RELATED TOPICS 245 
to receive supplies of wheat in accordance with the‘‘sack 
capacity’’ of the particular mill. We therefore see 
that everything was controlled by the directors of the 
Association, who formed a central board. 
The Association thus, from a statement of its objects, 
bears a close resemblance to the modern development of 
combination in Germany. The analogous case is the 
German kartel, which is ‘‘commonly an elaborate organ- 
isation, public and formal, which fixes prices and 
prevents the members from competing with each other.’’* 
It has a central agency, to which orders go, and by which 
sales and prices are effected. So far, then, the objects 
and methods of the Association are in accord with the 
general aims and methods of the kartel. But the kartel 
has as its objective the limitation of output, and it is 
doubtful if the Millers’ Association here has ever en- 
‘deavoured to restrict the total output, though it has 
apportioned and controlled the output of individual 
mills. But it is difficult to determine whether or not 
such would have been attempted had the Association 
realised the anticipations of its promoters. The proba- 
bilities are that such weuld have been the case; for with 
an import duty on ffour the flour-milling industry is 
sheltered, and the temptation to raise prices artificially 
would doubtless have been too great. This Association 
then must be classed in the same category as the kartel. 
(b) The Operations of the Association —At the time 
of foundation, out of a total of 40 mills in the Dominion. 
30 had become incorporated in the combination. Soon 
after the number increased to 33, but since that time it 
has dwindled somewhat, and now about half the milling 
strength of the Dominion, as tested by output, is 
outside the Association. This is due to two large 
mills, which have kept outside the Millers’ Associ- 
ation, and succeeded in their struggle with it to 
*Taussig, ‘‘Principles of Economics.’’ Vol. E., page 423. 
