ARTICLE V. The productive capacity of the factories, which in the years 1900-01, 1901-02, and 1902-03, have been enlarged with the purpose of extension of their operations, for the campaigns 1903-04, 1904-05, and 1905-06, upon special application of their owners is to be made equal to the product of the mean sugar production of 24 hours of each of these factories in the campaign 1902-03, multiplied by the arithmetical mean of the working days of all factories in the Empire during the same period.

ARTICLE VI. The Finance Minister is empowered, with the assent of the State Comptroller, to establish regulations in applicable instances for:

(a) The method of application of the provisions made in Article I, Nos. 3-10, as well as in Articles III and V, also.

(b) The conditions under which the productive capacity of the factories mentioned in Article V can be reckoned, according to the provisions for newly erected factories as well as according to the provisions in the article cited.

ARTICLE VII. For a period of three years (1903-04-1905–06) the following provisions are made:

1. The Finance Minister is empowered on special request of the factories to allow that denatured sugar for cattle fodder and for technical purposes be brought on the domestic market without payment of the sugar tax and additional tax.

2. The conditions under which the manufacturer is allowed the use of the privilege mentioned in the preceding number are to be fixed by the Finance Minister in agreement with the Minister of Agriculture and the State Comptroller. These conditions are to be laid before the Senate by the Finance Minister which will publish them for general information.

3. The denatured sugar mentioned in No. 1 is not to be reckoned in the quantity which is determined for each campaign for the domestic market.

ARTICLE VIII. The regulations contained in Article I, Nos. 1-10 and in Article III-V, take effect from September 1, 1903.

EXHIBIT G.—ROUMANTAN LAW CONCERNING THE APPORTIONMENT OF THE TOTAL REQUIREMENTS OF ILLUMINATING PETROLEUM AMONG THE REFINERIES OF THE COUNTRY.1

[Law of April 10 (0. S.), 1908.]

CHAPTER I. APPORTION MENT OF THE REQUIREMENTS.

Article 1. The government is empowered by the present law to ap portion the total requirements of illuminating petroleum among the existing refineries or those to be organized in the future.

Article 2. The apportionment takes place on the basis of the productive capacity of each refinery. The productive capacity is determined according to the quantity of crude oil, which a refinery can refine in one year.

1 Translated from the German text in Denkschrift ueber das Kartellwesen, IV, Teil, Berlin, 1908, pp. 151-4.

Article 3. The refineries which are not in a position to refine more than 40,000 tons of crude oil annually, shall in the apportionment receive an addition of 200 per cent in relation to their productive capacity over against the refineries, which consume more than 40,000 tons annually; those which can not refine more than 10,000 tons annually, shall in relation to their productive capacity receive an addition of 400 per cent over against the refineries which annually refine more than 40,000 tons of crude oil.

Article 4. The operation of such refineries, which are not able to produce illuminating petroleum as prescribed, is strictly forbidden. The existing refineries, which do not comply with these conditions, are excluded, and operation shall not be permitted until they provide themselves with the necessary apparatus for producing illuminating petroleum according to the existing ordinances or such special ordinances as shall be promulgated.

Article 5. Each year, in the month of April, the Minister of Finance submits to the Council of Ministers a report on the apportionment of the total requirements among the existing factories, which are in a position to produce petroleum in the prescribed manner. After approval of the apportionment by the Council of Ministers, the Minister of Finance allots to each refinery that part of the annual consumption which falls to it.

With the surplus of production the following method is pursued: if it is exported, the refinery must prove the export by means of the bills of lading and with other proofs, which are demanded by the controlling officers from the Ministry of Finance. If the surplus is not exported, it must be stored in a warehouse or in a special reservoir of the manufacturer under the seal of the official of the Ministry of Finance who is stationed at each factory for the purpose of collecting the State and local taxes.

Article 6. If a refinery should cease to operate, or if it can not or will not market its proportionate share, as it is determined by the government, the other refineries must assume the delivery in its place in proportion to their participation in the total requirements. Likewise the excess, which results in consequence of the above-mentioned causes, as well as the surplus, which is determined by the increase in the anticipated consumption at the beginning of the fiscal year, is apportioned according to articles 1, 2 and 3 above, and the Ministry of Finance will notify each refinery of the share allotted to it.

