FORL DE 70HES (CR FREE PORTS) CORPS OF ENGINEERS U., S. ARMY IL BUREAU OF OPERATIONS U. S. SHIPPING BOARD FREE PORT OF COPENHAGEN. AFRIAL VIEW OF FREF POR™ WAR DEPARTMENT CORPS OF ENGINEERS, U. S. ARMY AND UNITED STATES SHIPPING BOARD MISCELLANEOUS SERIES No. 3 FOREIGN TRADE ZONES o (OR FREE PORTS) ANALYZED WITH SPECIAL REFERENCE TO THE ADVISABILITY OF THEIR ESTABLISHMENT IN THE UNITED STATES ait: (SE for” a, x, fo AN 27% hv ZA 1 5 ELIAS 5 5! os tN) Ny Qa, STI Prepared by THE BOARD OF ENGINEERS FOR RIVERS AND HARBORS WAR DEPARTMENT and the BUREAU OF OPERATIONS UNITED STATES SHIPPING BOARD > SHIA i > ETN Iii So) 2 yor opr pier) A Ci 9, Az Tes Leas UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON - 1920 . The following is a list of reports prepared under authority of section 8 of the merchant marine act and section 500 of the trans- portation act. PORT SERIES No. 1. Portland, Me. (Revised, 1927)... No. 2. Boston, Mass. No. 3. Mobile, Ala., and Pensacola, Fla___.. . . cena L110 No. 4. Philadelphia and Chester, Pa., Camden. N. J., and Wilmington, Del .__. pr No. 5. New Orleans, La_. sm i No. 6. Galveston, Houston, and Texas City, Tex.: Part 1—Galveston, Tex. (Revised, 1928). oooooomn Part 2—Houston, Tex. (Revised, 1928). _.__ . __ = ccoce-- Part 3—Texas City and Corpus Christi, Tex. (Revised, 1928). No. 7. Seattle, Tacoma, Everett, Bellingham, and Grays Harbor, Wash__ No. 8. Jacksonville, Fernandina, Miami, Key West. Tampa, and South Boca Grande, Fla_..._. ———- No. 9. Charleston, 8. C., and Wilmington, N. C. No. 10. Savannah and Brunswick, Ga. ca eacmmoccmencoanaa- - No. 11. Portland and Astoria, Oreg., and Vancouver, Wash. ...._.______ No. 12. San Francisco, Oakland, Berkeley, Richmond, Upper San Fran- cisco Bay, Santa Cruz, and Monterey, Calif. ooo No. 18. Los Angeles, Long Beach, San Diego, and San Luis Obispo, Calif. No. 14. Port Arthur, Sabine, Beaumont, and Orange, Texo.... oo... No. 15. Norfolk, Portsmouth, and Newport News, Va_.ccomaeamo No. 16. Baltimore, Md., Washington, D. C., and Alexandria, Va... No. 17. Ports of the Territory of Hawaii... - No. 18. Ports of Southern New England_ No. 19. Pascagoula and Gulfport, Miss__.. No. 20. New York (in three parts, complete) No. 21. Ports of Porto Rico_.---.-- No. 22. Panama Canal and its ports... P rice 20. 35 L. 00 .75 75 L 15 .75 . 40 . 85 . 30 2.25 . 40 35 TRANSPORTATION SERIES No. 1. Transportation on the Great Lakes... ----cuuo-onoo. No. 2. Transportation in the Mississippi and Ohio Valleys. MISCELLANEOUS SERIES No. 1. Port and Terminal Charges at United States Ports... No. 2. (Shipping Charges at United States and Foreign Ports. Consular Services and Charges_._.--—----- No. 38. Foreign Trade Zones or Free Ports__.. i 50 1.00 . 25 1. 00 If CONTENTS PART 1. GENERAL ANALYSIS 1. Origin of free ports or foreign trade zones_______. What is a free port or foreign trade zone?._.. Development of the free port principle. _ Free trade ports__. Free ports... fmm 2. Special factors which would affect the value of free ports or foreign trade zones in the Utlited States. _______. 3. Procedure at American ports of entry________ Federal requirements at ports of entry__ Public Health Service_._.. Customs Service. _ Arrival and entry of vessels___ Landing and deliverv of cargo. Entry of cargo. ..._..__. Delivery of cargo__. .. Bonded warehouses__._______. Cartage and lighterage__________ Record of disposition of cargo. __._.._. Disposition of unclaimed CATZO._.__. Bond for undischarged cargo. Foreign clearance. _ Customs supervision of outbound Cargo... ._. Procedure with respect to imports and reexports_ Import cargo__. Customs warehouses... Manufacturing warehouses_ Drawback.___. The drawback. __ 4. Principal features of European free ports. LL. __.. _. Operations permitted and prohibited in free ports of Eurove._ _. Administration. ______._ Guarding the free port Bunkering._________. Terminal facilities._____ .. Navigation facilities___. _. - Shipbuilding and ship repairing____ __ momen: mt domes sn 5. Effects of free ports or foreign trade zones on commerce and manu- facturing. _______.__________ Effect of the free port on the importer Effect of the free port on the exporter... Transshipment and consignment trade. ______. Development of foreign trade in free ports. Reexport trade. _______. Manufacturing _ Page 1 1 3 5 7 11 12 12 \ 15 J J 20 21 22 25 25 31 37 38 40 12 42 4 44 46 47 53 56 A2 ITY CONTENTS Page 6. Effects of free ports or foreign trade zones on merchant marine and shipping occa oo Lo ann mm mmm——a Immediate effects of eliminating customs formalities. ____.__._. Tonnage taxes wo wceic como cmmmm mee J Landing and delivery of cargo _ Port charges. «cc oeoeoonnn Dispatch in loading and discharging vessels. _ The load factor at ports of the United States. - - [nfluence of European free ports on their merchant marine and shipping... 7. Conclusions 67 67 68 69 71 74 76 {1 Part 2. Tae Free Ports oF EUROPE Copenhagen, Denmark. . Gothenburg, Sweden... Malmo, Sweden. ___. Stockholm, Sweden. __ Hango, Finland__.. Danzig, Free City...-. Bremen, Germany -.. Bremerhaven, Germany Cuxhaven, Germany - Emden, Germany... Flensburg, Germany. Hamburg, Germany. Kiel, Germany... Stettin, Germany. __ Almeria, Spain... Barcelona, Spain... Bilbao, Spain. Cadiz, Spain__..__._-. Santander, Spain... Vigo, Spain____. _.. i oe mm ese Royal Italian legislative decree No. 2395, of December 22, 1927, entitled “Institution of Free Ports” ___.. Fiume, Italy --. Genoa, Italy... Leghorn, Italy--- Naples, Italy. .- - Trieste, Italy_.- eee Venice, Italy _ -- JE Saloniki, Greece_ oem Sulina, Rumania... --cocrmv momeos. cmmmmmmm ome I Selected list of reports, books, and articles relating to free ports. ...___-_ 84 109 117 138 144 145 155 165 167 169 183 185 197 200 204 209 214 218 222 294 225 227 233 247 251 252 272 275 296 302 LIST OF ILLUSTRATIONS Page Aerial view of the free port of Copenhagen... _-covcwumen nun Frontispiece Free port of Hamburg. Loading steel tubes by heavy lifting gantry crane. 8 Free port of Hamburg. View in the basin of the Hamburg-American TE ric se mc mr EN 5 8 Free port of Hamburg. Towing a floating crane... 9 CONTENTS Page Free port of Bremen. Bird's-eye view of free port No. I, with harbor administration building at top of basin_______ . a Free port of Copenhagen. Cranes for handling crated automobiles... Free port of Malmo. Boundary between the customs territory and the free port._. -— Free port of Malmo. The first warehouse of the free port. Floor area about 16,000 square meters... ee me Free port of Danzig. General view of the free harbor at Danzig, looking from the west end toward the entrance... —— Free port of Bilbao, Spain. Customs barrier_._.____ FR Free port of Sulina. Showing customhouse quay and steamer discharging general cargo... wow Free port of Stockholm. Bird's-eye view of free port from the northwest__ Free port of Gothenburg. An aerial view of the completed section of the free harbor________ 5 Free port of Gothenburg. A portion of the harbor as seen from the air_.._ Free port of Bremen. D'scharging frozen meat in free port No. I... _. Free port of Emden. View of the Alter Binnenhafen._. o m— Free port of Emden. View of Aussenhafen, with coal-car tipper... Free port of Saloniki. Qreek customhouse within Greek free zone, Saloniki___________ The port of Trieste, Italy_ —- meme Free port of Hamburg. Floating dock of Blohm and Voss—78,000 tons capacity... __ o_o __.__. mm Free port of Danzig. View of warehouse on south side of free harbor, Danzig. vee eee ee Free port of Saloniki. Showing method of mooring vessel's stern to quay. free port of Copenhagen. Unloading operations on one of the principal quays, showing method of discharge to a warehouse gallery__ Free port of Copenhagen. Coal elevators in free port oo. ._____ Free port of Copenhagen. Grain silo, showing lifting equipment on one side_ _. em Free port of Copenhagen. Grain silo, with other warehouses in vicinity. - Free port of Stockholm. Bird's-eye view of free port from southeast. ___ Free port of Stockholm. View of northern side of the north pier... ._.. Free port of Stockholm. Warehouses of free port from the northeast____ Free port of Danzig. View of ship unloading on north side of free harbor of Danzig alongside the Nordhalle, or north warehouse._________ J, Free port of Danzig. View of north side of free harbor at Danzig, show- ing cranes loading coal. ee Free port of Bremen. View of basin of free port No. IT. _____. Free port of Bremen. Grain docks, free port No. IT ____________._____ Free port of Bremen. Tarbor administration building in free port No. I... Free port of Bremen. Loading of heavy goods in free port No. IT__.____ tree port of Bremen. Floating grain elevator alongside steamer__._____ Free port of Bremen. Discharging oranges in free port No. I__________ Free port of Emden. View of the Alter Hafen and Rats-Delft basin in background. _ —_—. Free port of Emden. Part of Neuer Binnenhafen, with traveling bridges in background____. ._..________. Free port of Flensburg. Grain elevator.____.___. Free port of Flensburg. Cranes for handling coal ..________ Free port of Hamburg. Storage of logs at shed 41. 9 24 26 26 27 29 31 32 33 33 34 35 35 36 37 43 48 52 62 72 87 93 £38 138 139 146 147 156 156 157 158 161 162 170 170 183 183 189 vi CONTENTS Free port of Hamburg. Semigantry cranes at work _-..-- Free port of Hamburg. Unloading an American locomotive __...._..___ Free port of Hamburg. The Steinwaader industrial district in the free port, with view of the city and the Alster in background. «ccc Free port of Hamburg. Launching of the “Cap Arcona’ of the Ham- burg-American Line from the shipyard of Blohm and Voss. -cccunnn Free port of Hamburg. Aerial view of the Blohm and Voss shipyard... Free port of Bilbao, Spain. Discharging operations... —cooueeoeooo Free port of Bilbao, Spain. Warehouse No. 1... Free port of Bilbao, Spain. 100-ton floating crane... Free port of Cadiz. General view of free port... Free port of Cadiz... .- Free port of Santander, Spe'n.. — Free port of Santander, Spain. Storage tanks for petroleum produets_._. Free port of Trieste, Italy. Fordson tractors in Porto Vittorrio Emanuele TTY oc oon sts _— ; m——— free port of Trieste, Italy. View of warehouses, Porto Vittorrio Emanuele IIT emcee = A, Free port of Trieste, Italy. View of hydraulic cranes in Porto Vittorrio Emanuele ITT_____. ._. ————— Free port of Saloniki. Private warehouses, Greek free zone__._._..___._ Free port of Saloniki. New stables for housing livestock, Greek free zone. Free port of Sulina. Showing upper end of port from first to third mile- POSES eee “ . meen Free port of Sulina. Showing lower end port and south bank river entrance _ sii LIST OF MAPS Map showing free port and facilities at Copenhagen, Denmark __.....__._ Map showing free port and facilities at Gothenburg, Sweden.___...____ Map showing free port and facilities at Malmo, Sweden _..vemmaao——o Map showing free port and facilities at Danzig, Free CHY von Map showing free port and facilities at Bremen and Bremerhaven, Germany -ceoe_oo._ Map showing free port and facilities at Cuxhaven, Germany. cco-ooo-- Map showing free port and facilities at Emden, Germany _ .-cc—ccccmonn Map showing free port and facilities at Hamburg, Germany... _.._._.. Map showing free port and facilities at Stettin, Germany... _______..-- Map showing free port and facilities at Trieste, Italy. -. Page 190 191 191 194 195 214 214 217 218 219 222 292 254 255 256 275 280 296 207 84 109 117 145 155 167 169 185 200 989 LETTERS OF TRANSMITTAL UNITED STATES SHIPPING BOARD, Washington. February 20, 1929. Mr. Georce Parson, Acting Director, Bureau of Operations, Washington, D. C. Dear Str: At the instance of the Shipping Board, the joint pro- gram of activities in progress between the board and War Depart- ment has been extended to include a study of the probable effect en shipping and terminal development of the establishment of free ports or foreign trade zones in the United States. The question of establishing foreign trade zones or free ports in this country has been of interest to the shipping public for some time and has been before Congress on a number of occasions, and is now again before that body as a result of bills having been introduced by some of its members. It was with a view to developing full information regarding the practicability of the establishment of such ports that this study has been made. It has been the aim of those making the investigation to present in a succinct and impartial way the facts as they exist and to avoid all argumentative and partisan statements. The investigation has been general in scope and has sought merely to point out the effects produced by the establishment of such ports on shipping and terminal facilities in foreign countries in order to furnish a basis for judgment as to whether, if they were established in the United States, the same results could be looked for. The report having been completed, I take pleasure in transmitting same herewith and recommend that it be approved. Respectfully, Samuel R. HoweLy, In Charge Domestic Port Surveys, Port Facilities Ihvision. Approved. GeorcE Parson, Acting Director, Bureau of Operations, United States Shipping Board. UIT LETTERS OF TRANSMITTAL War DEPARTMENT, Tue Boarp oF ENGINEERS For Rivers AND Harbors, Washington, D. C., December 8, 1928. Subject: Foreign trade zones or free ports. To: The Chief of Engineers, United States Army. I. There is transmitted herewith report on the subject of ‘For- eign Trade Zones or Free Ports” prepared under authority of section 500 of the transportation act of 1920 and section 8 of the merchant marine act, 1920, by the joint forces of this office and the Bureau of Operations, United States Shipping Board, under the supervision of Mr. A. H. Ritter, who is in immediate charge of the cooperative work. 2. Information regarding the principal free ports of the world and their influence upon the commerce, industry, and shipping of the countries to which they pertain has not heretofore been available in such form that the experiences of these countries could be analyzed in connection with the consideration of the general subject of estab- lishing free ports or foreign trade zones in the United States. 3. On account of the interest now being manifested in this subject, and especially because of its bearing upon the matters entrusted to this department and the Shipping Board under the terms of the acts mentioned above and other acts of Congress, it is believed that the report should be printed. It is recommended that it be forwarded to the Shipping Board to be published as Miscellaneous Series No. 3. For the board: Dawn I. Surran, Magor, Corps of Engineers, Resident Member of the Board. [First indorsement] Orrice oF THE CHicFr oF ENGINEERS, December 8, 1928. To the Boarp or EncINEERS ror RivErs anp Harsogs, Washington. D. C. Approved. Epcar Japwin, Magor General, Chief of Engineers. INTRODUCTION This is No. 3 of a miscellaneous series of reports prepared jointly by the Board of Engineers for Rivers and Harbors, War Department, and the Bureau of Operations, United States Shipping Board. The juestion of the establishment in the United States of foreign trade zones (in Europe known as free ports) has been under consideration by Congress at various times during recent years, but no action thereon has as yet been taken. The subject relates to the functions of the Corps of Engineers, War Department, and the United States Shipping Board, and also falls directly within the scope of authority granted in section,8 of the merchant marine act for joint investigation by these establishments. It is generally recognized that while the immediate convenience claimed for free ports or foreign trade zones is the elimination of customs restrictions, the main argument in their favor relates to the development of transshipment and consignment trade and to the strengthening of the merchant marine. Closely related to the problems of the merchant marine is the question of adequate port development in the United States and the provision of channels properly located and of sufficient depth and width to meet the needs of the classes of vessels which the ports are likely to attract. In order to have complete and current data with respect to the free ports of Europe, the cooperation of the State Department was sought with a view to obtaining from consular officers abroad reports covering questions upon which the available information was obsolete or inadequate. These reports, with other data of interest to the study, are printed in part 2 of this volume. The War Department and the Shipping Board desire to express their appreciation of the efficient cooperation of the State Department in making available much information of value for the consideration of the subject. Analysis of this and other information already available is contained in part 1 of this report. PART 1 GENERAL ANALYSIS 1. ORIGIN OF FREE PORTS OR FOREIGN TRADE ZONES WHAT IS A FREE PORT OR FOREIGN TRADE ZONE? The term “free port” which is quite generally used abroad suggests complete freedom from all port restrictions and regulations, and hence s not accurately descriptive of the institution which operates under that name. In this country the term ‘foreign trade zone” seems to be preferred, but this term also is not truly descriptive of the free port and its uses. From the standpoint of the ship and of the physical handling of cargo, the term “free port” is more expressive and comprehensive. As a free port is essentially a maritime institu- tion, usually equipped with docks, wharves, transit sheds, ware- houses, and often with bunkering and ship repair facilities, the latter term is perhaps preferable to ‘foreign trade zone,” which is a term unfamiliar to shipping men throughout the world. It is in fact a new name for an institution which the maritime world has already named ‘free port,” probably because it is a port or a part of a port and is free to shipping in certain respects. Regardless of name, the freedom from official formalities and from certain port dues or charges which characterizes free ports or foreign trade zones, is limited to matters directly related to the entry and clearance of ships and cargo. It does not usually extend to formali- ties other than those prescribed by the customs regulations. Vessels entering free ports or zones, remain subject to the laws respecting the public health and quarantine and must be subject to regulations respecting the landing of passengers within the limits of the zone. Vessels entering harbors having free zones are not immune from the laws respecting pilotage. Other charges against vessels, often effective in the free port, are towage, moorage, dockage, demurrage, harbor dues, and port wardens’ fees. Vessels must still be subject to rules respecting the use and protection of navigable channels and to the regulations respecting inflammable and other dangerous cargoes. Absolute freedom in the discharge of cargo is probably not accorded at any free port. The customs laws not only prescribe procedure in respect to articles which may be admitted into the country but they also prescribe prohibitions against the admission of certain kinds of goods. Some countries have laws prohibiting the landing of goods, the manufacture or sale of which is subject to taxation or to govern- ment control. Charges may apply against goods in free zones for wharfage, handling, storage, and other services. FOREIGN TRADE ZONES The elimination of the customs restrictions applying directly to sntry and clearance of vessels and cargo and to the imposition of duties, makes it necessary to provide suitable barriers between the free zone and customs territory. Goods moving from the free zone into customs territory become subject to all of the laws affecting imports. It may be said, therefore, that neither the free port nor the foreign trade zone is wholly free to commerce and shipping, but is free only to the extent prescribed in each case. Some writers have referred to the free port as a zone which from a customs point of view occupies the same position as a foreign country, but in view of the limitations above indicated with respect to prohibited landings this definition is too broad. The definition given by the United States Tarif Commission in its report on Free Zones in the United States is as follows: A free zone may be defined as an isolated, inclosed and policed area, in or adjacent to a port of entry, without resident population, furnished with the necessary facilities for lading and unlading, for supplying fuel and ship's stores, for storing goods and for reshipping them by land and water; an area within which goods may be landed, stored, mixed, blended, repacked, manufactured, and reshipped without payment of duties and without the intervention of cus- toms officials. It is subject equally with adjacent regions to all the laws relating to public health, vessel inspection, postal service, labor conditions, immigration, and, indeed, everything except the customs. Parts of the above are applicable at all free ports, but the definition as a whole is inapplicable to many of them. As will be evident from data contained in this report, the facilities available and the opera- tions permitted at the various free ports of Europe differ widely. At some of them the area is too limited to permit certain of the operations referred to, while at others some of these operations are prohibited. The definition may be accepted, however, as a correct statement of the facilities provided and the various activities per- mitted at the free ports of the world considered collectively. In view of the wide differences in the physical conditions, the terminal developments, the presence or absence of railroad connections, the position of the port in national and international trade, and the requirements of national and local industries, it is manifestly imprac- ticable for all free ports to adopt a common plan of operation. The basic purpose of all, however, is the same, i. e., to facilitate the import and reexport of goods of foreign origin either in their original condition or with permissible changes of form. A definition applicable to all the principal free ports would have to be expressed in general terms, adhering quite closely to the major purposes, and omitting any state- ment of facilities. The following is an example of such a definition: A free port is a segregated area in which goods not otherwise prohibited may be unloaded and stored, subject to varying restrictions as to sorting, grading, repacking, manipulation, and manufacture, and in which such goods or authorized FOREIGN TRADE ZONES 3 manufactures therefrom may be reloaded and shipped to foreign destinations, all without the imposition of the customs formalities and duties applicable to similar goods entering customs territory. To understand fully the functions of the free port it is necessary to distinguish between ports which are free in their entirety, at least in certain particulars, and ports in which the freedom of shipping and international trade is restricted to assigned zones. It is also necessary to bear in mind that there are great transshipment and consignment ports in countries having low or limited tariff schedules which do not interfere to any extent with the development of business of the nature which the free port is designed to foster. The free port, as the term is used in this report, has reference only to segregated zones, including the limited application of the principle found in the free warehouses maintained in some ports, this being a simplified form of the free port. Another application of the principle is found in the victualing warehouses which exist in certain European towns where vessels may put in to obtain provisions on which no duty has been paid. Where the customs authorities exercise control, however, as in the case of the bonded warehouses or bonded manu- facturing warehouses, the purpose is no longer accomplished, and the word “free” does not properly apply. DEVELOPMENT OF THE FREE PORT PRINCIPLE The free port is a development of comparatively recent times con- ined for the most part to territories other than those having free trade, either wholly or to a predominating extent. Until the last century the foreign commerce of the great nations of the world con- sisted in the main of the distribution of goods other than their own. The chief maritime nations were those which brought to their own shores the products of other countries or of their own provinces and redistributed these products, either in original or modified forms, to other nations. A nation was not great in commerce so much because of her own internal industry or the exports of products of her own production as because of her position in international trade. In the fourteenth century Bruges, which was located in the region which is now Belgium, was the greatest market of northern Europe. The Venetians brought to Bruges their manufactures of glass, fine tex- tiles, weapons, paper, etc., and the products of their oriental trade; the great league of merchants centering in the cities of the south- western corner of the Baltic which grew up in the fourteenth century, known as the Hanseatic League, made Bruges the terminus of many of their western voyages; and many other countries, both Christian and Mohammedan, fed the market with their commodities. In the fifteenth century the place of Bruges as the great market of northern Europe was taken bv Antwerp, a Spanish possession in what is now FOREIGN TRADE ZONES Belgium. One of the chief reasons why the merchants of this time selected Antwerp as the place in which to develop business was the fact that trade there was almost entirely unrestricted. It is said that, although there have been greater cities and greater markets, never before nor since has the world seen such concentration of the trade of different peoples as at Antwerp during the first part of the sixteenth century. During the sixteenth century Spain was by far the greatest power in Europe. The decay of Spain’s power began with the revolt of the Netherlands in 1579 and the unsuccessful attack of the armada on England in 1588. The Netherlands rapidly out- stripped the southern low countries (now Belgium) on account of the colonial commerce of the Dutch merchants and because this com- merce was reflected in business activity at home, and the great com- merce of Antwerp passed to Amsterdam. In the beginning of the seventeenth century the Dutch had hardly any serious rivalry to contend with in commerce. The latter half of the seventeenth cen- tury, however, and the first of the eighteenth were filled with a bitter struggle for supremacy in the shipping and carrying trade between the Dutch and the English, and in the course of the period the English took from the Dutch the leadership in this trade, and London devel- oped as the great consignment market of the world, a position which it still holds. During all this period commerce was hindered by the persistence of barriers to the development of trade and manufacture which had grown up in the medieval system of tolls and guilds and by local vari- ations in laws. The various States and even the individual cities had their own tariff laws, and in some the tariff wall was constructed so high as to threaten destruction of the great international trade which had grown up through the centuries. Thus the peninsula of Italy was divided among seven independent States, six of which had protective tariffs. As late as 1840 a Milan manufacturer shipping silks to Florence had to pass eight customs stations in 150 miles. In Spain duties were levied on both imports and exports, and there were many absolute prohibitions. Indeed, the enormously high cus- toms duties and the heavy taxes levied on trade are among the reasons why Spain failed to maintain her position and build up a great com- mercial empire. During the seventeenth century the Government of England drew a considerable portion of its revenue from the customs duties, the main purpose of these duties, however, being the protection of trade. The importation of manufactured wares was in many cases forbidden or heavily taxed in order that foreigners might not draw money for work which Englishmen might do. Raw materials like wool were kept in the country by duties or taxes, while the export of other wares which put foreigners in debt to England was encour- aged. Prior to the nineteenth century most of the separate States FOREIGN TRADE ZONES 5 of Germany had their own tariff laws, but by 1828 the Customs Union was organized with a common tariff on the frontier. Lubeck, Ham- burg, and Bremen, however, long continued to be free and inde- pendent cities, and it was not until 1888 that Hamburg and Bremen finally agreed to enter the German Customs Union. FREE TRADE PORTS To facilitate