!

85. The following rates were in operation prior to the establishment of this conference:

86. On August 24 rates were raised to the home level, viz: Tin, 20s.; general cargo, 27s. 6d. to 75s., and since then freights, with certain exceptions, where they are generally lower, corresponded with European rates. 87. The secretary of this conference at home is Mr. Dermer, care Messrs. Dodwell & Co., Exchange Chamber, 24, St. Mary Axe, E. C.

Exhibit G.

[Extracts from pages 210 and 211, Royal Commission on Shipping Rings.]

BRAZIL.

Dispatch from His Majesty's minister to secretary of state.

[Inclosure to foreign office dispatch No. 10758, of 2d April, 1908.]

THE BRITISH LEGATION, Petropolis, March 9, 1908. SIR: In accordance with the instructions contained in your dispatch, circular commercial (2659), dated the 31st January, 1907, and received on January 27 last, I have the honor to transmit herewith a report on the operation of shipping rings and conferences as affecting the carrying trade to and from Brazil. I have, etc.,

(For His Majesty's minister) MILNE CHEETHAM.

SHIPPING RINGS OR CONFERENCES.

Practically all the steamship lines to Brazil form part of shipping rings or conferences, and as the chief of these are British companies it may be conIcluded that the operations undertaken by such conferences are not unfavorable to British trade. All the British, German, and French lines are members of the passenger conference, and meetings are held regularly in Paris or London to fix fares and decide all questions relating to passenger traffic.

The Spanish Navegacion Transatlantica has been recently trying to carry third-class passengers to Rio for about 30 milreis (37s. 6d.) less than those companies of the passenger ring who touch in Spain, i. e., The Royal Mail, Messageries Maritimes, Italian La Veloce, North German Lloyd, Pacific Steam Navigation Co., Hamburg America, Hamburg South America.

The ring has, however, made arrangements to carry at the same rate whenever a Spanish ship is advertised to sail, and as this price means a loss the struggle can not be maintained long.

There are several cargo rings, rebates being granted to merchants who confine their shipments to vessels of the companies forming the respective rings. There is no legislation regulating such conferences in Brazil; all merchants are content to sign agreements with the shipping rings, and thereby secure the rebates; as a result it is an exceedingly difficult matter for outside lines to

secure any of the traffic now held by the combined lines, and the lines connected having agreements among themselves are enabled in normal times to maintain freights at a more or less profitable figure.

These agreements, though modified more or less from time to time, came into force for the most part about the year 1903.

The following are the principal combinations, the chief freight from Brazil being, of course, coffee: Lamport and Holt, Prince Line, Sloman Line (sold to German lines) to New York and New Orleans.

Rebates according to quantity shipped on a sliding scale of 5 per cent to 25 per cent. Present rate per bag of coffee, 10 cents and 5 per cent primage; basis, 25 cents.

This ring has been until recently engaged in a rate war with the German lines forming the next combination; the latter, having purchased the Sloman Line, endeavored to secure a larger share of the United States traffic than was granted to that line under their old agreement with Lamport and Holt, and the Prince Line putting on their own boats to the New York traffic, which they had agreed not to do in consideration of their own monopoly of Antwerp, Hamburg, Bremen, and Rotterdam, being respected.

The Lamport and Holt ring retaliated by sending a ship to Antwerp, and the German lines, which are controlled by Messrs. Theodor Wille & Co., the biggest coffee merchants in the country, thereupon reduced the rates to 10 cents a bag of coffee in August, 1907.

The actual cost to load and discharge coffee for the United States is 13 cents, so that since then the freights have entailed a severe loss.

This state of affairs has at last come to an end, and the old agreement has been confirmed: North German Lloyd, Hamburg-American Line, HamburgSouth America Line, Royal Mail to Antwerp, Hamburg, Bremen, and Rotterdam grant rebates of 5 per cent; basis, 17s. 6d., and 5 per cent primage per ton of 1,000 kilos.

The basis has been much reduced, and used to be 40s.

The Royal Mail have raised theirs to 30s., finding the lower figure too unprofitable.

The Royal Mail and Chargeurs Réunis to Havre and London grant a rebate of 5 per cent; basis, 30 francs and 10 per cent primage per ton of 900 kilos. The Italian lines-La Veloce, Italiana General, Italian Lloyds, to Genoa and Naples grant rebates of 5 per cent; basis, 40 francs and 10 per cent primage per ton of 1,000 kilos.

The Royal Mail, Pacific Steam Navigation Co., and Messageries Maritimes to Argentina and Uruguay carry at Rs. 1,000, or 1s. 3d. a bag, and the transports Maritime to Marseille grant a rebate of 5 per cent; basis, 40 francs and 10 per cent primage a ton of 1,000 kilos.

(No. 156.

FRANCE.

