A.—t,

373

16 June, 1911.] Trade and Postal Communications and [10th Day. Shipping Conferences. Sir D. de VILLIBRS GRAAFF— cont. present strong position, and maintaining their prestige. Combinations of this character are not the outcome of philanthropic inclinations ; as a rule they are established to maintain freight rates and to prevent outside competition. The South African Conference organization is no exception to the rule, and in the result, the seaborne trade of South Africa has been handicapped by freight rates, which, as a general rule, are high, and in many cases, are excessive when compaied with rates for similar classes of freights on other ocean trade routes. Representations on the subject to the Conference Lines have been frequent and urgent, but unfortunately have had little effect. In furtherance of their policy of excluding all competition from the South African shipping trade, the Conference Lines have rigidly enforced a system of deferred rebates under which shippers are obliged to pay a rate above normal and are subsequently given a rebate of the excess charge provided they can furnish a declaration that in the interval they have not shipped goods by any vessels outside the combine. The success of this system of deferred rebates in the South African trade has been, unfortunately, most pronounced, and shippers di-ifted so completely into the power of the combine that it soon became evident that nothing short of Government intervention could free them from the burden. I may add that the membership of this shipping combine, originally confined to British shipowners, now includes the influential lines of South African steamships sailing under the German and Portuguese flags. Up to the date of Union all efforts at concerted action by the various Colonial Governments failed, owing to the diversity of interests involved. But the accomplishment of Union gave a long looked-for opportunity of dealing with the Conference Lines. The outcome of the Government's policy was the passage through the Union Parliament of legislation which prohibits the Government from entering into a contract for the carriage of mails with any shipowners who are members of a combine established to maintain freights at a level injurious to the trade of the Union, or who grants rebates to the detriment of that trade. Furthermore, legislative sanction has been given by the Union Parliament to the charging of differential port and railage rates within the Union against goods transported in vessels belonging to any such combine. As regards South Africa's mail contracts the legislation alluded to will only be made operative on the termination of the contract now current with the Union Castle Company, since it would have been manifestly unfair to interfere by legislation with existing contractual obligations. If the policy of South Africa as expressed in this legislation proves a success, as is my confident expectation, I venture to submit that the same course might well be followed by the other portions of the Empire where similar conditions obtain and where corresponding evils and disadvantages exist in consequence of shipping monopolies. This suggestion is advanced, not merely in the interests of the Mother Country and of the individual Dominions, but as offering an effective means of stimulating trade within the Empire. It is instructive to recall, in this connection, the views expressed by Lord Selborne when High Commissioner for South Africa. Dealing with the shipping question, in the admirable memorandum which stimulated the movement for Union in South Africa, his Lordship said :- —" If South " Africa can trust her commerce permanently to the unfettered control of any " shipping ring, the case against trade monopolies falls to the ground. So long as " the companies were united, and she remains divided, a combination can always " break up a temporary alliance between the several Governments by making " concessions to any of them. As soon as one Government controlling the railways " and harbours can speak for all British South Africa, it will at least be within her " power to arrange with the Shipping Conference the conditions of her seaborne " traffic on a footing of equality, and to discuss as a question of business what other- " wise she must ask as a matter of favour. At present the whole seaborne trade of " South Africa is controlled by one private Corporation, which, of course, has no " responsibility to the people of the country—and the mercantile community must " recognise that unless an unforeseen. complication is conjured out of the deep, the "power of that Corporation must remain dominant, so long as no single control can