international trade many ‘free trade ports” were established in Europe, some as early as the sixteenth century. These are often confused with the free ports as they are known to-day, and naturally so, as some of them through appropriate changes have become free ports in the sense in which this term is now applied. Leghorn was made a free trade port in 1547 and flourished during the seventeenth and eighteenth centuries, but the free port as now in existence was not established until 1883. The free trade port of Trieste, which was established in 1719, was suppressed by the Vienna Government, and the free port or free zone was organized and began to operate in 1891. Marseille was made a free trade port in 1669, Naples in 1633, Venice in 1661, Fiume in 1719, and Ancona and Messina in 1732. Genoa is referred to as a free port as far back as 1623, but the free port law of 1876 is the basis for the regulations and decrees providing for the government and operation of the free zone. The free trade ports which were established in Europe between the fifteenth and nineteenth centuries were later abandoned or modi- fied so as to make them consistent with modern requirements. Cus- toms tariffs for the different countries as a whole were formulated, superseding the individual tariffs of the states and cities. The free cities, or “Iree trade cities” as we use the term, offered opportunities for smuggling and impeded the administration of the customs laws. Under these conditions it was logical that they should be abandoned in favor of segregated, fenced, and guarded areas, in which the re- quirements of transshipment trade could be met without these dis- advantages or dangers. To-day no free trade ports or wholly free ports of the type common to the period prior to the nineteenth century remain in continental Europe. In their place has come the free port or foreign trade zone, comprising a segregated area wherein the customs requirements applicable to the surrounding territory do not apply. The true free trade ports are now to be found principally in the colonial possessions of Great Britain. They are located not in the highly industrialized countries, but at the junctions of trade routes connecting the sources of important raw materials with the industrial nations utilizing these products, and in turn affording means for transshipping manufactured products from the great ocean liners to the small coasting and inland vessels reaching local distributing points. FOREIGN TRADE ZONES Among the free trade ports of this class may be mentioned Hong Kong, Weihaiwei, Dairen, and Kowloon, China; Singapore and Malacca, Straits Settlements; and Aden, Arabia. These ports are open to the ships and commerce of the world. Such restrictions as exist apply to specific commodities and not to specific parts of the ports. Another free trade port is Gibraltar, but its use for transshipping purposes, except for business to and from Morocco, is not great. Hong Kong. —The British colony of Hong Kong occupies a unique position in world trade. With the exception of duties on wines and spirits, trade at the port of Hong Kong is wholly free. For this reason it is properly classed as a free trade port and not a free port. Hong Kong is the distributing center for the enormous trade of south China, and about 30 per cent of the entire foreign trade of China passes through the colony. It is essentially an entrep6t where merchandise from all parts of the world is interchanged. The colony produces noth- ing, animal, vegetable or mineral, of any importance from the point of view of world trade. Its local consumption, except in the case of materials for shipbuilding, ship repairing, and ship furnishing, is equally negligible. Such industries as exist are related mainly to the needs of the local population, except the products of the tin and sugar refineries and the tobacco factories, which are destined almost wholly for reexportation. The whole trade of the colony may be regarded as transshipment. Much of the trade out of China is carried by regular lines of river steamers, which require to unload and reload for the return journey with as little delay as possible. Merchants, both native and foreign, give special attention to the assembling and transshipping of mer- chandise to and from all parts of the world, and with the world-wide steamship connections at Hong Kong the necessity for retransship- ment at other ports is reduced to a minimum. Most of the Chinese foreign trade handled in Hong Kong passes the Chinese customs at Canton or Kowloon, but some goes through Foochow, Amoy, Swatow, Samshui, Kongmoon, Wuchow, and a few minor ports. Hong Kong being an island, the terminus of the railroad from Canton is at Kowloon. Weihaiwei, in the province of Shantung, was leased to Great Britain in 1898. The territory leased comprises the port and bay, the island of Liu Kung, all the islands in the bay, and a belt of land 10 miles wide along the entire coast line of the bay. It has an area of 285 square miles. The port is duty free. Dairen and Kowloon are usually classed as free ports. The exemp- tion from customs duties applies only to commerce of these districts. All goods passing in and out of the interior are subject to Chinese duties, which are assessed both on imports and exports. Kowloon is under British control. Dairen and Tsingtau are both practically FOREIGN TRADE ZONES - 4 treaty ports, though the former is free to commerce in its entirety and the latter contains a free zone. Singapore is the great transshipment point for products of the surrounding countries of southeastern Asia. India, the Netherland East Indies, Siam, and Indo-China all send considerable quantities of raw materials to Singapore for sorting, grading, and repacking in preparation for the world’s markets. The central position and ship- ping facilities of the port make it an excellent assembling point for such products, and, in addition, spices, rubber, tin ore, copra, gums, and resins, hides and skins, and gutta percha are handled in this manner. Rubber is by far the most important raw material trans- shipped. Imports of this commodity in 1927 were valued at $170,570,000. It was largely received for reexport. Malacea is about 110 miles from Singapore. It is not important and is visited mainly by coasting vessels plying to Singapore and Penang. Aden is a British dependency on the southwest coast of Arabia. Perim, which forms part of the dependency, is a small island at the entrance to the Red Sea. The area of Aden is 75 square miles and of Perim 5 square miles. The colony is nonproductive, but it does a large transit trade to and from the neighboring countries. It is practically a free trade port, the only duties levied being on ammu- nition, wine, beer, and spirits. Gibraltar is a British Crown Colony, situated in the Province of Andalusia, Spain. It has an area of 174 square miles. Except in respect to alcoholic liquors and tobacco, it has been free to commerce since 1705. While formerly of commercial importance, trade on a large scale has practically disappeared. Commercial vessels now seek this port mainly for fuel or for orders. FREE PORTS As has previously been shown, the establishment of the segregated area in Genoa which is now operated as a free port was the result of the passage of the free port law of 1876; the free port of Leghorn Harbor as now in existence was established in 1883; the free zone in Trieste was organized in 1886 and began to operate in 1891. Free ports were established at Hamburg and Bremen in 1888, at Flens- burgin 1923, at Stettin in 1898, at Emden in 1901, at Copenhagen in 1894, at Danzig in 1896, at Stockholm in 1919, at Gothenburg and Malmo in 1922, at Cadiz in 1914, at Barcelona in 1921, at Bilbao in 1920, at Santander in 1923, and at Saloniki, Greece, in 1925. Sulina, Rumania, was made a free transshipment point for grain by the European Commission of the Danube, which was con- stituted in 1856 by virtue of the treaty of Paris, In Italy a royal leg- 47068-92920... 9 FOREIGN TRADE 20NES islative decree dated December 22, 1927, authorized the ports of Savona, Genoa, Leghorn, Naples, Brindisi, Pari, Ancona, Venice, Trieste, Fiume, Palermo, Messina, Catania, and Cagliari to be declared either entirely or partly free. No action has thus far been taken under this decree to establish free ports or to enlarge these already in existence. A free port was authorized in Vigo, Spain, in 1918, and the organization approved in 1923, but no steps have been taken to put into effect the provisions of the charter. At Hango, Finland, a free port was authorized in 1921, but it was taken over by the Government before it was quite completed and is now operated as an ordinary port. Laws and regulations regarding the establish-~ ment of free ports in Latvia and the control of same were enacted by the appropriate authorities prior to 1921, but no further steps were taken or are contemplated for their establishment. The question of establishing free ports has been discussed in Norway, Czechoslovakia, Portugal, and in Ireland. Canada has studied the subject also, and there has been some talk of making Colon, Panama, a free port. In addition to the foregoing, there are free ports at Cuxhaven, Altona, Kiel, Bremerhaven, Koenigsburg, Brake, Geestemunde and Norden- ham, Germany; Almeria, Spain; Cueta, Spanish Morocco; and Budapest, Hungary. As Hamburg is to-day the most important free port of the world, it is interesting to note the circumstances which led’ to the establish- ment of the free port. In his report on the port of Hamburg, Dr. Edwin J. Clapp makes clear some of the conditions which existed prior to the establishment of the free port. The following is quoted from his report: Steamship connection between Hamburg and foreign ports falls into two periods, which are divided by the year 1871, the date of the foundation of the German Empire. At this date Hamburg had one oversea line, the line of the Hamburg-American Co. to New York. For part of its trade with other ports it was dependent on casual (framp) service, offered only when a shipload of goods, usually bulk goods, presented itself. For regular connection, such as the importer of valuable wares or the manufacturer or his exporter must have, Hamburg was dependent on England, principally London. This transchipment traffic accounted for a large portion of its trade with England and * * * in 1869 arrivals from England amounted to 60 per cent of the tonnage of ships entering Hamburg. Such casual and indirect connections are the rule in all trade relations which are not enough developed to support direct, regular lines. The fact that half the steam tonnage of the world is still in tramp steamers testifies to the demand that still exists for casual service. The large transshipment trade of Hamburg and London to Scandinavia and the Baltic serves those ports that can not yet exchange regularly full shiploads with the particular countries to which they transship via London and Hamburg. It was from such a state of dependency as this that Hamburg had to free itself. The significance to a part of direct oversea connection with all parts of the world is perhaps better understood in Europe than in America. European FREE PORT OF HAMBURG. LOADING. STEEL TUBES BY HEAVY LIFTING GANTRY CRANE FREE PORT OF HAMBURG. VIEW IN THE BASIN OF THE HAMBURG-AMERICAN LINE po RFE PORT OF HAMBURG, TOWING A FLOATING CRANE FREE PORT OF BREMEN. BIRD'S-EYE VIEW OF FREE PORT NO. |, WITH HARBOR ADMINIS- TRATION BUILDING AT HEAD OF BASIN FOREIGN TRADE ZONES : 9 countries were for centuries dependent on London; in the last 30 years there has been a race for freedom among them. When Hamburg exported and imported via London, the English middleman invariably took toll on all that passed through his hands. The German manufacturer paid more than the English to get his goods to market; he paid the costs of shipping his goods to England and trans- shipping them there. If the English liner had a full cargo, it was the German goods that waited for the next boat. Moreover, sales are often preceded by a considerable correspondence. There were frequent complaints regarding the delaying of German mails sent by English boats. But the speedier steamers of regular lines are necessary for more than the mails. German export industries have so much invested in them that money can not lie idly tied up in their prod- ucts, waiting for a tramp to get a full cargo. Many goods are exposed to serious deterioration in a long voyage; in the case of others the duration of transporta- tion is an important factor in determining the selling price. Many orders for manufactured goods stipulate immediate delivery. Exporting industries and regular steamship lines are indissolubly bound up together. oe ge 4 aks ®# % * (German agriculture demands fertilizers; yet even so it can not sup- port the population of the Empire. Foreign lands must send foodstuffs and the aw materials of industry; to pay for them Germany exports manufactures. Under these new conditions it was ridiculous for Germany or Hamburg to be dependent on casual tramp service or indirect steamship “line’’ connection with foreign ports. As the trade relations sketched above developed, direct German lines were created to meet them, nor did these latter always wait until the volume of trade promised a certain profit from the establishment of a line. For instance, in 1871 the Hamburg-American Line established a service to the West Indies, which remained a losing investment until 1879. For years the same fate met its line to North Brazil. A settled purpose made itself manifest in the steps that were taken to establish at Hamburg a great world port, and in the years prior to 1888 a large and important transshipment and consignment trade was developed. Hamburg became the great distributing center for. northern Europe. The ships of the world brought goods in full cargoes to Hamburg, where they were warehoused and later re- axported to Scandinavia and the Baltic countries. When the German Empire was formed, Hamburg, as well as other of the North European cities, found its transshipment trade more important than the direct imports and exports for which it was the recognized port of entry. Its overseas lines did a huge business with the Baltic, carrying homeward bound more freight for non- German Baltic ports than for the interior of Germany. Hamburg and Bremen entered the German Empire only on condition that they should remain outside the Customs Union. Their traders did not want customs officials levying duties upon all imported goods or forcing the maintenance of an expensive system of bonded ware- houses to escape customs levies. Unhindered by customs officials, ships came and went, mixed manufactured goods were stored for export or transshipment without hindrance, and Hamburg remained like a foreign island or a free state on German soil. 10 FOREIGN TRADE ZONES Bismarck had long importuned Hamburg to join: the Customs Union, and in 1882 it consented. Yet so strongly did the belief in the old transshipment trade persist that the greater part of the harbor was fenced off and set apart, to remain a free port, outside the Cus- toms Union. The Empire agreed to contribute 40,000,000 marks toward the construction of this free port, the remaining cost, about 150,000,000 marks, to be borne by Hamburg. The free port was opened in 1888. Thus Hamburg was enabled to continue and expand her transshipment trade and to offer such economies and facilities to shipping as to stimulate her merchant marine. The British and Dutch ports, which are so important in transship- ment trade, have not found free ports necessary because of the very limited tariff schedules of those countries. England entered the nine- teenth century with a cumbrous mass of tariff regulations mherited from the past, and it was not until 1853 and 1860 that Gladstone’s laws swept away import duties by the hundred. Import duties are now restricted to a very few commodities. The Netherlands, too, clung to the protective tariff until about 1850, when a movement for free trade grew up which resulted in a lowering of tariff rates until they were little more than nominal in amount. London without specially segregated free zones has been able to maintain its premier position as the great transshipment and con- signment market of the world, and it annually reexports goods origi- nating in other countries to the value of about $400,000,000. So important is the trade in foreign goods that it is able to devote entire warehouses to special commodities. Grain, sugar, tobacco, wool, meat and softwood form the bulk of the tonnage, but innumerable ‘other articles are handled. They come from the four corners of the earth, and include mahogany from British Honduras, Nicaragua, Cuba, Costa Rica, and Africa; cedar from British Honduras and Mexico; walnut, rosewood, ebony, and teak from India, Asia, and America; costly carpets from India, Persia, Turkey, and China; silks from India, China, and Japan; porcelain from China and Japan; idols, ivory figures, bronzes, and lacquer cabinets from the Orient; furs from Canada and Russia; marble from Italy and Asia Minor; rubber from India, Colombo, Java, and Singapore; shells from the southern seas; ivory from Africa and India; feathers from Africa; spices from Ceylon; perfumes from Arabia; tin from the Straits Set- tlements and Bolivia; burlap from India; tropical fruits from India and the East Indies; and many other commodities. Dr. D. J. Owen, manager of the port of London, in a recent report showing the development of the great business of this port, makes the following statement: The trade of the port is, in reality, a reflection of the trade of the British Nation. A Tittle consideration will enable one to realize that London has not developed FOREIGN TRADE ZONES 11 into the large port it now is solely on account of the needs of the extensive popu- lation at its door; neither has it developed because of the manufactures carried on in its vicinity or of natural wealth, such as coal, to be exported from its neigh- borhood. It is true that within 25 miles of the docks there is 2 population of 9,000,000 people and that the port is the mouth through which the population is largely fed and supplied by ships. It is true also that there are in and near London engineering factories, breweries, tobacco works, and so on, but the people are not as a whole dependent upon such industries as in what is termed “a manufacturing town.” What is supremely true of London is that it has devel- oped into a great international market and the financial center of the world. Of its vast population an enormous proportion finds its vocation as distributors and middlemen, financiers and bankers, bookkeepers and typists. Immense quanti- ties of goods are imported not for the population at hand to consume or manu- facture but for storage, sale, and distribution to other parts of the kingdom and, indeed, other parts of the world. This entrepot trade has always been the most striking feature of the port of London. Free ports are designed to encourage international trade of the character in which London has been so successful, but which can not be carried on in customs ports in high tariff countries without incon- venience and expense. 2. SPECIAL FACTORS WHICH WOULD AFFECT THE VALUE OF FREE PORT OR FOREIGN TRADE ZONES IN THE UNITED STATES The balance of Part I of this report consists mainly of an analysis of various aspects of free ports as developed outside of the United States with a view to suggesting the probable consequences of estab- lishing such a system in the United States. Tt must not be assumed, however, that the consequences of estab- lishing free ports or foreign trade zones in the United States would necessarily be identical with those which have followed the estab- lishment of free ports abroad. Owing to the remoteness of most American ports from foreign countries to which imported goods could be reexported, it should not be expected that the immediate use of American free ports would approach that of Hamburg or the other more active free ports of Europe. The ultimate importance of free ports to the United States would largely depend on the extent to which American ports became world centers for the distribution of goods coming from or the collection of goods destined for certain areas of the world, near by or afar, which are not themselves great shipping centers. That there would immediately be some business of this kind there can be no doubt. As to whether it would ulti- mately be large or small, only the future could tell. This report will aim to throw as much light as possible on the char- acter of the advantages now derived by free ports abroad and which might be anticipated for free ports or foreign trade zones in the United States. a dud FOREIGN TRADE ZONES 3. PROCEDURE AT AMERICAN PORTS OF ENTRY FEDERAL REQUIREMENTS AT PORTS OF ENTRY As a background for the study of the possible economies which could result from the establishment of free ports or foreign trade zones in the United States, the following information regarding the present practice at the American ports of entry should be of value. The responsibilities of the Federal Government in respect to pro- cedure in connection with the entry of vessels and cargo into the ports of the United States rest mainly upon the Treasury Department and are administered by the Public Health Service and the Customs Service. The Department of Labor, through the Immigration Serv- ice, carries out the immicration laws. PUBLIC HEALTH SERVICE When about to enter a port of the United States, a vessel in foreign trade must first come to anchor at the designated quarantine anchor- age for inspection by the proper officials of the Public Health Service. If, after such inspection, no passengers or members of the crew are found to be suffering from contagious or infectious diseases, the vessel is granted pratique to enable her to proceed to her berth. Passengers or members of the crew found to have communicable diseases are placed under detention in quarantine hospitals, The procedure in entering a free port would not differ in any essential respect from that required in connection with the entry of vessels into established ports. The necessity for these inspections, however, and of suitable anchorage facilities should be borne in mind in selecting sites for free zones. CUSTOMS SERVICE The convenience of the free port, both with respect to vessels and cargo, is principally related to the elimination or curtailment of cus- toms control. In order to make apparent the numerous require- ments which would be wholly or largely obviated by the free port, the following brief statement of the more important features of cus- toms control over vessels and cargo is given. Arrival and entry of vessels.—Vessels carrying freight or passengers, or in ballast, inward bound from foreign ports come within the jurisdiction of American customs laws when within 4 leagues of the coast, and enter customs control when boarded by customs officers upon their arrival within any collection district. Masters of such vessels must deliver to boarding officers for inspection the original cargo manifest and one copy thereof for each port at which freight is to be unloaded; if an American vessel, the certificates issued by American consular officers abroad covering the carriage thereon of FOREIGN TRADE ZONES 13 any returned, destitute American seamen; the certified copy of the crew lists; and copies of seamen’s customs statements. If a vessel carries passengers a list thereof must be submitted for examination, if required. The boarding officer, after comparing the original manifest with the copies thereof, certifies on the former as to their production and on the copies as to their agreement with the original, returns the original to the master for his use in entering his vessel, and transmits a copy to the collector of customs for each district to which cargo is consigned. A third copy of the manifest is also delivered by the master or agent to the comptroller of customs before formal entrance of the vessel. If the comptroller is not represented at the port, then the master is required to mail the copy of the manifest to the comptroller having jurisdiction over the accounts of the district in which entry of the vessel is made. An uncertified copy of the manifest should also be available for the discharging inspector’s use in making up the cargo book. If the vessel is American, the discharging inspector musters such destitute Americans as may be on board in order to verify consular certificates relating thereto; checks the crew with the crew list; seals or otherwise secures hatches covering cargo until the necessary permit for unloading is received; and places under seal surplus sea stores. - The master of a vessel arriving foreign must report its arrival within 24 hours thereof at the customhouse; he must, before entry, deliver all foreign mail on board to a mail collection vessel under the control and direction of the postmaster or to the nearest post office and ‘take a receipt therefor; and he must make entry at the custom- house within 48 hours after arrival, exclusive of Sundays and holi- days. If calling merely for bunker coal, fuel oil, or necessary sea stores, customs entry and clearance are not required, provided vessels depart within 24 hours after arrival and report under oath is made to the collector of the hour and date of arrival and departure, together with statement of quantity of fuel and stores taken on board. The master of a vessel of the United States arriving in the United States from a foreign port or place will within 48 hours after its arrival within the limits of a customs collection district make formal entry of the vessel at the customhouse under such regulations as the Secretary of Commerce may prescribe, by executing the prescribed oath that the ownership of the vessel is as indicated in the register; that all mails placed on board his vessel before his last clearance were delivered at proper foreign ports; that the manifest is in accordance with existing law; and that a true and correct copy thereof was delivered or mailed to the comptroller of customs having jurisdiction in the district. He must deposit the original and one copy of the manifest (unless such copy has been taken up by the boarding officer); the vessel's crew list; its register or documents in lieu thereof; the 14 FOREIGN TRADE ZONES clearance and bills of health issued at the foreign port or ports from which it arrived; the pratique issued by the United States Public Health Service on Form 1940; and pay the tonnage tax, prescribed fees, and incurred penalties. The master is also required to account for the ship’s crew by sworn indorsement on the crew list, The master of a foreign vessel arriving within the limits of a customs collection district, must, within 48 hours thereafter, make entry at the customhouse in the same manner as is required for the entry of a vessel of the United States, except that a list of the crew need not be delivered, and that instead of depositing the register or document in lieu thereof he exhibits it to the customs officer on or before the entry of the vessel. After the net tonnage has been noted by the customs officer, the master may deliver the register to the consul of the country to which the vessel belongs, and file a certificate of such deposit at the customhouse. This exception will not apply to vessels of foreign nations in whose ports American consular officers are not permitted to have the custody of the register and other papers of the vessels entering the ports of such nations. It is unlawful for any foreign consul to deliver to the master of a foreign vessel the register, or document in lieu thereof, deposited with him until the master produces to him a clearance in due form from the collector of the port where the vessel has been entered. Any violation of this pro- vision must be reported to the department. Landing and delivery of cargo.