Personnel: 1. Royal Mail Steam Packet Co.; 2. Noddeutscher Lloyd, of Bremen; 3. Cie. Gle. Transatlantique, of Paris; 4. Hamburg-Amerika Linie, of Hamburg; 5. Cuban Line (Ernest Bigland & Co.).

Shipments are allowed via New York by the Ward Line and the Munson Line, or via Liverpool by the steamers of-1. Larrinaga & Co.; 2. J. Glynn & Son; 3. Serra Steamship Co.; 4. G. H. Fletcher & Co.

Conditions: Rebate, 10 per cent. Periods, six months' account and six months' deferment.

WEST COAST OF SOUTH AMERICA COHFEREKCE (VIA MAGELLAN).

Area: The trade by steamers from the United Kingdom or the Continent between Hamburg and Bordeaux (both inclusive) to the Straits of Magellan and the west coast of South America, as far north as Guayaquil.

Personnel: 1. Messrs. Lamport and Holt; 2. Pacific Steam Navigation Co.; . 3. Gulf Line (Nautilus Steam Shipping Co.); 4. Kosmos Line, of Hamburg; 5. Roland Line, of Hamburg. The Roland and Kosmos Lines have exclusive right to carry from ports in Germany, Holland, and Belgium, via Magellan, to Chile and Peru. The Kosmos Line, in addition, has exclusive right to carry from continental ports via Magellan to Ecuador and Central America. Shipments are allowed via Panama or via British ports by the Royal Mail Steam Packet Co., Frederick Leyland & Co. (1900), (Ltd.), the Harrison Line, the HamburgAmerica Line, the Compagnie Generale Transatlantique, La Veloce Navigazione Italiana a Vapore, and the Compani Trasatlantica.

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment. Claim to be signed by merchant resident in Europe and by forwarding agent, and must be presented within three months from date on which payments become due.

SAILING VESSELS CONFERENCE (VIA MAGELLAN).

Area: The trade from German ports and continental ports as far south as Antwerp to west coast ports.

Personnel: 1. Laeisz Line, of Hamburg; 2. Eugen Cellier Line; 3. Rob. M. Sloman Line, of Hamburg. Laeisz Line alone allowed to carry to Valparaiso, but claim for rebates not invalidated by shipments by Kosmos and HamburgAmerican lines to ports on the west coast.

Conditions: Deferred rebate system with usual conditions in force in 1905. Conference did not apply to shipments via Panama.

TRINIDAD TO NEW YORK CONFERENCE.

Personnel: 1. Royal Mail Steam Packet Co. 2. Trinidad Shipping & Trading Co. 3. Royal Dutch West India Mail Co., of Rotterdam.

Conditions: Amount of rebate, 10 per cent on cocoa shipments. Periods, six months for account and six months for deferment.

CANADIAN CONFERENCE.

(1) Area: The trade from Glasgow to points in Quebec, Ontario, Nova Scotia, and New Brunswick by steamers to Boston, Portland, Halifax, Nova Scotia, St. John, New Brunswick, and the St. Lawrence.

Personnel: 1. Allan Line, of Glasgow. 2. Donaldson Line (Donaldson Bros.). Shipments of box and bale goods are allowed via New York by the Allan or Anchor lines to points in Quebec and Ontario.

Conditions: A rebate of half the primage, refunded at the end of the direct

season.

(2) Area: The trade from Bristol, London, Manchester, and Liverpool to the Provinces of Quebec and Ontario.

Personnel: 1. Allan Line, of Glasgow. 2. Dominion Line (International Mercantile Marine Co., of New York). 3. Elder, Dempster & Co.

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment. Claim to be sent in within three months of date when payment due.

(3) Area: The trade from the United Kingdom to ports on the west coast of Canada and in Puget Sound.

Personnel: 1. Alfred Holt & Co., of Liverpool. 2. Balfour, Williamson & Co. (sailing vessels). Shipments are allowed to the east coast of America, and thence overland by rail.

Conditions: Amount of rebate, 10 per cent. Periods, six months for account, three months for deferment. Claims to be presented within three months of date when payment is due.

NEWFOUNDLAND CONFERENCE.

Area: The trade from Glasgow and Liverpool to St. John.

