PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 45%
of the conventional agreement, and their headquarters will be situated at
La Chaux de Fonds.
C. The court of arbitration thus instituted will be chosen and maintained
In its entirety for the whole duration of the conventional agreement by the
president of the cantonal tribune of Neuchatel, from whom an acceptance of
this mission will be required.
ARTICLE 13.

The conventional firms will appoint a controller, chosen outside of the firms,
who will be empowered to supervise the strict observance of the clauses of the
ronventional agreement, to examine all eomplaints that may be lodged by
metnbers with the committee, and to report to the court of arbitration all particulars
 of any case on which judgment has to be pronounced.
The controller has the right to examine all correspondence and books of any
irm against whom a complaint has been lodged or who is suspected of having
violated the agreement.
The controller is bound under strict secrecy. }
ARTICLE 14.

The court of arbitration, after having heard both sides of the case, must
finally decide whether the said case constitutes a violation committed volunsarily,
 and not an accidental error committed involuntarily, If it is decided
:hat the violation has been committed voluntarily, the court of arbitration must
further decide whether this violation is to fall under the conventional penalties,
which are as follows: .
For the first violation, 100 francs plus 10 times the.value of that invoiced
item which constitutes the violation;
For the second violation, 200 francs plus 20 times the value of that involced
Item which constitutes the violation;
For the third violation, 300 francs plus 20 times the value of that invoiced
{tem which constitutes the violation;
For the fourth violation, 400 francs plus 20 times the value of that invoiced
item which constitutes the violation;
For the fifth violation, 500 francs plus 20 times the value of that invoiced
Item which constitutes the violation; .
And as for the fifth violation so on for each following violation.
The contracting parties agree to consider and accept the penalties fixed above
as irreducible minimums.
ARTICLE 15.

Each conventional firm, as a guarantee of the strict and exact fulfillment of
its obligations, will place in the hands of and to the order of the committee of
the Independent Union six bills of exchange signed by the said firm, payable at
five days’ sight, and of the following amounts:
A bill of 1,000 francs.
A bill of 2,000 francs.
A bill of 8,000 francs.
A bill of 4,000 francs.
A bill of 5,000 francs.
A bill of 10,000 francs.
The conventional firms empower the committee to realize on each amount
(commencing at the lower value) of the six bills of exchange signed by them
As a guaranty of their obligations, by payment to the Cantonal Bank of
Neuchatel of the amount involved, each time that a justifiable complaint is
lodged with the committee with reference to a violation of the agreement. The
report submitted to the committee by the controller will state whether there
exist serious reasons for believing that the complaint is justifiable.
Should the court decide that the complaint is without foundation the sum
paid and consigned will be restored to the firm whose innocence has been
proved against a new draft. Moreover, the conventional firms agree to maintain
 in full the deposit of the six bills of exchange enumerated above.

ARTICLE 18. ’

The stipulations and obligations contained in the present convention are applicable
 to all merchandise delivered and invoiced directly or indirectly by
the contracting parties and destined for Swiss consumption and for consumption
 in the duty-free districts of Savoy and Gex.