It is further provided in article 587 that if the offenses prohibited in articles 585 and 586 are committed in periods of public disorder penalties of arrest shall be imposed in addition to fines.

Only the first paragraph of article 671 is given below; the second paragraph relates to the disposition of defective goods.

ART. 671. Whoever through curtailment in measure or weight, or through deficient quality of salable articles, or through excessive demand in price or wages violates the rules of any existing rate regulation, incurs a fine of from 30 to 300 drachmas.

SPECIAL LAWS.-The production of currants and the manufacture of wine therefrom is one of the most important economic activities of Greece. The fruit is also used for other purposes, including the making of alcohol. Unsatisfactory conditions led to the establishment of a special bank in 1899 which centralized in a large measure the purchase and sale of currants. For the further amelioration of the currant trade a law was passed on June 21, 1904, forbidding the extension of currant plantations. On July 17, 1905, a law was passed establishing a company called the "Privileged Company for Promoting the Production and Commerce in Currants," which ratified an agreement between the executive branch of the Government and two banks concerning the regulation of the currant trade, and provided the legislation necessary to enforce the provisions of the agreement. This company was established with a capital stock of 20,000,000 francs and a 20-year concession terminable after 10 years by Government purchase. It is required to advance money to the producers on their crops in order to prevent currants being dumped at low prices and also to purchase at the end of the campaign all currants offered to it at minimum prices, fixed according to quality. Various other privileges and obligations were attached to the company's charter. It was also provided that alcohol for commercial use might be produced only from currants or grapes. By a law of March 27, 1910, the overproduction of currants was met by providing for a systematic destruction of inferior currant vines, compensation being made to the owners.1

Section 26. Brazil.

The laws of Brazil are of interest, particularly with respect to the provisions made in the customs laws and in the special laws regarding the valorization of coffee."

1 For general information on this subject see Basiliu: Griechenland, Jahrbuch für vergleichende Rechtswissenschaft und Volkswirtschaft, 1910, pp. 1597-1598, and Struck: Zur Landeskunde von Griechenland, 1912, pp. 103-104, and for details respecting the Privileged Company see Société Priviligiée pour Favoriser la Production et le Commerce du Raisin de Corinthe, Statuts, Conventions et Lois, Athènes, 1905.

It also appears that the Brazilian Government a few years ago made arrangements which recently expired whereby exclusive privileges were conferred with respect to the mining and the exportation of mining monazite sand, a material used in the manufacture of gas mantles. Deutsches Handels-Archiv, 1908, I. Th. p. 277; Ib. II. Th. p. 495; J. P. Krusch, Die Versorgung Deutschlands mit metallischen Rohstoffen, Leipzig, 1913.

CUSTOMS LAW.-The customs law of Brazil provides that the President of the Republic is authorized

To modify the rate of import duties, even to the extent of permitting free entry during a certain period, for articles of foreign origin whch can compete with similar national products, when these are produced or marketed by trusts.1

COFFEE VALORIZATION. Owing to the overdevelopment of coffee plantations in certain States of the Republic, and to an extraordinary crop in the season 1901-2, the stocks of coffee were greatly increased, and the financial position of the coffee planters was thereby rendered precarious. Various methods were considered for preventing the increase of stocks, as, for example, the burning of a portion of the coffee crop, while some restriction of new plantations was accomplished through special taxation. The Government also tried to alleviate the situation by reducing the export tax on coffee, namely, from 13 per cent to 11 per cent ad valorem.2

In 1905 the movement for the so-called valorization of coffee was initiated, and on December 29, 1905, a law was enacted by the State of Sao Paulo laying a tax of 3 francs on each bag of coffee containing 60 kilos (132.3 pounds) exported in order to obtain a basis for financing this scheme.

