486 ~ REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

It must be clearly understood that invoices in which the prices charged are
higher than they would be according to tariffs 0000 and No. 2 shall be taken
into account at their net amount in determining the volume of business transacted
 by each member,
ArTICLE IV (B).

To establish the limited figure guaranteed to each, the following procedure
will be followed :
1. The business done by each of the parties in 1910 will be abstracted
invoice by invoice.
. 2, Each of these invoices will be extended at the 0000 tariff prices for ordinary
 capsules and No. 2 tariff prices for champagne capsules.
3. The invoices thus modified will be totaled.
4, The difference between the total business transacted in 1910 and that of
the invoices thus reconstructed will be compared.
5. The latter figure (that of the reconstructed invoices) will be adopted as
the initial guaranteed trade, provided that the difference between the trade done
in 1910 and this increased total does not exceed 20 per cent of the former.

ArTiCIE V.

The amounts calculated and set forth by each of the undersigned manufacturers,
 as provided above, shall be examined by the manager of the association.
This examination must be effected within nine months at latest from the date
when the last statements have been forwarded to the manager.
When once this period is passed, the amounts which have not been criticized
or disputed shall be considered true and sincere and shall be entitled to a due
proportion of the guaranty to be given by the participants to the manufacturer
who shall have transacted such volume of business, :
ArTICLE VI.

The amounts set forth and verified as above shall form the volume of business
which each one guarantees to the others during the succeeding year. This
must be understood in the sense that any increase or decrease proved to exist
at the end of this same year among the coparticipants shall be divided between
them and borne by them in proportion to the share of each one in the initial
volume of business guaranteed.
(By way of exception, the initial amount guaranteed to M. Ramondin will be
180,000 francs.)
Artic VII.

At the expiration of the year following the signature of the present agreement
and of each succeeding year the amount of business done by each of the undersigned
 manufacturers shall be determined by means of the memorandum slips
which will be mentioned in article 15. ]
The amount of business so transacted by each one will be compared to that
done by him in the preceding year; the various amounts will then be added
up and the total volume of business compared with that done in the preceding
year,
The manager will then determine the scale on which the increase or decrease
would have to be made if the business done were proportionate to the share
of each one in the volume of business guaranteed.
ArTticie VIII

Those manufacturers whose amount of business 1s greater than it should
have been according to the proportionate rule just mentioned will pay into the
hands of the manager a sum in cash equal to 30 per cent of their overproduction.
The sums thus paid by the overproducers to the manager shall be paid by
him to the underproducers, who shall each receive 25 per cent of the amount
of their underproduction.
The remainder of the amount paid in by the overproducers, namely, 5 per
cent, shall serve to form a reserve fund, which, should it not have been used
for the purposes of the association, will be distributed among the members in
Jrapnrtion to their effective participation upon the dissolution of the associaon.
