THE TRADE OF HONGKONG:
RANDOM REFLECTIONS. The cause célebre is practically concluded.
The Harbour Master, Commander Basil Tay. The case which has occupied the time of.
lor, R.N., in his annual report for the year 1908, our two judges for nine daya, which has writes as follows:-Hongkong being a free port filled more columns in the newspapers than there are no reliable statistics of other Importe any recent happening, and which has and Experts except as regards certain items of vided abundant food for gossip, is almost
sargo, dealt with in the Colony, of which, either at an end only the decision to be given. from their nature and the ciftumstances under Whatever happens, we can't get away from tho
which they are imported, or from the fact that
THE HONGKONG DAILY PRESS, MONDAY, JUNE 28TH, 1909. SHIPPING RINGS COMMISSION, COMPLAINTS AGAINST RINGS AND REBATES.
THE REPORT. The report of the Royal Commission on Shipping Hings was issued on the 2nd inst, as i
Ize-book [Cd. 4566]. This Commission was sppointed in November, 1906, "to inquire into the operation of shipping rings or confer
into the ences generally, and more especially system of deferred rebates, add to report whether such operations have caused, or are trade, and if so, what remedial action, if should be taken by legislation or otherwise.
3
THERE IS SKILL AND
OF CONSTRUCTION
At the same time the Commissioners are of In Part V. the variona complaints against opinion that the abuses to which the system the systera of shipping conferences and deferred is liable render necessary some check or control. rebates are examined, the chief being (1) bat Suggestions that a Board of Control on the the system enables the shipowners to charge lines of the Railway and Canal Commission THOROUGHNESS rates which are "arcessive" or "unfair" (2) should be set up, or that the influence of Govern that it has led to diversion of
tradą,
morts should be brought to beat upon shipping. As regards (1), after showing why the various cenfereners through the mail contacts and standards, such as tramp rates and rates charged Government shipments, are discussed and or by other conferences, which had been used by jected, and any legislation directly fixing or witnesses for the
of determining the modifying the terms and conditions of the robate purpose
considered inexpedient and impree. fairness of a conference rate, are of little use for systou their opinion the monopoly obtained by con faroncos using the system of deferred rebates has in certain cases enabled conferences to place rates on a higher level than they would but for
system
have been able to do, or at least to the arrest a possible fall in rates. They do not, however, consider that the evidence enables them to determine whether the rates charged have been excessive or unfair.
feeling of regret that it should have been they are required by law to be specially reported, Rely to cause, injury to British or colonial purpose, the Commissioners state that in ticable.
brought into court and given the publicity that it has. The effect is unfortunate from the point of view of the white population.
The words white population" bring to mind the ever prosent difficulty of employing terms and names which will describe the non-Chinose who, for better or worse, have made their home in the East and have assisted to develop trade in this part of the world. The members of the Ingislative Council wrestled with the problem on Thursday, hat, after a short bout, they had to admit themselves beaten and fall back on a word which is neither descriptive nor comprehensive, but which has the sanction
of "olo custom."
substantially accurate rotaras can be given.
The members of the Commission were These items are Coal, Kerosene oil (which in- cludes all products of petroleum), Opium, Mor. follows Mr. Arthur Cohen, K.C. (chairman), Lord Inverclyde, the Hou. C. N. Lawrence. Sir phine, Compounds of Opiamo, and Sugar. The Hugh Bell Sir W T Lewis, Sir David M. #gures for the three latter will be found in Barbour, Sir Alfred E. Batenau, Sir John Collins, Macdonell, Captain R. Muirhead. Appendix B.
C.M.G., Mr. H. Birchenough, C.,G., the Hon. 1,018,753 tons of Coal were imported during. Pember Reeves, Mr. John Barry, Professor This shows a practically negligible E. C. K. Gonner, Mr. F. Maddison, M.P. Mr. the year. increase of 13,886 tons (1.3 per cent) over the H, Mathers, Mr. W. H. Mitchell, Mr. Owen
Philipps, M.P., Mr. Carald Sanderson, and Imports during 1907.
ASSOCIATIONS OF MERCHANTS AND SHIFTERS.
IN ALL
PIANOS
WE IMPORT
The main recommendations made by the Commission fall into two parts.
