WAS THERE A WEAK FACTOR IN ORGANIZATION? 215
Rebates extended throughout the German cartel system. The
Coal Syndicate gave a rebate on coke if the iron was for export^
the pig iron makers gave a rebate if the half-finished goods were
for export. The \\ire rolling mills received rebates and in turn
gave rebates to the Wire Tack Syndicate, The complications of
the system led to the establishment in 1912 of a clearing house
for export duties. Compensation \\as paid to syndicate members
who were forced to accept unremunerative prices abroad. About
1906 the Wire Rod Syndicate sold in the home market at £12 per
ton and exported at £7 per ton.
Before 1914 Germany had become noted for the concentration of
its industry. Around the chief associations, the Westfalische Kohlen-
syndicat, the Roheisenverband and the Stahl^erksverband, were
grouped other rings, syndicates and cartels. The Stahhverksverband
was the dominating force over all, but the firms -were bound only
by contract and might secede. Actually the renewals of the latter
mentioned above were only made with some difficulty and it lapsed
in 1919.
In 1908 the Schiffsbaustahlkontor (Shipbuilding Steel Office)
was founded. The orders received at the central office were dis-
tributed to the most favourably situated works.
The Stabeisenverband (Bar Iron Union), founded in 1893, soon
broke up. In 1909 practically all the steel bar producers united
but their association failed to survive. In 1913 it was again formed
but again failed.
In 1916 the domestic iron and steel was marketed through five
dealers* associations. For foreign markets the syndicate fixed the
export quotas of members and maintained a firm price policy lower
than the domestic. The advantages claimed for syndication were:
(1) regulation of production to meet the demands of the market;
(2) reduction of the cost of selling; (3) maintenance of the price,
to give a reasonable profit.
The Weissblechkonter (Tinplate Office, Cologne) did not limit
production but concentrated the selling so that orders were equitably
distributed. Forty per cent of the tinplate consumed was, however,
imported from England.
For several years after 1918 the industry was unorganized except
for the Kg Iron Syndicate. In the Ruhr it came largely under the
control of a small number of big groups and production was in-
creased beyond the market capacity so that a price war ensued.
Demand was only 60 to 70 per cent of capacity and competition