(1.)

Dispatch from His Majesty's minister to secretary of state.
[Inclosure to foreign office letter No. 18455, of May 30, 1908.]
Commercial.)

PARIS, May 27, 1908.

SIR: With reference to your dispatch No. 4 commercial (232), of the 8th of January last, I have the honor to transmit to you herewith a report containing all the information procurable with regard to the operations of shipping rings or conferences in France..:

The delay which has taken place in transmitting this report has arisen from the reluctance shown by the various companies to furnish any information as to their participation in the various rings and conferences.

I have, etc.,

REGINALD LISTER.

MEMORANDUM ON SHIPPING RINGS AND CONFERENCES TO WHICH FRENCH SHIPOWNERS BELONG.

Second category-International rings: Conference relative to the transport of passengers for North America.

The following companies are members: France, Cie. Génle. Transatlantique; England, Cunard Line and White Star Line; United States, American Line; Holland, Holland-America Line; Belgium, Red Star Line; Germany, HamburgAmerica Line and Nordeutscher Lloyd.

Exhibit G.

[H. J. Res. 230, Sixty-first Congress, second session.]

In the House of Representatives, June 14, 1910, Mr. Humphrey, of Washington, introduced the following joint resolution; which was referred to the Committee on Rules and ordered to be printed.

JOINT RESOLUTION Authorizing the appointment of a committee to investigate certain foreign shipping rings, pools, combinations, and conferences, and other matters connected therewith.

Whereas 94 per cent of the entire exports and imports of the United States are now carried in foreign ships, under the flags of foreign nations who are our rivals in trade and possible enemies in war; and

Whereas all, or practically all, of these foreign ships belong to conferences, pools, or other combinations whereby freight rates are fixed by mutual agreement, so that our entire commerce is carried in ships between which there is no competition; and

Whereas these foreign ships give rebates and other special privileges and pool their earnings; and

Whereas these foreign ships carrying our trade form a complete monopoly and have entered into written agreements among themselves to drive out or destroy any line that attempts to compete with them; and

Whereas these foreign ships always discriminate against the products of this country in favor of the products of the country whose flag they fly; and

Whereas the service given by these foreign ships between this country and most foreign ports, especially between this country and South America, is grossly inadequate and grossly discriminatory against this country in favor of foreign countries; and

Whereas these foreign ships give special rates and other preferences to certain of the great trusts and combines of this country, and especially to what is known as the steel trust, to the Standard Oil Company, and to the harvester combine; and

Whereas these foreign ships dictate freight rates from and to interior points in the United States to and from different ports of the world, and also dictate the ports of the United States through which said freights shall be transported; and

Whereas Japanese ships on the Pacific Ocean have an agreement with the transcontinental railway lines of this country running to Pacific ports whereby these ships dictate the freight rates on our imports and exports passing through the Pacific ports of the United States, both on land and on sea; and

Whereas most of these foreign steamship lines have agents and representatives in this country and have in this country large interests, consisting of terminals and other valuable property; and

Whereas most of these foreign ship lines are receiving subsidies or other aid from the countries to which they belong and are owned or largely controlled by such countries, and form a part of the nayal auxiliary of such countries; and Whereas the methods and practices of the conferences, pools, and combinations formed by these foreign ships are matters of common knowledge in other countries, but general publicity of their methods and practices has never been made in the United States; and

Whereas the practices and methods of these foreign ships, Government aided and controlled, is a violation of our laws and of our commercial treaties, and injurious to our commerce in times of peace and a menace to our safety in time of war: Therefore be it

Resolved, etc., That a special committee of 12 Members be appointed, 5 of whom shall be designated by the President of the Senate from the Members of that body, and 7 of whom shall be designated by the Speaker of the House of Representatives from the Members of that body, which committee is hereby empowered and directed to make a complete and thorough investigation of the methods and practices of the various lines of ships, both of the United States and of foreign countries, engaged in carrying our over-sea or foreign commerce, and especially as to the methods and practices by these lines of forming conferences, pools, or other combinations and agreements for the purpose of giving rebates, special rates, or other special privileges or preferences, and for the purposes of pooling and dividing their earnings, for the purpose of fixing freight and passenger rates, and for the purpose of preventing and destroying competition; also

investigate as to what method, if any, is used by such foreign shipping lines, combinations, and conferences to prevent the publication of their methods and practices in the United States.

And said committee shall further report whether the conduct or methods or practices of said foreign steamship lines are in contravention of our commercial treaties, and whether such methods and practices are not in violation of our laws, and what effect said methods and practices have had on the commerce of the United States.

And said committee shall report to Congress what legislation, if any, it deems advisable should be passed in relation to the matters herein set forth.

