the 15th of July, 1897, subject to written notice being given six months prior to the 15th July, 1907. In the absence of notice this Agreement is to continue thereafter from year to year until such six months' notice of intended termination is given.

19. Should any difference or dispute arise between the parties hereto, touching this Agreement, or any clause, matter, or thing relating thereto, or as to the rights, duties, or liabilities of any of the parties hereto, the same shall be referred to the Chairmen, who shall arbitrate thereon, and their award shall be final. Should they not agree they shall appoint an Umpire whose award shall be final. In all cases in which the Chairmen disagreeing select an Umpire, the following provisions shall apply:

If the question or matter to be decided is brought forward by one of the parties of the first part, the Umpire shall be a European. If on the contrary, the question or matter to be decided is brought forward by one of the parties of the second part, the Umpire shall be an American.

20. With regard to Patents which the American Factories or the European Factories may possess in each others' territories, it is understood that unless compelled by agreement with inventors to take legal proceedings with regard to alleged infringements, no legal proceedings are to be taken in respect of any alleged infringement until an attempt has been made to settle the matter amicably. In order to bring about such amicable understanding the question is first to be ventilated by correspondence between the Chairmen, who shall have power to constitute themselves an arbitral tribunal, obtaining evidence from experts on both sides; and should they hold that an infringement has been committed they shall fix the rate of royalty to be paid. Should they not agree, they shall call on parties to sign a deed of submission, authorising them to appoint an umpire, whose award shall be final.

Inasmuch as the parties have undertaken not to manufacture in each others' territories they are not to purchase any Patent for each others' territories, except after having given the party interested in the manufacture in the country in question the right of pre-emption on the same terms as the Patent is offered to them.

TRANSITORY

This Agreement is made subject to ratification by the 31st August, 1897. Mr. Eugene Du Pont, Mr. Bernard Peyton, Mr. Addi

son Fay, and Mr. Hamilton Barksdale have undertaken to recommend and advocate such ratification by the American Factories, which is to be notified to Mr. E. Kraftmeier, of 55, Charing Cross, London, S. W. (Telegraphic Address- "Kraftmeier, London,") so as to be in his possession by the 31st August, 1897, and Mr. Thomas Reid, Mr. J. N. Heidemann, Mr. Max A. Philipp, and Mr. E. Kraftmeier will recommend and advocate such ratification by the European Factories, which is to be notified to Mr. Eugene Du Pont so as to be in his possession by the 31st August, 1897.

EXHIBIT 4

ALUMINUM COMPANY OF AMERICA 1

THE A. J. A. G. AGREEMENT OF SEPTEMBER 25, 1908 About September 25, 1908, the defendant Aluminum Company of America, acting through the Northern Aluminum Company, of Canada, which is entirely owned and controlled by defendant, entered into an agreement with the so-called Swiss or Neuhausen Company, of Europe, which is the largest of the European companies engaged in the aluminum industry and designated in this agreement as "A. J. A. G.," parts thereof material to this action being as follows:

2. The N. A. Co. agree not to knowingly sell aluminum, directly or indirectly, in the European market.

The A. J. A. G. agree not to knowingly sell aluminum, directly or indirectly, in the American market (defined as North and South America, with the exception of the United States, but including West Indies, Hawaiian and Philippine Islands).

4. The total deliveries to be made by the two companies shall be divided as follows:

European market, 75% to A. J. A. G., 25% to N. A. Co. American market, 25% to A. J. A. G., 75% to N. A. Co. Common market, 50% to A. J. A. G., 50% to N. A. Co. The Government sales to Switzerland, Germany, and AustriaHungary are understood to be reserved to the A. J. A. G.

1 United States of America v. Aluminum Company of America. Petition in Equity, In the District Court of the United States for the Western District of Pennsylvania, pp. 15-16.

The Sales in the U. S. A. are understood to be reserved to the Aluminum Company of America.

Accordingly the A. J. A. G. will not knowingly sell aluminum, directly or indirectly, to the U. S. A., and the N. A. Co. will not knowingly sell, directly or indirectly, to the Swiss, German, and Austria-Hungarian Governments.

