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PUBLIC RECORD OFFICE

C.O.

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17 PUBLIC RECORD OFFICE, LONDON

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On the other hand, New South Wales says: "It a generally recognised here that there is an greement among shipbrokers in the United Kingdom whereby all the loading for Australasian orts is managed by a combination known as the Ring,' having for its object the maintenance of reights on a uniform basis."

This comprehensive statement is corroborated a letter from the agent of ——— & Co. at Adelaide aished by the Government of South Australia.

ch states:-

Downers.

From Great Britain to Australia freights are trolled by a combination of shipbrokers and It is practically impossible mport goods outside of the combination except he line of business coming under the line of full goes, when merchants are allowed to charter and I vessels on their own account, always providing

h chartering does not interfere with the cargo th vessels.'

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"A combination of the same kind exists in nection with the importation of goods from inburg, Bremen, and from Antwerp, comprising Norddeutscher Lloyd and Deutsche Australische npfschiffe Gesellschaft and sail vessels loaded certain Continental shipping agents. This com- ation works more or less in unison with the glish Association."

Line states that, while agreement was in force in 1898, it was not (in 9) in existence.

But the agent of the

A report furnished by the New Zealand Govern- it referred to an agreement between the New land Shipping Company and the Shaw, Savill, Albion Company, in the hands of which freights ween the United Kingdom and New Zealand are large extent, and an agreement between these panies and the Shire and Tyser lines trading ween the United Kingdom and Australia.

This report is attached in extenso (Appendix D.).

Mauritius and Ceylon.

Not much is known of any agreement between five companies trading at Mauritius.

The Acting Governor of Ceylon reports: "I ave ascertained that there is an agreement between all English companies as to passenger ates homeward, but none as to freights."

Later he writes: "I understand that the Bombay Pool as regards rates to the Far East governs the Peninsular and Oriental, Austro-Hungarian Lloyd, nd Nippon Yusen Kaisha lines, and that, as egards rates to Australia, there is an agreement o which the Peninsular and Oriental and Orient Ines are parties. The foreign lines are not arties to these agreements, but practically join by refusing to take at lower rates.'

It is not clear whether the Acting Governor is erring to freight or to passenger rates or to h. If an agreement exists it would no doubt be

sidiary to Indian or China agreements.

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America.

The Canadian Minister of Trade and Commerce reports that "there no doubt that there are "combinations of shippers not only in Canada "but in New York, Boston, and other large shipping ports, with the object of fixing the rates of freight."

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Newfoundland states that the Allan and Furness lines are alone interested and these steamers run in direct competition with one another. (Since the date of the despatch they are known to have combined.)

There are believed to be no combinations in the West Indies, except one arranged in 1897 between the Royal Mail Steamship Company, the Atlas, Tweedie, and Hamburg-American lines to maintain uniform rates of freight from Jamaica. Attempts have been made to form a Conference for Trinidad but without success.

It would seem to be the general rule that agree- ments to fix freights between America and Colonial ports do not exist.

But the Agent for writes :--

& Co. at Adelaide.

"Until recently monthly sailing vessels were despatched from New York to Australia and these were controlled by four American houses who chartered ships for the berth and as a rule charged excessive freights

Some of the London steamship owners entered into competition for the New York trade and having secured the contracts for plates for Western Australia and rails for Victoria, their competition caused a freight

war and freights were reduced from excessive to ridiculously low rates. An agreement was then come to between the parties and at the present time general freights are of a normal character. The only competitor to this new combination is the Tyser line of steamers, which, however only visit Melbourne or Sydney."

The quotation at page 13 probably implies that some Conference steamers run from New York, not that there is a Conference for all steamers from thence, but this is not certain.

i. (b)-Methods of Maintaining such Agreements.

The shippers who are parties to such an agree- ment give a rebate (or "primage") on the nominal rate of freight. This rebate is not payable till a considerable time has elapsed and is forfeited by any person who without leave ships goods by any line not in the Conference.

The percentage of rebate and the delay till repayment have been increased till at present they may be as much as 10 per cent. and 18 months. Thus the Conference may have power to inflict an immediate fine of several thousands of pounds on a refractory merchant.

The obvious consequence is that competing lines cannot obtain cargo.