8 BULLETIN 182, U. S. DEPAETMENT OF AGRICULTURE. 



forced into the distilleries, thereby increasing the production of 

 alcohol. This was made the more possible because the improved 

 methods of cultivation were yielding potatoes richer in starch and 

 the improvements in technology were causing a large yield of alcohol. 



In 1897-98, 79,252,500 gallons (300,000,000 liters) of alcohol were 

 produced, while in 1901-2 not less than 112,010,200 gallons (424,- 

 000,000 liters) were manufactured. Owing to the decrease in the 

 potato harvests during the next few years, the production of alcohol 

 dropped somewhat, but it reached its zenith in 1905-6 with a produc- 

 tion of 115,444,475 gallons (43t,000,000 liters). 



For several years after the enactment of the law of 1887, the 

 pecuniary success of the alcohol distilleries was not great. The price 

 per gallon had dropped about 10 cents as compared with the prices 

 obtained before 1887. The " Kontingent " did not afford a sufficient 

 substitute for this reduction in price, since the large majority of 

 distillers, at least in North Germany, were compelled to produce a 

 considerable quantity of alcohol pajdng the higher tax rate of the 

 " Ueberkontingent." To this must be added the fact that the dis- 

 tillers did not realize the actual average price for the year, but one 

 considerably below the average. The prices of alcohol were fixed 

 by the Chamber of Commerce of Berlin and were so regulated that 

 they were relatively low during those months in which the alcohol 

 was in the hands of the distiller, but they were raised as soon as the 

 producers had disposed of their products. The result, therefore, 

 was that the dealers and not the producers enjoyed the greatest 

 pecuniary benefits from the manufacture of alcohol. 



COOPERATION IN MARKETING. 



It was soon recognized that relief would result only from a cooper- 

 ative disposal of the alcohol produced. The basis for a cooperative 

 union had been laid with the establishment and assignment of alco- 

 hol production under the lower rate of taxation (Kontingentirung). 

 While attempts in this direction were made at once, they did not 

 result in the desired success. In spite of the greatest efforts, a com- 

 plete union of the entire industry did not immediately result. A 

 number of provincial sale associations (Verkaufsgenossenschaften), 

 cooperative organizations for the sale of alcohol, were organized, 

 some of which still exist and constitute, as it were, the centers of 

 crystallization about which the present large organization has de- 

 veloped for the disposal of the alcohol produced in Germany. 



It was only with the third attempt, at a time when the position 

 of the alcohol market had become untenable, not only for the 

 agricultural distilleries (Brenner), but also for the distilleries and 

 rectifiers in the cities (Spiritusfabrikanten), that these efforts were 

 crowned with striking success. 



