An Introduction to the Industrial History of England

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It was under such circumstances that the intervention of Mr.
Gladstone was sought. The ultimate failure of that par- ticular pool is hardly surprising when one considers the utter lack of any real friendliness among its component parts.
Some of the difficulties of pooling are avoided by the pooling of the profits instead of the traffic or production.
The German cartel is a stronger organization designed pri- marily to secure the advantage of pooling without entirely destroying the individuality
... of the member firms. The essen- 482 INDUSTRIAL HISTORY OF ENGLAND tial feature is the organization of a corporation by the mem- rt ^^^ firms for the purpose of selling the product and determining the policies of the associated companies; the capitalization is nominal, but the organiza- tion in all respects similar to that of a corporation doing busi^ ness directly. The conduct of operations by the member firms, however, is substantially similar to the system followed by a pool. Output is limited and quotas allotted.

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