| This was probably the outstanding example of a community of interests
— and when six of these firms finally merged in an A.G., the new corporate
name became "I.G. Farbenindustrie A.G.," literally meaning "Community of
Interests of the Dye Industry, Inc." Two other firms retained legally separate
form, although they were controlled and principally owned and controlled by
I.G. Farben (Kalle & Co., and Casella & Co. Casella was finally
liquidated about 1937). |
| |
| C. "Kartell" (Cartel) |
| |
| 1. This is a combination of independent business units for the
purpose of influencing the market by eliminating or regulating competition
among themselves. |
| |
| D. "Syndikat" (Syndicate) |
| |
| 1. This is a type of cartel with a centralized sales and control
organization, the latter usually in the form of an A.G. or G.m.b.H. I.G. Farben
was a member of a number of syndicates of considerable importance. For example,
the Stickstoff-Syndikat G.m.b.H. was the German nitrogen syndicate for the
determination of production quotas as well as for sales of nitrogen in
Germany. |
| |
| E. Special Statutory Cartels |
| |
| 1. In some instances cartels were created by special statutory
provisions giving them official regulatory powers and making membership
compulsory for all members of an industry. An outstanding example is found in
the compulsory coal syndicates created by a law of 23 March 1919, which
replaced the former voluntary syndicates. I.G. Farben completely owned a number
of coal corporations. (For example, Gewerkschaft Auguste-Viktoria, Deutsche
Grube A.G., Gewerkschaft Klara-Verein.) I.G. Farben also had a community of
interests agreement with Riebeck'sche Montanwerke A.G. by which I.G. Farben
guaranteed the dividends of the Riebeck'sche Montanwerke A.G. and under which
I.G. Farben could cause the conversion of all Riebeck'sche shares into IG
shares. These mining corporations were required to belong to the German coal
syndicates. The function of the syndicate, ordinarily set up on a regional
basis, was to buy all coal production within the area and to provide a central
sales organization. At the same time the syndicate exerted broad control over
production. The influence of the individual producer as a member of the
syndicate depended upon his share in the total production. The Minister of
Economics possessed a veto over the actions and resolutions of the coal
syndicates. |
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