1. The recognition and encouragement of associations of merchants and shippers: The Commission think that the formation of such they Associations is desirable chiefly because As regards diversion of trade, the raport states consider that most of the serious abuses to which that in the South Africau and Australasian the conference system is liable can be remedied trades at any rate the lower rates which have by counter-combinations on the part of shippers STAMPING THEM IN EVERY WAY from time to time existed have resulted in the which will give them the power of collective diversion of orders from this country to the bargaining, and because the community of Of Bulk Oil 61.818 tous arrived, an inero Austin Taylor, M.P. The Commission represent United States of America, and that there is a interest which exists between shipowners and SPERIOR VALUE
permanent possibility of diversion owing to the shippers an whole renders it desirablo conferences between representative low rates which the combinations and trusts in that the United States of America on demand for bodies should take place. They are also of their goods.
opinion that chambers of commerce are not capable of dealing with shipping conferences BUILT THROUGHOUT FOR satisfactorily in a matter of this kind.
of 17,938 tons, or 40.8 per cent. This appears to have no special significance, but to be entirely due to the cheap freights raling, and to the new installation, by the Standard Oil Co., of I don't know that I can assist towards oil tanks at Lycheo-kok, which required Alling. Sir John Macdonell, who were sent as Sub-Bouth African conference. The Commissioners
40,018 tons of Case Oil arrived, being an incremes of 3,299, or 8.9 per cent. over the 1907 figures. Here, again, the cheap freights weL taken advantage of to fill up stocks.
n solution of the difficulty, but I may be permitted to comment on some of the wag" gestions made at the meeting. Obviously the word European" is not the best to describe what is intended.
Liquid Fuel increased from 3,272 tone in
1907 to 13.832 (ons in 1903, and was probably affected by the same causer as wore Bult and, Case Oil, in addition to which there has been an increased demand for this product, owing to more steamers using liquid fuel baring visited the Colony during the year.
ed all the interests concerned, for it included men prominent in the shipping, mercantile, and
colonies. manufacturing world, and representatives of It held 46 mastings and examined 57 wit-
Finally, Part V. deals specially with cotu India and the self-governing nossEN. In addition, Sir Alfred Bateman and plaints made of certain arbitrary acts by the Commission to South Africa, held 19 meetings state that in their opinion: there and examined 53 witnesses. Besides the The notions of the conference in these evidence received from witnesses, the Commis matters seem to ns to show that the meu wion obtained a large mass of information ibers of the conference, or the dominant members reports from Indian and colonial Governments of it, have not only not bean alivo and associations of traders and from his to, or anxious to meet, the wishes of the Majesty's representatives abroad. The report South African communities, but that for the velame contains a majority and a minority purpose of preserving their monopoly and rasis report, both with reservations on particuluring change they have not abstained from playing off the interests of the colony against points.
these of another.
BUMMARY OF CONCLUSIONS.
"Occidental" is perhaps more comprehensive and therefore more correct, but it does not como so trippingly off the tongue, though I can imagine it would not apply to Australians, New Zealanders or South Africans. Sir Henry Berkeley sought to justify the worl European, ”. evan when applied to
The import of Rice appears to have declined Amorienas by stating that the Americans ce from 956,000 ons 721,000 tons, due to the from Europe, but Sir Henry torgets the large proportion of the population of that large falling off in the rice trade from Suigo and country who came from a different continent Bangkok in consequence of the exceptionally Part I. is introductory; Part II. gives a general once more emphasized. antirely. To describe them as European would good crop in Northern and Central China, with the result that prices at Shanghai and the bo absurd. It has always seemed to me that to apply the word "European" where au Yangtas ports ruled considerably lower than in Siam and Annam. Local dealers naturally American is concerned is practically as insult-
Q
THIS CLIMATE,
After expressing & strong opinion as as the practicability of forming associations of this character when sny serious grievance had been experienced, the report points out that there are many subjects which would be generally capable of being discussed and settled in nege- tiation between the merchants" associations and the conferences; for example, rates and classi- ications, dates, number, and ports of sailing, rebate conditions, and the implici obligations ROBINSON of shipowners such as the granting of uniform rates of freight, &c.
PIANO
CO., LTD.
