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might be destroyed by similar associations among their lines.
But there seems to be, a tendency for the great American producers to buy their own lines, a pro- ceeding which will effectually prevent them from entering "Conferences." Thus, at present, there seems little chance of improvement in freight from Europe as compared with United States of America.
The lowering in certain cases of freights from the Continent as compared to Great Britain would seem to be a natural result of the predominance of British shipping. The foreign lines (often aided by subsidies) compete with British lines for the carrying trade of their own countries. They do not seriously compete for British trade. Conse- quently the competition at Continental ports is much fiercer.
CONCLUSIONS.
The evidence shows that agreements of the character referred to in the third paragraph of the circular of 24th August 1899 exist in West Africa, South Africa, Straits Settlements, and China Coast, and Australasia.
They are maintained by the deferred rebate system.
They maintain freights, and therefore pre- sumably raise them above the competitive level.
In the Far East (and, perhaps, to a less extent in South Africa and Australasia) the Continent is favoured to some extent with lower freights than this country. This is often ascribed to subsidies.
The general absence of agreements in the case of lines from America to the Colonies causes freights to be relatively lower from America than from Europe.
The uniformity and steadiness of freights produced by agreements are an advantage to merchants.
In certain cases (e.g., Straits Settlements, p. 16) the existence of Conferences has enabled members to take action injurious to British trade.
Single cargoes have been prohibited.
The question of home and foreign railway rates needs enquiry.
No effective method of dealing with alleged evils has been put forward.
Some of the above conclusions are based on incomplete and, to some extent, one-sided evidence. Evidence is difficult to obtain, and those who know most appear to fear consequences to themselves if they communicate their knowledge.
May 1901.
J. FREDK. N. GREEN.
NOTE. Since this Memorandum was prepared, evidence on this subject has been given, in 1901 and 1902, before the Select Committee on Steam- ship Subsidies by two specially qualified Colonial witnesses, viz., Sir J. A. Swettenham, K.C.M.G., Governor of British Guiana, and formerly Governor of the Straits Settlements, and Sir Walter Peace, K.C.M.G., Agent-General for Natal.
December 1902.
J.F.N.G.
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