Personnel: 1. Allan Line (from Glasgow and Liverpool). 2. Furness Line (from Liverpool). 3. Furness Line (from London). 4. Allan Line (from London).

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment. Claim to be made within three months of date when payment falls due.

CANARY ISLANDS CONFERENCE.

Area: The trade to and from Liverpool from and to the Canary Islands. Personnel: 1. The British & African Steam Navigation Co. (1900), (Ltd.) (Elder, Dempster & Co.). 2. African Steamship Co. (Elder, Dempster & Co.). Conditions: Amount of rebate, 10 per cent. Periods, three month for account and three months for deferment. Claim to be presented within six months of date of shipment.

EGYPTIAN CONFERENCE.

Area: The trade from the Clyde to Alexandria.

Personnel: 1. John Bruce & Co. (Mossgield Steamship Co., Ltd.). 2. Ellerman Line. 3. Moss Line (James Moss & Co.). 4. Crawford, Ruff & Co. Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment. Claim to be presented within three months of date on which payment falls due.

PERSIAN GULF CONFERENCE.

Area: The trade from the United Kingdom and the Continent to Muscat, Bunder Abbas, and ports of the Persian Gulf.

Personnel: Bucknall Line (Sir J. Ellerman). 2. Frank C. Strick & Co. (Ltd.). 3. Hall and City Lines (Ellerman Line). 4. Clan Line (Cayser, Irvine & Co.). 5. Anchor Line, of Glasgow.

Conditions: Amounts of rebate, 10 per cent. Periods, 6 months for account and 6 months for deferment. Claim to be presented within 12 months of date of shipment.

GLASGOW TO MARSEILLE, ETC.

Area: The trade from Glasgow to Marseille, Genoa, Leghorn, Naples, Catania, Messina, and Palermo.

Personnel: John Bruce & Co. (Mossgiel Steamship Co., Ltd.).

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment.

LONDON TO MOMBASA AND ZANZIBAR.

Personnel: British-India Steam Navigation Co. Conditions: Amount of rebate, 10 per cent. count and four months for deferment.

Periods, four months for ac

UNITED KINGDOM TO JEDDAH.

Personnel: Ocean Steamship Co. (Alfred Holt & Co.).

Condition: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment.

UNITED KINGDOM AND CONTINENT TO MARMAGOA CONFERENCE.

Personnel: 1. Ellerman Lines (Hall & City). 2. Frank C. Strick & Co. (Ltd.).

Conditions: Amount of rebate, 10 per cent. Periods, six months for account six months for deferment.

GIBRALTAR AND MOROCCO CONFERENCE.

Area: The trade from the Elbe and Antwerp to Gibraltar and Morocco. Personnel: The Oldenburg-Portugiesische Dampfschiffs-Rhederei AktienGesellschaft, of Hamburg. Shipments are allowed to Tangiers by the ships of R. M. Sloman, jr., of Hamburg.

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment.

LONDON TO MOROCCO.

Personnel: Royal Mail Steam Packet Co.

Conditions: Amount of rebate, 10 per cent. Periods, six months for account and six months for deferment.

NOTE.-References to other conferences and rebate systems will be found in the Reports from His Majesty's Representatives Abroad (Appendixes, Part III, Austria-Hungary, p. 209; Belgium, p. 210; France, p. 211; Germany, p. 215; Greece, p. 220; Japan, p. 221; Netherlands, p. 222; Norway, p. 223; Spain, p. 226; United States, p. 227.

Exhibit B.

[Extract from the Royal Commission on Shipping Rings, volume 2, page 227-228.]

UNITED STATES OF AMERICA.

1. Dispatch from His Majesty's ambassador to Secretary of State.

[Inclosure to foreign office letter, No. 15584, of May 17, 1907.]

WASHINGTON, May 3, 1907. SIR: With reference to your commercial circular of January 31 last, requesting information as to shipping rings and conferences in the United States, I have the honor to transmit to you herewith copies of dispatches on the subject from His Majesty's consular officers at New York and at Portland, Oreg. The others of His Majesty's consular officers who were asked for reports either stated that there were no rings or conferences or were unable to furnish any valuable information on the subject.

I have the honor to be, with the highest respect, sir,
Your most obedient, humble servant,

[Inclosure No. 1.]

