SHIPPING REBATES.

Dominion, Volume 1, Issue 258, 24 July 1908, Page 7

SHIPPING REBATES.

EFFECT- : OFCOMBINES.

AN AUSTRALASIAN STATEMENT. LOST TRADE.., . (ill TELEOEAPS—rEESS ASSOCIATIONI—COP.TEIGIIT.J1—COP.TEIGIIT.J Melbourne, July 23. At the request of the Royal Commission sitting in London .to enquire in regard to shipping "rings," the Melbourne Chamber of Commerce has prepared a statement relative to tho effect of shipping combines oil Australian trade. It sets out that the London Shipping Conference, which it is-understood controls , practically all freight dispatched from tile United Kingdom, allows shippers a rebate of 10 per cent. ' , It also alleges that a similar rebate. agreement was enforced between, Australian shippers and the steamship, companies trading to the East, whilo an- agreement, but an unwritten one, prevails in the Australian, interstate trade in favour of certain associated companies. It is claimed that, owing to the system of rebates, trade has' bten lost to tho Commonwealth States. There, .is no rebate system in the Australian and New Zealand trade. MH, MORGAN'S STATEMENTS. . When interviewed in' New Zealand,' Mr. Ben H. Morgan, British Trade' Commissioner/stated, inter alia:—"The shipping companies are practically subsidising foreign trade with this Dominion at the expense of tho,:Home trade. As, you are doubtless aware, it is"'at present impossible for any dther shipping concern to enter this trade, as tliewhole of the market i 6 controlled through the rebate system, -which has been in'operation for some years. Under this system New . Zealand importingi .firm's, are charged an additional. 10 per;cent, on the ordinary freight charges. This 10 per cent. is. retained by the shipping companies,; for. from six to twelve months, and ■is then-returned to the shipper providkirthat'he,"hS.'not, meanwhile shipped goods by any other' company outside the ring. If he should have done so, he forfeits his rebates,"which''in many leases: amount to . a considerable sum of money. If, therefore, a new shipping'eht'cVilrise wished'to enter into this trade, it-could not-get any regular freight, bocauso tho importing houses al-o firmly tied upjjy having large sums of money in th» hands of the existing companies liable to forfeiture.",.,