TRADE WITH THE CAPE

New Zealand Mail, Issue 1628, 13 May 1903, Page 75 (Supplement)

TRADE WITH THE CAPE

The following is part of a report received from London by the Department of Commerce and Industries.

Since the return of the Trade Commissioners from South Africa sonic interesting developments have taken place in reference to the operation of the shipping ring. Messrs Houston and Co., of 10, Dule street, Liverpool, owners of the wellknown Houston lines, entered into competition with Hie associated lines which comprise the "Ring and Conference." as they describe themselves-—the latter term sounds less offensive and is not so significent as " ring"—with the result that the powers of the ring which are not called into operation until opposition presents itself, have been exercised to. their fullest extent. In dealing with the subject, Mr Balfour, in a speech at the annual meeting of the Board of Trade. Leeds, held on January 23rd last, said:

"The system of deferred rebates, which of course gives the lines forming the conference a strong hold over shippers by enabling them to penalise by forfeiture of accumulated rebates any shippers who venture to send goods by another line than those included in the conference, is of course well knownbut it is alleged that, not content with the. power -which this system of deferred rebates gives t them, the South. African Conference have . gone much further, that they have actually charged, or threatened to charge, shipping agentsi who. on any single ocea- | sion have made shipments by any other .j

line than their own, prohibitive rates, double rates in respect of all goods they may ship by the conference lines, and then more than that they have gone behinchthe shipping agents to the customers of those agents and threatened them with, similar.reprisals unless they are prepared to withdraw their custom from such agents. These proceedings on the part of the conference may possibly be legal. I am careful to express no opinion on that subject, and I confess I should very much liko to see the case taken into the Court and decided; but legal or illegal, such methods I think would be generally recognised by the commercial world as, to say the least of them, very harsh and tyrannical."

A speech like this, coming as it does from a member of the British Government, and guarded though the language is. shows how poor a case the shipping ring has, while what is equally important is that there must be a strong feeling of resentment against its methods throughout the country, or one of the Government Ministers would scarcely speak in this strain. Apart, therefore, from any legal action I think it is quite clear that the commercial community of Great Britain have made up their minds to tolerate no longer the iniquitous anomalies of the South African Shipping ring.

Mr Balfour, in another part of his speech, says:—"Most people will agree with ine that no reasonable man denies to the shipowner the right of combination such as is enjoyed by persons engaged in other branches of industry." But Mr Balfour Went on to remark, "The real question is whether the lines which

form the conference are not abusing the immensely strong position they have secured by combination, in such a way as to cause detriment to the public interest, and whether the methods which they have employed to oppose competition are reasonable, proper and legitimate methods."

The latest development is that Messrs Houston and Co. have issued a writ against the Conference Lines. The claim is fox-—(1) Illegal conspiracy; (2) inducing persons to break contracts; (3) inducing persons not to make contracts; (4) coercing and intimidating .persons; (5) illegally, boycotting; (6) doiamation. The entering of this action is causing very considerable stir in shipping circles throughout the country, and the result will no doubt be watched with considerable interest. -