In the following year (Feb. 26, 1906) three States Sao Paulo, Minas Geraes, and Rio de Janeiro-made an agreement known as the "Convenio de Taubaté," of which the most significant features were substantially as follows: That coffee should be maintained in the domestic markets at minimum prices of 55 to 65 francs per bag (7.9 cents to 9.34 cents per pound) for a standard grade (No. 7 American), such price to be subsequently raised to 70 francs if the market permitted; that the export of coffee inferior to No. 7 should be discouraged and such coffee kept for home consumption instead; that a surtax of 3 francs per bag be levied on all coffee exported from the contracting States, the proceeds to be used for valorization purposes; that the existing tax laws to hinder the planting of new areas be continued for two years and eventually longer; that the State of Sao Paulo be authorized to borrow £15,000,000 on the security afforded by the surtax, and the joint responsibility of the three States; that the advantages resulting from the agreement should be apportioned among the three States according to the amount of surtax collected, and that the agreement should take effect after ratification by the President of the Republic.

1 Actos do Poder Legislativo, Lei N. 2919-de 31 Dez., 1914, sec. 2, IX. A similar provision has been in effect since 1907.

Dettmann, Das Moderne Brasilien, Berlin, 1912.

3 Translations of this and other important agreements relating to this subject are given in Exhibit H of this report. (See p. 797.)

Petition in equity, United States of America r. Herman Sielcken et al., Washington, Government Printing Office, 1912.

The loan provided for in the agreement was intended to be used for the purpose of buying and carrying large stocks of coffee. By a second convention of July 4, 1906, between these three States, the minimum prices were reduced and provision made for undertaking the work without the approval of the President. A Federal decree of August 6, 1906, however, approved these conventions after making some modifications. Subsequently they were further modified in some particulars, especially as to the minimum domestic prices.

To further promote the valorization plan the quantity which could be exported was limited. On August 25, 1908, Sao Paulo passed a law which practically limited the export of coffee from the State to 9,000,000 bags for the crop year beginning July 1, 1908, to 9,500,000 bags for the next crop year, and to 10,000,000 bags for succeeding years, by levying an additional ad valorem tax of 20 per cent on coffee exported in excess of the quantities specified. This law also increased the surtax on exported coffee to 5 francs per bag and authorized a loan of £15,000,000 for carrying out the measures necessary "for the defense of coffee" and for the consolidation of temporary financial obligations connected therewith. The Federal Government sanctioned this law by an act of December 9, 1908, guaranteed the loan of £15,000,000 arranged for, required that certain stocks of coffee owned by Sao Paulo be made an additional guarantee, and made certain other provisions intended to give the Government greater security. To finance this valorization scheme several loans previously made were consolidated in a loan of £15,000,000 obtained according to a contract made with J. Henry Schroeder & Co., of London; Société Générale, of Paris; and the Banque de Paris et des Pays-Bas on December 11, 1908.

On the same day the bankers and representatives of Sao Paulo made an agreement for the organization of a committee of seven to exist 10 years, which was given extensive power with respect to the sale of the Brazilian coffee in the United States, Europe, etc., and the payment of the moneys due the bankers. In particular, Sao Paulo agreed to sell at auction through the committee 500,000 bags of its stocks in 1909-10, 600,000 bags in 1910-11, 700,000 bags in 1912-13, and the same quantity in each succeeding year; further, additional quantities not to exceed these obligatory quantities, for each year, respectively, might be sold to meet the demands of the trade, provided that the prices were not less than specified, namely, 47 francs for "good average" and 50 francs for "Havre type superior" per 50 kilos. It was also provided that additional quantities, if needed by the trade, might be sold at a price to be agreed to by the Government.

With the money borrowed from the bankers the State of Sao Paulo purchased great quantities of coffee and placed it in storage; the

total quantity so accumulated on December 31, 1907, appears to have been 8,146,123 bags. Several million bags were purchased later, while even larger quantities were sold during the same period, so that in 1912 it was estimated that not more than 5,000,000 bags remained in the hands of the committee. During the period 1906 to 1912 the prices of coffee in foreign markets were decidedly increased.

