F.— ECONOMIC SCIENCE AND STATISTICS. 



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of groups there were more than ten. The ' span ' of these groups— the 

 extreme distance between their establishments in the same country — may 

 also be an indication of the Machtfrage involved ; it was over five hundred 

 miles in 17 per cent, of all the groups. Thus the desire for extended control 

 arises out of small cases, as a ' rational ' device on various grounds, though 

 its theory and title have been examined only in its largest extensions. 



An attempt has been made by Dr. Saitzew, of Zurich, to place the 

 ' rational ' development in a true perspective as regards both motive and 

 structure, in a recent paper. 2 He uses the method of co-ordinates, placing 

 along three axes points defining differences of motive, instrument, and 

 direction, of grouping. Thus the motive may be pure monopoly, or 



HVy 



rational control, or avoidance of risk, or secret influence ; the instrument 

 may be contract, fusion, or holding company ; the direction may be 

 vertical, horizontal, or a mixture of these. It is thus possible to place 

 in relation to each other the chief types of structure, and to classify on 

 lines different from those of Dr. Thorp. Part of this classification is 

 shown in the diagram, the instruments of Contract, Fusion, and Holdings 

 being placed on the X-axis ; the directions Horizontal or Vertical on the 

 Z-axis ; and the motives, Monopoly, Rationalisation, Avoidance of Risk, 

 Secrecy, and so forth, on the Y-axis. On the monopoly level of motive 

 there are Trusts (Tj and T 2 ) and Cartels (CA) ; on that of rationalisation 

 there are the ' organised association ' (Arbeitsgemeinschaft, AG), the 

 ' great undertaking ' (GU), and one type of Concern (COj). It is an 



2 Horizontal und Vertical im Wandel der letzten Jahrzehnle (Jena, 1927). 

 1927 I 



