CO885-(16-18) — Page 613

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PUBLIC RECORD OFFICE

Reference :--

C.O.885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

East-Hong Kong and Straits Settlements. Australasia.

Ceylon and Mauritius.

North America-Canada and Newfoundland. West India-Jamaica, British Guiana, Trinidad, and Barbados.

i. (a) THE EXISTENCE OF AGREEMENTS AMONG LINES OF SHIPPING WITH THE OBJECT OF RAISING FREIGHTS, ELIMINATING COMPETITION, OR EN- FORCING RULES ON THEIR MEMBERS.

The evidence appears to point to the existence of some such agreements for the trade from Europe to a definite section of the world's coast line, namely, that from West Africa running round the Cape and Indian Ocean up the coast of China and including Australasia.

Except in isolated instances, there do not appear to be any important agreements affecting trade to or from any part of America.

West Africa.

Three lines of steamers, the British and African Steam Navigation Company, the African Steamship Company, and the Woermann Line call regularly at ports on the British West African Coast. The Messageries Maritimes call about once in two months at the Gold Coast.

The first two companies are both owned by Elder, Dempster & Co., and the reports make it clear that an agreement exists with the object of eliminating competition and possibly for other purposes. The existence of this agreement is not generally known.

The Acting Colonial Secretary of Lagos states: "There exists an agreement between the three lines " of steamers trading here, viz., the British Africa, "the African Steam Navigation Company and the " Woermann Line, as to the rate of freight to be charged, and they all carry at the same rate, and if competition is started they all lower their freights simultaneously and have to my know- "ledge prevented competition on three different "occasions since I have been in West Africa."

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The Governor writes: "It will be seen that the "British and German steamers trading here have an understanding under which they charge "uniform rates. It does not appear that prefer- "ential quotations are given. It has not been possible, for example, to obtain offers from the different lines to supply this Government with "coal. It is therefore necessary to pay the price " asked by the one company that will offer to

supply it."

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26

5

The Commissioner for the Niger Coast Pro-

tectorate reported: "There is, I am informed, an

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understanding as between Messrs. Elder, Dempster

and Company and Messrs. Woermann as to a minimum freight.'

"The

The Governor of the Gold Coast says:

freight charges are practically the same by each

On the other

line, and there is no known agreement in force among these Companies. hand, he states that rival steamers are bought or forced off (see page 9),

But the Collector of Customs at Sierra Leone reports: "From enquiry I made, I am unable to discover that agreements exist,' He ascribes the existing monopoly to the peculiar difficulties at- tending West African navigation with which only those ship-masters who have grown up in the trade can grapple.

South Africa.

It is unnecessary to go into the evidence for the existence of an agreement to maintain freights and eliminate competition, since its apologists admit that there is such a combination (e.g., see speech of Mr. Hitchins in Natal Assembly, June 27th, 1899), while denying that it is a 'Ring," or that it is detrimental to trade. The quibbling controversies about the meaning of the word "Ring" make it advisable to use the word "Conference" in making enquiries.

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The following short history only embodies the principal facts.

The Collector of Customs, Natal, in the enclosure to a confidential despatch of 15th February 1901, states that the Shipping Conference existed so far back as 1887, the lines concerned being the Castle, Union, Clan, Bucknall, Natal, and Aberdeen lines. (This may be incorrect as regards the Bucknall line, see p. 10.)

Or June 5th, 1894, a motion directed against the Conference was agreed to without dissentient in the Legislative Council of Cape Colony (see Appendix F.).

The German East African Line joined the Conference in 1894.

The Conference is referred to in Report, H.C. 346/97, evidence of Mr. H. H. Clarke, and C. 8,449, Cape Colony Report.

Correspondence took place in the Times at the

end of 1897 and beginning of 1898.

The President of the Board of Trade received a deputation on 9th June 1899.

The Natal Collector of Customs states that the Agreement lapsed in June 1899. It was, however, reconstructed, and has recently been attacked by resolution in the Legislative Assembly (see Appen- dix G.).

It must be noted that the members of the Con- ference strenuously deny the existence of a Ring (e.g., see Appendix 21, H.C. 346/97). The differentia between Ring" and Agreement" or "Confer-

are not quite clear.

ence

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