The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-05-06
WHAT ARE CAPITALIST CARTELS. SYN.
DICATES, AND TRUSTS, AND WHAT ARE
THE DIFFERENCES BETWEEN THEM2


lhese are the names given to various more or
less permanent alliances of capitalist enterprises
pre-emmently industrial and banking, which NAV
embrace IN The alliance any number or kind of
enterprises
The difference between cartels syndicates and
trusts lies IN the greater or lesser STABILITY Of
the alliance, trusts being closer alliances than car
tells and syndicates
0arCels and syndicates are based upon an agree
ment between the persons standing at the head
of the enterprises, reinforced bv enaoio1
70 De valid for given period, under which the
enterprises entering the cartel or svndioo+o 1oea
Iher former complete independence but formally
preserve a certain amount of freedom If aotior,
and at the expiration of the term of the contract
they may again become independent and los,,o
the alliance
On the other hand, enterprises uniting IN t,,s+s
lose their independence and freedom Of aotior
completely and forever, and are welded into ono
capitalist enterprise
In cartels and syndcates the different can;+ol
lst-entrepreneurs of the associating entern,isos
are maintained; in trusts the different canitalist
entrepreneurs are eliminated and become the own.
ers of the shares of the de-personalized cani+ol a
the enterprises belonging to the trust
Inc nature of each of these most imnortan+ CON
ltallst alliances will appear in greater detoi1 ~
we take up each one separately.
8. WHAT ARE CAPITALIST CARrE1c ANN
SYNDICATES?
Oar'eiS are alliances of capitalist enterprises on
~ '@SiS ol d contract or agreement for a given
poiioU WIN the ann OF Increasing profits by
'i'e u prices OF commodities and limiting or
inpie'ely eliminating competition on the market
u"uer "nlcn the associating enterprises do not
merge completely but maintain their freedom of
acVlon within certain bounds.
In the simplest and most wida-snrood eo,.. -,
between the enterprises associating in the
0@-'9i ue'ermlnes the minimum prices lower than
~ ~" 'ie capitalists bind themselves not to sell
'ilei coininodltles; then the contract establishes
"'io' quanUlty OF commodities each enterprise is
- produce and let out, so that the supply should
"o' exceed the demand; further it includes agree
0ii'' "ooue uIVldlng up ORDERS distribution of
MARKETS Tor sales, prices of raw materials. etc
Dy Cnese methods, a substantial limitation or
=" complete elimination of competition is at
-anleo with rise in prices and the domination Of
.D0 0"iei over the market, and thus, an increase
II 'ne proIlts OF the associated CAPITALISTS.
~ order that the contract should be better car
,ieu OUT ana that there should be no cheating or
reception on the part of the respective enterpris-
- winch might sell more than was allowed them
= at prices other than those agreed upon. car
81 establishes control over the respective en-
and in many cases all the trading is
ianoied through one general office.
N such case the cartel is transformed into one
whole, with the elimination of the
elai independence of the associated enter
'ilses such a cartel is called a syndicate.
Consequently, the capitalist syndicate is more
si-l'anent and closer alliance of separate enter
ai9es on the basis Of contract with the aim Of
,,-e prices, under which the commercial indie
'enuence OF the respective enterprises is surren-
'a1eu ana all the trading is carried on through
me general office
. syndicate is high stage in the unification of
neefprlses, but not the highest
me highest form of union is the trust (some-
INES oo11oI NiAS e-NHS N~--~