—Entry of the vessel having been made, the necessary permit for its discharge is issued by the collector; discharging inspectors are assigned to superintend unloading and delivery of cargo and customs guards are posted. Discharging inspectors must take possession of specie and valuables in charge of pursers as soon as possible after they first board the vessel. The legal time allowed for unloading by customs regulations is 10 working days after entry for vessels of less than 500 tons ; 15 working days for vessels of 500 tons and less than 1,000 tons; 20 working days for vessels of 1,000 tons and less than 1,500 tons; and 25 days for vessels of 1,500 tons and upward. If additional discharge time is required an extension not to exceed 15 days will be allowed by the collector; but inspector’s compensation for attendance after legal time must be paid by the vessel. “Working days” do not include the day of entry, legal holidays, or stormy days when discharge would endanger the cargo’s safety. Unloading between 6 P- m. of any day and 7 a. m. of the following day will be allowed only under authority of a permit issued by the collector when the nature of the cargo or conditions at the pier are such that it will not jeopardize customs revenue. Similar permits are required for unloading or loading on Sundays and holi- days. Cargo remaining on board after the expiration of legal time or additional period of 15 days which is not recorded for transshipment FOREIGN TRADE ZONES 15 to some other customs district or to some foreign place, may be taken possession of by the collector and stored at owner's expense. Ballast of no mercantile value may be unloaded under authority of a customs permit. Ballast cargo or coal can not be taken on board vessels while discharging except on a lading permit. A special per- mit authorizing the immediate landing and delivery of animals, automobiles, theatrical effects, periodicals, tropical fruits, perishable and other articles requiring immediate delivery may be issued prior to the arrival of the importing vessel upon application by the importer and the deposit with the collector of a sum equal to double the esti- mated duties, the collector giving early notice to the appraiser who will promptly detail an officer to examine and appraise the mer- chandise. Entry of cargo—Formal entry of imported merchandise is required to be made within 48 hours, exclusive of Sundays and holidays, after the entry of the importing vessel. Entry must be made of all impor- tations, whether free or dutiable and regardless of their value, and is made principally for the following purposes: (a) Consumption; (6) warehouse, for storage for three years, if desired, without payment of duty; (¢) warehouse and immediate exportation; (d) warehouse and transportation; and (e) transportation without appraisement. Unless such production is impracticable, no merchandise exceeding $100 in value, except personal effects accompanying passengers and goods entered for warehouse and immediate exportation, is admis- sible into the United States without the production, upon entry of the goods, of a consular invoice prepared before the shipment thereof, describing the goods and specifying the foreign sale price therecf and all charges assessed thereon to the point of exportation, and certified by the American consular officer at the place of manufacture or exportation or by designated substitutes. The consular invoice and the covering bill of lading or express receipt, or bonds providing for their production, must be presented upon application for entry, together with, when required, a statement by the manufacturer abroad showing the cost, of production and the purchase price of the goods. Delivery of cargo—Entry having been made of the merchandise, and any duties thereon having been estimated and paid, or secured to be paid, the collector shall grant a permit to deliver such merchandise, and then, and not before, it shall be lawful to deliver the same. Merchandise for which no delivery permit has been received within 48 hours after a vessel's entry shall be taken possession of by the dis- charging inspector and stored at owmer’s expense in general order stores unless an extension of time is granted by the collector. The collector will designate at the time of entry at least one package of every invoice, and not less than one in every 10 packages, exceptin 16 FOREIGN TRADE ZONES special instances, for examination by the appraisers. All packages entered for consumption not specified for examination may be imme- diately delivered to the importer upon his filing a bond covering double the estimated value of the merchandise for the return of any packages so delivered within 10 days after the examination packages have been appraised. Cargo must not be removed from the pier, however, until necessary customs weighing, gauging, etc., has been done. Delivery may be secured at dock of all free goods and of such goods entered for consumption as are not selected for appraisement. Pack- ages containing dutiable goods entered for consumption and selected for appraisement will be delivered to the importer after examination if duties paid are found to have been sufficient. Goods selected for examination are carted for that purpose to the appraisers’ stores, except that fragile or bulky articles, machinery, inflammable or explosive substances, and textiles requiring analysis may be appraised upon the wharf, or on the importer’s premises, or sent to the nearest port where there is a textile analyst, as the case may be. Goods entered for warehouse are sent to bonded warehouses, from which delivery may be made upon the payment of duties, storage charges, etc. Free goods, unless in packages containing dutiable goods, and also perishable goods and explosive or inflammable substances, can not be entered for warehouse. Goods entered for transportation without appraisement are delivered to bonded transportation com- panies. Bonded warehouses.—Warehouses for the appraisal and storage of bonded merchandise are permitted to be used only for that purpose and for the storage of unclaimed goods under Government control. They are classified as follows: Class 1: Premises owned or leased by the Government and used for the storage of merchandise undergoing examination by the appraiser, under seizure or pending final release from customs custody, and known as a “public store.” Unclaimed merchandise stored in such premises are held under “general order.” Where such premises are not sufficient or available for the storage of seized and unclaimed goods, such goods may be stored in a warehouse of class 3. If there is no warehouse of that class, the collector may, with the approval of the department, rent suitable premises for the storage of seized and unclaimed goods. Class 2: Importers’ private bonded warehouses used exclusively for the storage of merchandise belonging or consigned to the pro- prietor thereof. Class 3: Public bonded warehouses used exclusively for the storage of imported merchandise generally. A warehouse of this class must consist of an entire building, or a part of a building entirely separated from the rest of the building by suitable partitions or walls. 17 Class 4: Bonded yards or sheds for the storage of heavy and bulky imported merchandise. Warehouses of this class are used exclusively for the storage of heavy and bulky articles. The yards must be inclosed by substantial fences, not less than 12 feet in height, with entrance gates capable of being secured by customs locks. The collectors may send to such yards unclaimed or seized goods of the character above described. Stables or parts thereof may be bonded upon approval of the department for the storage of animals. Class 5: Bonded bins or parts of buildings or of elevators to be used for the storage of grain. The bonded portions must be separate from the rest of the building. Warehouses of class 4 or 5 may be bonded exclusively for the storage of goods imported by the proprietor thereof, in which case they are designated as ‘importers’ private warehouses.” Class 6: Warehouses for the manufacture in bond, solely for exportation, of articles made in whole or in part of imported materials or of materials subject to internal-revenue tax; and for the manu- facture for home consumption of exportation of cigars in whole of tobacco imported from one country. Class 7: Warehouses bonded for smelting and refining imported ores and crude metals for exportation or domestic consumption. Class 8: Bonded warehouses established for the purpose of cleaning, sorting, repacking, or otherwise changing in condition, but not manufacturing, imported merchandise, under customs supervision and at the expense of the proprietor. Such merchandise may be withdrawn for exportation, without payment of duties, or for con- sumption upon the payment of duties accruing thereon in its condition at time of withdrawal. The scouring or carbonizing of wool in such bonded warehouse is not considered a process of manufacture. Cartage and lighterage.—Cartage of merchandise in customs custody is of two kinds—(a) Government cartage, which must be done by a licensed customhouse cartman under contract for that purpose, and (b) importers’ cartage, which may be done by any licensed custom- house cartman. The cartage of package designated for examination at the appraisers’ stores or taken possession of for other reasons is done at the expense of the importer by a cartman licensed by the collector. Importers must designate on the entry of bonded mer- chandise the bonded warehouse in which they desire their merchandise deposited and the bonded cartman by whom they wish it to be con- veyed. An adequate system of receipts covering the transfer of merchandise between docks and bonded warehouses is provided for by the customs regulations. Cartmen give receipts to the importing vessel for all packages or merchandise in bulk delivered to them, and are held liable under their bonds for its prompt delivery and sound condition unless specially relieved of responsibility. FOREIGN TRADE ZONES 12 FOREIGN TRADE ZONES Record of disposition of cargo.—Discharging inspectors will show the disposition of cargo by noting on the manifest the various entries made therefor and by indicating packages sent to public stores and noting all discrepancies between manifest, permits, and merchandise. Disposition of unclaimed cargo.—Merchandise taken possession of as unclaimed for which no entry is made within one year from the date of importation, and that on which duty has not been paid re- maining in bonded warehouses beyond three years from the date of importation, are subject to sale by the Government. Bond for undischarged cargo.—Vessels about to clear from the first port of entry, bearing dutiable merchandise consigned to foreign ports, or other United States customs districts, or both, are required to give bond securing payment of duty upon merchandise landed in the United States. Before a vessel departs with residue cargo for another district the master must obtain from the collector a certified copy of the report and manifest filed upon entry, together with a landing certificate and a permit to proceed to such other district for dicharge. Foreygn clearance.—Prior to granting clearance to a vessel foreign bound the collector must receive from the master thereof all manifests, certificates, etc., prescribed by customs regulations. Shipments for foreign delivery should not be accepted by such vessels unless ac- companied by shipper’s export declaration (customs Form 7525), certified by the collector. If a complete outward manifest can not be filed before departure, or if all export declarations have not been filed, clearance may be granted upon the execution of a bond providing that such manifest shall be filed not later than the next business day after the vessel's departure; that pro forma declarations, in lieu of regular export declarations not received, shall be filed with the com- plete manifest, and that export declarations so covered shall be filed not later than four days after clearance. Customs supervision of outbound cargo.—Customs officers are re- quired to supervise the lading of merchandise outward bound on which drawback is payable or merchandise withdrawn from bonded ware- house for exportation or landed for transshipment. PROCEDURE WITH RESPECT TO IMPORTS AND REEXPORTS In the United States the customs regulations are published in a volume comprising some 700 pages. The average importer can not hope to be familiar with all the provisions contained in these regula- tions. As a result of the numerous provisions of the law affecting imports, need was felt for professional advice and service in connection with the entry of foreign goods through out customhouses, and there has thus developed the business of customs broker. The customs broker, for fees varying with the service and the commodity, prepares FOREIGN TRADE ZONES 19 the necessary papers and makes the formal entry, attending to the procurement of bonds and taking other action necessary to fulfill the requirements of the law. The necessity for the service of especially qualified men in connection with the customs procedure is in itself indicative of the complications which attend these transactions. Import cargo—Some of the more important requirements in con- nection with import goods have been indicated under the heading of “Tederal requirements at ports of entry.” In connection with the importation of goods to the United States, there is usually required a consular invoice of all imported merchandise exceeding $100 in value except personal effects, accompanying passengers. This invoice must be viséed by an American consular officer at the port of shipment abroad. Upon arrival at a port of the United States, the procedure will vary with the nature and disposition of the goods. Altogether there are several hundred forms which are variously used in the entry of imports. First, there is the entry form, prepared by the importer or his agent, which must be presented with the bill of lading and consular invoice. This entry must describe the merchandise, giving shipping marks and numbers and the foreign value of the goods. To the wholesale value abroad is added the cost items such as packing charges, the dutiable value being the wholesale market value packed for shipment. The entry blank is accompanied by the importer’s declaration and oath. Entry of imported merchandise may be made for consumption, for warehouse, rewarehouse, combined entry for rewarehouse and withdrawal for immediate exportation; withdrawal entry at original and secondary ports for consumption or for exporta- tion; for exportation, appraisement; preliminary entry for immediate delivery; entry for immediate transportation without appraisement; for transportation and exportation; or for exportation with benefits of drawback of duties. Informal entry may also be made, and arrangements for entry of packages and for special delivery packages. It will not be necessary to discuss in detail the form or procedure in reference to these entries. Customs warehouses —If the goods are not for immediate consump- tion or for immediate transportation to another customs district, and the importer desires to place the merchandise in a bonded warehouse at his expense and risk for not exceeding three years, without payment of duty thereon, he makes entry for warchouse on a special form. After the duty has been estimated upon a warehouse entry the importer is required to file with the collector a bond in double the amount of the estimated duty. In case the importer later desires to withdraw goods from warehouses for exportation, he is required to make such exportation under the original marks of importation and to give bond to produce the proof of landing of the goods beyond the limits of the United States, when the collector shall have reason to believe that 20 FOREIGN TRADE ZONES the shipment is not a bona fide exportation or when the department specifically directs that a landing certificate be produced. Except as otherwise provided for by law, merchandise in bulk and articles bought and sold by weight, gauge of measure must be with- drawn for export or transportation only at the actual quantities ascertained at the time of arrival in the United States. Merchandise transferred from pier to customs warehouse must be transported in bond at the expense of the parties in interest, by bonded vehicles or lighters. In authorizing the bonded manufacturing warehouses and the bonded warehouses for cleaning, sorting, repacking, and other changes in condition, exclusive of manufacturing, Congress has recognized the need for greater convenience and privileges than are permitted in the ordinary customs warehouses. The following shows briefly the principal requirements in connection with the use of these special classes of warehouses. Manufacturing warehouses.—Except for the manufacture of cigars, a bonded manufacturing warehouse consists of an entire building which is in no case adjacent to a building in which a similar business is conducted. Such warehouses are permitted to be used exclusively for the purpose for which they are bonded. Before commencing business, the proprietor of any manufacturing warehouse must file bond, which must be approved by the Secretary of the Treasury, and he must file with the department and with the Comptroller of Customs a list of all articles intended to be manufactured in such warehouse, giving the specific names under which the articles are to be exported and under which they are to be known to the trade. He must state the names of all the ingredients which are to be used in the manufacture of such articles, with the quantities of such ingredients as may be dutiable or taxable. Proprietors of such ware- houses are required to conform strictly to the formulas filed with the bond, and in no instance are permitted to manufacture in or with- draw from the warehouse articles which do not contain all of the ingredients and in the quantities specified in the formulas. Materials and articles imported for use in a bonded manufac- turing warehouse may be entered for transfer direct from the import- ing vessel to the bonded manufacturing warehouse without appraise- ment or payment of duty. Except cigars manufactured in bond, and supplies for vessels of the United States or vessels of war of any nation in ports of the United States which may reciprocate such privileges toward vessels of war of the United States in its ports, no articles or materials received into a bonded manufacturing ware- house may be withdrawn or removed therefrom except for direct shipment and exportation or for transportation and immediate exportation in bond to foreign countries or to the Philippine Islands, under the supervision of a customs officer. Cigar manufacturing FOREIGN TRADE ZONES 21 warehouses and smelting and refining warehouses are special classes, for which separate rules and regulations have been prescribed by the Customs Service. Drawback —Merchandise upon which duties have been paid and which have remained continuously in bonded warehouse or otherwise in the custody and control of customs officials may be entered or withdrawn at any time within three years from date of importation for exportation or for transportation and exportation. Upon such entry or withdrawal 99 per cent of the duty paid thereon may be refunded. Upon exportation of articles manufactured or produced in the United States with the use of imported merchandise, the duties paid on the merchandise so used less 1 per cent of such duty may be refunded as drawback, except that such duty shall not be so refunded apon the exportation of flour or by-products produced from imported wheat unless an amount of wheat grown in the United States equal to not less than 30 per cent of the amount of such import wheat has been mixed with such import wheat. This provision also applies to vessels constructed and equipped in the United States with the use of imported materials for foreign account and ownership, or for the government of any foreign country. As exportation contemplates shipment to a foreign country, draw- back can not be allowed on shipments to United States possessions, unless the same is authorized by specific provision of law or by necessary implication. No drawback of additional duty imposed for undervaluation, nor of discriminating duty, nor of additional duty paid on any wool used in violation of the bond provided for in para- graph 1101 of the tariff act of 1922, nor on merchandise remaining nelaimed in general order for more than one year, will be allowed. The entry or withdrawal of merchandise in customs custody for exportation with benefit of drawback must be made within three years from the date of importation. No drawback will be paid unless the merchandise is exported in the original packages in which imported, without diminution or change in quantity, quality, or value, unavoidable wastage or damage excepted, or in the packages to which transferred when repacked under special authority. No drawback will be allowed on any merchandise if it has been released from the custody or con- trol of the government prior to being laden for exportation, as such custody must be continuous and uninterrupted from the time of importation until the time of exportation. Drawback will not be allowed on merchandise loaded at night or on Sundays or legal holidays without customs inspection and supervision. It is essential in the administration of the drawback law that exporters in all cases provide the requisite opportunity and the nec- essary facilities for official inspection, sampling and ascertainment of quantities. Collectors, in their discretion, indicate on the notices of 22 FOREIGN TRADE ZONES intent whether the merchandise is to be sampled, gauged, or measured, and give general instructions to inspectors respecting drawback goods which require sampling, weighing, gauging or measuring, in order that in the event such sampling, etc., is not obtained under the copy of the notice of intent filed at the customhouse, the inspector may obtain the same under the copy filed with him at the time the goods are deposited at the place of lading. Whenever practicable, merchandise subject to sampling, weighing, gauging or measuring shall be sampled, weighed, gauged or measured at the place of deposit for lading after the goods have been placed in the custody of the exporting carrier. A drawback entry and certificate of manufacture must be filed in duplicate within two years from the date of clearance of the exporting vessel or conveyance. Claims for drawback not completed within the two years will be treated as abandoned. The above are just a few of a large number of provisions contained in the customs regulations respecting the entry of goods for consump- tion, warehouse, or other distribution, and respecting the formalities to be observed in withdrawing such goods for export. Many minor requirements have been omitted in some of these references, as well as many special rules not applicable to all imports. THE DRAWBACK The customs provisions relating to drawback are referred to under the heading of “Procedure with respect to imports and reexports.” Under these provisions a manufacturer may secure a refund of 99 per cent of the duties paid on goods of foreign origin, contained in manufactures which he exports; or of duties paid on foreign goods reexported in their original condition, provided. that they have been continuously under customs control. The drawback paid by the United States during the five years 1922- 1926 was as follows: 1922__ 1923. _. 1924._. 1925. 026 $35, 200, 048. 95 11, 934, 831. 32 14, 095, 456. 88 20, 658, 167. 20 13. 136. 989. 46 Details of the items making up the above totals are given in the accompanying table. It will be noted that sugar was the principal commodity in each of the five years. Other important commodities, on which drawback was paid, were oilseeds, cotton, silk, jute, paper, iron and steel, aluminum, lead, ferro-alloying metals, and photographic Alms FOREIGN TRADE ZONES Drawback paid by the United States on articles of foreign origin, 1922-1926 23 Article 1022 1923 1924 1925 1026 Animals and animal products, except wool and hair Bones, horns, hoofs, and manufactures of. Casein or lacterene, galalith, etc... .----- Dairy products. mceo-uomoomammanaamamaios Feathers, ostrich, artificial or ornamental... Fish and fish ofl ooo Furs and manufactures of. ..ooococonon-- Leather goods and manufactures of..-----. All other Jp $209, 249.70] $55,280.2 2.771 13,809.6 213.95 319.5. 1, 915. 65) 1,426. 0C — 840. 31 2, 7148.76 579.32 $3,602.60] $4, 008.91 978.45 3,620. 50 75,195,05! 78,373.82 55,657.68 64, 444.55 95.44 R 272 9K 5,917.63 a SRR 50 1,037.84 6,781.6¢ 143,474.69) 174,126. 1: $8, 217. 10 7,521. 48 55, 936. 07 82, 388. 07 5,324. 18 3, 808. 48 6, 817. 54 4 912, 56 Toba)..cnuwemmmn- moms Vegetable food Joys oilseeds, expressed oils, and beverages Fodders and feeds, B. 8. S.cocemmecrmnmmnnn Frits. coacemmmmomcszamcnemanomamaencusanon Grains and preparations of oooooocoeoo Molasses, honey, and sugar Srp. oen- Nuts. ccuneocmonca. ear Oilseeds. oamvamnn. mwa S0i0es. «uc sneviwanan - ARE Sugar and cane SUEAT. .. -coeemun. 2nccnoe Vegetables, beans, dried... ooo_oo----- Veretable oils (expressed, ete.) and fats... 34,130.83 72, 264. 32 174, 926. 38 Lm mmam— 820. 64] ceo cmnmrn an mms mamma 26,141.60] 20,714.47) 22,562.56) 19, 636.02) 22,038.18 56,629.42] 64,054,131 76,732.22 240, 070.41 89,354.41 59,777.69] 27,803.74) 36,836.20 2, 228. 95 1,021 44 10, 949. 90 2,194.01 7,364. 99 9,778.83) 16,778.53 38, 631.04] 652, 693. 4511, 587, 465. 3911, 320, 145. 841, 581, 761.09 4,049.50] 12, 510.67 980. 75| 1, 861. 08] 2,836.09 33,775,802.57|9, 389, 362. 42/9, 001, 446. 31 14,375,245.15(5, 730, 096. 12 3,113. 65 9, 819. 48 2,200.76 272.55) 18,166.93 48,354.69 101,083.41! 115, 831.67 70, 576.011 57,769.18 34,024,353.2410,289,235.7¢ 16.048,813.8617, 520, 720. 97 Other vegetable products, except fibers and wood Total. Crude drugs. _--—c-ee-osamcmcemmznmnmenna= Essential and distilled oils... cvrooccaeamen Guns, resins, and balsams. ooo oonoo- BOBS. wwe cmms, mm mS TODRCCO - comm mmm cmc mmmm mmm mmm mm Tanning extracts, not containing alcohol... All other ———— 9,003.81 10,652.87] 22,402.94 31,089.97 11,223.36 11,627.34] 3,119.22 1,023.49 54,333.92 35,787. 37] 43,804.02 25,953.46 55.85. meweccfmmammmmeo mmc remem 79,280.42 34,324.71 48,010.28] "104, 514.2 i eemtamaeas 806.06] 2,825.2, 3501) T1737 1100100 1,598.2 154 272.87 91.010.461 120,242.62" 166,999. 7" 27,342.18 2,124.73 29,719. 46 33,023. 60 79, 948. 81 333.38 1, 254. 49 174, 059, 39 Total. _.. Textiles Artificial silk and manufactures of. -_...--. Cotton, manufactured and unmanufactured lax, hemp, and ramie, and manufactures of Hats, caps, bonnets, and hoods comnosed of rabbit fur, ete. Human hair... a Jute, manufactures of__. Se 3ilk, manufactures of... .......... Qtraw hats and materials _____._____.. Wool and wool clothing _............._ Wool unmanufactured All other 132, 205. 55 75, 580.87 2’ 115.93 61,790. 64 139, 248. 49 987. 89 239, 823. 86 162, 684. 2 9 561. 01 377, 775. 38) 438, 336. si 15 578. 70 128, 063. 45 741,708.09 99 (311. 34 166. 67 190. 86 (37, 652. 61 34, 533. 2, {0 AG 19 IWSEX. 38,811. 21 (28, 315. 96 15, 488. 0% 77. 146. 32 7,244.08 3,885.00 24’ 364.85]. 178, 735. 76) 220, 778, 03 102840. 11' 157, 042. 99 45025.8 52,874.02 187.975. 534,021.60 EEE EE 465,730.71) 952, 378. 2111, 801, 828. 5212. 016, 489. 3 Total Wand and paneer 484, 009, 80! Cork manulothies os mem ahogany cabinet woods in ho roroh ato paper, except printed do ha rough, eto All other ec-mecvmmmen- 53,119.64] 21,042.38) 36,184.18 mgr win fen umus nna) AL BT 35,445.86] 15,335.19; 30,358. ¢ 2,833.36 382. 1 01. 398. 8° 62, 628. 57! 138, 007. 28 140. 334. 761 67, 204. 23 77,927. 15 129, 054. 3¢ 36,750.74] 02,085 09 340,970.61 274, 275.76 matal.. .-- Nonmetallic minerals Coral, and other precious and semiprecious stones, cat but not set. eb. eens Diamonds. coueeenn=-- - FlUOrspar_coowemeanc== . agnesite, not purified... -c-zoar-=-2oson Marble, onyx, breceia in hlocks, rough or squared, Only ..----an-=m==-"7""TTTT MICH ooo mem mmm Pearls coo acmnmmm mmm Precious SEomen meena All other... oo ceemmmemmmemnmmn 4'7068°—920——— 2 8,624.40) oo oooo- vmeemmeomeno) 10,083.35 oll 1,870.65 1,017.03 3,314.17 vememanenn 18,542.56 4,426. 68) 3, 261. 52 ,371,72 "350. 11, 371.7 z 350. 3 10,761.01 30:0 543.5 3894.7 59. 5) 18, 603. 18 4, 998. 86 17,491.27 40, 464. 84 580. 73 16, 292. 91 15, 221. 44 693 0° 38, 747. 45 58.914.0°' 193 495. & 17,934.45) ooem oe 2,641.91| 31,803.06 1,096.17, 4,339.46 35,680.54 22) 580.06 18,038.06] 26.309. 20 133, 58 902, 67 13,140.91] 18,026.63 4,467.07 3,326.60 ra #08. 65 374.97 416. 18 04,436. 661 98, 411. 5 FOREIGN TRADE ZONES Drawback paid by the United States on articles of foreign origin, 1922-1926—Con. ‘rticle 1099 1923 1924 1925 1928 Ores, metals, end manufactures of Ironandsteel .. Aluminum and aluminum alloys. _____ ___ 3eauxite, erude_._.._.________ dronze and manufactures of ._____________ Collapsible tubes. _____._.______________ Copper, manufactures of, n.e.5.__..._._.. Ferro-alloying metals_._________________._. Jewelry, composed of metal, ete., or set 0 isn precious or semiprecious stones, ste... ead Lees Metals, manufactures of... _.__._____..____. Quicksilver or mercury. _.__....___.. _. Zinc sheets. __...___.. = EN All other... Him meme 116,369.33] $53, 507.53 3253, 369. 74) $179, 617. 56] $153, 935. 34 78,769.67) 165,004.25 357,016.05) 421, 112. 69| 470, 695. 83 eeaooooo| 4,180.94) 88753138] 88,458.32) 89,914.79 1,034.98 5,858.83 10,661.64 6,771.18] 5 883.98 34, 438. 97 43.70 | TT -- 921.96 _ EE EY X —— 37,753.33! 