(36
It is also recommended that all shipping con- required to publia thoir tariff of rates and/or ferences using the rebate system should be classifications of goods, and to deposit copies si
The Commissionors express the hope that
THE MAJORITY REPORT. The following is a precis of the chief features
The report then proceeds to consider how of the majority report, which is signed by the
In Part VI. the conclusions are summarized these associations should be brought into being Chairman, Lord Inverclyde, the Hon. C. N.
and the recommendations stated and discussed, and the form which they should take. The chief Lawrence, Sir Hugh Dell, Sir W. T. Lovis, Sir Alfred Bateman, Professer Genner, Mr. Stress is laid upon the ulvantages of the consideration is that the association should be Maddison, Mr. Mitchell, Mr. Philippe, and Mr. organization introduced by the conference representative of all the shippers sending goods in the functions of the liner and the tramp are the representative character of such associations Sanderson. The report consists of six parte y ste into the shipping trade. The difference on given ronto, ha neitar a visur te ontation
it is suggested that when they have been formed they should be required to apply to the Board of the oard of Trade. It is the function of the liner to sail as a
Trade for registration, and if the Board of survey of the system of shipping conferences and deferred rebater.
A shipping "ring" or "conference" is member of a teet, or an association of Boots, Trade, after examination, is satisfied that the these recommendations will be found sufficient defined as a combination, more or less close, providing of shipping companies, formed for the purpose
association is of an adequately representative to safeguard Colonial interests, and that the accordingly, such registration carrying with it. trade on a given trade ronte or routes.shall be despatched at regular dates advertised | recognition of the association by the Bond the Empire which would be brought about if.. ing as to refer to a Scotaman as an Englishman. bopglit in the cheaper market, and there was of regalating or restrişting competition in the f which is so arranged as to avoid duplication of character, the association should be registered variations in the Morchant Shipping Laws of ño demand for Southern rice. At Bangkok, the vessels employed by those companies are beforehand. and in sufcient quantity to Trade as the body entitled to confer with the each of the sclf-governing Dominions found it
carying
a continuous and organized service on a particular route-a service, that is to say sailings, and to ensure that the tonnage
of
песенвагу to cleat with the raattor by legislation conference lines on behalf of the whole brade in in its own way may thus be obviated.
Lord Inverclyde signs the report with a reser regard to shipping mattere." Careshould be taken to give such representation to the Colonial Govation, in the coarse of which he states that he veraments concerned as will ensure that the in- objects to the recommendations made with terests of the consumer and producer will be regaid to the publication of tarifs and classi
fications and to supervision of conferences by the Board of Trude. He considers these ro- safeguarded.
commendations unwarranted and unnecessary.
It is all very well to talk of descent, to say I understand, there was the further factor of a sally of the class known as liters.C.,
of high class and spend, sailing and arriving at mot requirements of the trade. The tramp, species of boycott instituted by the rics mer-
or the other hand, is a self-contained unit of The main that children born here of European parante are
fixed dates advertised beforehand." not Chinese, but that cannot hold good for
chants against the N. D. L. steamers late objects for which a ccnferenca is formed are two: transport. It is not attached continuously to centuries. It that were so some of us from Scottish Oriental) which do all the carrying (1) To regulate competition between the lines any given trade route; it does not conduct its As with a view to maintaining rates of freight; operations in concert with others: its sailings Britain might still have to describe ourselves trade between that port and this Colony.
of the tramp, in short, is to fluctuate from one Angles, Jutes, Danas, Norseman, Nor the greater part of the rice imported (2) to concert measures to meet the competition are determined by no fixed plan. The function of shipowners outside the conference. The first route to another, according to the shifting mans, or Britons (the ancient type), beesuso, here is re-exported by neu to ports in
of these objects in attained by an agreement according
between the lines, the main feature of which is requirements of the various trades. Its more to the theory enunciated, race China other than Canton, and the ma
ar undertaking to charge agreed rates of ments are determined by the law of supply and or nationality persists for quite a long jority of that so imported last year came
greatest profit, and it undertakes no obligation time. But history does not bear this out. The from Chins itself, it is reasonable to presume freight. The recent object is attained by the demand; it goes where ita voyage will yield the grandfather of Robert the Bruce was a Norman that, in the absence of the usual supply of system of deferred rebates, nur waiting beyond that involved in each particular ventine
shipping companies secure the continuous baron, but who would dare to suggest that Siamese and Annamese rise in this Colony, those support of such shipper by making the refund -Scotia's hero was ether than a Scotsman ! More Chinees ports which usually draw their supplies of a substantial proportion of his froight bill modern is the case of the House of Hanover here went to the North for their rice, where over a period of months contingent upon his loyalty" to the conference during both that George the First of Britain was a Gerrian. o superabundance was available at very moderate period and a subsequent period in which further was his son. Not eo George the Third. It prices. The rice trade from the South having contingent rebates will acerue. The effect of the stoma is that, the shipper who wishes to ship was his proud boast when he opened his first now reverted to its usual conditions, I see DO Parliament that he was born & Briton. While reason to doubt that this year will see it restored outside the conference can never do so without Vesels by securing the support of the regular should be represented on the unciation.
