In order to safeguard the capital risk, an increasing number of central German mining companies sought mergers and joint agreements for uniform pricing and sales. The high capital losses and fluctuations were accompanied by a slide in wages, extreme hire and fire and growing unemployment. An example of this is the Elise II mine in the Geiseltal, which was opened up in 1902 and closed twelve months later.

Mines that were built on a weak financial basis and with the use of large loans collapsed completely. The devastating competition pushed the price below the cost of raw material extraction, inflicted heavy losses on numerous companies and led to the restriction or complete shutdown of operations. In order to penetrate the German market, the foreign traders sold their coal at dumping prices. In addition, the Central German lignite received competition from British hard coal, but above all from Bohemian lignite.

The mismatch between supply and demand led to price undercutting, which forced entrepreneurs to compensate for the lost profits as a result of falling prices by further increasing production. The swelling movement of concentration in the central German lignite area with its increasing outcrops of new and ever larger coal fields resulted in an increase in production with which demand could no longer keep pace. This also included workers and unions who preferred regulated markets and production to unrestrained competition, as this was associated with more job security and regular income. Broad circles of society were convinced of the positive effects of cartels. This development was strongly supported by the Reich government through a cartel-friendly jurisprudence as well as by the banks, which favored the formation of cartels for an otherwise due market shakeout through company failures. Above all, companies in the basic industry joined forces to form various cartels after the experience of the so-called start -up crisis and the subsequent phases of economic instability. Since the late 19th century, they have developed into a regular form of cross-company cooperation in almost all industries and in many countries. The final dissolution took place on the orders of the Soviet military administration in Germany on May 20, 1946.Д«usiness cartels, including coal syndicates, were legal in Germany until 1945 and enjoyed legal protection. However, from 1939 onwards, the mobilization and conversion of the German economy to total war production led to a reorganization of the economic management apparatus, which is why the syndicate was liquidated in 1942. The takeover of power by the National Socialists did not fundamentally change anything in the existing cartel system. The most important members included the Bohemian coal magnates Ignaz and Julius Petschek, who initially fought the syndicate and later used it as a competitive instrument for themselves. ДЄlthough the syndicate was a compulsory state cartel from 1919 onwards, of all German coal syndicates it had the least unity and the least internal stability. The syndicate existed from 1909 to 1913 in the legal form of a limited liability company and from 1919 to 1942 as a corporation under public law. As an association of companies in the coal and steel industry in the central German lignite district, it was supposed to regulate the extraction, own consumption and sales of its members for raw coal, briquettes, wet pressed stones and coke. The Central German Brown Coal Syndicate was a business cartel based in Leipzig. Former cartel seat of the Central German Brown Coal Syndicate at Nordplatz 11 in Leipzig

Syndicate 1993 deutsch