171, 149, 051 "107, 099. 50 29, 088, 50 748, 359. 13 34, 200, 48 6,832.78 85. 97 1, 864. 61 413,971.17 655,722, 5411, 372, 223. 66/1, 386, 807. 20'1, 732, 960. 91 1, 640. 82° 25, 548. 48 39,733.45 “15.513 24) 247. 79] 415, 867. 66 8, 192, 05 1, 876.07 2.8 541. 12 9, 407. 61, 609, 357. a 2,323.33 160. 871 22.7 2 199. f Machinery and vehicles Antifriction bearings and parts of......___. Automobiles and parts of __....__......___, Electrical machinery and apparatus. ______ Engines, steam and internal combustion... Flyers, unfinished... ..........._____.. Machinery, partsof______________.________. Other machinery, except agricultural _____ All other... Total __ 2438. 0 CIN 04) T0800 55 5,490.04] 8250.37 8; 68.33) 9,379.47 wes TTT Vag sag] poe a IIIT LL 3,808.63] 3,459.06). WEE ae LT — 233,840.30 6,187.36] 1824 47 i873 350. 28 21, 979. 65| 126,013. 67] 184, 168. 08 94,072.68 86, 230. 75 509, 15 Total... . meme ee Chemicals Argols..____....___....... o_o... deids and anhydrides... .___... Aleohols. oo Ammonia and ammonium compounds... Sarium Co, . “ Soal-tar products... comee ooo. pi CHYCOTIIL ene oom ee cc commence ememmmn Medicinal and pharmaceutical prepara- BIODS ooo ciiiniel meee Pigments, pals and varnishes...._...... Potash and potassium compounds_..___._. All other... . Total ._ 13,325. 87 1,526. 68 TTTTRE OF OO RR md 111,483, 2074, 744 4d 798. 81 16, 620. 44 19,776 ij 14,907. 94 8,403. 1, 474. 60 4,233.21 2, 508. 14 33, 008. 47! 10, 098. 1! 9, 814. 82 36, 343. 08 7, 768. 62 3, 638. 62 62, 759. 63 17.724. 16 "3,083. Tai 04 2,510.65 13,221.71 502.25 3,080.83 32.67 29.11 T1836 TE 96,642.14] 37, 064.83 096. 09 2,853. 14 3,600. 98 1,722.26 66,425.60] 72,024.86! 147,227.38 1,736.10 366. 60 4,932. 86, 2,452. 28 2,142. 84 1,089. 21 5, 504. 99 3 572.18 Miscellaneous 19,017.78] 45,402.38 2, 726. 40) 2, 094. 56 21, 985. 04 Bb, 667. 08 309.56 14, 845. 38 395, 155,80] 743, 427. 04 6, 813. 81. 742,74 137.38 1,560.73 2.453.471 19,005.14] 128,741.02 446,145.84 813, 740.78 Grand BO 86,200,045.95111,034,831.3214.005,456.88/20,608, 167.2013, 136,985.40 1 $10,781.98, phenol. Beaded ornaments and beads........ - Buttons, pear], ete....... .... cme mn Jocks and watches... __. Phonographs, parts of ...___._...._.._..... Photographic films and goods_..__.___.__._. Pyroxlin products, n. e. s., finished or partly finished articles... All other... ..... Total oem. The inconvenience entailed in meeting the requirements of the regulations and the delays in securing settlement of claims have induced exporters in many cases to waive their rights to reimburse- ment of duties. The privilege apparently has its greatest applica- tion in the case of certain manufactures the raw materials of which are wholly of foreign origin. Even if manufacturing were permitted in free ports of the United States, it is doubtful if the privilege would be availed of, except in a limited number of cases, where plants could Ke 3 9 Q FREE PORT OF COPENHAGEN. CRANES FOR HANDLING CRATED AUTOMOBILES FOREIGN TRADE ZONES 25 be devoted wholly to export trade. Goods entering customs terri- tory from the free zone would be subject to duty on the value of the finished products, and this alone would discourage general manufac- turing operations in the free zone. Simplification of the drawback procedure would seem to be a possible solution of the problem, and it would keep the free zone wholly available for the instrumentalities of commerce and shipping, which are its true functions. 4. PRINCIPAL FEATURES OF EUROPEAN FREE PORTS OPERATIONS PERMITTED AND PROHIBITED IN FREE PORTS OF EUROPE The data made available in connection with this investigation show that there is wide divergence in the nature and extent of the privileges accorded to commerce and shipping within the free ports of Europe. Obviously, the purpose in view is to accord the greatest freedom to shipping and to secure the greatest development of international trade which proper regard to the protection of home industries will permit. In this connection it is interesting to note the privileges accorded and the restrictions imposed at the various free ports of Europe. Copenhagen.—The Copenhagen free port law of March 31, 1891, authorized the construction of a free port ‘for commercial and indus- trial purposes.” Under the terms of the charter of the Copenhagen Free Port Joint Stock Co., the company must permit merchandise deposited in open or inclosed spaces within the free port leased out to private parties and which it was impossible to receive in the ware- houses of the company, to be prepared or manipulated in any manner that the proprietors or their representatives see fit. Every person has a right upon payment of stipulated sums due and by observing the regulations in force to make use of the installations of the free port. In accordance with law there can not be installed within the territory of the free port, without the previous consent of the legislative power, factories for the manufacture of artificial fertilizer, or margarine, or book binding or printing industries for books, newspapers or music. The consent of the Secretary of the Interior is necessary for the estab- lishment of any other industry, as well as for retail stores within the territory of the free port. The Secretary shall not, however, oppose any difficulties whenever ‘the articles manufactured or sold are for export or for provisioning of vessels. Special care is taken to prevent the consumption of dutiable articles within the free port unless such duties have been paid. Foreign merchandise which leaves the free port and enters into Danish customs territory must submit to the rules as.to the tariff schedules then in force. The port duties assessed against vessels in the customs port are not collected in the free zone on articles trans- shipped and re-exported, but articles leaving the free port for entry into Danish customs territory pay to the tariff board a tax equal to the 26 FOREIGN TRADE ZONES tariff rate placed upon the article by the regular customs act, and it must be equal to the port duty collected in the customs port of Copen- hagen. The latter tax is calculated upon the basis of one-tenth of a registered ton. Even if the rate upon any article does not reach the amount usually paid for one-tenth of a registered ton, payment will be made upon this basis. The products obtained in the territory of the free- port must on entry into the territory of the Danish customhouse submit to the regulations which may at anv time be established under the ordinary tariff acts. Malmo.—Goods may be stored, examined and tested, repacked and divided in the free harbor without payment of customs duties, transit dues, cost of surveillance, or other dues to the public treasury. The retail sale of ships’ provisions and other necessities is permitted under regulations designed to prevent improper disposition of such goods. Other retail trade is prohibited. Special permission of the King is required for conducting industrial activities, but it is reported that such permission may be readily procured. Permission for industrial activities does not include book printing, job printing, or other activities of a like nature which because of more favorable conditions in the free port are likely to harm similar activities in the domestic market, or are of a nature to cause danger or inconvenience to the establishments or goods stored there. Goods which according to regulations in force for the prevention of infectious human or animal diseases are subject to certain protective provisions or which are en- tirely prohibited importation into the country are also prohibited to be imported into the free port or are subject to the same protective measures as prescribed in the customs harbor. Stockholm. —The free port at Stockholm is used mainly as a port for the transshipment and reconsignment of merchandise. Goods may be unpacked, divided, and repacked in larger or smaller parcels, and they may be inspected by the consignee or persons authorized by him. More liberal free storage time is allowed for goods intended for reexport than for other goods. Manufacturing activities are per- mitted only when sanctioned by the King. All retail trade within the free zone is prohibited. Gothenburg.—At the free port of Gothenburg merchandise may be landed, stored, and manufactured into more valuable products and shipped out again to other parts of the world without payment of tariff. Goods may be sorted out, parceled, or treated in any other way without payment of customs dues. Retail trade is not permitted in the free port. However, if permission be obtained from the King, the sale of victuals and other ship chandler’s goods may take place on certain conditions. Permission to carry on industrial activities does not include book printing or similar activities. Goods are to be stored openly and exhibited to the public and foreign goods FREE PORT OF MALMO, BOUNDARY BETWEEN THE CUSTOMS TERRITORY AND THE FREE PORT vt ig FREE PORT OF MALMO. THE FIRST WAREHOUSE OF THE FREE PORT. FLOOR AREA ABOUT 16,000 SQUARE METERS 26m FREE. PORT OF DANZIG. GENERAL VIEW OF THE FREE HARBOR AT DANZIG, LOOKING FROM THE WEST END TOWARD THE ENTRANCE FOREIGN TRADE ZONES 27 imported into the free port may not be consumed or used within the zone unless the ordinary duty has been paid. Danzig—Goods may be unloaded from vessels and stored in warehouses without customs formalities, and may be repacked as long as this involves no industrial operation. . A special set of books must be maintained by the importers covering such transactions. Sorting, repacking, and reshipment are allowed in the free port. Special customs regulations permit the withdrawal of imported mate- rials from the free port for local manufacture and thereafter for reexport. No merchandising or shipbuilding are provided for in the free port. Various importers store goods in the warehouses of the tree harbor pending sale, when they are cleared of customs duties and entered. Failing such sale, they are sometimes returned to the sender, in which case no customs formalities are required. Hamburg and Cuxhaven.—Operations which would be legal within the customs area are legal if carried on within the free zone, except that warehouse quarters which are rented may not be used for pur- poses other than those specified in the contract, nor may third parties use the quarters rented without permission. Forwarders, quartermen, warehousemeén, etc., may warehouse goods for the account of other firms, and shipping companies may warehouse goods for their own account, or when delivered to them for shipment. In rented ware- houses only the ordinary commercial treatment of goods may take place; any further treatment or refining of goods can be done with special permission only. Unpacking or repacking of goods to save customs duties when imported into Germany or to prepare them for smuggling purposes is forbidden. Personal use and consumption of goods in the free port, free of duty, is prohibited, with some excep- tions. It is forbidden to retail or peddle goods or buy goods from ship crews in the free zone. All ship chandlers desiring to do business must first obtain permission from the president of the Freihafen Lagerhaus Gesellschaft, and goods may be sold for equipping ocean vessels only against & written order of the shipowner. Orders from shipowners for spirits and tobacco must be on special forms prescribed by the harbor officials. In order to prevent customs and tax viola- tions those who rent quarters in the free zone for the purpose of manufacturing spirits or perfumery must provide a room in which their workers may be personally searched by the customs officials. Bremen and Bremerhaven.—All usual operations in connection with port traffic are permitted in the free zones. The arrangement of goods and samples for inspection by possible buyers is permitted in spaces rented by the exhibitor. In connection with the retail trade, the prohibitions made by the Bremen authorities applying to the free harbor are as follows: 1. Tt is prohibited to offer goods of all kinds for sale on land or on board vessels without orders in advance. The retail sale of foodstuffs may be permitted by the 28 FOREIGN TRADE ZONES police authorities, in the parts of the harbor lying outside the free port, on special application. In the free port the regulations for enforcement of the customs are applicable. The police permit and that from the customs authorities, if any, must always be carried and shown to the police or customs authorities on demand. 2. It is prohibited to sell used ship’s equipment, left-over goods from vessels, sweepings, garbage, and such things to peddlers or to turn over such left-over goods, sweepings, garbage, etc., to the firms undertaking the- cleaning of the vessels. 3. The sale of goods by the ship’s crew is also prohibited. The ship’s master must watch that no business with peddlers or dealers is carried on from their ships. Emden.—The usual operations necessary in connection with port traffic are permitted in the free zone. Business offices, repair shops for vessels, and official residences (Dienstwohnungen) for persons whose permanent presence in the free zone is necessary for supervision and administration purposes are permitted. Industrial undertakings and retail trade in general are prohibited. The sale of ships’ stores and provisions is allowed in the free zone only by permission of the police. Flensburg.—Manufacturing processes are permitted in the free harbor under the same conditions as in the customs area. Retail business is prohibited, as well as such trades which are considered to be injurious to those carried on within the customs zone. Kiel. —There are practically no restrictions on operations carried on in the free harbor. Importers of raw or unfinished goods for reprocessing or further manufacturing require a special permit from the customhouse. Retail establishments are not permitted in the free zone. Stettin.—The improvement of half fabricates or manufacturing of any kind is not permitted in the free port area of Stettin. Almeria.—The following operations are permitted in the free port of Almeria: 1. Repacking of merchandise in different containers. 2. Division of goods for the preparation of commercial grades. 3. Mixture of goods, with the same object. 4. Hulling and toasting of coffee and cacao. 5. Working of hides and skins. 6. Grinding of wood. 7. Washing of wool. 8. Extraction of oil from copra and from oleaginous seeds. 9. All operations which, without essentially changing the character of goods. increase their value. 10. Importation of erude petroleum products and coal for supplying vessels, after making any necessary divisions and mixtures. Tobacco in leaf or manufactured is prohibited importation into Spain except for the Tobacco Monopoly, and it was provided in the regulations of the free port that packages of tobacco should be sealed on entering the deposit, and that removal should be authorized only FREE PORT OF BILBAO, SPAIN. CUSTOMS BARRIER FOREIGN TRADE ZONES 29 for the exclusive use of the monopoly, or for exportation. No opera- tions were specifically prohibited in the concession or regulations. Bilbao.—In the free zone of Bilbao the following operations are permitted: 1. Repacking of merchandise in general. 2. Repacking of bulk articles into smaller units for commercial sale. 3. Mixing. 4. Cleaning and toasting of coffee and cocoa. 5. Shearing or dehairing of skins. 6. Classification of lumber. 7. Washing of wool. 8. Extraction of oil from oilseeds. . 9. Any operation which augments the value of the merchandise deposited without changing essentially the nature of same. All operations not listed above are prohibited. Barcelona —The following operations are permitted in the free deposit, which consists of two covered warehouses with necessary equipment: 1. Change of containers of merchandise. 2. Division of merchandise to prepare commercial classes. 3. Mixture of different classes for the same purposes. 4. Shelling and toasting of coffee and cocoa. 5. Cutting of hides. 6. Grinding of wood. 7. Washing of wool. 8. Extraction of oil from copra and oleaginous seeds and its solidification and hydrogenization. 9. Rendering useless and cutting up of old iron so that duty may be levied under item 257 of the existing tariff. 10. Rendering useless solid and pneumatic tires and inner tubes, imported or not in bulk, and cutting them into pieces, so that duties may be assessed under items 1507 and 1508 of the tariff. 11. Mounting, painting, and upholstery of automobiles and completion of their squipment. 12. Formation of postal packages and registered packages. 13. Labelling merchandise subject to this requirement when destined for consumption. 14. All operations which augment the value of the merchandise deposited with- out varying essentially its nature. Under the last-named item a large number of operations are per- mitted. Merchandise entering the free zone, whether it has been subject to manipulation or not, may be disposed of on leaving it either by importation into the country through the customhouse at Barcelona or through another customhouse, by sending to another free deposit, by exportation abroad, or for the supplying of vessels in accordance with Royal Order No. 13 of the Ministry of Finance dated December 29, 1926. In the free deposit merchandise enjoys absolute exemption not only from customs duties but also from all classes of taxes so long as it 1s 30 FOREIGN TRADE ZONES not destined for domestic consumption. Merchandise can remain in the free zone up to four years without payment of customs duties, during which time it can be indiscriminately destined all or in part to domestic consumption or to reexportation abroad, paying duties only on that part destined for consumption. Merchandise which by its condition and character or which on account of its packing is con- sidered prejudicial or inconvenient or which may cause prejudice to other goods deposited may be refused. Certain merchandise, the prohibition on importation of which is temporary or circumstantial, can, however, be admitted to the free deposit for four years, enjoying all privileges of other merchandise except that of introduction to domestic markets. Cadiz —Repacking, assorting to facilitate commercial classification, shelling and roasting of coffee and cacao, shearing of skins and hides, wood crushing, washing and cleaning of wool, extraction of copra and other vegetable oils, and other operations that may increase the value of merchandise received without essentially changing its nature are permitted in the free zone. The last provision indicates the intention to restrict operations which change the nature of the goods. Santander. —The changing of packing of goods, the division and mixing of same so as to prepare commercial classes, hulling and toast- ing of coffee and cacao, tanning of skins, trituration of woods, cleaning of wool, extraction of oil from copra and oily seeds, and any changes that increase the value of goods without altering their nature are allowed under the supervision of the administration. These conces- sions may be extended at the discretion of the Government. Genoa.—The operations permitted in the warehouses of the free zone include storage, grading, treatment, and preparation of such products as coffee and cocoa, the bottling and canning of food prod- ucts of various kinds, and the refining of edible oils. The following goods are not accepted for storage: Salt and tobacco, now under the monopoly of the State; powders and explosives; matches, kerosene, sulphur, turpentine, tar, and alcohol; sausages, cheese, and similar goods; concealed weapons; playing cards, pocket articles, precious articles; garments, linen, manufactured in any way ready for wear; hats, neckties, handkerchiefs not in bulk, gloves, and shoes; and for- eign wines. Deteriorated goods or merchandise in process of deterio- ration will not be admitted unless accompanied by a certificate relieving the authorities from any responsibility. Leghorn.—All ordinary operations of commerce are permitted, with the exception that inflammable materials and Government monopoly goods are not admissible, and also that medicinal products are only admissible upon the presentation of a permit issued by the customs officials. FREE PORT OF SULINA. SHOWING CUSTOMHOUSE QUAY AND STEAMER DISCHARGING GENERAL CARGO FOREIGN TRADE ZONES 31 Naples—In the “Magazini Generali” merchandise, such as sugar, coffee, and mineral oil, is stored, usually for the purpose of mixing various substances imported from abroad preparatory to subsequent exportation, these facilities saving the trouble of making payment upon imports which are destined for reexportation. The manufacture or transformation of goods in the ‘“Magazini Generali” is forbidden. Trieste.—All operations in which no alteration of the substance of the original articles takes place are permitted. The most important operations performed are the manipulation of tobacco, requiring sort- ing, packing, and forwarding; coffee cleaning and motor-car assem- bling. Fiume.—The regulations of the free port permit the deposit, trans- port, packing, and manipulation of goods, their delivery and reconsign- ment, the letting of warehouse space to private trading concerns, unloading and loading into trucks or vessels, sales of goods by public auction, subsidizing of goods shipped in the care of the bonded ware- houses and lying in depots. All operations in competition with the bonded warehouses and contrary to the customs laws and harbor sanitary rules are forbidden. Saloniki—In the Greek free zone all operations are permitted which may be properly classified as commercial, such as the purchase and sale of merchandise, transfer of property, weighing and sorting of merchandise, sampling, repacking, and all manipulation which does not substantially change the nature of the merchandise, Sulina. —The free zone is limited to the Sulina Branch for a distance of 3 miles upstream from the Danube, and there are no warehouses or factories. It is essentially a port of transshipment, in which grain arriving in lighters is loaded directly on board ocean-going craft. As there are no rail and highway connections, such transshipment is confined to water vehicles. It appears that while no operations are prohibited, the activities carried on are related wholly to the loading and discharging of steamers and to shipping in general. The manipu- ation of petroleum and oil residues is carried on in a special zone at the lower end of the port. Sea-borne goods entering this port are not subject to customs duties except in the case of the Government monopolies, which are tobacco, spirits, beer, salt, gunpowder, matches, and playing cards. ADMINISTRATION The free port bears such a close relation to national commerce and shipping that all of the maritime countries of Europe have taken steps to insure the protection of the public interest in connection with the administration and operation of their free ports. The protection of these important public interests is a clearly defined purpose in all of the various methods of administration. Often the free port is owned by the city and operated by a company representing the FOREIGN TRADE ZONES local commercial, financial, and shipping interests. But in practically all cases the regulations and charges are prescribed or approved by competent authority. In some ports the operating agency is a “Consortium” or commission consisting of representatives of the State or municipality, while in still others the central government exercises control either through a local commissioner or board. The following information relative to the administration of the free ports of Europe will make apparent the purpose of the European Govern- ments to make the free port attractive to commerce and shipping. Copenhagen. —The general regulations governing operations in the free port are set forth in the “Rules for the administration of the free port,” promulgated by the Ministry for Public Works under date of October 19, 1894. The Copenhagen Free Port Co. exercises the powers granted under its charter through a board of directors, consisting of seven members, two of whom are appointed by the Government in authority with regard to harbor matters, two by the Copenhagen Harbor Board from among it own members, and the remainder elected by the general meeting of the shareholders, share- holding in the company being a necessary qualification. The opera- tions are directed by a general manager assisted by a chief engineer. The sanction of the Minister for Public Works must be obtained for the appointment of the managing director. All leases entered upon between the company and private persons or firms with regard to the erection of buildings for industrial purposes on the territory of the free port, and all rules and regulations regarding the management of the free port, or any departure from the fixed rules and regulations must be sanctioned by the Ministry for Public Works. The Ministry for Public Works fixes the rates charged by the Free Port Co., includ- ing those for electricity for light and power supplied by the company to leaseholders within the free port, which rates can not be departed from without the consent of the ministry in question. In compiling statistics of traffic of the free port, the company has to comply with the regulations laid down by the Ministry for Public Works. The customs authorities exercise control over the exits from and entrances to the free port, both by land and water, but in no way interfere with the loading or discharging, repacking, or transshipment of goods inside the confines of the free port. Stockholm.—The free port was constructed by the city of Stockholm. The port is not operated by the city, but is leased to a municipal corporation, the Stockholms Frihamns A/B, of which the city of Stockholm owns the entire capital stock. It is a limited company consisting exclusively of merchants and leading shipowners resident at Stockholm. By means of this form of administration, a purely municipal working organization has been avoided. The traffic and storing of goods are regulated according to instructions contained in 32 is 1 FREE PORT OF STOCKHOLM. RIRDS.EYE VIEW OF FREE PORT FROM THE NORTHWEST FREE PORT OF GOTHENBURG. AN AERIAL VIEW OF THE COMPLETED SECTION OF THE FREE HARROR FREE HARBOR OF GOTHENBURG. A PORTION OF THE HARBOR AS SEEN FROM THE AIR 29__9 FOREIGN TRADE ZONES 33 the “Regulations for the Free Port of Stockholm,” issued by the Swedish Government. All the dues and charges in the port have been determined either by the Government or the governor's office of Stockholm, after having been examined by the Stockholm Chamber of Commerce. According to the terms of the lease, the port is to be administered so as to be of the greatest benefit to commerce and shipping. Gothenburg. —The free harbor of Gothenburg is owned by the city of Gothenburg and is administered by the Gothenburg Harbor Board. The members of this board are nominated by the Crown, the city council, the magistracy of Gothenburg, and the Gothenburg Chamber of Commerce. The administration of the free harbor is provided for by special act, authorized by the Swedish Legislature, embodying certain rules and regulations. The regulations of the harbor board are established by royal decree. The Gothenburgs Frihamns A/B, a private company, is invested with authority to deal with all matters relating to the storing of goods. , The chairman of this company is a member of the harbor board. All harbor dues levied on ships and goods are determined by the Royal Swedish Government and all charges relating to labor within the free harbor are determined by the lord lieutenant of the city and county in consultation with the chamber of commerce and the Association of Shipowners. Malmo —The free harbor of Malmo is owned by the city and administered by the Malmo Frihamnsaktiebolag (Malmo Free Port Co.), all the stock of which was recently purchased by the city of Malmo. This company, appointed port administrator by the city, was formed for the purpose of devoting itself exclusively to the management of the free port. The managing director of the com- pany is also manager of the free port and is responsible for the super- vision of the regulations. The tariffs for discharging and loading and for all other operations carried out by the free port company are fixed by the local government board on the reports of the chamber of commerce and the commercial and shipping board of Malmo. Danzig —The free harbor of Danzig is administered by the com- mittee for the harbor and waterways of Danzig. This special board was created by an agreement entered into between Poland and Danzig under date of November 18, 1920. In this agreement Danzig was included in the Polish customs territory, but retained its former free port privileges. The committee is composed of five Danzig citizens, five Polish citizens, and a neutral Swiss president. Hamburg and Cuxhaven.