* considerablo +forfeiting a
I am prepared to admit that children born in Hongkong of European parents are European I don't know how far it would be true to say that their children's children are entitled to be known as European.
In this connection I quote the following story from a home papur Miss Haldane (gister of the Secretary for War) mentioned at the meeting of the Liberal Social Council_that she had been doing Ler best of late to entertain some German visitors. In the ease of one gentleman whom she addressed in her best German she was rather surprised to find he was not of the nationality she had imagined, for turning to her, be said, "I am a Scotchman, and my name's
Thomson.
Typhoon talk and typhoon preparations des ceaded on us rather early this year. It is remarkable that the signsis should have been hoisted in the merry month of June, but for- tanately the dread risitor did not come our way. Reminiscences of September, 1906, were on tap, however.
a
to its former skannels,—ie, vii this Colony,
Flour appears to have decreased from 147,000 tona to 91.000 tons, probably due to the fact that the Colony is coasing to be the distributing centre for this commodity. Shipments are now made directly from l'oris on the Pacific Coast of North America to Shanghai, Amey, Sings pore, &c., instead of transhipping here, sa heretofore.
There is a possibility that, the Hongkong Milling Company being in liquidation, some small recrudescence in this branch of trade may occur.
The total reported Imports during the year amounted to 4,170,000 tons, against 4,366,000 tons in 1907, a decrease of 4.4 per cent. Exports also show a decrease, from 2,354,000 tone to 2,103,000 tons or 10.7 per cent, and transit cargo declined from 3,396,000 to 3,375,000 tons or 0.7 per cent, int for the reason given these figures are net reliablo.
s
The Commissionors describe the origin of the rebate system, showing how it was started at time when the methods on which oversea trade was conducted were undergoing a change in consequence of the replacement of sailing ships by steamships, and when there was the keerast competition among shipping companies to meet the new demands." It is also explained how the system was evolved by a natural process from the system of special contracts with individual shippers.
But it is shown that in spite of these differ 088 the competition between the tramp and the liner still remains, and that it is neces- sary for shipping conferences giving the ad Vantages which are associated with a regular and high-class service to protect themselves against the sporadic incursions of outside For this purpose the system of shippert, deferred rebates is used; and the opinion is expressed in the report that this system is which is not the system of special contracts which is not only difficult to apply to a trade in which the commodities are Taried and the shippers many, but also would lead to prefer onces given to the larger shippers.
RECOMMENDATIONS.
The report proceeds to consider the varions recommendations which had been suggested to the Commission, The proposal that the rebate system should be abolished by law is rejected on the following grounds.
The report goes on to show the almost world wide application of the system, explaining the reasons for its absence or partial application in (a) The advantages dorived in the case of certain trades of a special character, aspecially transport by sea from a monopoly limited in the the trades homeward to England. It also manner we have described in our opinion cer desis at some length with the internal organizatainly outweigh the disadvantages revealed in tion, and management of conferences that is, the course of our inquiry and in our view will with the various arrangements made by con continue to outweigh the disadvantages: unless. forence with a view to preventing wasteful the system of sen-carriage assumes a very competition with one another such as reserva- different form from that which exista at present tion of special areas, restriction and arrange. (b) These advantages, in the degree in which ment of sailings, pooling, &r. Finally, a de- tailed description of the rebate system is given. showing the means by which it is enforced in different trades.
they now exist, appear to us to be dependent upon the system of deferred rebates or some ne equally effective and capable of uniform application.
(e) The abolition of deferred rebates, as we have already stated, would not mastere a free freight market nor render a monopoly and its consequent abuses impossible.
