43 



cial activity October 1. 1899, controlling about 90 per cent, of 

 the product. 



The plan is as follows: 1 The great firms have organized 

 the "Centrale," with a capital of 6,000,000 marks, nominally, 

 but in reality with a financial strength represented by the 

 capital of all the firms belonging to the Union. The "Cen- 

 trale,"' with headquarters at Berlin, has pledged itself to buy 

 all the spirits that distillers supply at a price agreed upon at 

 the beginning of each business year, October 1st ; to place the 

 spirits on the market at the highest price which seems wise, 

 not excessive, but one which will give a fair return on capital; 

 and at the end of the year to pay the various distillers the 

 \vr\\Trtungs-praemie," or profits per hectoliter, after the 

 cost of handling and sale have been deducted. The producers, 

 on the other hand, have bound themselves to the "Centrale" 

 for nine years and all spirits produced by them must be de- 

 livered to the trust for sale irrespective of the market price. 

 Of course the hope is that through union the market can be 

 controlled, and better prices secured for all. Now the part 

 that is of particular importance to us. Liquor for drinking 

 purposes is to be sold at high prices, while the excess, which 

 would lower the price of all if placed on the market, is to be 

 mixed with the "denaturirungs-mittel," and sold for technical 

 purposes. The "Centrale" has every interest in furthering 

 the use of "denaturirte" spirits as much as possible, as only 

 by the extension of such use can it hope to be successful in its 

 plans, and its efforts are meeting with great success every- 

 where. 



The use of spirits for lighting had not been greater before 

 because the dealers would not give up the habit of large profits 

 which hindered the expansion of the trade. Only in certain 

 districts, especially in Saxony, were the prices low, and the 

 dealers rejoiced in a large and steady trade. The "Centrale" 

 considered these conditions and decided on the following plan, 

 adopted in June, 1900. The trust fixes the retail price for 

 different localities and sells to the dealers at prices differing 



1. The statements concerning the trust and its activities are largely based on 

 an interview with Prof. Wittleshoefer, the director of the Centrate, who kindly 

 explainld the organization and its plan. 



