The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-13
Especial to The Timcs-Disputch. |

- w uSHiHe loil, ~. u, NoNeInper H.
The alleged lind of rich potash de-
post in Maryland, which. 1t is said.
VIII make American users OF potash
/ independent of the German monopoiy.
brought out an Interesting story to.
oay from the Department of Commerce
and Labor. 1t Is the following report
from Consul Albert. of Brunswick:
The potash syndicate furnishes an
excellent illustration OF what consti-
tutes German syndicate and what
distinguishes II from an American
trust. 1t is only by the study of
concrete example that tho difference
can be clearly understood
There arc two most significant and
! material distinctions. The first is tina,
the potash syndicate and most of the
other syndicates have, as such. no cap
ital or shares of stock which are deult
in on the Stock Exchange, as is the
case with the American trust The
second distinction is that a syndicate
Is combination for limited period
or time. usually five years, while the
life OF n trust is INDEFINITE
The units composing tho potash syn
dictate and most mining syndic6tes in
Germany are companies of two kinds.
namely, those whose capital is divided
into shares called "kuXe" and those
whose shares are OF the ordinary, joint
stock variety. with limited liability.
The shares of tho joint stock companies
are unassessablc, but, on the other
hand "kuNc'' are shares that are as
sessaDle at any time and arc OF I'M
limited liability. These "kuXe" and
shares of the individual concerns are
dealt in on the exchanges of the large
cities of Germany.
Fixes auotn of Production.
Each company that Is member of
German syndicate has its representative
on the board of management of the
trust. and this board fixes the quota
of production allowed each mine and
generally administers the affairs of the
entire combination, under its constitu-
ton and bylaws (calied statutJD. The
constitution and bylaws must be
signed by each concern entering the
syndicate and the provisions therein
ontained strictly observed. under pen
alties enforceable in courts of law.
The mutual obligations Of the syndi
cate toward its constituent members
and the duties OF the members toward
! the syndicate are thus protected by law.
making II a legal combination.
Tho weak point in this form of or
ganization is the dissension that often
arises as to the quotas allowed tho diff
ierent members. Each company wants
AS large an allotment as II can get,
and there Is disappointment II IL Is
, expiration of tho life of syndicate
there is always uncertainty as to
whether 1T will be renewed owing 10
the competition among the various
constituent firms.
The object of syndicate is not
monopoly, but the prevention OF dis
astrous competition. 1t is an agree
ment among producers of article
TO prevent overproduction. so that sup
ply win conform to demand and rea-
lA If IN I'M
1 mere is no outcry in Germany against
syndicates; they arc generally looked
upon as organizations advantageous to
we'll -rcSulated trade.
In Complete Control.
The German potash syndicate, a
combination OF seventy-siX companies.
troll OF the potash mining interests OF
Germany. The three chief competing
mines were EiniSkeit and Sollstedt, in
tn. Brunswick consular district, and
trict. some time ago EinEkeit, which
is controlled by American capital. and
mas been connected with the so-called
South trust in the United states. came
to an understanding with and was
admitted into the syndicate. Now an
agreement has been reached between
estcd in the Sollstedt mine by watch
Solistcdt Is allowed the free delivery
OF salts under the contracts with It's
American customers, until the end Of
will he made to the International ASri-
cultural Corporation, OF New York,
which owns the shares. or kn%e, OF
the Sollstcdt mine, and the balance
will be paid TO the syndicate which
will cooperate with Soilstedt In set
thing the lawsuits threatened or IN
stituted against the mine; At the end
of 1911 the sales OF salts exceeding
the quota allowed the mine will cease.
and 1t viii become "a member OF the
syndicate. In carrying out the agree
al
dictate. 1t Is provided that the Interna-
tonal Agricultural Corporation shall
enjoy all the benefits granted to the
other large American importers of pot
ash under the agreement made at the
Hamburg conference in May last The
entire American business of Sollstedt
with the international Agricultural
Corporation will become centralized in
the syndicate.
The agreement between Ascher-
sleben ana the syndicate provides as
basis for union that the mine shall
receive $4,000 from Its American
customers tSl7S,500 from the so-called
/