In part III. is discussed the question in what sense and to what extent a shipping conference H.E. TANG SHAO-YI ON CURRENCY making use of the system of deferred rebates secures a monopoly." The Commissioners con- sider it necessary to consider this question because, whilst the erils attributed to the brings about a monopoly, the advocates of the As system contond that, without the security of onstom which it affords, the advantages attri- buted to the ayaton either could not be given or would be seriously diminished.
(d) It has been argued that the fact that the
Mr. Maddison signs the report, with a reser- vation, in which he states his opinion as ration, in
It is not thought necessary to prescribe the precise form which the associations should take, as this must necessarily be dictated by the varying circumstances of particular trades.
The system under review I regard us, on the out of the recommendation in the case of the Suggestions are, however, made for the carrying African trade, the chief of which are (1) the whole, undesirable, but the results, as revailest reorganisation of the South African Merchants by the evidence tendered to the Commission, Committeo or the institution of new associa. are not of a character to warrant State inter- tion more representative of opinion here and inference in the business methods of a great South Africa; (2) the formation of a correspond-industry. There are, however, elements of ing association or committee in South Africa to danger which may develop, and these need to co-operate with the organization to this country: be carefully watched by the Board of Trade. and (3) that the South Africa Governments
The Commission consider that it will not be
possible for a shipping conference absolutely to disregard reasonable proposals put forward by a body representative of all their customers.
SUPERVISION BY DOARD OF TRADE.
2. The following recommendations are also made
1. We suggest that in cases where an association or committee recognized by the Board of Trude have failed to reach an agreement with the conference lines on any point in dispute, the Board of Trade should be empowered:
(t) On the application of one of the two parties to appoint some person or persons to endeavour to promote a settlement by conciliation.
MINORITY REPORT.
The minority report is sigued by Sir David Barbour (with an important reservation, Sir
John Macdonell. Mr. Birchenough, Captain
Collins, and Mr. Barry,
The Commissioners state that although they agree with much contained in the report of the ajority they dissent from several important conclusions stated in it and from much of the. rening pon which they are founded. They dissant in particular from the findings as to the advantages plaimed for the Shipping Con- The main body of the report accordingly con- ferences and the deferred robato nykteta.
hy the om- sists of the arguments advanced by missioners in support of these opinions, Their main conabasins are marized as follows:- (1) The conference systain with the deferred highly (6). On the application of both parties to aprobate the natural evolution of
point. an arbitrator or arbitrators to decide organized trade dealing with customers for the most partscattered or disorganized-bas created the point at issue.
on almost all the chief ocean routes a monopoly, the limitations upon which are in many m
(2) The system was introduced in the first illusory, and which generally tend to decline. instance with the object of misleie rates or preventing their fall and diminishing com- petition,
2. We suggest further that in cases where it appears to the Board of Trade that there are good grounds for believing that important where it has not been found possible to settle national or Imperial interests are affected, and the dispute by conciliation, the Board of Trade should have power to appoint a person or persons to inquire into the matter and report to them, it being left to the discretion of the Board of be presented to Parliament. In considering Trade whether this report should subsequently whether they should take action in this respect
(3) It has been successful in raising or koop- ing up rates.
(4) The pablic have, as a rule, to pay higher rates of freight than they would pay in an open
market,
(5) The system has been injurious to humpe,
H. E. Tong Shao-yi, in a conversation at system are said to be due to the fact that it stem is illeged in the United States furnishes the Board of Trade should have regard to say, | the strongest element in the British mercantile a precedent for prohibiting it in this country, representations made to them by any Colmarine, and it leads as to them to waste and to
to this we would point out that
Tired of waiting for supplies from India, the Sanitary Department have started breeding their own cats. I have much pleasure in con gratulating the Sanitary Board office cat which, I am informed, used to make itself at home ou the journalistle bench, on giving birth to triplets I am also pleased to be able to stata that mother and little ones are doing well. It is to be hoped that no energetic member of the Board will ask any awkward questions, such as: Has the increase on the cat staff been authorised? If so, by whom? Has the Government given authority to the ost without first consulting the Board Are they (the cat and eatleta) washed regularly by or with "Jeyes."? Have the expenses that will accrue been provided for in next year's estimates? If, in view of the proposed scheme of retrenchment, the Board recommend that the cat be reprimanded for being the cause of extra expense at a time when economy is being Chinese decimal system.