The Penal Code,' in article 206, imposes penalties on those who solicit or offer gifts or promises in order not to take part in public auctions or those who feignedly present themselves as bidders.

The Civil Code 2 contains numerous provisions which are of interest in this connection. Articles 21 and 564 contain provisions substantially similar to articles 6 and 1172, respectively, of the French Civil Code, and article 536 practically combines the provisions of articles 1131 and 1133 of the same code. (See p. 272.) Article 987 declares: ART. 987. The object of jural acts must be things which are in commerce or which for a special reason have not been prohibited to be the object of a jural act, or acts which are not impossible, invalid, contrary to good morals, or prohibited by the laws, or which do not oppose the liberty of action or of conscience, nor prejudice the rights of a third person. Jural acts which are not conformable to this provision are null as if they had no object.

Provision is made in article 1081 for several ways by which the nullity of a jural act may be judicially determined, which declares in part that it may be sought by the public minister in the interest of morality or of the law.

In article 1143 the law provides a possible remedy against unfair competition, the text of this article being substantially similar to article 1382 of the French Civil Code.

3

According to The Board of Trade Journal issued by the English Government, a bill was introduced in the Legislature of Argentina on August 30, 1913, which provided, among other things, that every contract or combination of any kind regarding commerce or transport is forbidden when its object is to produce artificial alterations to the prejudice of the consumer in the prices of articles of consumption or of prime necessity, that the directors of a legally constituted company who take part in the transaction are to be held personally responsible, that on a second offense by the directors or representatives of such company it may be dissolved, and that a limited liability company or its agency which is guilty of repeated offenses may be fined from 10,000 to 500,000 pesos.

1 Código Penal.

2 Código Civil, 1906 ed.

3 The Board of Trade Journal, Sept. 25, 1913, p. 742.

It is understood that this bill was introduced on account of an alleged combination among meat packers, but that it failed, largely on account of the opposition of the stock raisers.1

Section 28. Colombia.

A provision of the Commercial Code of Colombia has been noted which is so pertinent to this subject that it deserves mention. Article 6 of this code reads as follows:2

ART. 6.-The establishment of companies (Sociedades anónimas) contrary to good morals, to public order and to legal regulations is prohibited; as well as those which do not deal with a real object and one of lawful business, or which tend to a monopoly of the necessities of life or of any branch of industry.

Section 29. Mexico.

In Yucatan, Mexico, a public commission has been established to regulate the price of henequen or sisal fiber. This commission is. entitled "Comision Reguladora del Mercado de Henequen," and was created in accordance with a State law enacted in August, 1911. This law authorizes the governor to appoint a commission, of which he is also a member ex officio, who shall engage in the purchase of sisal fiber with a view to a better regulation of the price. A Government loan of 5,000,000 pesos was also authorized to be placed at the disposal of the commission for this purpose, and in order to meet this loan a tax was provided to be levied on unmanufactured henequen at rates ranging from one-half centavo to 1 centavo per kilogram, according to the price of the fiber in Yucatan. The commission is directed to maintain through its mercantile operations an equilibrium between supply and demand and to aid in directing excess production to new outlets. The law also provides that any profits arising from the mercantile transactions of the commission shall be applied to promote and further the manufacture of fiber within the State of Yucatan. This commission began operations in 1912. The fiber growers have organized an association to cooperate with this commission and have agreed to use it as a central selling agency.

Section 30. Japan.

There is apparently no law specifically relating to trusts or combinations in Japan. Article 48 of the Commercial Code, which is similar in some respects to section 138 of the German Civil Code, reads. as follows:

ART. 48. If a business association acts contrary to the public order or good morals, the court may dissolve it on the application of the Attorney-General or by exercising its executive power.

1 Report of the Royal Commission on the Meat Export Trade of Australia, 1915, pp. 20, 21.

2 Ley de 1888 (21 de Febrero) que reforma el Código de Comercio.

3 The Commercial Code of Japan, by Yang Yin Hang. Boston, 1911.