CHAPTER II. SELLING PRICE.

Article 7. The government establishes the maximum price, at which all refineries are obliged to sell illuminating petroleum. This price, which is computed when the petroleum leaves the factory, is established on the following basis for 100 kilograms: An amount of from 3.50 to 4.60 lei is established, which represents the cost of refining and the profit of the manufacturer; to this amount is added the average price for 100 kilograms of crude oil delivered to the factory; the sum of these two amounts forms the maximum selling price, which is prescribed for all refineries.

Article 8. This price is established during the month of April for the three succeeding months, and is retained as long as the average

price of crude oil remains unchanged. If the price of crude oil after the expiration of the three months should be changed, either increased or reduced, then the maximum selling price will also be changed accordingly.

Article 9. The price as well as the changes in price, are fixed by the Council of Ministers on the basis of the report of the Minister of Finance, and are brought to the attention of the refineries by him.

CHAPTER III. FINES.

Article 10. The owner of a refinery, who during a year markets more than the share that was allotted to him by the Minister of Finance, is liable to a money fine, which represents a hundred times. the value of the excess quantity of petroleum which he markets.

The agent stationed by the Ministry of Finance at the factory, who has made himself guilty of such an offence, will be dismissed, sentenced to two months imprisonment and loss of right ever again to hold any public office.

The owner of a refinery, who makes himself guilty of the same offense for two succeeding years, will be condemned to the abovementioned fine and besides to the closing of his factory for three months, besides to a loss of one-fourth of his annual share in the consumption of the year in which the offense has occurred.

Article 11. Whoever markets illuminating petroleum which does not come up to the regulations shall be punished with a fine of from 2,000 to 5,000 lei.

In case of repetition of the offense he will be punished with a double fine, and in case of a second repetition with a double fine and with closing of his factory.

The representatives of the government, who have been in a position to exert a control over the quality of petroleum and who nevertheless have permitted the offense, will be dismissed and will lose the right ever to hold public office again.

Article 12. Whoever mixes residuum with benzine, in order to market this mixture as illuminating petroleum, will be punished with a fine of 5,000 to 10,000 lei and three months imprisonment.

In case of repetition of the offense his business, of whatever nature it be, will in addition be permanently closed.

The informers of such frauds will receive 75 per cent of the sum collected.

Article 13. The owners of refineries, who from their place of business sell petroleum at a higher price than the maximum price established by the government, will be punished with a fine of from 2,000 to 10,000 lei.

In case of repetition of the offense they are punished with a double fine and the money fines are doubled in each new case of repetition.

Article 14. The punishments established by this law are inflicted as follows:

(1.) Relative to the dismissals, by the Minister to whom the guilty official is subordinated.

(2.) Relative to the money fines, by the Minister of Finance, on the basis of the minutes which establish the offense. In this case the condemned has the right of appeal to the court within fifteen days

from the time when the approved minutes were delivered. The court renders the decision in a speedy trial and definitely; an appeal is not permitted.

(3.) Relative to the prison fines and the right to again hold public office, the offenders are summoned before the court, which decides in a speedy trial. Legal means are allowed.

CHAPTER IV. RESERVOIRS FOR RETAIL SALE.

Article 15. In so far as the refiners do not build reservoirs at their own expense for the storage of illuminating petroleum at the railroad stations and the harbors, in order to spread the consumption as much as possible and to furnish the petroleum as cheaply as possible to the public, the Ministry of Finance is authorized to build such reservoirs at the expense of the State, according to the pattern of those which have been erected prior to the promulgation of this law by some of the refiners; for this purpose the Minister of Finance shall demand the necessary credits in the budget.

The rent at which the State will place at the disposal of the public the reservoirs leased by it, shall amount to only 5 per cent of the cost and 5 per cent for amortisation.

Article 16. All these reservoirs, whether they have been erected prior to the promulgation of the present law or later by the State or by the refineries, are obliged to deliver to each buyer a minimum amount of 150 kilograms illuminating petroleum in a barrel; they are entirely free to sell also smaller quantities.