In
Shanghai, denied emphatically that he had ever sent day telegram to Peking advocating a dollar unit throughout the Empire, as had been as serted with much assurance by the native Press at the end of last February. His Excellency said that he adhered to the views expressed in his mentorial (embodied in the Imperial Decree on Currency Reformu of October 5), that the standard unt should be the Kuping tel. order to avoid the inconvenience of so large a coin, he also wished to bare a half tael, a mace, and a half-mace. The four coins would preserve a fixed ratio to each other. His reason for pre- ferring the tael to the dollar was that the latter coin enterod comparatively little into the nation's ideas and tariness practice. The dollar. His Excellency thought, scarcely ex- tonded beyond the Trasty ports, and there was a large number of dollars in circulation he could see little difficulty in gradually calling them in. Finally, it must be remembered that the fuel corresponded to the
H.E. Tang admitted frankly that the great
pape...
though
preached from every departmental pulpit? Are avil of the moment was the unrestricted iurae of the Board to be allowed the privilege of ex- hibiting the family at the forthcoming show, and if so are they all entitled to a share of the prize? The office boy suggests razzle-dazzle or poker dica for the lot.
*
money the beginning of which bo attributed to the days of the Provisional Government in 1901, whreu solid old firms went bankrupt and new firms without capital or responsibility started up in all directions. Da
this
aubject he was understood to say that the law might be made wore strict, aut he assented to the suggestion that an Imperial Bank of Chixa, working in relation with select provincial banks, would supply the remedy.--NC. Daily
NEW LONDON BORNEO TOBACCO COMPANY.
The farore occasioned at here over the alleged preferential treatmont accorded a French dressmaker by the wife of the Prime Minister, reminds me that there is a pushful News, person from La belle France who is attempting business in quite a new direction in Hongkong. The lady carries a lot of lace-for sale, not merely for show and on obtaining the entrée to a house she not only fascinated the lady of the house with her display but throws a spell on ber, as it were, by the names of those in la haute societe with which she conjures. Of course, they have all bought elaborate costumes at fancy prices. Sometimes it works, and sometimes it doesn't Hougkongites have already tumbled to her little rise, and I have no docht that madame will try pastares new when she realises this.
RODERICK RANDOM.
The report for 1908 states that the 1907 orop realized £38.666, and the total ny chargeable against the same, including London expensse (less receipts) and depreciation, amounts to E50121. A dividend of 24 per cent on the ordinary shares was paid in January, and the directors now recontuend a final dividend for 1903 of 5 per cent, leaving a balance of £295,
The general conclusion on this question in that a shipping conference possesses a monopoly of a limited character and varying in degree, and that this monopoly is dependent on the system of deferred rebates or some "tie" equally effective.
ADVANTAGES OF SHIPPING BIGS AND REBATES.
In Part IV. the advantages claimed by abip. waere for the conference and rebate system are discussed. These advantages are. tabulated as follows:-
(1) Improvements in service by
(a) The institution and maintenance of re-
gular Railings and stable rate of freight.. (b) The provision of steamers of high
class and speed:
(2) Economy in cost of service.
(3) More economie distribution of cost of
service.
(4) The maintenance of equal rates from the
United Kingdom and the Continent. ́(5) Uniform rates of freight to all shippers,
large or small (6) No carriage on ship's account. The Commissioners come to the conclusion that these are real and important advantages, and that they are guaranteed by the nature of the conference system. As regards the de- pendance of the advantages upon the system of deferred rebates, they find that--
· 1. The advantages conferred by shipping con. ferences are substantially dependent upon the system of deferred robates, or some system equally effective as a tie upon the shippers and equally uniform in its application.
2. If the rebate system were abolished;" shipowners would endeavour to secure the custom of shippers by making contracts with them covering long periods,
(1) The Elkins Act. the application of which has been misunderstood by most of our
witnesses, has no reference whatever to rabates or deferred rebates when such are granted in the same degree to all customers alike in similar circumstances. Moreover it has no application to persons who are exclusively carriers by sea. For either of those two reasons it is clear that the Act has no application to deferred rebates of the kind referred to in this report. (2) The Act of the United States under which the rebate system would appear to be illegal, viz., the Sherman Act, does not refer to by name, but is directed against all combinations, &o., not merely in the ship ping trade, but in all industries, the effect of which is to restrain trade.
rebates
Governments interested,
(6) The system tends to waste in various other directions, owing to the maner in which the rings are constituted.
