498 © REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
OBLIGATIONS AND RicHTS oF MEMBERS OF THE ASSOCIATION.

ART. 5. All individuals and companies producing iodin, or mere holders of
stocks, who sign this written agreement are members of the association, and
also those who later adhere to its provisions in a public document signed by
the new adherent and by the president of the board of directors of the assosintion,
 or by the. person who is performing his duties or acting for him.
ART. 6. No member, of whatever class, shall prepare, sell, transfer, or in any
other manner do business in iodin on this coast, or abroad, except in conformity
 with the following provisions:
A. All members of the combination shall consign or hold at the disposal of
the consignees in Europe or of their duly authorized agents all the iodin exported
 during the life of this combination;
B. All the iodin in stock abroad or in transit on the 31st day of March, 1894,
shall be at the disposal of the consignee agents in Europe;
C. The members of the combination shall export their fodin to the ports
designated by the consignee agents and furnish all the details in respect to
the shipment to which they apply;
D. In case any member desires to sell or lease his iodin factory, or his stock
of iodin, or part of it, he shall give notice of his intention in writing to the
board of directors of the combination, and at the time the sale or lease is
effected he must stipulate in a contract, which shall be made, that the lessor
or buyer shall accept and recognize all the oblizations contracted by such member
 under this constitution; ’
E. On the sale or leasing of the works of a member of the combination, or
of his stock of iodin, or a part of it, the quota in the total sales belonging to
that works shall not be changed in any way, and the proceeds shall belong to
the seller or the buyer, according to the terms of sale; and
F, Whatever modifications in the apportionment of the quotas which it may
be necessary to make by reason of sales or transfers, made in conformity with
this article, shall take effect only after the corresponding notices, given in
writing to the board of directors by the parties thereto, shall arrive in the
hands of the consignees of the combination in Europe. In case the parties
agree to it, the board of directors will cable the notices, but at the expense of
these parties.
ART. 7. The sum due the South American members of the combination from
the monthly sales made by the consignees in Europe or by their duly authorized
 agents shall be divided among the members by quotas, which shall be fixed
by the board of directors in Iquique on the following basis: :
A. The quotas shall be fixed by the production, and shall be changed only
by the entrance of new producers, by the separation of present members whose
stocks have become exhausted, and in the cases provided for in article 9.
B. The shipments made during the two years from April 1, 1892, to March 31,
1894, shall be taken.
For the purpose of fixing the quotas the members shall be divided into three
classes, called (1) old producersy (2) recent producers; (8) new producers.
C. First class—Old producers.—The proportion of the total shipments that
#ach one has shipped shall be his proportion of the sales, but always governed
by section A of this article and those following and by article 9.
The producers who have not been subject to the restrictions of the Nitrate
Combination accept as the basis for the fixing of their quotas of the sales a
production in proportion to that which they would have had if they had formed
a part of said combination.
The proportion shall be fixed by agreement with the board of directors of the
[odin Combination.
D. Second class—Recent producers.—The production of the producers whose
first shipment was made between April 30, 1892, and April 30, 1893, shall be
determined by adding to the quantity of lodin that they have actually shipped,
the proportion lacking to make up their figure for the two years. For example,
a producer who made his first shipment in the month of October, 1892, and
has exported up to March 31, 1894, the amount of 900 quintals, has been in
operation 18 months; consequently, at the rate of 50 quintals per month, he
would have 1,200 quintals for the two years, and if with this addition of 300
quintals the total shipments for the two years had been 24,000 quintals, the
proportion of this producer in the fixing of the quotas would be 5 per cent of
the sales.