TRANSITIONAL REGULATIONS.

Article 17. The present law takes effect at the latest on October 1, 1908. The first division of the consumption as it is determined in Chapter I, and the first price which is to be fixed for three months according to Article 2, will be determined as an exception in that month, which precedes the promulgation of the law.

EXHIBIT H.-BRAZILIAN COFFEE VALORIZATION; AGREEMENTS, LAWS, ETC.1

CONVENTION OF TAUBATÉ.

(AGREEMENT MADE BY THE STATES OF RIO DE JANEIRO, MINAS GERAES, AND S. PAULO FOR THE VALORIZATION OF COFFEE, THE REGULATION OF THE TRADE, THE PROMOTION OF AN INCREASE IN THE CONSUMPTION, AND THE CREATION OF A CONVERSION BUREAU FIXING THE VALUE OF THE CURRENCY.)

Article 1. During such a period as may be convenient the contracting States obligate themselves to maintain in the domestic markets the minimum price of 55 to 65 francs (gold, or Brazilian currency at the rate of exchange of the day) per bag of 60 kilos for the American type No. 7 in the first year; this minimum price may later be raised to a maximum of 70 francs, in accordance with what the market warrants. For the higher grades, according to the American classification, the prices indicated will be increased proportionately. during the same periods.

Article 2. The contracting Governments will by suitable means seek to hinder the exportation abroad of coffees inferior to type No. 7 and to favor so far as possible the development of their consumption at home.

1 From translations in U. S. v. Herman Sielcken et al., Petition in equity, Southern District of New York, 1912.

Article 3. The contracting States bind themselves to organize and maintain a regular and permanent service of coffee propaganda, with the object of increasing the consumption by the development of the present markets, the gaining of new ones, and the defense (of coffee) against frands and falsifications.

Article 4. The contracting Governments, when they consider the time opportune, shall establish national (Brazilian) types of coffee, promoting the creation of exchanges or brokers' associations for dealing in such types. The prices referred to in article 1 will then be fixed in accordance with the new types.

Article 5. The producers of coffee will have facilities offered them for the improvement of the quality of their product by remilling. Article 6. The contracting Governments obligate themselves to create a surtax of three franes, subject to increase or reduction, upon each bag of coffee exported from any of the (contracting) States. and also to keep in force the laws which hinder, by a sufficiently high tax. the increasing of the areas planted with coffee in their territories, for a period of two years, which may be prolonged by mutual agreement.

Article 7. The product of the surtax mentioned in the previous article, payable when the coffee is exported, will be collected by-the Federal Government and reserved for the payment of the interest and amortization of the capital necessary for the carrying out of this agreement, any balance remaining being applied against the expenses incurred in this service. The collection of the surtax is to begin after article 8 has been complied with.

Article 8. For the execution of this agreement the State of S. Paulo is hereby authorized to undertake, at home or abroad, with the guarantee of the surtax of three francs mentioned in article 6, and with the joint responsibility of the three States, the necessary credit operations to provide a capital of up to fifteen millions sterling. which will be used as a ballast for the bureau of gold emission and conversion to be created by the National Congress for the fixing of the value of the currency.

1. The product of the emission upon this ballast will be applied, as provided in this agreement, to the regulation of the trade in coffee and to its valorization, without prejudice to the conversion bureau to make applications for other purposes as provided by law.

2. The State of S. Paulo, before completing the credit operations mentioned above, will submit the conditions and clauses to the Federal Government or the other contracting States for their approval.

3. In case it should be necessary to obtain the endorsement or the guarantee of the union for these credit operations, article 2, No. 10, of Law No. 1452, of the 30th December, 1905, will be complied with.

Article 9. The organization and direction of all the work which this agreement provides for will be entrusted to a committee of three members, one being named by each State, a fourth member, selected by the three States, acting as president and voting only in case of a tie(?), when his vote is the deciding one.

Each director will have a substitute, also named by the respective States, who will take his place when he can not be present.

Article 10. The committee mentioned in the previous article will arrange all the work and appoint all assistants necessary for the