5. The N. A. Co. engages that the Aluminum Company of America will respect the prohibitions hereby laid upon the N. A. Co.

Said agreement became effective October 1, 1908, and provided that it should "last until terminated by a six months' written notice," and petitioner avers that said agreement became effective and has been continuously since said date, and is now, in full force and effect, unless terminated by notice.

CHAPTER IX

POOLS AND ASSOCIATIONS

NOTE

As indicated in the note to Chapter I, the Pool has been one of the most persistent types of combination. In spite of its numerous disadvantages and alleged weaknesses, it has served as a means of combination in far more instances than has the Trust and in this respect may be regarded as a close competitor of that other device; the Holding Company. Pools may be organized for a wide variety of purposes; to divide territory, to raise prices, to pool profits, to restrict output, to divide output and others, or, a pool may embody several of these purposes in its programme. Though the general structure of such organizations is about the same the variations of type are great. For that reason there has been brought together a collection of pooling agreements which cover a wide field. They are fairly typical illustrations of this organization and are selected to give as comprehensive an idea of this form of combination as possible. In the majority of cases the object of the pool is sufficiently stated in the terms of the agreements.-Ed.

EXHIBIT I

THE STEEL RAIL POOL 1

Memorandum of agreement, entered into August 2, 1887, by and between the North Chicago Rolling Mill Company, the Cambria Iron Company, the Pennsylvania Steel Company, the Union Steel Company, the Lackawanna Iron and Coal Company, the Joliet Steel Company, the Western Steel Company, the Cleveland Rolling Mill Company, Carnegie Brothers & Co., Limited; Carnegie, Phipps & Co., Limited; the Bethlehem Iron Company, the Scranton Steel Company, the Troy Steel & Iron Company, the Worcester Steel Works and the Springfield Iron Company.

1Report of the Commissioner of Corporations on the Steel Industry. Part I, pp. 69-71.

We, the before-named companies and corporations, manufacturers of steel rails, hereby mutually agree one with the other, that we will restrict our sales and the product of steel rails of 50 pounds to the yard and upward, applying to orders taken by us and to be delivered by us or from our respective works during the year 1888, as hereinafter allotted and limited; and we respectively bind ourselves not to sell in excess of our current allotments, without first obtaining the consent of the Board of Control thereto—that is to say:

It is agreed, there shall now be made an allotment of 800,000 tons of rails, which shall be divided and apportioned to and among the several parties hereto to be sold by them during the year 1888, upon the following basis of percentages, to wit; North Chicago Rolling Mill Company, 12-12 per cent; Pennsylvania Steel Company, 9-10 per cent; Bethlehem Iron Company 9 per cent; Carnegie Bros. & Co., Limited, and Carnegie, Phipps & Co., Limited (jointly), 13-510 per cent; Joliet Steel Company, 8 per cent; Lackawanna Iron and Coal Company, 8 per cent; Cambria Iron Company 8 per cent; Scranton Steel Company, 8 per cent; the Union Steel Company, 8 per cent; Cleveland Rolling Mill Company, 4-10 per cent; Troy Steel & Iron Company, 4-5/10 per cent; Western Steel Company, 4-510 per cent; Worcester Steel Works, 1-410 per cent.

And in addition to the said allotment of 800,000 tons of rails above allotted, an additional allotment of 250,000 tons is hereby made and allotted to the Board of Control, to be reallotted and reapportioned by it, as and to whom it may deem equitable, in the adjustment of any differences that may arise. It being also further agreed that all subsequent allotments of rails hereafter made, to be sold under this agreement during the year 1888, shall also be divided and apportioned to the several parties hereto in the same ratio of percentages as said apportionment of 800,000 tons is herein divided and apportioned.

It is further agreed, that the Board of Control shall, from time to time, make such further allotments as shall be necessary to at all times keep the unsold allotments at least 200,000 tons in excess of the total current sales, as shown by the monthly reports of sales. This is to be in addition to the then unappropriated part of the 250,000 tons herein before alloted to the Board of Control to adjust differences.

It is further agreed, on the first day of April, July and October, the Board of Control are authorized and directed to cancel such part of the unmade allotments of the respective parties hereto as they the said Board of Control shall determine such party unable