JAMES BRYCE.

Dispatch from His Majesty's consular officer at New York to His Majesty's ambassador at Washington.

No. 36 Commercial.]

NEW YORK, April 18, 1907.

SIR: In accordance with the directions contained in Mr. Howard's dispatch, No. 9, of February 13, I have the honor to forward such information as I have been able to procure respecting the existence and operation of shipping rings or conferences in this consular district.

I regret that owing to disinclination on the part of both shipping companies and individual shippers to afford the information required it has been found impossible to obtain more than the mere outlines of the exact transactions.

The unwillingness above alluded to is no doubt owing to the fact that in every instance rebates have been offered by the conferences and accepted by the shippers, and constitute business secrets which they are anxious to conceal. Another factor in the difficulty is that should there be any advantage accruing to American trade by such arrangements the persons interested will give no information in the matter.

That shipping rings or conferences exist is an open secret, and the following list reveals the fact that their operations affect all the principal foreign-trade routes from this port.

The well-known conference lines are:

1. Australia and New Zealand, composed of the Bucknall Line, Federal Steam Navigation Co., Houlder Bros. & Co., Tyser Line, White Star Line via Liverpool for Australia, Atlantic Transport Line via London for New Zealand.

There is a nominal opposition to this ring by the United States and Australia Steamship Co., which is a combination of four or five of the large Australia'n commission houses, such as Sir Roderick Cameron and H. W. Peabody & Co., who charter vessels, generally British, both steam and sail.

2. South Africa.-The steamship companies in this combination are the Union Castle Line, the American & African Steamship Co., the Union Clan Line, the Houston Line, the Prince Line, and the Hansa Line. There appears to be no competition on this route.

3. China, Japan, and Manila.-The Lancashire Shipping Co., the British & Foreign Steamship Co., the New York & Oriental Steamship Co., the HamburgAmerican Packet Co., the Indra Line, the Ocean Navigation Co., the Prince Line, and chartered tonnage engaged by Messrs. Shewan, Tomes & Co.

These lines form a close corporation and have no competitors except from the Standard Oil Co., who, however, only ship case or bulk oil in their own vessels.

4. River Plate.-The conference lines comprise Lamport & Holt Line, Houston Line, Bucknall Line, and Prince Line.

There is considerable competition in this line, and the following lines are the most prominent outsiders: Lancashire Shipping Co., British & Foreign Steamship Co., Larrinaga Steamship Co., and there is also a fair amount of chartered tonnage.

5. Brazil.-In this trade the Sloman Line, the Lamport & Holt Line, the Prince Line, and the Booth Line have formed a combination, and their principal opponent is the newly formed Lloyd Brazileiro Line. There is also a small amount of independent chartered tonnage.

These rings or conferences have been in existence off and on for from 7 to 10 years, and have varied in their component companies from time to time. In several instances former competitors have been admitted in order that the freight rates may be maintained at the figures which the combination endeavored to enforce.

In respect to the granting of rebates, there is little doubt that in each trade these have been or are still being granted. They are generally deferred rebates payable either three or six months after the close of each individual contract, though in some instances they are payable monthly. The general system appears to be a rebate of 10 per cent of the freight payable at six months after the close of the period contracted for. This extended period allows the combination to investigate and ascertain whether the shippers have kept to their bargain of shipping by the vessels of the conference lines, or have violated the agreement by shipping at reduced rates by competing lines, often in the names of subordinates or clerks in the shipper's firm. In most instances both the shipowners and shippers deny that any rebates are granted, and though technically correct, such reimbursements can generally be found concealed under such heads as "advertising or "brokerage." The object of these rebates is no doubt to stifle competition, as it would be difficult, if not impossible, for any independent line to give service equal to the frequent sailing of the ring and quote rates at least 10 per cent below the conference rates or give the equivalent rebate.

Inquiries which have been made tend to show that though discrimination in rates is granted, the system does not appear to be in force to any great extent, excepting in the case of gigantic corporations such as the Standard Oil Co. and the United States Steel Corporation, both of whom are in a position to dictate their own terms on the threat of giving their business to competing companies or of chartering their own tonnage. It is possible and even probable that other large shippers are occasionally favored in this manner, but all such transactions are disguised under some other name.