—The activities of the free port of Hamburg and Cuxhaven are managed partly by the city of Hamburg and partly by private enterprises. It was thought to be to the best interest of all concerned that the control of the harbor facilities be kept in the FOREIGN TRADE ZONES hands of the government. The Hamburg Senate is the highest author- ity having control over the harbor, and for the purpose of dealing with the many matters concerning the port, it appointed the committee for trade, shipping, and industries (Deputation fur Handel, Schiffahrt, und Gewerbe). This body has a senator for its chairman and is com- posed of members representing the Senate, the House of Burgesses, finance committee, chamber of commerce, chamber of industries, chamber of retailers, chamber of consumers, and the workmen’s council. Subordinate to the authority of this committee is the quay administration and the port captain’s office. In addition to the quay administration and port captain’s office there are other public bodies subordinated to the committee in respect to matters pertaining to the harbor, viz: The board for trade statistics, which compiles statistics; the free port office, which deals with customs matters in so far as they relate to the management of the harbor; ship’s measurement author- ity; ship’s registry office; nautical college; shipping office, and the board of fisheries., Of the bodies just enumerated the quay adminis- tration is by far the largest. It manages the State-operated quays, administers its own budget, keeps the physical equipment of the harbor up to date, prepares plans for additional harbor facilities, collects quay rentals, and manages the port of Hamburg Railway. The quay administration’s staff consists of about 800 clerical and other employees, while the number of workmen employed by it varies between 4,000 and 6,000 according to requirements. Bremen and Bremerhaven.—The free harbors of Bremen and Bremer- haven are administered by various agencies acting independently of each other. Among these is the harbor master, who, assisted by his subordinate officials, the harbor inspectors, superintends the carrying out of the port regulations, such as the protection of the harbor from dangerous or inadvisable uses by vessels. There is also a dock administration, independent of harbor construction, which is only for the administration of the general traffic. This agency limits itself to one part of the port traffic, i. e., the shore work of trans- shipment which consists mainly in shifting goods in quay sheds and in operating lifting gear. The ships work of loading and discharging does not come directly under the dock administration; but the dock administration, by engaging dock laborers for the work of transship- ment, associates itself with the other harbor management in labor questions. The various authorities having to do with the adminis- tration of the port and harbor facilities of Bremen are the “Deputa- tion fur Hafen und Eisenbahnon” (State commission for port and railroad), the manager of the harbor and docks of the city of Bremen, the harbor master for the ports of the city of Bremen and Vegesack, the registry and clearance office for vessels, the chief inspector of “REE. PORT OF BREMEN. DISCHARGING FROZEN MEAT IN FREE PORT NO. | FREE PORT OF EMDEN. VIEW OF THE ALTER BINNENHAFEN FREE PORT OF EMDEN. VIEW OF AUSSENHAFEN WITH COAL-CAR TIPPER FOREIGN TRADE ZONES 35 harbors, the surveyors of hatches and cargoes, the surveyors for vessels and provisions, the harbor police. the administration of quays, warehouses, and sheds. Emden.—The administration of the free harbor of Emden comes under the jurisdiction of the Preussisches Wasserbauamt Emden. As a part of the waterways the harbor is under the port regulations, which contain rules for the traffic police, whose duty it is to protect the harbor from dangerous or impracticable uses being made of it by vessels. The carrying out of these regulations is delegated to the harbor master and his subordinate officials. As a part of the railway, the port is served by the German National Railroad, which is the proprietor of and manages the railway in its own name. The various authorities engaged in the administration of the free harbor are the Preussisches Wasserbauamt Emden, the manager of the harbor and docks of the port of Emden, the harbor master of the port of Emden, the registry and clearance office for vessels and harbor bureau, the harbor police, and the administration of quays and sheds. Flensburg.—The free harbor of Flensburg is administered by the Flensburger Freihafen Lagerhaus A. G., a company which has taken over the management of the port under contract. However, the official customs administration exercises control over imports and gxports. Kiel —The administration of the free port of Kiel is under the jurisdiction of the city government. Stettin—The administration of the free port of Stettin has been delegated to two port companies called the Stettiner Hafen-Gemein- schaft and the Stettiner Hefenbetriebs-Gesellschaft G. m. b. H. The former company is composed of members of the city of Stettin and the State of Prussia, who are charged with the maintenance and upkeep of the docks and buildings, harbor improvements, and exten- sions of all kinds. The latter company, consisting of the State of Prussia, the city of Stettin, and the Stettin Chamber of Commerce, has leased the port equipment and property for the purpose of ware- housing, storing, and transit traffic. Santander —The administration of the free port is conducted by a consortium formed by representatives of the provincial chamber of deputies( diputacion), the municipality of Santander, the chamber of commerce, the board of harbor works, the board of Santander, and the Mercantile Bank. Cadiz.—The free zone established by royal decree of October 22, 1914, is controlled and operated by the “Credito ¥ Docks de Barce- lona,” which was granted the concession under royal order of August 4, 1917. 36 FOREIGN TRADE ZONES ~ Almeria.—The administration of the free port of Almeria was granted by royal order dated February 20, 1922, to the Compania de Depositos Comercilles del Puerto de Almeria, a Spanish concern. However, the royal order provided that the concession should not be exclusive; that warehouses destined for the storage of goods from foreign countries should be entirely separate from those receiving goods of domestic production, for convenience as well as for the pur- pose of guarding the interests of the national treasury and business. It was provided that all installations deemed necessary by the customs authorities, and all customs services of intervention and vigilance should be for the account of the concessionaire, which body must comply with all general regulations in effect relative to the adminis- trative control of commercial deposits. Bilbao.—The free port of Bilbao is administered by a consortium or board composed of representatives from the provincial deputation or assembly, the chamber of commerce, industry, and navigation, and the board of harbor works of the city of Bilbao. This board of mana- gers or directors has power to intervene in judicial affairs, or with the public authorities or private persons; name, suspend, or discharge employees and fix their salaries; rent and acquire lands, buildings, machinery, and other furnishments or real estate; execute and contract for all classes of construction, works, and supplies of materials; con- tract and accept subsidies, donations, legacies, and sign public or private documents; emit loans, warrants, and all classes of receipts for merchandise, and contract guarantees of emission and assurance; and determine the operations to be reslized in the deposit and the tariff applicable, and rent to mercantile enterprises various or all the services of the exploitation of the deposit. Barcelona. —The free deposit of Barcelona is administered by a semiofficial body entitled the ‘Consorcio del Puerto Franco de Bar- celons,” under a concession granted by authority of royal decree of October 24, 1916, and royal order of December 7, 1917. The actual operation was leased by this body to the Credito y Docks de Bar- celona, a banking and warehousing institution. Saloniki—The Greek free zone is administered by a commission established under legislative decrees of February 15 and March 27, 1923. This commission is composed of 12 members as follows: A representative of the municipality of Saloniki, 2 delegates of the cham- ber of commerce of Saloniki, 1 delegate of the Commercial Syllogogue of Saloniki, 1 delegate of the association of industrials of Saloniki, the inspector of the public works of Saloniki, the director of the customs house, the captain of the port of Saloniki, the Government commissioner of railways and tramways, a high functionary named by the government general of Macedonia, & representative of the Minister of Finance of the National Government of Greece, and the director of the Saloniki branch of the National Bank of Greece. FREE PORT OF SALONIKL GREFK CUSTOMHOUSE WITHIN GREEK FREE ZONE. SALONIKI FREE PORT OF TRIESTE, ITALY FOREIGN TRADE ZONES 37 Sulina, Rumania. —The policing of the river is under the jurisdic- tion of the “European Commission of the Danube,” consisting of delegates from each of the seven contracting powers—Austria, England, France, Prussia, Russia, Sardinia, and Turkey. Rumania polices the town and controls the customhouse and pays the cost of upkeep of 130 frontier guards, while the European commission pays for the expenditure incurred on all works carried out on the river which are defrayed by taxes charged to steamers. Genoa.—The free port of Genoa is managed for the central govern- ment by a local chamber of commerce incorporated with the ““Con- ziglic dell’Economia Provinciale.”” Every two years a managing board of five members is elected from among the members of the chamber, and anyone may be reelected upon the expiration of his term of office. The board serves without salary. The enforcement of regulations and general management of the zone is carried out through a salaried director. Fiume.—The administration of all activities of the free port is under the immediate direction of a government commissioner, while certain phases of operation and administration are delegated to the railroad, harbor master, and the customs. Leghorn.—The operation and control of the free port are maintained by the Leghorn Commune under the supervision of an officer appointed by the mayor. Trieste.—The commercial organization of the port is exercised by the Magazzini Generali, under whose independent administration all loading, unloading, and warehousing operations are effected. The bonded warehouses are managed by a board representing the Govern- ment, the municipality, the chambers of commerce of Trieste, Udine, and Pala; the railroads, the office of public works, the Shipowners Federation, the committee of Trieste forwarding agents, and the Harbor Workers Association. They are controlled and operated by various departments dealing with the import and export sections of the traffic, and with the rail and sea communications, respectively. The main section deals with the technical management, construction and repair work, the latter being carried out by the office of public works under surveillance of the bonded warehouses, the harbor office and the Railroad Administration. The maritime control of the free port is exercised by the harbor master’s office, and the rail- road movements are controlled jointly by the Magazzini Generali and the State railroads GUARDING THE FREE PORT It is the practice in Europe to surround the free zone on the land side with a toll fence to prevent goods from entering customs terri- tory without payment of duties. A convenient number of entrances 18 FOREIGN TRADE ZONES are established, each of which is carefully guarded. Free zones are often so located as to require vigilant guarding on the water side, as at Hamburg. In addition to the customs guards stationed at the en- trances and on the water boundaries, there are also local police or guards employed within the free port who cooperate with the customs guards. Copenhagen employs a night watch of 8 men in addition to the cus- toms guards, the number of the latter not being of record in available data. At Malmo there are 22 guards and at Stockholm about 20. At Gothenburg there are 22 guards on duty, while the free port of Bremen is guarded by 100 men of the Sicherheitspolizei (safety police), who do patrol duty on the docks, day and night. In addition to these, there are 15 night watchmen on duty for the sheds. The gates are controlled by customs officers, who examine everybody leaving the free port. The gates of the free port of Emden are controlled by cus- toms officers, and everyone leaving the port must be searched. There are 30 men of the Reiche Wasserschutz stationed day and night in the harbor, doing patrol service on the docks as well as on the water. There are also four night watchmen on duty for the sheds. At Flens- burg the free harbor does not keep any special guards, but the city police are detailed to guard the port. The free harbor at Kiel is policed by the personnel of the Reiche Wasserschutz, assisted by the customs officials. In the free zone at Stettin there are three entrances at which customs guards are stationed, with guards at other points in the free area and patrols along the boundaries. There are no figures available to show the number of these guards. There are no special guards kept in the free harbor of Cuxhaven, but it is policed by the city police. Bremerhaven is patrolled and guarded by 100 customs officials and 30 police officers. Genoa has 21 guards and Leghorn about 20. At Trieste there are 500 private guards in addition to the customs officers and police executives, and at Sulina there are about 130 frontier guards. In the Greek free zone at Saloniki there are 65 guards in addition to the customs guards, and in the Yugoslav free zone there are 5 customs guards. At Fiume, in addition to the customhouse guards, there are guards employed by private concerns, the Royal Cara- binieri, the Fascist railroad militia, and police agents. Customs con- trol at Almeria, Spain, is exercised by an inspector and three or four customs guards. Only three guards are required at Bilbao. Spain. RUNKERING The ports upon which data are given in part 2 of this report are only those ports mentioned as having either coal or oil bunkering facili- ies. The free port of Copenhagen has facilities for handling and bunkering both coal and oil. On the north side of the middle basin FOREIGN TRADE ZONES 30 there are five cranes for bunkering coal. There are oil-bunkering facilities of the most modern type in the free port. The free port of Santander has 42 steel tanks with a capacity of 21,000,000 litres for the storage of lubricants, gasoline, and Diesel oil, which is used to supply the national market and to bunker ships entering the port. Cadiz has coal-bunkering facilities, as shown by the photograph on page 218. At Trieste there is a limited amount of coal and oil bun- kering with the use of lighters. Sulina, Fiume, and Genoa have facili- ties for storing or manipulating petroleum and petroleum products, >ut no data are available showing to what extent bunkering is carried on at these ports. Except for a countervailing duty on bituminous coal and shale imported from countries imposing duties, there is no duty assessed on this commodity in the ports of the United States. Nearly all of the dutiable coal comes from Canada. Petroleum and its products are not subject to duty. Where the area of the free port is sufficient to permit the allotment of space for bunkering, the establishment of these facilities would be a convenience to vessels. The United States customs regulations, how- ever, impose no hardships upon vessels entering solely for fuel. They provide that vessels arriving in distress or for the purpose of taking on bunker coal, bunker oil, or necessary sea stores and which depart within 24 hours after arrival without having landed or taken on board any merchandise other than bunker coal, bunker oil, or necessary sea stores, are not required to make entry at the customhouse, provided the master, owner, or agent reports under oath to the col- lector the hour and date of arrival and depdrture and the quantity »f bunker coal, bunker oil, or sea stores taken on board. The opportunity of taking fuel without shifting from her assigned verth is always a great convenience to a ship. Usually this is ac- complished by means of bunkering lighters and barges, or sometimes, in the case of oil, by pipe lines with loading heads on the piers or wharves. Where the free zone is in or contiguous to an established port, it is believed that the use of bunkering barges both for coal and oil offers the best solution of the bunkering problem in free ports. These barges would have to be bonded under rules to be prescribed. This method would effectively prevent any advantage to foreign coal, upon which countervailing duties are ordinarily assessed. It would make unnecessary the use of any part of the free-port area for storage of these bulk commodities. In the case of oil, it would be feasible to locate storage tanks outside the free zone, with pipe lines reaching the wharves of the free port. A4706R° 904 J FOREIGN TRADE ZONES TERMINAL FACILITIES To secure the full advantages of free zones, they must afford the most economical facilities for loading, unloading, handling, storing, and for reshipment by water, rail, and highway. The free zones in European ports usually offer better facilities than the customs zone. At some of our ports many of the terminal facilities were designed many years ago and are not suitable to the needs of the modern ocean steamship. To be economical a terminal must fit the traffic which is to use it. It must take into consideration the needs of the ships as well as the needs of the cargo, and it must provide the most effi- cient articulation of land and water routes. The establishment of free ports would give an opportunity to construct new facilities adapted to the needs of modern shipping. In connection with the investigations of proposed river and harbor improvements, Congress has indicated its desire that the question of terminal development be given full consideration. The act of March 4, 1913, required that all reports on such improvements should contain information upon the following: The existence and establishment of both private and public terminal and trans- fer facilities contiguous to the navigable water proposed to be improved, and, if water terminals have been constructed, the general location, description, and ase made of the same, with an opinion as to their adequacy and efficiency, whether private or public. If no public terminals have been constructed, or if they are inadequate in number, there shall be included in the report an opinion in general terms as to the necessity, number and appropriate location of the same, and also the necessary relations of such proposed terminals to the development of commerce. The act of July 18, 1928, contained further legislation on this subject, as follows: Sec. 7. That hereafter the Chief Engineers, United States Army, shall indicate in his annual reports the character of the terminal and transfer facilities existing on every harbor or waterway under maintenance or improvement by the United States, and state whether they are considered adequate for existing commerce. He shall also submit one or more special reports on this subject, as soon as possible, including, among other things, the following: (a) A brief description of such water terminals, including location and the suitability of such terminals to the existing traffic conditions, and whether such terminals are publicly or privately owned, and the terms and conditions under which they may be subjected to public use. (b) Whether such water terminals are connected by a belt or spur line of rail- road with all the railroads serving the same territory or municipality, and whether such connecting railroad is owned by the public and the conditions upon which the same may be used, and also whether there is an interchange of traffic between the water carriers and the railroad or railroads as to such traffic which is carried partly by rail and partly by water to its destination, and also whether improved and adequate highways have been constructed connecting such water terminal with the other lines of highways. FOREIGN TRADE ZONES 41 (¢) If no water terminals have been constructed by the municipality or other existing public agency, there shall be included in his report an expression of opinion in general terms as to the necessity, pumber, and appropriate location of such a terminal or terminals. - (d) An investigation of the general subject of water terminals, with descriptions and general plans of terminals of appropriate types and construction for the harbors and waterways of the United States suitable for various commercial purposes and adapted to the varying conditions of tides, floods, and other physical characteristics. A definite policy with respect to water terminals was declared by Congress in the river and harbor act of March 2, 1919, in the following language: [t is hereby declared to be the policy of the Congress that water terminals are essential at all cities and towns located upon harbors or navigable waterways and that at least one public terminal should exist, constructed, owned, and regulated by the municipality or other public agency of the State and open to the use of all on equal terms, and with the view of carrying out this policy to the fullest possible extent the Secretary of War is hereby vested with the dis- cretion to withhold, unless the public interests would seriously suffer by delay, monies appropriated in this act for new projects adopted herein, or for the fur- ther improvement of existing projects if, in his opinion, no water terminals exist adequate for the traffic and open to all on equal terms, unless satisfactory mssurances are received that local or other interests will provide such adequate lerminsal or terminals. The Secretary of War, through the Chief of Engineers, shall give full publicity, as far as may be practicable, to this provision. Both the physical and commercial conditions have a bearing upon the type of terminal which should be selected for any given locality. The War Department and the Shipping Board have frequently pointed out the necessity for making a complete economic study before any effort is made to decide upon the detailed plans for a proposed terminal. Not only must the terminal be adapted for the most economical handling and proper storage of the commodities which may logically be expected to move through it, but its capacity in relation to the volume of business available and the types and sizes of carriers to be used should not be overlooked. Section 8 of the act of June 5, 1920, made it the duty of the Shipping Board, in cooperation with the War Department, to make extensive investigations “with the object of promoting, encouraging, and developing ports and transportation facilities,” and it also authorized the board “to advise with communities regarding the appropriate location and plan of construction of wharves, piers, and water terminals, and to investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade.” The Shipping Board and the War Department have cooperated with local interests with respect to the location and design of ter- minal facilities. In some instances the terminals under consideration have amounted in effect to the establishment of a new and modern vy Dd m 2B 2 oS 0S v FOREIGN TRADE ZONES port. The economic and transportation investigations of the Ship- ping Board and the War Department have been designed to secure lata necessary for determining the proper function of each port in our national transportation system and to enable the Government to take the measures required to encourage the adequate utilization of ports properly located to serve as natural interchange points for our rail and ocean traffic. This duty has involved consideration of our foreign, coastwise, and inland water movements, the determina- tion of production and consumption, where they center, the seasons at which commodities are available for shipment, the paths by which they move, and the transportation lines of least resistance, whether by land or water, or some joint route, taking into account all natural or artificial obstacles. These investigations and the cooperation authorized with local interests, would be particularly needful in connection with the sstablishment of free ports, in order to insure the most desirable location and the most efficient arrangement and planning of the nort and its facilities. NAVIGATION FACILITIES Ee v In many of the free ports of Europe goods are redistributed to sther countries by rail as well as by water, but in the United States such redistribution would be mainly by water, exceptions being goods to and from Canada and Mexico, which might move to and from those countries under bond by all-rail routes. In some cases the establishment of free ports in the United States would involve work by the Federal Government in connection with the construction and maintenance of channels and barbor improvements. Even where existing channels may be regarded as adequate for establishing a free port, future commercial developments and future changes in the sizes and types of vessels seeking the port might result in demands ‘or further improvements at the expense of the United States. Unless the navigation facilities are suitable for the classes of vessels which are most appropriate for the routes and the trade to he served, the development of the free port will be seriously retarded. In connection with the investigations now made by the Corps of Engineers, prior to undertaking proposed harbor improvements, it is not infrequently found that the improvements desired by local interests will involve a greater expenditure by the Federal Govern- ment for original construction or maintenance than is warranted by the benefits to commerce and navigation. In establishing free ports in the United States the same expert study of the navigation and commercial conditions should be made as is now required by Con- gress before projects are adopted for improvement of navigation facilities at our ports. D- re Nn nt on or af 18 NS ch er ral ral he le ne LO Les ds isl ne rk nd are a n da nf “0) vel. ~f 1s nol "T= Wy rts ad i= ON on FRFE PORT OF HAMBURG. FIOATING DOCK OF RILOHM & VOSS—78 (ii TONS CAPACITY FOREIGN TRADE ZONES 13 SHIPBUILDING AND SHIP REPAIRING The leading industry of Hamburg is that of shipbuilding. There are at present 90 shipyards and allied industries located at this port, covering over 500 acres and employing about 20,000 men. Of the total number located in the harbor, 59 are in the free port, employ- ing about 12,000 men under normal conditions. The building of ships is not permitted in the free port of Bremen, but the repairing and equipping of ships may be carried on within the zone. For this purpose there is a small floating dock and a repair shop in the free port. Although there are no shipbuilding or repair plants in the free port of Kiel, there are numerous excellent shipyards in her harbor. Ship-repair facilities, belonging to the North German Lloyd Steamship Co., are available in the free port of Bremerhaven. The yards are well equipped and offer their facilities to all vessels which need repairs while at the port. There are no shipbuilding or repair works in the free harbors of Flensburg, Emden, and Cuxhaven. Sulina does not prohibit shipbuilding, but there is none carried on within the port. However, there are facilities for the repair of vessels located within the free port. The ports of Copenhagen, Malmo, Leghorn, Trieste, and Fiume have no facilities for the building or repairing of ships within their respective free zones, but have these facilities in the adjacent customs ports. The facilities for shipbuild- ing and ship repairing at Danzig are not adjacent to the free zone, but are located approximately 7,000 meters up the Tote Weichsel. Up to the present time there have been no shipbuilding or ship repair plants located in the free harbor of Gothenburg. The free ports of Barcelona, Almeria, and Bilbao, Spain, and Saloniki, Greece, do not have shipbuilding or repairing facilities, and the water frontage of these zones is too limited to permit the establishment of such facili- ties. There are no shipbuilding or repairing activities in the free vorts of Cadiz and Santander, Spain, and Stockholm, Sweden. Article 115 of the United States Customs Regulations, 1923, pro- vides that equipment, repairs, repair parts or the materials to be ased or the expenses of repairs made in a foreign country upon a United States vessel engaged in the foreign or coasting trade, or intended to be so engaged, are dutiable, and consumption entry must be made for them at the port of first arrival in the United States. Vessels operated for the account of the United States Shipping Board are subject to the provisions of section 466 of the tariff act of 1922, and are permitted to proceed without payment of duties and vouchers presented to the managing agent of the board at the port at which entry is made. It is not necessary for masters to procure consular invoices, but they file with the entry in lieu thereof receipts showing the cost of the above items. If it is impracticable to produce such receipts at FOREIGN TRADE ZONES the time of entry, liquidation of the duty is suspended pending the furnishing of a complete account of items liable to duty. If neither equipment has been purchased nor repairs made to a vessel while at a foreign port, an affidavit to that effect is required. If sufficient evidence is produced to show that due to stress of weather or other casualty encountered in the regular course of the voyage the vessel was compelled to put into a foreign port for repairs or equipment or secure such repairs or equipment at the foreign port of destination in order to enable it to return in safety to its American port of desti- nation, duties may be remitted or refunded upon application to the Secretary of the Treasury. No license or enrollment and license, or renewal of either, will be issued to any such vessel until the collector is satisfied that all the equipment and repairs made within the year immediately preceding application for such documents have been duly accounted for and the duties paid thereon. The Canal Zone is not “foreign territory” within the meaning of section 466 of the tariff act of 1922, and repairs made therein on a vessel of the United States are not dutiable. 