PUBLIC RECORD OFFICE
C.O.
Reference :-
+885
س اللبن الرايات السنين
17 PUBLIC RECORD OFFICE, LONDON
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པག མམས་མ་སྐ
10
This pamphlet also states that the Bucknall Line endeavoured to fight the Conference, but were forced to join it.
"4
East.
'Any attempts to ship by outside steamers mean the loss of an annual rebate, and, it has even been hinted, an actual refusal to convey goods. In this way British vessels outside the Conference are practically boycotted." (Report of Registrar of Imports and Exports, Singapore.)
"The way the Conference works here is as follows:-
"All business firms are told by circular from the Peninsular and Oriental Office, that if they employ the ships of the Conference and no others, they will be presented at the end of the year with a rebate of 10 per cent. on the gross sum paid as freight by them during the year.
"Those interested in the Conference keep a very keen look out for transgressions against this rule, and any firm which dares to employ a vessel not belonging to the Conference for any freight carry- ing is at once told it has forfeited the rebate." (Acting Governor's despatch.)
The methods of the Hong Kong Conference are described in the Confidential Report already referred
See pages 80 et seqq. Also Appendix H.
to.
An attempt at competition was started by the China Mutual Line, apparently in 1882, but the Directors were persuaded to join the Conference.
But The primage is stated to be ten per cent. the most important attack on the China Conference was the attempt of the Mogul S.S. Company, Limited, which was admitted to the Conference in 1884 and excluded in 1885. The Company endeavoured to prove the Conference to be an indictable conspiracy in restraint of trade, and carried the case right through to the House of Lords, but failed. See Law Reports, vol. 21, Q.B.D., pp. 544 to 554.
Australasia.
A confidential communication in the New South Wales Report says:-
"Supposing a Colonial house has 1,000 tons of cargo to ship to an Australian port, and he takes independent action and charters a vessel away from the combination, then a vessel will be placed on the berth in opposition by the combination who will reduce freight rates and suffer a temporary loss to force the merchant to desist from direct chartering.
In this way merchants are afraid to fight the 'Ring'
The agent to & Co., Adelaide, writes :-
44
In addition to the difficulty of importing goods
in other than berth vessels, the combination have
a direct control over all the leading Australian merchants by the working of the 'deferred rebate system. In other words, the combination always holds some rebates in hand to command the continued loyalty of shippers."
11
i. (c).—Increase and maintenance of freights in consequence of agreements.
There is a consensus of opinion (when ex- pressed) that freights are increased, but also made more regular, by these combinations.
Such regularity is considered an advantage to merchants.
In any case it is difficult to understand what purpose could possibly be served by the agreement, except that of obtaining better prices for freights, and it would therefore seem fair to assume in the absence of any direct evidence (for instance, West Africa) that this purpose was attained. But there is little evidence to show that freights have actually been raised, though it has stopped the fall that improved methods might have been expected to bring about.
sequence
"The Conference was started when, in con- of reckless competition, freights were ruinously low, having gone down from a normal twenty-three to twenty-seven shillings a ton as low as fifteen or even seven shillings a ton, and it is impossible not to sympathise with the origin of the
movement.
"}
"But now that by the strong and rather unscru- pulous action of the Conference freights have been forced up to forty-three and forty-four shillings per ton, &c.
(Straits Settlements despatch.) Attention may also be drawn to the quotation on page 8 from a confidential South Australia letter.
The resolution of the Cape Legislative Council in 1894 (Appendix F.) states that freights have been raised.
iL-DIFFERENTIAL FREIGHTS ON BRITISH AND FOREIGN
GOODS FROM THE SAME PORT, OR FREIGHTS AR- RANGED 80 AS TO FAVOUR GOODS from a FOREIGN PORT AS COMPARED TO GOODS FROM A BRITISH PORT, AT AN EQUAL OR LESS DISTANCE FROM THE IMPORTING COUNTRY.
With the exception of the Far East it would seem that these differential freights are rare so far
as Europe is concerned.
On the other hand there seems to be a general balance in favour of America as compared to Europe (including the United Kingdom). This however is apparently not due to any discrimination on the part of the Conference steamers, but to the fact that while freights are maintained at a high rate from Europe by the agreement, they are kept very low by strong competition between lines running from American ports, which are not combined in the same manner.
A large number of instances are given in the despatches printed in Bluebook C. 8449 "Trade of the British Empire and Foreign Competition." Some selected extracts are given on page 11 referring to West Africa, South Africa, and the East.