Said committee is hereby empowered to sit and act during the recess of Congress and during the session of either or both Houses of Congress, and to require the attendance of witnesses and the production of books, papers, and other documents, by subpoena or otherwise; to swear such witnesses and to take their testimony under oath, orally or in writing; to obtain documents, papers, and other information from the several departments of the Government or any bureau thereof.

Said committee is hereby authorized to employ such secretaries, experts, stenographers, messengers, and other assistants as shall be necessary to carry out the purposes for which said committee was appointed-all such employees to be paid such compensation as the said committee may deem just and reasonable, upon a certificate to be issued by the chairman of the committee.

For the purpose of its investigations, said committee is hereby authorized to pay the traveling expenses of persons summoned before it for the giving of information on matters pertaining to the subject under consideration.

The members of said committee, or any subcommittee or subcommittees thereof, may make investigations of the questions involved, in the United States and elsewhere, and shall be allowed actual and necessary expenses for the same, and the expenses of necessary employees.

Any vacancy on said committee shall be filled in the same manner as the original appointment.

And in case of disobedience to a subpoena this committee may invoke the aid of the court of appeals of the District of Columbia, or any of the circuit courts of the United States within the jurisdiction of which any inquiry may be carried on by said committee, in requiring the attendance and testimony of witnesses and the production of books, papers, and documents under the provisions of this resolution. And the court of appeals of the District of Columbia, or any of the circuit courts of the United States within the jurisdiction of which the inquiry under this resolution is being carried on, may, in case of contumacy or refusal to obey a subpoena issued to any person under authority of this resolution, issue an order requiring such person to appear before said committee and produce books and papers, if so ordered, and give evidence touching the matter in question, and any failure to obey such order of the court may be punished by such court as a contempt thereof. The claim that any such testimony or evidence may tend to criminate the person giving such evidence shall not excuse such witness from testifying, but such evidence or testimoney shall not be used against such person on the trial of any criminal proceeding.

The costs and expenses of said committee shall be paid five-twelfths from the contingent fund of the Senate and seven-twelfths from the contingent fund of the House of Representatives. Said expenses shall be paid out on the audit and order of the chairman or acting chairman of said committee.

Exhibit H.

[H. R. 26835, Sixty-first Congress, second session.]

In the House of Representatives June 14, 1910, Mr. Humphrey of Washington introduced the following bill, which was referred to the Committee on the Merchant Marine and Fisheries and ordered to be printed:

A BILL To protect American trade and American shipping from foreign monopolies.

Be it enacted, etc., That a discriminating duty of ten per centum ad valorem shall be levied, collected, and paid on all goods, wares, or merchandise now on the free list, and a discriminating duty of ten per centum ad valorem, in addi

tion to the duties imposed by law, shall be levied, collected, and paid on all dutiable goods, wares, or merchandise which shall be imported in any vessel not of the United States and which belongs to or is owned or operated or controlled under or in accordance with or in pursuance of or in aid of any combination, conference, agreement, or pool for the purpose of fixing freight or passenger rates, or both of them, or for the purpose of giving rebates, preferential rates, or other discriminations to favored shippers or for the purpose of restraining or preventing competition in transportation.

SEC. 2. That any vessel not of the United States which belongs to or is in or is owned or operated or controlled under or in accordance with or in pursuance of or in aid of any combination, conference, or agreement for the purpose of giving or which gives rebates, preferential rates, or discriminations to favored shippers shall not, under penalty of the forfeiture of the vessel and cargo, carry to or from any port of the United States any goods, wares, or merchandise, except to or from the ports of the country under the laws of which said vessel is registered.

SEC. 3. That any and all clauses in existing treaties with foreign countries in contravention hereof are hereby abrogated: Provided, That the provisions of this act shall take effect and be in force from and after the time specified in section four of this act. The Secretary of the Treasury shall prescribe such rules and regulations as may be necessary for carrying out the provisions of this act.

SEC. 4. That the President shall have power, and it shall be his duty, to give notice, within sixty days after the passage of this act, to all foreign countries with which commercial agreements have been entered into making any provision or provisions which are in conflict with sections one and two of this act, of the intention of the United States to terminate such agreement at a time specified in said notice, which time shall in no case be longer than the period of time specified in such agreements, respectively, for notice for their termination: Provided, That until the expiration of the period when the notice of intention to terminate hereinbefore provided for shall have become effective, or until such date prior thereto as the high contracting parties may, by mutual consent, select, the terms of said commercial agreement shall remain in force.

SEC. 5. That the Postmaster General is hereby authorized and directed to cancel any contract for carrying the ocean mails pursuant to the act of March 3, 1891, entitled "An act to provide for ocean mail service between the United States and foreign ports and to promote commerce," on satisfactory evidence to him that any vessel performing such service is in any combination, conference, agreement, or pool for any of the purposes set forth in section one of this act.