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 several ways. In the first place, where there is a good opening in the Colonies or abroad for British manufactures, or where there is a good market in the United Kingdom for colonial produce, rail and steam carriers can develop them by establishing low through rates. The art of this method has been well studied in Germany, where railway and steamship lines are largely under Government guidance and management, and oversea trade is often assisted by Government subsidy. A special low through rate may be quoted from the German inland town of manufacture to the region or town abroad, so as to encourage export trade and cut out foreign competitors. This would be done, for example, from Berlin to the Levant, or from Leipzig to East Africa. The effect is first to create an attractive channel for the export of German goods; then by skilful calculations to enable the exporters just to undersell their foreign rivals; and finally to obtain a firm footing in a fresh and congenial market, where, owing to the natural conservatism of merchants, the trade remains with the original exporters to the exclusion of latecomers. If this can be achieved by Germany, why not by Great Britain, and especially within her own Empire? The initiative for such a patriotic move lies largely with British steamship companies, since by far the longest distance to be traversed in nearly all these cases is by sea.

In the next place, shipowners and traders could help each other if they were more often able to come to a better understanding about ordinary shipping rates. These are sometimes unduly raised or depressed by the action of shipping 'conferences' or rings, formed by combination of two or more shipping companies trading on the same routes. There is nothing harmful in this in itself, and it is perfectly justifiable, but the harm arises if the rings abuse the situation which they are generally in a position to create. Sometimes, in order to undercut rivals, so-called fighting rates are fixed. Thus, for some years the rate of freight for paper between