5. EFFECTS OF FREE PORTS OR FOREIGN TRADE ZONES ON COMMERCE AND MANUFACTURING EFFECT OF THE FREE PORT ON THE IMPORTER Countries having free trade have no occasion for foreign trade zones, and in countries with limited customs tariffs, such as England, Bel- gium, and the Netherlands, the procedure is not so burdensome as to encourage the establishment of specially segregated zones. There are all degrees of customs duties on imports, ranging from those in countries with comparatively limited tariffs to those in countries with high tariffs. The establishment of foreign trade zones was found to be desirable in Sweden, where the customs duties are on about the same level as in Norway, Finland, Germany, and France, considerably lower than those in Spain and the United States, but higher than those in Denmark, the Netherlands, Switzerland. and Great Britain. The free port is concerned chiefly with foreign goods which are to be reshipped to other foreign destinations, although some of these imports may eventually be entered for consumption. The formalities with their attendant delay to the importer of merchandise would be eliminated within the free zone, and the importer would be able to secure possession of his goods upon proper proof of ownership. Assuming the establishment of free ports in the United States and the same freedom which attends the movement and handling of cargo in free ports abroad, practically all of the formalities mentioned above under the head of “Procedure with respect to imports and re- 45 exports” would be eliminated. If the same liberality be accorded as is found in the free ports of Spain and Italy, the importer would be free to store goods, both free and dutiable, in the warehouses of the port, and to reship them, either in the condition in which received, or after manipulations which do not alter the nature of the product. He would be able to conduct such operations as repacking, sorting, filling into containers, grading, shelling and roasting of coffee, shearing and tanning of skins and hides, washing and scouring of wool, and assembling of machinery and motor cars. Privileges similar to the above would permit the unrestricted development of transshipment and consignment trade, which is the true function of the free port. They would open up new opportunities to the importer and exporter, enabling them to engage in international trade to an extent which heretofore has been regarded as impracticable. The provisions respecting manipulation in bonded warehouses, contained in section 562 of the tariff act of 1922, are as follows: Manipulation in warehouse.—Unless by special authority of the Secretary of the Treasury, no merchandise shall be withdrawn from bonded warehouse in less quantity than an entire bale, cask, box or other package; or, if in bulk, in the entire quantity imported or in a quantity not less than 1 ton weight. All merchandise so withdrawn shall be withdrawn in the original package in which imported unless, upon the application of the importer, it appears to the collector that it is necessary to the safety or preservation of the merchandise to repack, or transfer the same: Provided, That upon permission therefor being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprieter, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose, and be withdrawn therefrom for exportation, without payment of duties, or for consumption, upon payment of the duties accruing thereon, in its condition at the time of withdrawal from the ware- house. The scouring or carbonizing of wool shall not be considered a process of manufacture within the provisions of this section. It will be observed that none of the operations which have been found to be of such benefit to international trade at European free ports are permitted in our bonded customs warehouses. Goods can not be imported in large lots, and thereafter repacked, filled into containers, sorted, graded or otherwise prepared to meet the re- quirements of various markets. They can be withdrawn only in their original Packages except where cleaning, sorting, and repacking is necessary to the safety or preservation of the merchandise. In the customs area, these Precautions are no doubt absolutely neces- sary, but it is clear that they serve to discourage reexport trade. Only where there is freedom to store goods in any quantity and to Te€Xport in any quantity is it possible to attain the greatest success 0 trade of the nature which has built the greatness of London, Antwerp, Amsterdam, and Hamburg. Nor is the simple privilege of withdrawal in any desired quantity sufficient. There must like- FOREIGN TRADE ZONES {3 FOREIGN TRADE ZONES wise be the right to repack into containers suitable to the trade and regulations of the respective markets; to sort to meet the taste and demands of the various people of the earth. It is necessary only to refer to the information given under the heading “Operations per- mitted and prohibited in free ports of Europe’ to make fully apparent the paramount importance of these operations. The establishment of free ports in this country would offer to importers the opportunity to buy goods in large quantities, frequently at more favorable prices; to sort these goods, sending into the United States, after payment of duties, the grades and quantities suitable for our trade, and reexporting the remainder, either alone or in conjunction with other goods, to the various markets conveniently reached by the vessel lines touching at the free ports. While awaiting sale the goods in a free port are not subject to any expense except storage and insurance. They are not under customs control, and the importer is free to exhibit them, to take orders, to divide the parcels and repack to suit customers’ wishes. : In the various bearings before the Committee on Commerce of ‘the Senate and the Committee on Ways and Means of the House of Representatives in relation to the matter of establishing free ports in the United States numerous examples of the delay, embarrassment, and expense involved to importers which would have been obviated in a free port have been cited. Numerous examples have also been given of the manner in which the free port would permit the develop- ment of transshipment and consignment business. The possibilities with reference to such comthodities as rice, beans, coffee, tea, furs, rubber, wool, and hides have been set forth in these hearings and in the hearings held by the United States Tariff Commission. EFFECT OF THE FREE PORT ON THE EXPORTER It has been claimed that our exporters lose orders because they are not able to meet all the requirements of the foreign buyer. The buyer wishes to place an order for a varied list of goods, some of which are of American manufacture, while some are products of other countries. In Hamburg or London, he can generally secure all of the needed items, including the American goods. But in this country where reexport trade has been surrounded with many embarrass- ments, it is less likely that he can do so. The free port encourages diversified shipping service. It attracts vessels from the smaller countries and from countries producing mainly raw materials, in order to bring these commodities together in a common market place for further distribution. The feeder lines likewise give the service necessary to place exports in these countries. Advantages to the exporter are therefore not confined to the opportu- nity to supply all the goods which the foreign buyer demands, but FOREIGN TRADE ZONES 47 they include the encouragement of facilities and service for reaching these markets on a favorable basis. These advantages, however, are contingent upon the proper location and development of the free port, which subject is considered elsewhere in this report. Where a substantial export business exists, consisting essentially of foreign products, repacked or filled into containers, or otherwise manipulated within authorized limits, the exporter will be able to conduct this business in the free zone without the inconvenience which now surrounds such operations. In case manufacturing be allowed, companies using mainly foreign raw materials and having a large export trade in the finished products, could advantageously establish a branch plant in the free zone especially to meet the export demand. The benefits in this case would consist either in the avoidance of the expense and inconvenience incident to the bonded manufacturing warehouse, or the loss and delay incident to securing the authorized drawback of 99 per cent of the duties paid. TRANSSHIPMENT AND CONSIGNMENT TRADE For the purpose of this report the word ““reconsignment’” means the distribution of goods billed to an agent, jobber, or wholesale dealer in a free port through subsequent consignment to subagents or buyers, either domestic or foreign. The goods may come into the free port temporarily or they may be stored in the warehouses awaiting demand. In all cases the ultimate destination is not disclosed on the original packages. The term “transshipment” is used to mean the transfer of goods from one ship to another or to car. Tt may or may not involve the depositing of goods in a warehouse or transit shed pending such reshipment. In this character of trade the ultimate destination of the goods is known. Since the free port is especially designed to stimulate consignment and transshipment trade, the results accomplished in the free ports of Europe should be useful in reaching conclusions regarding the probable developments in this country, having in mind, of course, the differences in physical, commercial, and economic conditions. At Copenhagen the merchant or manufacturer desirous of shipping goods through the free port may either arrange with one of the steam- ship companies to have his goods shipped to the port of destination on through bill of lading, or shipped to the free port on option bill of lading, deferring settlement of the final destination of the goods until after their arrival ; or the exporter may forward his goods direct to the free port for storing in the company’s warehouses and from there have them transshipped to other ports or directed into Denmark. Transit goods are warehoused by the Free Ports Co. free of charge for about two weeks. Tt is necessary for those wishing to forward goods for storing in the free port for later transshipment to have a representative in Copenhagen or to employ a local firm of forwarding Ix FOREIGN TRADE ZONES agents, as the Free Port Co. does not undertake forwarding business, but merely executes orders given by the shippers to their representa- tives or forwarding agents. The free port of Copenhagen has a covered floor area of nearly 200,000 square meters and two silo warehouses. There are also about 100 privately owned warehouses, built on leased land in the free port. The present volume of the transshipment trade of the free port of Copenhagen is approximately 100,000 metric tons per year. The statistics for 1926 show that approximately one-half of the estimated tonnage of the transit trade was made up of articles of non-Danish production, as follows: Grain and flour__.__.__. Forest products and manufactures. Groceries... « «coco cocecocmammae Fruits, vegetables, nuts, etc. - Automobiles_.._. - The above statement disregards the coal and fuel oil credited to free-port exports, as the statistics of these commodities include and probably consist wholly of fuel supplies of vessels which have bunkered in the free port during the year. A substantial part of the products used for home consumption, such as grain, foodstuffs, minerals, fuel, and fertilizers, reach Denmark through transshipment at Hamburg. The transshipment and consignment trade of the free port of Malmo, Sweden, has not yet reached notable proportions, due to the fact that the port is still in an early stage of development. When the economic conditions among the Baltic States and Russia become more stabilized, it may be expected that the free port will be made use of to a much greater extent as a transshipment and consignment center. Coffee is the most important commodity imported in the free port of Stockholm. The majority of Sweden’s importation of this com- modity passes through the port. Among other important commod- ities in the transit trade are American automobiles, fresh fruits from southern Europe and the United States, and grain from North and South America. The free port caters chiefly to the import trade. The foreign transshipment trade is of less importance, being confined to shipments to Finland and the Baltic Republics during the winter. The consignment and transshipment trade at the free port of Gothenburg can not be said as yet to have reached any considerable extent, due to the fact that the free port is still in rather an early state of development. However, the transshipment trade is growing at a rapid pace. At the free port of Danzig it is the custom of the various importers to stock goods in the warehouses pending sale. If such sale is not effected, these goods are sometimes returned to the sender and no customs manipulation is necessary. There are no statistics available to show the extent of this business. Tons v mee -- 29,000 8, 000 5, 500 4, 500 3. 000 Wp an FREE PORT OF DANZIC. VIEW OF WAREHOUSE ON SOUTH SIDF OF FREE. HARRBOR. DANZIG FOREIGN TRADE ZONES 49 At the free port of Hamburg bulk goods from overseas are to a very large extent transshipped to other countries. There are innumerable commodities entering into this trade among which are rice, rubber, flour, wheat, and other grains. Rice and rubber are often ultimately exported to the United States, while wheat, flour, and other grains imported from the United States are transshipped at Hamburg to Scandinavian and Baltic countries as well as to the hinterland. It is sald that practically every commodity which enters into foreign trade finds a place in Hamburg’s transshipment activities. There are no available data showing the extent of the reconsign- ment and transshipment trade of the free port of Hamburg. The principal commodities in the transshipment and reconsign- ment business of Bremen are cotton, tobacco, drugs, rice, coffee, grain, and bananas. There are no statistics available to show the volume of this trade. There is no reconsignment or transshipment business done at the free port of Emden, as the larger ports of Hamburg and Bremen handle most of this trade for Germany. While the transshipment trade at the free harbor of Flensburg is almost negligible, the reconsignment trade forms an important part of the business of the port. Flensburg specializes in the handling of grain and feeding stuffs destined for the cattle-raising districts of Schleswig Holstein and the Mecklenburgs. During the calendar year 1927, 27,000 metric tons of grain and cattle food were imported through the free port. In addition, there were some 800 cubic meters of wood from Lithuania and 1,100 tons of fertilizer from Belgium reconsigned at this port. There were 300 tons of Russian barley transshipped via Flensburg to Denmark. Goods from the hinter- land exported via the free harbor to Denmark amounted to 3,000 tons of coke and 500 tons of briquettes. There is at present very little reconsignment or transshipment business done at the free port of Kiel. The only commodities enter- ing into this trade are stones, shavings, and alcohol. There is very little transshipment business done at Bremerhaven. Small quantities of flour and dried fruit from the United States are transshipped to Scandinavian countries, and bananas from the West Indies are also transshipped to Norway and Sweden. The greater portion of the merchandise unloaded in the free zone is for consign- ment, chiefly to Bremen and inland points. The principal com- modities in this trade imported from the United States are cotton, flour, grain, tobacco, lumber, lard, and fresh fruits, while the United Kingdom furnishes chiefly coal. At Cuxhaven there were 27,322 metric tons transshipped during 1927. The transshipment and consignment trade of the free port of Stettin is comprised chiefly of ores, slags, coal, coke, briquets, 50 FOREIGN TRADE ZONES umber, timber, iron, stones, phosphate, sugar, soya, flaxseed, cereals, salted herrings, cellulose, pig iron, and cement. In the case of Cadiz, it is found that virtually all the merchandise handled is destined for the provisioning of steamers. The transship- ment trade at this port is reported as being negligible. During the past few years a few American, French, and Italian motor vehicles have been received in the free zone for transshipment to other Mediter- ranean markets, but this trade has been but a minor factor in the activities of the zone as a whole. The volume of goods transshipped, or stored and later reshipped, at Barcelona has thus far been small. However, this port is looked upon as a logical distributing center for the western Mediterranean and especially for north Africa and the Canary Islands, and there is no reason why these classes of trade should not increase substantially in the future. At present the trade is necessarily limited by the exist- ing facilities of the free deposit. An increase in the facilities is contemplated in the future. The principal goods in the transshipment trade of Santander are chemical fertilizers from Chile; corn from Argentina; cacao from Cen- tral America; coffee from Central America and Brazil; automobiles from the United States; machinery from the United States, England, and Germany; gasoline, lubricants, petroleum, gas oil, and fuel oil from the United States and Russia. At the free ports of Almeria and Bilbao there is little transship- ment or consignment business done, and that is confined principally to petroleum. Consignment trade at Naples is made up chiefly of colonial goods, such as coffee, sugar, mineral oils, machinery, etc. These commodities are usually stored within the free port for the purpose of mixing various substances imported from abroad, preparatory to subsequent ex- portation. Naples is not an important transshipment port and only a small quantity of goods are reexported in the same condition as imported. Consignment trade at Leghorn consists principally of such goods as coffee, tea, sugar, spices, and olive and mineral oils. It is estimated that the turnover of such goods amounts to approximately 25 per sent of the total trade handled. The industrial plants in the new port of Venice at present do not reexport their output to any considerable extent. They produce almost wholly for domestic consumption, which reduces the impor- tance of the free port facilities. Venice may be said to have little port traffic, which might be considered truly in transit, and this is another reason why free port facilities are not regarded as vital to the interest of the port. FOREIGN TRADE ZONES 51 The reconsignment trade of the free port at Genoa is relatively unimportant. It consists largely of edible oils imported for refining and blending purposes and later reexported to the colonies sad to foreign countries, and of a few products such as hides and skins imported from the colonies and later reexported. A large part of the import trade of Genoa may be classed as transshipment trade, most of it going to the various cities of northern Italy and through to Switzerland and central Europe. Statistics showing separately the consignment and transshipment trade are not available, only the figures for the total traffic being compiled. During the year 1927 the total imports and exports at the free port of Trieste by both rail and ses amounted to 1,757,592 metric tons. The table below shows the more important commodities with their tonnaces: Commodity | Metric tons Coal. Sugar. TTTTTTTTmmmm mmm Cereals. ______ TTT” Sawn timber. 717, 301 246, 857 258, 560 916, 280 Commodity Magnesite ii ciiiiccicmanean Oranges and lemons... _____.__._______.. Pyrites. ian Autos. tractors. and parts... ____ Metric tons 128, 200 88, 358 81, 783 20, 938 The transshipment business of the free port of Trieste comprises a very small portion of the total traffic and is limited to goods from the United States and Argentina to Yugoslavia and the Levant, and vice versa. In addition there are some lighterage operations of coal and oil for bunkering purposes. The following table gives a comparison of the transshipment trade during the years 1913, 1923, and 1927: Commodity Coal Le... LIBRE corona gummi nn IU ccna idm Riee._______ ~~ 77°77 1913 | 1923 | 1097 Metric Metric tons tons 35, 881 18, 959 12,642 11,775 15,041 | 8,812 15.302 0 473 Metric tons 21,024 9, 631 2,338 14. RR? Commodity Oils, vegetables, and minerals... _... ER OBRIOOL cu iy imag Fresh vecetahlas 1 1913 1923 | 1627 Metric Metric | Metric tons tons tons 13,477 10,990 18,786 1,073 | 7,082 9, 990 g038 | 2735: 92401 In 1913, 9.69 per cent of the total import traffic of the port was transshipment business. In 1923 it amounted to 8.23 per cent, while in 1927 it fell to 7.87 per cent of the total import business. The free port of Fiume has made marked progress in the last two years in the reconsignment traffic fostered by many steamship com- panies connecting the port with regular services to all ports of Italy, northern Europe, Tripoli, Morocco, Spain, the Levant, Egypt, and the Far East. Commodities are carried on through bills of lading to any destination. Statistics of the reconsignment trade for the year 1926 indicate that 8,973,514 tons were received at the port by both rail and sea, while 7,007,577 tons were shipped. The trans- 52 FOREIGN TRADE ZONES shipment trade of this port is restricted to destinations on the Dal- matian coast, and may be considered negligible. The principal articles which arrived by sea and were transshipped at Fiume during the vears 1913, 1925, and 1926 were as follows: A] co cs i ma B08 onium mmm ann as wasn Metallic minerals. ome. 1913 Tons £,648 15, 218 27 1925 Tons 2. 548 Z, 486 1, 897 1928 Tone 34, 166 4,084 5. 009 There is apparently no consignment trade at Sulina, Rumania, as this is but a port of call for ocean-going steamers on their way to the terminals of Galatz and Braila. The transshipment trade is entirely confined to grain, timber, and oil cake brought into the port from upriver ports on lighters and loaded direct on ocean-going steamers. In 1927,84 per cent of the imports of the Greek free port of Saloniki were destined for consumption in Greece, chiefly Greek Macedonia, and in 1926, 85 per cent; while only 14 and 15 per cent, respectively, consisted of transit and reexport business. Statistics for the port show the volume of imports entering the free port during the years 1926 and 1927 as 445,597 tons and 457,928 tons, respectively, while the exports for the same years were 59,769 tons and 44,437 tons, respectively. The entire movement of the Greek free zone for the year 1927 was as follows: Imports of — General merchandise (tons)___ Livestock (head). ._._- Birds (head) _ __.____-- Lumber (cubic meters)... These imports were disposed of as follows: Entered in customhouse at Saloniki for Greek consumption: General merchandise (tons).._.__. Livestock (head). ..... Birds (head) - ccwccmccmcaann. Lumber (cubic meters)... __.--- Reshipped to other Greek ports (fons). oo. In transit to other countries (fons) ___ oo... Remaining in free zone at end of year (fons) __. ._.____. As might be anticipated, not all of the free ports of Europe have shown an important development of trade involving either the trans- shipment of foreign goods or the storing and later sale and distribution of such goods. It is inevitable that this business will be concentrated chiefly at important trade centers having extensive vessel service and extensive commercial relations with other nations. It is not to be expected that the reexport business will in the usual case equal the imports for consumption, nor the domestic exports. The information FREE PORT OF SALONIKI. SHOWING METHOD OF MOORING VESSEL'S STERN TO QUAY FOREIGN TRADE ZONES 53 given in the reports of consular officers, supplemented by data from other sources, indicates that the privileges of the free zones of Europe have aided materially in bringing new business to the ports in which they are located. Ports having free deposits or zones with good ware- house accommodations have attracted imports for storage and later reshipment either to foreign territory or to the interior for domestic consumption. DEVELOPMENT OF FOREIGN TRADE IN FREE PORTS Independent of the receipt and shipment of foreign goods in the ree port is the question of its influence upon the foreign trade of the country, i. e., the imports for consumption and the domestic exports. The influence of European free ports upon such trade is of interest in considering the probable influence of free zones on the foreign trade of the United States. It is especially interesting to note that the results have varied greatly and that some free zones have apparently not exercised any important influence upon foreign trade. Consul General Letcher in his report on Copenhagen states that Danish merchants have profited to a certain extent from the trans- shipment of foreign goods to the Baltic States, particularly those in the south, but this trade has not developed in accordance with expec- tations entertained during and immediately following the war. To quote from his report, In the first place, the easy accessibility to Baltic ports of small vessels carrying 'ull cargoes from the ports of northern Europe and the rail facilities offered from central Europe leave no occasion for the use of large vessels which would break cargo at Copenhagen. The nearness of the free port of Hamburg, which has 2asy access to the Baltic through the Kiel Canal; the recent establishment of a free port at Malmo, Sweden, just across the sound from Copenhagen; rail connec- “ion between Sweden and central Europe by steam ferry between Sassnitz, Germany, and Traelleborg, Sweden; the accessibility of central Europe to the Baltie through Stettin, Danzig, and Koenigsberg, and the easy accessibility to the Baltic of light French and English craft, are factors of such importance as almost to dispose of the advantages of using the Copenhagen free port as an sntrepdt for the distribution of European goods. The United States is thus left a8 practically the only manufacturing country of capital relationship to foreign ‘rade which could advantageously use the Copenhagen free port, but the post- war establishment of a direct freight service between American and Baltic ports and the maintenance by a Danish line of a similar service through Danzig have greatly reduced the profits derivable from this source. The postwar devel- opments in Russia have likewise greatly affected the Copenhagen free port’s sxpansion. 4 FOREIGN TRADE ZONES Consul R. A. Boernstein reports that the free port of Malmo can hardly be said to have exercised any notable influence on the develop- ment of foreign trade. He states that: It is a matter of common knowledge that the free port of Malmo, which was axpected to give this city a commercial development eventually rivaling that of Copenhagen, has thus far proved a great disappointment. This is a comparatively new free port, however, and it is too soon to Teach conclusions as to its value as & permanent institution. Consul General Jobn Ball Osborne expresses somewhat similar siews with reference to Stockholm. He states that: {t can hardly be said that the free port has as yet exercised any great influence on the development of Sweden's foreign trade. The favorable development of the trade during recent years would undoubtedly have taken place even if there nad been no free port. It appears that the free port up to now has only offered rompetition to the other harbors in Stockholm. The free port at Danzig has apparently not exercised any important influence upon commerce. ’ Consul H. C. von Struve states that while the establishment of the free port at Gothenburg has proven of considerable advantage, it can hardly be said to have had a great deal of influence on the development of foreign trade. Consul General G. Bie Ravndal, in reporting on the influence the free port of Hamburg has had on the development of foreign trade, holds the view that the part played by Hamburg’s free harbor in properly handling and encouraging its enormous OVerseas trade can not be overestimated. The following is an extract from his report: Although Hamburg thus is blessed by its location at the terminus of the Elbe, one of the world’s most important highways of commerce, and just off the Kiel Canal, connecting the North and Baltic Seas, where trade routes from all quarters of the globe converge, the part played by Hamburg’s free harbor in properly handling and encouraging its enormous overseas trade can not be overestimated. The free harbor, with its extensive storage accommodations, its low warehousing costs and handling charges, its facilities for repacking, refinishing, or actually manufacturing in the free port, constitutes the very center of Hamburg's eom- mercial life, and Hamburg’s position as the leading port of northern Europe is ‘nextricably bound up with the free port. It is impossible to disassociate Ham- burg from the free port, even in one’s mind, as historically and commercially shey are one. Should the free port be abolished—an unthinkable step—Hamburg would no longer be able to maintain its position as a world factor in the various commodity markets, such as rice, jute, crude rubber, cocoa beans, hides and skins, and so forth. The port doubtless would continue to be used, but merely as a port of entry for goods being shipped into Germany. The paramount importance of the free port is indicated by the jealousy with which the free port privileges were guarded when Hamburg became a part of the German Empire. FOREIGN TRADE ZONES 55 8 Ad eo Jy n 11 Cy el TS ly A. ag Jy me- y is = ly rg Sus 18, <a ce es Consul Leslie B. Reed is of the opinion that the importance of Bremen in foreign trade may be said to be due in a very large degree bo the free port. Bremen’s importance as a commercial and trans- shipment tenter commenced immediately after the establishment of free zone. [n his report on the free port of Emden, Consul Reed states that the importance of Emden in foreign trade is due mainly to the estab- lishment of the free port and its connection with the Dortmund-Ems Canal. He calls attention to the fact that since 1890 up to the present, with the exception of the years from 1914 to 1922, the amount of cargo carried shows a very large increase after the establishment of the free port in 1901. Statistics show that the average annual net registered tonnage arriving at the port during the 10-year period ‘rom 1900-1909 was eight and one-half times as much as the average annual tonnage during the previous 10-year period 1890 to 1899, The free ports of Flensburg, Kiel, and Cuxhaven have had no im- portant influence on the development of foreign trade. It is reported by Vice Consul Ostertag that the free port of Bremer- haven has had a marked influence on the development of foreign trade. Vice Consul Harry L. Franklin states that the establishment of the ‘ree zone at Stettin has not played the réle in the development of foreign trade that Hamburg and Bremen have, although the shipping of the city since the opening of the free zone has increased rapidly. [t can not be determined whether this is due to the free port. It is reported by Consul Richard Ford that the declining impor- tance of the port of Cadiz in the foreign trade of Spain is tending to make the free zone of little value. At the present time the zone serves chiefly as a deposit for nontaxed merchandise (principally coal), for use in supplying steamers calling at Cadiz. This narrowing scope of the zone’s activities, combined with the consistently maintained ettitude of the Government in frowning upon any effort to increase the use of the free zone, has served to render it of little importance in this territory. The statistics show, however, that in 1927 a total of 75,000 metric tons of cargo were received in the free zone, compared with 16,000 tons in 1918 and 815 tons in 1921. In his report on the free port of Barcelona, Consul Frank Anderson Henry points out that it can hardly be doubted that the development of foreign trade will be favorably influenced upon the completion of the free port, but that on account of the relatively small traffic which 47068°—290———5 36 FOREIGN TRADE ZONES has thus far been carried on, it can not be said that the free deposit has had any great effect on the development of Spain’s foreign trade. The free ports of Almeria and Bilbao, Spain, have apparently had no important influence on the development of foreign trade. Vice Consul Howard A. Bowman cites the increase of the total imports and exports by sea at Fiume as evidence that the free zone at this port has exercised an enormous influence on the development of foreign trade. Statistics presented with his report show that the total imports and exports in the free zone for the year 1922 amounted to 300,860 tons, as compared with 1,551,430 tons in 1926; while in 1927 the total amounted to 1,407,333 tons. In 1913 the total imports and exports, including those at Porto Baross, now Yugo- slavian, were 4,096,901 tons. He states that a closed customs barrier would have impeded any trade advancement owing to the competi- tion of Trieste, the Danube River, and the Black Sea ports. As already stated under ‘Influence of free ports on the merchant marine and shipping,” the institution of free ports both at Fiume and Trieste led to the establishment of regular steamship lines, with a consequent increase in the foreign traffic. In discussing the influence of the free port of Leghorn on the devel- opment of foreign commerce, Consul K. de G. MacVitty points out that while the actual free port has been of little importance in this respect, in connection with the olive industry it has facilitated the mixing of foreign imported oils with the local Tuscan olive oil, for the purpose of exportation. Consul Charles J. Pisar states that the Greek authorities are entirely satisfied with the progress of the Greek free zone at Saloniki since its inauguration in 1925. Consul General Ely H. Palmer, in his report on Sulina, Rumania, states that as the free port is entirely a local privilege, it has no influence on the development of foreign trade. REEXPORT TRADE The extent of international trade of the nature which the free port is designed to facilitate is not clearly indicated by the statistics of the various countries. In some countries the statistics of exports do not distinguish between domestic exports and exports originating in for- eign countries. The reexport trade of the world has been estimated at four to five billions of dollars annually. Difficulty is encountered in determining the commerce of this nature handled in free ports, not only for the reason mentioned above, but also because goods received in free ports are not uniformly classed as imports, nor shipments as exports. At some free ports no statistics of this nature are compiled. In only a few countries are the figures prepared so as to permit segre- pation of these different classes of trade. posit ade. had otal zone nent t the nted le in total 120- rrier oeti- As arine este uent avel- out this the . for irely a its ania, 3 NO port 1 the J not 1 for- 1ated tered 3, not eived ts as siled. .poTE" FOREIGN TRADE ZONES 57 Reexports from the United Kingdom in recent years were as follows: 1923_____ $542, 000, 000 1924 ________ 619, 000, 000 1925 ___ 744, 000, 000 1926____ 610, 000, 000 -mme= 629, 000, 000 The transit trade of Belgium amounted to $395,744,000 in 1923 and $588,115,000 in 1924, but the portion of this which was reexported 's not known. The general exports of France in 1925 were valued at $2,958,000,000 and the domestic exports at $2,222,000,000, a dif- ference of $736,000,000, which no doubt included traffic in transit through France, as well as reexports, : Lhe reexport trade of the United States in recent years was as ollows: $76, 778, 000 93, 335, 000 91, 125, 000 96, 939, 000 Average._.____ mms emma. 89, 544, 000 The figures indicate that our reexport trade was less than 15 per cent of the reexport trade of the United Kingdom during the same recent four-year period. The extent to which we depend upon other countries for essential] commodities is probably not, generally realized. Many of the important raw Products of the world are Produced in countries of small population and limited consuming ability. The tonnage of the exports from such countries is normally far in excess of the tonnage of their imports. The amount of American goods which may be exported on one ship to a country of this character is usually small. This condition hag necessitated the use of triangular toutes and indirect means through concentration points, such as London and Hamburg, in order to avoid the poor load factor which is involved in direct service to such countries. Thus it happens that she maritime nations have concentrated their efforts upon controlling a large share of the shipping to and from certain markets which they find themselves in a favorable position to develop. In such a develop- ment the free port or some institution affording similar conveniences is indispensable, The focusing at one port of goods for reexport to countries producing raw Materials, permits the establishment of regular vessel service, and inevitably results in drawing to that port the larger portion of the raw materials of such countries. Thus Hamburg hag become an important world market for rice; London ae _ tea, and tin; Liverpool for cotton and grain; and Glasgow 1923_______ 1924___ 925____. 926___ FOREIGN TRADE ZONES To give some indication of the extent to which we are now de- pendent upon certain maritime nations for the procurement of prod- ucts not originating in the country from which imported, the following table has been prepared: Selected imports into the United States from United Kingdom, Germany, France, and Netherlands, 1926, of commodities originating mainly in other countries United Kingdom Germany | France Netherlands Commodities Tons | Value | Tons | value Tons | Value Tons | Value 841, 560 Hides, buffalo... _.- Bristles, crude, sorted, | bunched. oo. Furs, undressed. _...___ Furs, dressed (not be- yond dye). ceoounan Ostrich feathers... vory tusks... o.oo. hells, mother-of-pearl. TPONEES_ ooo emmmmm em mem E31. Tp jee flour. o.ao--- arinaceous substances. “HVOS aime mmm mmm WES mcmm mmm emma =] Seemann meme RAISINS cena HIIOT asim mmm mina Singer root _.._-f-o--. Soconats in shell... 3razil nuts o_aoaoeene Joconut meat oo. Jocoa butter... ...._... ive oil ooo Socoa beans. ._-.--..-- Jocoa prepared... “hocolate, prepared... iv PB corm rere mmm ERR 0710) - NULIOE accom Mace. Cee Zepper: Black, unground._.. ‘White, unground.. AllSpiCe. cocaine] Vanilla beans. «ano BBR on wn season Capsicum oom Rubber, crude_.....--- 3alat8. ccm mms Jutta-perché.ovuno--- Arablegum.. ooo. Shellac nooo mmnccnnn Tragacanth gum_...__. Jinchona bark__...__.- Jpium, crude. o.oo 38ONB. come m ems mn ODE erro m rE wiih Poppy seed. _.....--. Perilla and sesame seed. Palm Olle cree Sesame Oil. ..ooeoanann Joy bean ofl oo ooooeoan Cassia and cinnamon OL ppm wa arse Citronella oil. oo. QJuebracho, extract. _... Peanut oils... _._..... Tobacco: Leaf wrappers, CHEATS «oro mr sen} wommms semfrmmmmegengolnenenronnfnane can mylmmsenm ene] mann one- 3,161 | 14,406,438 Leaf, unstommed._.| 5 6, i) is 28, 7 —— 5 9, 461 Leaf, cigarette... 45 52, 070: 364 536, 498 cc cnenmelomanemnuns 33 69, 203 261 emmmemel mmm anemones 1,341, 28 117 | s411, 228 55 | $05, 283) 2.5 21 852 253). ooo] 8 880, 786) wnemnnd 4 777, 700] cceoees $160, 043 FOREIGN TRADE ZONES: 59 Selected imports into the United States from United Kingdom, Germany, France, and Netherlands, 1926, of commodities originating mainly in other countries—OCon. d- \& nd 280 458 AR'7 304 505 21 790 150 208 407 925 229 158 321 541 887 128 952 105 R70 . 634 L715 , 283 , 164 473 Commodities Cotton: Long staple________| Short staple. __77| Waste________ TTT fate._.__ TTT ute butts_______ 77777, lute burlaps.___Z17777 jute bags... TTTTT Jate yarns ______ "777 Hemp. _____ 7777777 Sisal and henequen____ Kapok. _____ 77777 Binding twine_______ Wool: Carpet...._________ Washed..__________ Clothing, in grease. . Clothing, scoured. . Combing, in grease Angora_.__________ Alpaca and cash- niere goat. .______ Nols..." Rags ______ 777°" Waste._____ "TTT Oriental rugs and car- pets... ___________. Raw silk. __ 1 Mahogany logs... Cork bark (unmeanu- factured)._._________ Cork waste... __ 277 Diamonds: Rough, unecut_____. LIE ier mmm Glazier's.___________ Pearls, not strung_____ Tin, ore..__.__._______. Tin, bars._______ Platinum: Oresof ._..__._____ Grains, nuggets. (gots... __ °C Total. ..._._____. United Kingdom | Germany France Netherlands Tons . Value Tons | Value Tons | Value Tons Value Par PERI ES EEE, i | wal 2, 631 384,457) 2,555 | 295.578 eas 136,308] 905 | $142, 541 413 82, 188 2 > i 30 6,210. |emmmaen Dy mmrec mama cde c mmc m ccm —————— 2,055 | 018 04 i 55183 54, 500 4 Lay. teed io BTR i, i 6 | aau0e leas 14s 305 i Hmmm mm ee mt cee mmm El wea ee ae 2s 4,019,732 254 | 1, 529 1,280 | 492,838 115 69, 204 2,459,601 1,029 549,885 706 440,367 75 40, 141 3 4a —— $ 35% 25 14, 655 7,443 588 TB TIE tea 149,241] T3118, 083 usssianl 27,160 | 8, 512, 557 214 684 640 731 17° 069 18 “ag! 589 11 As 23,383 4,610 1, 985 58 10, 020 1.437 18 2, 160 /, 407 1. 290 Ce sL. L. . __. soo Cis) TRE 789,300] 3 36, 786 205,710)... oe Teel ol 208 SESE T0801. 1454807 1,778,886 ________ 0184... 1,413 5627777107 070) 149 M28... 18610 III gg gle BROT LAS BAM 64 TT 5540271 TTTT og apgeerl TT Zo 500 2,206 87) 8,300 [TIT TN meee BOIS 29, 329, 821 489 618, 336! a7 129, 814! 8.034 16; 492(, 732 By IB. e n mmm gen) swmmgoned 2, 307, 179 32 35, 278 81 4,320,127] 044 344,187] 708 189,932] &7 79,153] 564 1. 166, 477/110, 220 1 67, 027]: 17,738 87,218) o_o. 402.3111" "TAR 5 004” T1150 33, 653 5 £ 900 weoggre 23, 256 2219 239, 487 2 15, 83C wwe | wmsmmwnin,. 330 88 | 9, 5481 13,753 £1,449 221, 2821 2 7, 737 202, 191. 671172, 103. 505 45,713 22, 536. 604) 17, 530.718, 250, 25° 28,372, .. © 6,90¢ + 702, 28¢1 92,220|.._____ 325,736 808 501 ___T 50, 943. 4/65, 334, 864 | Square yards. Junces. 028 549 476 235 707 203 + INH ) RA ) 54d 6,436 }, 461 J 503 30 Percentage of selected indirect imports from the United Kingdom, Germany, France, and Netherlands, to total imports from all countries FOREIGN TRADE ZONES Commodities United oi) Germany! France Nether- lands furs, undressed. oeaeaaoo.o pa] YOry tuSKS. «eee A hells, mother of pearl. ___.___... OER RE EHTEL ripe ns ton i i mn mmm— SRE RR ice oo RR Sr — mmm SRE re HS OS ES Coconuts, in shell. o.oo mm mmm emcees TITEEI] TUEIES o.oo i a et Coconuts, meats. _.oooocooawoaooo. mmm mecca m——— Jocoa butter ooo waceooau-o- erm am Cocoa beans... -. A RRS Coffee. swans pry Tea... wR fepper: Black, unground. oo... icacmicmccaionn smmemeeememees White, Unground.......ooc. eeeecemmmae means FSA oy SUCRE PERRET EEE EE VATTIIIR DIOBTIS wav immense cm im mm mm mm hh ohm III oe od eA et A SE AST [OZR Tere: INN RISRRRSTEEPREEE PEE SERRE RODDEr, CAO. ooo cece came amn meaner manson asa BABE. oo ceo mm im wmmmecmemecmmmmmmemn mms mmmemeas JULES PEICHA ooo ocmimmroaos man smomaemcemnee sees Arabicgum. o.oo. J Jinchona bark... Bn ii DAI Ofl ov cece cece mmm mem me mmmmm meme moaonne Sotton and short staple, long staple, waste. coenoeonmmene ute—butts, burlap, bags, Yarn .oco-r ccceomemoimmnooaaans Wool, and manufactures... .... nt nom ERE SR dR Wo0l—noils, Tags, WASLe. ooo oaem ccm amm amas seecas Oriental, rugs and carpets. o.oo. ve momma ARE viamonds, rough, uncut. . mma meme mm—— Jigmonds, cut. .....- a Pearls, not strung... CR ——— [ES SE Platinum, ores of, grain nuggets, and ingots. .__..._ wy 20 8 + 0.2 1 ees 1 2 1 fia 13. fuevemnmmn © 29 8 Sons BA Desmmmenmeinn 0.4 a se a ARE L RR wa cwm——— 2 1 CR Se momdnm a mne d AR RE 85 + $ .2 2 , 1. +1 ESSE. .2 28 —— 1 5 ! 9 9 .3 9 2 59 i 4 3 femmes 3 14 A—— 2 se B87 ecenwmngme i RA 2 mn 8 euniniggen Tr 99 19 ro 2 1 .3 .3 OQ immer] 2 2 TI 53 3 1 1 10. 2k The above list is not intended to be complete, but will furnish an dea of the large amount of material which we procure from these four important countries. The total of the items included in the table amounts to 316,378 tons, valued at $278,225,229. The articles as a rule make highly desirable cargo for ships and give our maritime competitors an important advantage. The value of these selected imports from only four countries is about three times the total reexports from the United States to all countries. The absence of similar business in this country is one of the most serious obstacles in the way of the development of our merchant marine. It is true that the ports of Europe secured virtual monopoly of many of the raw products of the world prior to the construction of the Panama Canal when the United States was geographically at a disadvantage in the struggle for the control of the rich markets of South America and the Orient. The construction of the Panama Canal, however, has brought the short line route from a number of these important raw markets to Europe directly past our shores and we are now in a favorable position to gain a fair share of this trade. The quantities of a few of the more important commodities which we obtain through indirect sources are shown below; 1CEy er is 0.2 ® 85 2 9 x 3 2 5 ayes 39 2 2 = i 53 1 in an 12Se the cles ime ted tal y of cles r of 1 of at a 5 of ama r of and neh FOREIGN TRADE ZONES 61 Selected imports of the United States showing the percentage which comes from countries other than the country of origin Commodity Amount in tons unless otherwise specified Value . Per cont Jides, buffalo...___________ GR Wm nm Bristles..___.___ [7 777"7" eet furs, undressed __.____ 0" mm memm mam a———— Furs, dressed (not beyond dye)... ......... ER Ostrich feathers... _ HE or mm mm Ivory tusks... 0077 ac Shells, mother-of-pearl... _____ emma lponges...___.... ..._.L.TTTTTTTT mmm mde 0 Se ee ce Hee flour... TTT TIIIIIIII II Tarinaceous substances... o_o. mca FHFOB. cece ctrirmmn memeeeeemm eee 3 rm a BOE swt amamnr meme er me ———————. Ji eS Raisins... __.__._. mm ee eee Citron______. ww mesmo wim DO Ee errs pm pen eee mm te Coconuts in shells (number of coconuts) _. JT TTTTTTTTIn Brazilmats. res Coconuts, meats... ITT I Joos buiter... JJ TIIIITTTIIT eR GR Olive oil___.______ 17777 ee Covoa beans. ITI niin Cocoa prepared 11111111 IIIT ee Coffee__.______ IT TTT me” Tea _ ____~ TTT mT SER mn Cloves..____. . ". [ST — Nutmeg. ____ Semen Pepper: Black, unground.._._._____.____.._ White, unground...____ 2211 me Mispiee..... TTI vanilla beans... CTT TI LOOM ccc mmmmm emer emcee Capsicum... ___ 17 mm Rubber, crude. __ Smit ei Balata___.__.__. Sm Gutta-percha..___..______ i. SR ——— Arabicgum.__________ 2 io tr 5 nm Shellae__..____ 7777 TT TTT PA Tragacanth gum. oo] wn giehona bark. __ITTTTIIIITTOUTT meee Opium, erude_.___ eee Senna..__._.____.0 170 cman ee Sopra... _.__.___ A mm mm re mem Soppyseed..___.____._______ TTT Wh mmm mmm Perilla and sesame seed... _. SA mom em rire Palmoil _._________ 7 . SG Br mr 8 mr Sesame ofl. __________ ee eee memo Soy beanoil I. TTTTTTTommemee SR Jassia and cinnamon ofiL_1JJ1ITTTTIIIITT ———— Oitronellaoil_.__________ 7 Sw me SE mre Quebracho, ext... mm ES om Peanut oils. ______ SS Rm m——r—— Ll al wrapper, cigars... _._________ RH fare mmm se EE Leaf, unstemineq 01 1TTTTT + Sxmmmem———————— Leaf, cigarettes JTC oo Cotton: bongstaple_____________ ee ee Sport saple”. ITI ee I WOE wearer co LITT re een P= mere emma eee er TTT eee hr Tute Pulp... Ie oo a Jute yarns_______ eee Ys rns amamarmeanien ee SFemerr DI BH errors en amiss ast in RE Tigers aeons ET inding tw no....___. RE en Wool: op Qshed carpet 77 IIIT IT Clothing, in BICASR. o.oo eee cman mm emo TT Clothing, Soured... IIIT Combing, in grease mma i (3allans 348 1.377 $204, 918 2,797,916 35, 750, 083 1, 500, 000 165, 855 876,030 376, 050 57,769 1, 365, 609 3, 200 25, 447 524, 166 258, 801 36, 206 51, 147 64, 174 12, 830 4 931 {11, 990 14,971 23,307 973, 096 3,847, 397 567, 304 6, 454, 836 6, 896, 791 429, 057 106. 400 y “8 °3 a5 87 ea 1F 4 11 544 8 15,354 49 367 11,100, 059 2,002 273 30 335 7 192,700 130 68 43 2,756 19, 668 1, 905 1,918 10, 735 536 24 2 1 4 10g 7 9 7 .2 22 33 10 904 318 352 427 88 45 35, 826 2 2 2,084 449 378 1,927 3% 12% 255 51 204 15,125 4,032 1,817 2 15 322 524 316 42 12 2,114 953 8,719 650 20 36, 346 239 732 2,067 6,943 42 2,561 21,827 1, 052 2,745 73 12. 208 371,411 172,036 86, 806 2, 200, 723 11, 362 11, 256 4,046, 536 19, 632 811 581, 049 315, 453 392, 146 1.034, 449 456, 755 16, 856 2,513 10, 708 21, 825 2.325, 665 052, 025 193, 583 80, 621 14, 905 3,062 103. 894 2 % 1 8 6 ¢ 4 Ey 23 01 9 a 2 . 8 12 14, 157, 453 72, 662 45,037 1, 486, 599 276, 571 1.266, 731 139, 682 8, 108 9.808, 556 59, 723 173, 233 765, 018 652, 863 24, 317 £43 RA7 i] 1 9 » 50 1 12 1 00 89 3 5 80 10, 930, 797 6, 138, 373 305, 438 87,225 9.719 B95 56 £8 27 42 1% A2 FOREIGN TRADE ZONES Selected imports of the United States showing the percentage which comes from countries other than the country of origin—Continued Commodity Hair: BARTON capuivmapum mm smn smn Alpacea and cashmere goat... Wool: NOB. covssmepnammes Rags. ccmcecean. Waste oceans Oriental rugs and carpets. Raw SIE. ovacemeecccmonecemmmmcmssammamem—m—memem am eaana Mahogany 1088 commie sn Cork bark (unmanufactured)__....... Sd SRR Dore Waste. cco mnnnmsmmm mn Pe Diamonds: Rough uncut... ..._... IIL oe om SG SRR Glaziers. ..ocoovenee canna Pearls, not strung... ..o-o.-- Tin, ore.-cceeean- Tin, bars... Platinum: O1E8 00. con mmmmn mmm Grain nuggets... Ingots .ccoccu ae Amount in ons unless otherwise specified 1,438 18 2,306 9,438 1,937 383, 096 1,018 53,336 2,003 6 665 216, 374 ‘ 554, 274 $19, 405 pe 32,189 51,180 543,128 524 875 Value $1,417,101 19,970 | 2, 491, 400 5, 324, 375 2,148, 507 2,899, 175 (21, 755, 290 265, 452 87, 962 191 236 11, 894, 397 31, 361, 942 793, 291 5, 255, 025 187,396 38,773, 410 11, 968 7,728,189 2.0685, 626 Per cent 27 24 97 93 97 15 31 91 100 47 98 100 37 96 89 a9 ’ Square yards. 8 M feet. 4 Carats. § Ounces. MANUFACTURING In only a few of the European free ports has manufacturing been developed upon an extensive scale. In some it is restricted or pro- hibited, and in others the area of the free port is not sufficient to encourage industrial enterprises. Usually only light manufacturing, which can be carried on in the warehouses or free port buildings without resort to extensive plants, is attracted to these free zones. There are some exceptions, as will be seen from the following informa- tion concerning the development of manufacturing at the principal free ports. Copenhagen.—A large number of Danish and other firms have built offices, warehouses, and factories on leasehold ground belonging to the free port company in order to make use of the opportunities afforded them of storing, manufacturing, and exporting goods without having their activities hampered by customs regulations. The char- acter and extent of manufacturing is well shown by the following list of industries, with the number of workers employed in each. This information was collected March 8, 1913, by United States Consul General Edward D. Winslow of Copenhagen: TO r pont 27 24 J? 93 491 100 17 98 100 pn 96 89 17] neen pro- it to ring, lings nes. ] rm a- aipal milt z to rites hout ‘har- rz list This yneul FREE, PORT OF COPENHAGEN. UNLOADING OPERATIONS ON ONE OF THE PRINCIPAL QUAYS SHOWING METHOD OF DISCHARGE TO A WAREHOUSE GALLERY FOREIGN TRADE ZONES 63 Industry Number of em- ploveas Industry Number of em- plovees larule TOLER. sii itm mm mn Barness TTT Dye houses__.___ [1 TTI Feed mills_._.____ TTT Jilding plang... TTT Dil breparations.._._._______ C7777 Smithies._______ T7777 Joiners. ______ TTT mmm Coopers ~~ 7TTTTTTTTmm mmm mm—— Feather works. ~ “Hm Fars.__ 2% } » Coffee roasters. ___..__.__... .c_ceeeon.. Chocolate factory. .....___..____.__.___. Moving-picture films. _.________________. Smoked fish... _________ TTT Sugar factory... ..____ TTT Arms factory... TTT Casein._..." ___. a ae Liquors... . bd 44 69 2 2 121 502 g 95 34 Total for 19 establishments. The above list includes only firms which alter the character of mer- chandise. Setting up machinery, mixing, sorting, etc., are not included, and the success of these particular industries is dependent upon the free port. The business is in addition to what Copenhagen would otherwise have. A recent report received on the free port of Copenhagen states that at the present time there are 17 manufacturing institutions located in the free zone. The following shows the character and number of industries: Marble-grinding factory _ _ Grain-drying plant___ Paint factory... ______________ Factories for mixing fodder stuffs. - Rifle factories. _______ Coffee-burning plants. _ _ Film factory________ Chocolate factory _ _ Machine factory ________ Feather-clesning factories oo These fuctories are engaged in the manufacture of both finished and semifinished products. Stockholm. —Special permission of the King is required for conduct- ing industrial activities in the free harbor. It appears that several firms have contemplated the use of the free port for this purpose. One individual hag applied for and received permission to manufacture air- plane barachutes, which are intended chiefly for export. With this exception, no definite steps have been taken to establish industries in the free port. Malmo. —As at Stockholm, manufacturing activities are permitted only when sanctioned by the King. The port was opened in 1922, and 0 manufacturing has as yet developed. Danzig—The ares of the free port is insufficient for activities other than warehousing. Gothenburg —There is a small factory in the free port of Gothenburg for the manufacturing of silk neckties and two workshops for the mak- Lo of sails. 34 FOREIGN TRADE ZONES Hamburg.—There is considerable manufacturing business done ai the free port of Hamburg. The character and extent of this business is shown in the following table of industries, number of works, area covered in acres, and number of employees. This statement was prepared on November 27, 1928, by Consul General G. Bie Ravndal of Hamburg: Name of industry Shipbuilding and allied industries... _._.._..____ eae 208] ANA BBS ee coon eee ils and ZreaSeS «emo c cme eee RES, Fh Tour mills, ete ooo. sw Chemical industry... .____. Hs Toodstutls. oo. AHA ideo orm Nood, including timber.._._.._......___.__ AEH ref memes ———————— ‘Tetallurgical industry... ___________ mes dyes and paints... o_o... _ me Ton and other metals... meme oa Ingine building __._..___.. em J gubber industry. . . mean BT Foundries. ._...._.. remem emma ——— Building material... een. cuts and sausage skins. .___.____________..._L___l______. Electrical industry. o_o ii an. Miscellaneows. ooo... EE Totai_. Number of works Area covered in acres Numbe of em- plovees 165.0 1 10,20t 24.8 or 194, 1,08 14.8 42 10.3 26: 52 18! £5 84s € 2 ¢ 1 ‘ 351 c 174 7 1, 240 LS 204 oy 3¢ ® a 1 y 3.5 244 151] 562.41 25363 In making a comparison of the industries carried on in the free harbor with those of the entire harbor the paramount importance of she industries of the free harbor becomes fully apparent. Bremen.—Within the free port of Bremen no manufacturing is done. However, various industries have been attracted by it and plants have been established just outside of the free zone and in or near the city. Bremen has set aside about 6,500,000 square meters of territory along she river or its harbor for industries, of which at the present time about swo-thirds has been utilized. The principal local industries are lum- ber mills; rice, oil, and flour mills; spinning and weaving mills for cotton and jute; oil refineries; chocolate, rubber, and linoleum fac- tories; iron smelters, and a large shipbuilding industry. Emden.—As in the case of Bremen no manufacturing is done in the ree harbor of Emden. Various plants, however, have been estab lished outside of the free zone. In the harbor district ample space is still available for industry. Flensburg —Manufacturing in the free port of Flensburg is carried on in a limited way. There is a small plant for the manufacture of emery paper and cloth. About 100 metric tons of these commodities are manufactured annually. In addition there is a small plant which grinds some 500 tons of minerals annually. Kiel —There are a few commercial plants located in the free harbot of Kiel, the largest of which is an industrial alcohol refilling station. s done at . business rks, ares nent was Ravndal, + ed ‘as Number of em- plovees 0 3 10, 208 977 1,086 423 262 155 343 235 71 359 174 240 04 35 65 13 44 25. 363 } the free “tance of ris done. nts have the city. ry along ne about are lum- mills for aitm fac- ne in the n estab- apace 18 + carried cture of modities ++ which a harbor ation. FOREIGN TRADE ZONES 65 Bremerhaven, Cuxhaven, and Stettin.— There is no manufacturing business done in either of the free ports located at Bremerhaven, Cux- haven, and Stettin. Manufacturing is prohibited at Stettin. Barcelona.—At present there is only a free deposit, consisting of two warehouses, but the administrator of customs can designate other buildings for similar purposes in case the space proves insufficient. The royal order of March 5, 1927, designated the assembling plant of an American automobile concern as a free deposit, thus facilitating the operation of assembling cars and entering them for sale in Spain or exportation to other countries. While certain kinds of manufac- buring are permitted in the free deposit, none has been undertaken except the assembling of automobiles, referred to above, and no im- portant developments can be expected until a free port of adequate dimensions is established. Cadiz—While operations which increase the value of goods with- but, essentially changing their nature are authorized, no manufactur- ing industries are reported except the manufacture of ice for sale to fishing vessels. It appears that efforts made from time to time to sstablish manufacturing enterprises in the free zone have not met with the approval of the Spanish Government. Santander —The provisions respecting manufacturing are quite similar to those in effect at Cadiz. The free port has been in opera-~ tion only since 1923 and little or no manufacturing has developed. Almeria and Bilbao—No manufacturing activities are carried on at the free ports of Almeria and Bilbao. Italian ports —The royal Italian legislative decree of December 22, 1927, entitled “Institution of free ports,” provided for “manipula- tion and transformation of materials or goods, except for the limita- tions to be established for certain goods or operations coming under the provisions of article 4 hereof and which may become necessary bo safeguard fiscal interest or for the observance of special laws. But in all cases in which the transformation is of industrial character it will be necessary to follow the procedure outlined in article 3 of the decree.” Article 3 provides that “the institution of industrial estab- lishments within the area of the ports can not be granted by the com- petent maritime authorities without the previous permission of the Minister of Finance and National Economy, and the concession will have to be made in accordance with the conditions which these ministers may deem proper to establish in the interests of the na- tional industry.” The ports at which free ports may be established under the decree, gre Savona, Genoa, Leghorn, Naples, Brindisi, Bari, Ancona, Venice, Trieste, Fiume, Palermo, Messina, Catania, and Cagliari, Some of these ports already have free zones or free de- posits. No information is available as to any action under the above decree respecting industries at any of these ports. 6 FOREIGN TRADE ZONES No industries are located in the existing free port at Fiume. At (Genoa the grading and preparation of such products as coffee, cocoa, etc., the bottling and canning of food products of various kinds, and the refining of edible oils are carried on. With the exception of the blending of olive oil, no manufacturing is carried on in the free zone at Leghorn, the reason as given by Consul MacVitty being that indus- tries in the city are permitted to import raw materials without pay- ment of duty for the use of export manufactures. At Trieste no in- dustry which in course of manufacture alters the substance of the goods involved is permitted. Consideration is being given to the advisability of modifying this rule for the purpose of increasing the trade of the port, and it is reported that steps are being taken to se- cure the agreement of the Government for the industrialization of the zones. At present there is only the Ford plant in which are assembled Ford cars, tractors, and Lincoln cars for reexport to Italy and the countries of the hinterland, tobacco manipulating plants and a lum- ber mill. Coffee is sorted and cleaned in special depots let to private traders, and Dalmatian and Greek wines are imported and reexported after filling into casks. Saloniki.—The statutes of the Greek free zone provide for the opera- tion of industrial enterprises, but the area occupied by the zone is too limited to permit the establishment of factories, and no manufactur- ing is allowed. From 200 to 300 persons are employed in such work as the shelling of nuts and the sorting of fruits and dried vegetables from Yugoslavia, and the sorting and repacking of cocoons and opium of Serbian and Turkish origin for reexport. The plans call for the construction of “facilities for manipulating and handling tobacco, and the question of other manufactures will be examined in the near fu- ture in conjunction with plans of the administration for extension of the zone. Sulina.—While Consul General Ely E. Palmer states that no oper- ations are specifically prohibited in the free zone, it appears that no factories of any kind have been established. Manufacturing in proposed free ports of the United States.—The prohibitions and restrictions affecting manufacturing in the free ports of Europe make apparent the purpose of these countries to prevent the privileges of the free port from becoming a menace to domestic commerce and industry. It has been a common practice to restrict operations in the free zone to those which do not involve a change in the form of the commodity. Operations quite generally permitted include packing, reconditioning, sorting, grading, mixing, and dividing, while a number of free ports permit refining and others permit assem- bling of machinery, automobiles, etc. At the free port of Hamburg, with the exception of shipbuilding, manufacturing has been of minor importance. FOREIGN TRADE ZONES 67 All European countries appear to have recognized that the essential function of the free port is to facilitate transshipment and reconsign- ment trade, and that manufacturing when permitted is a secondary purpose. The operations which are essential to the success of the free zone are those which are necessary to receive, store, and sort goods, and to prepare and repack them for distribution to various markets. The demands of various markets as to kind and grade or quantity of commodities differ, as do also their requirements as to packing. Full cargoes of certain commodities such as rice may be brought into a free port, and there cleaned, graded, and polished. The grades required for the home markets can be brought into customs territory, and the remainder shipped to other markets. The refining of sugar, washing and cleaning of wool, shelling and roasting of coffee, extrac- tion of vegetable oils, tanning of skins, canning of food products, and refining of edible oils are representative of the operations often per- mitted in free ports. At Copenhagen there is a proviso that no diffi- culties shall be offered to the manufacturer or sale of articles destined for export or for the provisioning of vessels. Goods entering customs territory from the free zone are generally subject to duties on the finished products which exceed the duty which would have been assessed on the raw materials. Hence, manu- facturing in the free zone is attractive only when the products are destined mainly for export. In manufactures where the raw materials are obtained wholly or almost wholly from abroad, the free port would offer advantages which might be sufficient to stimulate addi- tional exports in competition with foreign industries and without injury to domestic producers. The matter so greatly concerns the welfare of our industries, however, that it would appear to be advisable to withhold any general authorization for manufacturing in free zones. If, after careful investigation in cooperation with the business in- terests affected, it is found that a particular industry might be estab- lished in the free zones of the United States, under conditions which would avoid injury to establishments located within customs terri- tory, specific authority therefor should be given by Congress. Pend- Ing such investigations and authorizations, it would seem best to limit these activities within the free zone to packing, repacking, changing of containers, cleaning, sorting, grading, mixing and dividing, and similar operations which do not alter the nature of the commodity. 6. EFFECTS OF FREE PORTS OR FOREIGN TRADE ZONES ON MERCHANT MARINE AND SHIPPING IMMEDIATE ETFECTS OF ELIMINATING CUSTOMS FORMALITIES The elimination of customs formalities as applying to especially segregated zones for foreign trade would confer immediate advantages On the vessels engaged in this trade as well as on the cargo. The Immediate advantages to vessels may be briefly stated as follows: 68 FOREIGN TRADE ZONES It is important to bear in mind that a vessel is earning revenue only when in motion. The service which it performs consists of carrying goods from one place to another, and it is evident that the amount of cargo it can carry per year and its gross revenue are both directly affected by the number of trips it can make on a given route. Time in port is unproductive and should be reduced to the minimum necessary to discharge the vessel and take on new cargo, fuel, and supplies. Under existing customs rules, the master of a vessel carry- ing bonded merchandise or foreign merchandise for which entry has not been made must report its arrival at the customhouse within 24 hours (or as soon thereafter as official business hours will permit), unless the vessel has already been boarded by a duly authorized cus- toms official. If the vessel arrives after regular hours or on holidays, preliminary entry prior to formal entry may be made only by giving bond. In lieu of bond given on each application, a term bond may be accepted in the sum of $10,000 for bulk cargoes and $50,000 for general cargoes to cover vessels carrying such cargoes within one year from the date thereof. The master of the vessel must submit an inward foreign manifest. After this manifest has been sworn to by the master, the boarding officer checks the articles with the manifest and places under seal those which are not to be landed. Vessels arriving from foreign ports may retain on board without payment of duty coal and other fuel supplies, ships’ stores, sea stores and legitimate equipment. If any other, or greater quantity of sea stores, ships’ stores, bunker coal, or bunker oil is found on board than is specified in ship’s mani- fest, or if any such articles, whether shown on the manifest or not, are landed without a permit issued by the collector, all such articles omitted from the manifest or landed without a permit are subject to forfeiture, and the master will be liable to a penalty equal to the value of the articles. Tonnage tawes—A tonnage duty of 2 cents per net ton not to exceed in the aggregate 10 cents in any one year is imposed at each entry on all vessels which shall be entered in any port of the United States from any foreign port or place in North America, Central America, the Bahama Islands, the West Indies, the Bermuda Islands, Newfoundland, or the coast of South America bordering on the Caribbean Sea above and including the mouth of the Orinoco River, and regularly documented American, Norwegian, or Swedish vessels entering directly from Norway or Sweden with cargo obtained in Norway or/and Sweden; and a duty of 6 cents per net ton, not to exceed 30 cents per net ton per annum, is imposed at each entry on all vessels which are entered in any port of the United States from any other foreign port. Vessels are exempt from this tonnage duty when arriving otherwise than by sea from foreign ports at which. 2 { FOREIGN TRADE ZONES 69 tonnage or other equivalent taxes are not imposed on vessels of the United States. In addition to the regular tonnage dues, light money at the rate of 50 cents per net ton and an alien tonnage tax of the same amount are, with certain infrequent exceptions, imposed at each entry thereof into the ports of the United States upon vessels of countries with which the United States has no commercial treaty and upon vessels not exempted by presidential proclamation, except that upon foreign- owned vessels built in the United States the alien tonnage tax is 30 Cents per ton. An alien tonnage tax of 50 cents per ton is also imposed upon vessels of American registry carrying one or more foreign officers. As indicated by the rates shown above, the tonnage tax for a vessel of 5,000 net registered tons would ordinarily range from $100 to $500 in any one year on vessels from the countries first mentioned and from $300 to $1,500 per year for vessels in the second classifica~ tion. Where licht dues are applicable, these amounts would be increased by 50 cents per net registered ton for each entry and by 30 cents or 50 cents additional where alien tonnage dues are applicable. The tonnage tax is one of the expenses against the ship which has been eliminated at certain of the foreign free ports, notably those of Sweden. If the free port or foreign trade zone is to be regarded as outside the jurisdiction of all of our customs regulations, none of the charges indicated above would apply as they are imposed upon “entry into the ports of the United States.” If the word “port,” as used in the Customs Regulations, be confined to ports of entry, these charges as well as numerous other provisions of the customs regulations will not be applicable to foreign trade zones. The following shows the amounts paid for tonnage taxes by actual vessels entering American ports, as shown in the publication “Dues and Port Charges of the World”: Vessel of 4,776 net registered tons Vessel of 3,168 net registered tons Vessel of 2,335 net registered tons Vessel of 2,358 net registered tons Vessel of 2,248 net registered tons Vessel of 1,799 net registered tons Vessel of 2,410 net registered tons Vessel of 3,140 net registered tons Vessel of 2,140 net registered tons. Vessel of 2 440 net registered tons Tonnage tax paid $411. 42 287. 10 153. 24 140. 10 134. 88 107. 99 144. 60 188. 40 128. 40 113. 98 The average of the above charges is $180, which is representative of the charges applying on the ordinary cargo vessel entering our rts. b Landing and delivery of cargo—No merchandise, passengers, Or aggage may be unloaded from any vessel arriving at ports of the 70 FOREIGN TRADE ZONES United States from a foreign port or place until entry, preliminary or formal, has been made. At the time of making entry of his vessel at the customhouse, the master makes application for a permit to unload. No merchandise, baggage, or passengers from a foreign port, and no bonded merchandise or baggage transported from one port to another are permitted to be unloaded on Sunday, a holidsy, or at night except under special license granted by the comptroller. While longshoremen are entitled to time and a half for all work after hours and on Sundays and holidays, the additional cost thereby involved is usually fully justified by the reduction in time of the vessel in port. As a rule, however, due to the customs restrictions on unloading after hours and on Sundays and holidays, the dis- charging of cargo vessels is not undertaken at such times. There are many exceptions, of course, with respect to vessels of regular lines which have filed the necessary bonds. Customs officials keep close surveillance over the cargo from the time the boat is docked until the cargo has been delivered to consignee, placed in bonded warehouse, or approved for immediate transporte- tion in bond. No cargo may be discharged except in the presence of customs officials. Under the conditions prevailing, it frequently hap- pens that from 12 to 36 hours elapse from the time the ship arrives until discharge of import cargo actually commences. The necessity of inspecting cargo, both dutiable and free, before permitting its removal from the pier, or of sending it by bonded drays to customs warehouses or appraiser's store, contributes somewhat to the delay in unloading import cargo. This is especially true where the sheds do not have sufficient capacity to permit these operations to be carried on without blocking other traffic. At the narrow piers which have characterized the older developments in New York Harbor, and which are still used by many of the trans-Atlantic lines, congestion is un- avoidable. This congestion is chiefly attributable to the physical lay- out and inadequate capacity, but at that port as well as elsewhere the customs procedure contributes to the delay. Conditions differ so greatly at the various ports of the United States and at various times in the same port that it is impracticable to make a definite statement as to the saving of time which the elimi- nation of customs formalities would accomplish. For a cargo vessel of 3,000 to 5,000 net tons, it is believed that this saving insome cases might amount to as much as 48 hours, assuming that the vessel discharged all of her cargo in the free port. The saving in money obviously would vary with the type, size, and value of the ship, and the nature and amount of her cargo. Figures derived from records of the Ship- ping Board show that, including interest, depreciation and insurance, the cost of time in port, exclusive of port charges, stevedoring, and other expenses chargeable to the cargo, ranges from $279 to $559 per FOREIGN TRADE ZONES 71 day for freight vessels of from 3,300 to 13,000 deadweight tons. In the case of faster vessels of more modern type the expense might easily be twice that shown for vessels of similar tonnage, while for larger vessels such as the trans-Atlantic combination passenger and freight vessels they may easily run from $2,000 to $5,000 per day, and even higher. Port charges.—In the above statement of the immediate benefits to the ship no consideration has been given to the reduction of port charges. Many of the charges would be identical with those in cus- toms ports. On the other hand, the regulation of these charges would tend to prevent such exorbitant assessments as are sometimes found at our ports. Of the charges against vessels usually applying at our ports, dockage is the one most likely to be affected by the availability of foreign trade zones. Dockage is a charge against the ship for tying up or berthing at a wharf or pier. This charge varies considerably, not only at the ports themselves but at the various ter- minals within a port. Railroads ordinarily make no charge for dock- age of a vessel at their own terminals while such vessel is unloading or discharging cargo on which the rail carrier is to receive or has re- ceived a line haul. Public terminals and private terminals usually assess dockage charges as a legitimate and logical means of raising revenue to maintain the facilities. At certain ports charges are made against vessels for use of shedded piers in addition to those of ordinary dockage. For purposes of esti- mate, the charge of 2 cents per gross registered ton per day, as apply- ing at the Turner terminal at Mobile, Ala., may be taken as repre- sentative. For a vessel of 5,000 registered tons, or approximately 7,500 gross tons, this charge would amount to $150 per day. At New York, where the wharves are leased to private interests and the latter assess charges against shipping, dockage charges average from one- half cent to 5 cents per net ton. In the case of the vessel of 6,450 deadweight tons already referred to as studied by the port facilities commission the dockage charge for 11 days was $3,100, or an aver- ge of $281.82 per day. Having regard to the several items mentioned above affecting the cost of vessels in port, it will be seen that the saving of both time and out of pocket expense due to the convenience of the free port might be expected to result in savings on freight vessels of from $500 to $1,000 per trip. DISPATCH IN LOADING AND DISCHARGING VESSELS i sel One of the factors contributing to the success or ture re. {0 earn g profitable return is the promptness of her - i port, Vessels are earning only when in motion, and time sp 47068°—29..._g FOREIGN TRADE ZONES from whatever cause, reduces the annual cargo capacity and increases the cost per ton. The reduction of time and expense in port is one of the objects to be attained through the elimination of customs for- malities and the more expeditious loading and discharging of vessels in free ports as compared with customs ports. In the free port of Copenhagen it is found that, on an average, 25 tons of goods in sacks, 15 tons to 20 tons of miscellaneous merchandise, and approximately 15 tons of oil cake are discharged per hour and that from 1,200 to 1,400 tons of grain are discharged per day of eight hours. There are no figures available to make a comparison between the discharge capacity in the free port and the general harbor, but it is generally understood that the faster service obtains in the free port. At the free port of Malmo, where the most modern equipment for loading and unloading goods is available, quicker dispatch can be obtained than in the general harbor. The free port is equipped with nine traveling cranes of from 214 to 5 tons capacity, which are oper- ated by electricity. Six of these cranes are situated on the quay in front of and east of the warehouse. By means of these cranes goods can be discharged direct from the vessel to any of the floors or the basement of the warehouse. The other three cranes, each of 3 to 5 tons capacity, are erected on the quay, west of the warehouse, and are constructed for discharging cargo. Other facilities, such as hoists in the warehouse and weighing machines for wholesale quantities, contribute to quicker dispatch in the free harbor than in the customs harbor. On account of the up-to-date equipment at the free port of Stock- holm, vessels are loaded and unloaded there as fast or faster than at the other terminals of the harbor, giving a quick turn-around for ships. It is said that the ordinary time required for loading 1,000 tons of cargo in an ocean freighter is eight hours. The dispatch secured in loading and unloading vessels in the free harbor of Gothenburg is equal to that in the general or customs harbor. The free port of Hamburg takes a great deal of pride in its loading and unloading equipment. In the installation of such equipment the principle of combining the utmost possible speed in the handling of cargo with the provision of every safeguard for its protection against damage has been applied. The authorities at Hamburg have used every effort to eliminate all delays and no expense has been spared to keep the port abreast of the times in such development. There are 1,915 hoisting appliances available for transshipment purposes, 12 stationary heavy-lift cranes on shore, 916 traveling quay cranes on water side of quay sheds, 178 stationary cranes near quay sheds, 123 floating steam winches, 22 floating cranes, and many other cranes, float- ing coal and grain elevators in the free harbor. Statistics are not avail- 72 Ha oo pA rr— dA _— ™ Jl WR mi TOY DD Wi b= I =F OD rs Sno be nN mf a th SEE PORT OF COPENHAGEN. COAL ELEVATORS IN FREE FORT FOREIGN TRADE ZONES 73 able to show the comparative speed of loading and unloading vessels at Hamburg with the speed in other ports. However, it is believed that Hamburg handles goods more ext .ditiously than any other port in the world. _ The loading and unloading equipment at the free port of Bremen 18 designed to accomplish the greatest possible speed. By means of such modern equipment Bremen is able to handle consignments in bulk very quickly and accurately, and all ordinary or small consign- ments are also treated with dispatch. Even in times of difficulty, delays have not been experienced as these facilities are adequate to take care of existing traffic. Figures are not available from which to make a comparison of dispatch secured in loading and unloading vessels in the free harbor and in the customs harbor. The free port of Emden is equipped with the most modern devices for loading and unloading commodities thus enabling vessels to dis- patch their cargo in an expeditious manner. There are no available data to show the dispatch secured in loading and unloading vessels at the free port. The equipment for loading and unloading vessels in the free port of Flensburg is reported to be sufficient for the amount of business car- ried on at the present time. There are, however, no statistics avail- able for comparing the speed with which vessels are loaded or unloaded in the free harbor with the customs harbor. At the free port of Kiel vessels are loaded and unloaded as expedi- tiously as in the customs harbor. In the free port of Bremerhaven vessels are unloaded in a rapid manner. The average speed for discharging cargo from vessels is about 3,000 tons per day. All modern loading and unloading appli- ances are available and this port compares favorably with others in Germany in dispatching cargo. The free port of Stettin is equipped with the most modern loading and unloading facilities. The unloading of vessels in the free port of Cadiz is accomplished 8s rapidly as in the general harbor. The average rate of discharge 18 stated to be from 300 to 400 metric tons per day of eight hours. The equipment of the free deposit of Barcelona has been greatly im- Proved during the last two years, and there are now cranes, inclined Minways for motor vehicles, and other modern facilities for the handling of all classes of merchandise. There are no available statis- tics, however, from which to make a comparison of time spent by Vessels in loading and discharging cargoes in the free ports and in the Customs or general harbor. At Santander it is predicted that when the construction of the unloading facilities is completed, which will oo within the next two years, the operations will be performed more apidly than in the customs port. 74 FOREIGN TRADE ZONES Although there is no information available showing the dispatch secured in loading and discharging vessels in the free harbor of Almeria, yet it is believed that cargo is handled as quickly in the free zone as in the customs harbor. The free zones of Trieste, Porto Vittorio Emanuele ITI, and Porto Emanuele Filiberto Duca d’Acosta contain more modern facilities than are available in the customs harbor. The former has 87 cranes, 4 of which are of 3-ton capacity, while the others are of 114 tons capacity, but are now being strengthened to lift 2.5 tons. There are also 88 cargo lifts and 4 fixed hydraulic cranes fitted to the upper floors of the depots. At the Porto Emanuele Filiberto Duca d’Acosta there are 24 electrically driven cranes, 4 of which are of 3-ton capacity and 20 of 1.5 tons. There are 16 electric lifts fitted on depots. Statistics show that greater dispatch is secured in loading and unload- ing vessels in the free zones than in the customs port. There are no official figures to indicate the dispatch in the unload- ing of vessels at Fiume, but figures from unofficial sources indicate that vessels are discharged at an average rate of 500 tons per day. Loading and unloading operations are effected by means of 23 cranes of from L ton to 5 tons capacity. There are also electric lifts of from 1 to 15 ‘ons capacity, and one 40-ton floating crane. In the Greek free zone at Saloniki good dispatch is secured in load- ing and unloading vessels. It is reported that vessels are moored in the free zone with stern to quay, and are unloaded into lighters, the ship’s tackle being employed for all operations. