organizations of manufacturers, buyers, and sellers
 whose workings are more or less a matter of public knowledge.
The Cotton Spinners’ Association, for instance, a time to time
decides that in order to keep the market from being flooded with
goods for which there is no demand, and whose presence on the
market would consequently depress prices, there shall be a certain
diminution in the output of the cotton-spinning establishments for a
period of weeks or months, and the number of spindles which is to
remain idle is divided amongst the factories concerned. In the same
way the Association of Manufacturers of Artificial Fertilizers meets
and decides that fertilizers will not be sold under a fixed price, and
all members of this association abide by the price agreed upon.
These incidents of control of the market in this country are from
time to time brought to the attention of the public through the daily
press. But the manner in which the decisions of these associations
are binding on the members of the association, and who are the
members of the association, are matters beyond the knowledge of the
ublic.
P The guild system.—There are, however, certain combinations of
business men in Japan whose organization, whose business, and
Those, methods are more or less readily studied. These are the
guilds.
In practically every trade there is a guild of manufacturers, buyers,
 and sellers. Sometimes these people form separate guilds, sometimes
 they form one large concern. In the case of the Tea Guild,
which is by far the largest and most important of these organizations,
 there are many small guilds, which elect members to intermediate
 guilds, which guilds in their turn elect members to the Central
Tea Association, which organization is directly under the control
of the Government and is in a small way subsidized by the State.
The smaller guilds are all granted more or less subsidies by the prefectural
 and district governments. These subsidies are used for
giving prizes to growers and to manufacturers and to pay the expenses
 of the upkeep of the organizations. The Central Tea Association
 received from 1899 to 1906 a subsidy of 70,000 yen ($34,860)
annually from the Imperial Government; this amount was in 1907
decreased to 85,000 yen ($17,430). The subsidy is used to establish
and maintain tea houses in the United States, Canada, Vladivostok,
and Paris, in which the products of the association are offered for
sale.
The organization of guilds has been carried on in Japan under a
law promulgated -on March 6, 1902, law No. 35. By the provisions
of this law the Government is able to keep very strict control of the
business of the guilds.
Among the provisions of the law are the following:
ARTICLE 2: The chief aim and purpose of such associations should be to correct
 bad business methods and to improve the business conditions of the associated
 members.
ARTICLE 3: Before permission will be granted by the minister of agriculture
and commerce for the organization of such an association, two-thirds of the
business men in the trade stated, located in the district for which the association
 desires to organize, must agree to the establishment of the association; a
general meeting of these business men must be held, and the by-laws of the asso-