From the end of the 19th century to the beginning of the 20th century, syndicates in Russia acquired a greater distribution in comparison with other types of associations. In the world, there were especially many of these unions in France.
What is a syndicate?
This term is quite ambiguous. In general, these associations were alliances within which a community of material interests was formed. Syndicates did not apply to ordinary industrial and civil societies. Different countries explain in different ways what a syndicate is. So, for example, this definition was used to designate mainly only one type of business union. And the goal of such a union was the achievement for the participants of a comparatively profitable (in terms of stability or height) profit level. The ways to obtain it were production, procurement of items necessary for the release of products, as well as joint regulation of sales. With this interpretation, the concept has acquired an international character. Russian law, as well as European and US countries, did not explain what a syndicate is.
Features
You can distinguish the type of business unions in question by comparing them with other types. So, for example, the association of producers is a trust or a cartel. A syndicate is a union of entrepreneurs or enterprises operating in the same industry as sellers. In the first case, intra-corporate activity implied more regulation of production volumes and sales, cost reduction. Thus, the goal of forming cartel unions is to prevent the overproduction of the profitability of the combined enterprises. What is a syndicate in this case, and what are its goals? This association used contractual product pricing. As a result, the main goal of the unions was achieved - obtaining a sustainable and high level of entrepreneurial income. Syndicates more than trusts or cartels, sought to absolute monopolization of the relevant industrial sectors and markets.
Classification
In Russia, there were different groups of syndicates. Among the industrial associations, the most popular were trade unions. They combined the sale and production of various types of products. In accordance with the degree of consolidation, associations were conditionally divided into agreements of entrepreneurs (enterprises), which were concluded to achieve certain (limited) goals, trusts and, in fact, syndicates. Depending on the territorial sphere of activity, unions could be national and local. The former covered all the most important enterprises operating in one industry, while the latter covered only a limited number in one or another locality. There were also international syndicates. They were attended by Russian enterprises. For example, in 1903, an association was formed to sell beet, dung and hay forks. The union included Austrian and German metal manufacturing enterprises, three Russian companies, which by that time had concentrated in their hands almost all the production of domestic forks.
Organizational structure
As mentioned above, in the legislation there were no concepts recognizing and explaining the formation of unions of entrepreneurs. In this regard, organizational issues were not regulated in any way. This, in turn, ruled out the mandatory provisions in the charters of associations. There was no legal basis for the process of syndication formation. Their organizational structure, therefore, was quite imperfect. The congress of breeders and manufacturers was the governing body. At the meetings, multilateral agreements were concluded and the results of their implementation were monitored and evaluated, charters were adopted.