(7) There is no satisfactory evidence that the saving in cost, if there be any, under the system of shipping rings exceeds the waste which is due to that system
We do not consider that an inquiry should higher rates of freight. be ordered where associations merely complain that rates are "too high" or "unfair" or where, owing to a temporary rate war, foreign country may have rates from been lower for a short time than from the United Kingdom. But we consider that there may be cases, essentially different in character, where public interests may be griecondly affected either by the checking of a trade or by its more or less permanent dirersion. In such cases we consider that it is important that the Board of Trade should have power to appoint competent persons to investigate the matter, and that it should be competent for them to decide whether their report should be made public
(9) The system tends to indate the amount of tonnage and consequently the amount of capital invested upon which interest has to be paid. (10) It has diminished or tends to diminish the ports of sailing.
(11) It gives a country such as the United States, in which the system is illegal, an advan tage as compared with the United Kingdom.
(12) It has caused in the case of South Africa
If our main recommendation as to the forme diversion of British trade. tion of strong associations of shippers is carried!
(13) There is no evidence that it has appreci
(3) Buch evidence as we possess with regard at it will, we think, bo seldom, if ever, neces-ably increased rogularity of sailing or greatly to the operation of the Sherman Aet leads sary that an inquiry of this kind should be improved the quality of steamers; but it has us to bilieve that, though it probably has wide. But, in order that an inquiry, so under tended to bring about equality and stability of been the cause of the abandonment of the taken, may be thorough and marching, we u ruter.
it
That such a monopoly and a system which has deferred rebate system in the export trade gost that the person or persons conducting of the United States of America, it has not should be given power to call for the attendance the above effects should be subject to ne control been effective in preventing combination of such persons and the production of such appears to the Commissioners to be inadmissible. among shipping companies.
ocamente as may be required for the As to the recommendations which should-be- (0) Legislation of the character we have been investigation. At the same time we think that made, Sir D. Barbour, does not consider that it considering would affect shipowners carrying no information likely to be useful to sutnál or is possible to control the system satisfactorily from this country but not the carrying from possible competitors should be divulged in the and he signs a reservation, in which he advocates legislation on the lines of the Sherman the Continent, and strong objection was taken course of the proceedings or in the report.
3. In order that the Boul of Trade may be Anti-Trust Law of the United Staten te by many shipowners to any legislation which should deprive them of the power obtained broguisant of the position and proceedings of make the system impossible, such legisla
we suggest that all tion for the present to be applicable only means of the relate system while leaving the shipping conferences, power in the hands of their foreign competitors. shipping conferences making use of the system to the shipping trade. The remainder, how The validity of this objection, however, depends of deferred rebates should be required to deposit ever, are not at present prepared to recom very much on the view faken as to the questioueatulantially at the Board of Trade :-- whether the rebate system is on the whole ad- vantageous or disadvantageous to the comineree of this country as a whole, including, that is to way, the shipping industry. And, as we sro of that on the whole the system is generally opinion advantageons, we consider that its retention in other countries, en
would entance Germany, the injury sutailed by its prohibition in this.
The Commissioners are also of opinion that the evidence before them does not warrant
(a) Al conference agreements and any
agreementa or understandings with for eign lines or lines not in the conference, (b) All rebate circulars and fores for cluiraing
rebates.
(c) Any agreement entered into with associa tions of merchouts and shippers recog. nized by the Board of Trade, We think that this information should be accessible confidentially to all Government Departments which, because of postal or conga
3. The contract system would in large them in rosomnionding logislation on the lines
general trudes lead to the making of of the Sherman Act directed either against contracta or for any other reason, may be preferential contracts with large at the combinations in all industries or against com- expense of small shippers.
binatious in the shipping trade only,
interested.
mend so great a change. They prefer that in the first instance a system of conciliation sad limited supervision by the Board of Trule should he tried. They are not, however, satis fied with the system of this kind proposed in the majority report.
The recommendations of the minority differ from those of the majority mainly in the follow ing matter. They suggest that it should be left entirely to the Board of Trade (a) to recognize any association it thinks tit; (b) to institute un inquiry into any matter of important public interest without the limitations suggested by
the majority.