It would seem that these combinations which now extend around the world are distinctly in restraint of trade, but as yet no case has been definitely decided by the courts of this country where any decision has been rendered as to the status of foreign vessels or how they can be treated as common carriers in such a manner as to be amenable to the provisions of the interstate-commerce law or the Sherman and Elkins Acts.

Two objections to the system can be urged from the shippers' point of view. First, the sudden advance by the conference lines without notice of the freight rates whereby the shipper who has made his contract some months or perhaps years previously, based on the existing freight rates, suddenly finds himself facing a loss instead of a profit on his merchandise. Where such conference is not in existence, such sudden advances in rates could not be maintained; and though fixed rates are certainly of value, it is better for the shipper to have

varying rates from competing lines where he could engage his cargo space as best suited to his own calculations.

Secondly, the arbitrary stand which such combinations take as to their responsibility under a bill of lading. These responsibilities are no doubt fixed by law, but the law also provides that anything written on or stamped with a rubber stamp on a bill of lading and accepted by the shipper becomes a part of the contract; and bills of lading issued by the conferences and rings are so altered by arbitrary clauses that the respective share of the responsibility fixed by the law on the merchant, banker, underwriter, and carrier practically is inoperative, so far as the latter is concerned.

As regards the effects of such combinations in shipping circles on British trade, very little appears to be known here. One gentleman, a large shipper, admitted that the action of the White Star and Atlantic Transport Companies, in accepting through rates to Australia and New Zealand at prevailing prices, enabled him to ship American goods at a much smaller cost through Liverpool or London than if he had chartered his own tonnage, and infinitely less than the cost to the British shipper from either of those ports.

The rebates to Australia and New Zealand and to South African ports are practically in abeyance owing to lawsuits which have lately been settled or which are now pending.

Many of the steamship companies who compose the rings on those trade routes are taking the stand that the value of the monopoly is not worth the risk of the publicity of lawsuits or prosecutions to which they might be liable if the Federal Government decides to test the applicability of the existing laws to these combinations.

The case of Thomsen and others v. The Union Castle Mail Steamship and others reported in Sir P. Sanderson's No. 3 Commercial of January 8 last, was watched with great interest by the mercantile community, and the dismissal of the action on a technical point is regarded with disappointment. Notice of appeal has been given, but the case is not likely to be tried for some years.

I have, etc.,

[Inclosure No. 2.]

C. CLIVE BAYLEY.

Dispatch from His Majesty's consular officer at Portland to His Majesty's ambassador at Washington.

PORTLAND, OREG., March 7, 1907.

SIR: With reference to Mr. Howard's dispatch of the 13th ultimo, I have the honor to report:

First. That a conference has existed for about four years in the trans-Pacific trade, composed of the following steamship companies: Portland & Asiatic Steamship Co., Boston Steamship Co., Boston Towboat Co., Nippon Yusen Kaisha, Canadian Pacific Steamship Co., Great Northern Steamship Co., Ocean Steamship Co., China Mutual Steam Navigation Co., Pacific Mail Steamship Co., and Oriental & Occidental Steamship Co., the object of which is to fix rates from and to the Far East.

That for two years past an agreement has existed between the members of the International Sailing Ship Owners' Society, which embraces about 90 per cent of the foreign sailing tonnage of Great Britain, Germany, and France, the object of which is to fix minimum rates on wheat charters from ports on the Pacific coast. I am unable to give the names of the shipping companies in this agreement or conference.

Second. As far as known, no rebates, discriminations, nor preferences are granted in the trans-Pacific or wheat trades, but the Ocean Steamship Co. and the China Mutual Co. have granted deferred rebates for some years past in their trade between British Columbia, by the Suez route, and United Kingdom and continent of Europe. This rebate is believed to be 10 per cent and is paid every six months. The object and effect of it is to hold the trade against tramp steamers or others, no rebate being paid if business is divided. Shipping conferences and preferences in this district are not illegal and are not registered. They have a partial effect in keeping what is called tramp steamers out of the trade of regular lines and prevent ruinous cutting of rates between the several lines.

The sailing ship owners' agreement has had the effect of keeping rates at a reasonable figure, but some trade has been lost to French and British owners who were not parties to it.

I have, etc.,

JAMES LAIDLAW.