CO129-345 - Public Offices & Foreign Office - 1907 — Page 331

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Inclosure 3 in No. 1.

Memorandum.

THE chief point of interest in these Regulations is the freight tariff on ordinary merchandize. This is contained in two separate tables, one appearing in the general table of freights, the other, and more important, in a table of freight for merchandize occupying a whole car. The former applies to goods transported to and from wayside stations generally, the latter to those transported between the two ports of Dairen and Yinkow and certain specified places.

That this second tariff is, if freight be calculated by mileage, a differential one in favour of Dairen can be seen at a glance. Mukden is 250 miles distant from Dairen, but only 115 from Yinkow; yet the freight on ordinary 2nd class merchandize* is only 6-25 yen per ton in the first instance as against 5-60 yen in the second. In other words, Yinkow pays at the rate of 49 sen per ton per mile, while Dairen pays only 2.5 sen.

The Manchurian Railway Company do not deny that, calculated in this manner, the freight is a differential one; but they deprecate this system of determining the existence of differentiation. To charge a uniform rate per mile would, in their opinion, simply be to handicap Dairen hopelessly. What they have done is to fix a rate which will permit of goods being delivered at both places at virtually the same cost, and by so doing they say they have not only abolished the old differential tariff but even given a certain advantage to Yinkow. A comparison of the figures in the "whole car" freight table will show that this is correct, the freight on ordinary 2nd class merchandize being, from Mukden, for instance, 65 sen cheaper for Yinkow than for this port.

To further strengthen their contention that differentiation no longer exists, they cite the figures of the old tariff. Under that all goods sent from the north to Yinkow paid freight at the rate of 5 sen per ton, whereas for Dairen the charge was, as far as Tashichiao (100 miles south of Mukden), 5 sen per mile, and from Taschichiao to the the terminus (250 miles), 2 sen per mile. In the case of Manchurian produce, more- over, the 5-sen rate was reduced to 25 sen for this port. Consequently, on this basis, merchandize transported from Mukden to Yinkow paid freight at the rate of 5-75 yen per ton, while that sent to Dairen paid only 5.50 yen.

As long as goods sent from Mukden, for instance, can be delivered at Yinkow at the rate of 5-60 yen per ton as against 625 yen at Dairen it cannot, in the opinion of the Company, with justice be claimed that a differential tariff exists in favour of the latter port and against the former.

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fuel, bamboo, bricks, sand, lava, shells, minerals, ice, coke, iron ware (iron tubes plates, and machinery), gunny bags, nuts, bark, leaves, manures (with the exception of bean cake), timber, charcoal, coal, stones, and cement."

Article 12 is also amended to read as follows:-

"If goods of different classes are placed together, either in the same case or in the same car, the freight on the whole consignment shall be calculated at the rate payable by the highest class of goods in the said case or car.'

I have, &c. (Signed) HAROLD G. PARLETT.

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Inclosure 4 in No. 1.

H. P.

(No. 40.) Sir,

Vice-Consul Parlett to Sir C. MacDonald.

Dairen, August 6, 1907.

I HAVE the honour to report to your Excellency that an alteration has been made in the classification of goods transported along the South Manchurian Railway line, and that Articles 9 and 11 of the "Table of Freights on Merchandize," a trans- lation of which was inclosed in my despatch No. 34 of the 25th July, should now read

as follows:-

"Article 9. The following goods are classified as belonging to the 1st class:-

"Copper and nickel coins, watches, embroideries, mirrors, musical instruments, hair ornaments, drugs and medicines (with the exception of dangerous drugs), toilet goods, dressed furs, wool, woollen cloth or fabrics, arms, fancy goods, curios, opium, raw silk, silk, silk stuffs and fabric, machinery (scientific, medical, photographic, and electric), eye-glasses and spectacles, books and paintings, drawings, articles of vertu.

"Article 11. The following goods are classified as belonging to the 3rd class:-- "Lime (with the exception of quicklime), earthenware pipes or tubes, tiles, wood

*For conveniences of comparison, I have taken Mukden and the rates for ordinary 2nd class goods as examples.

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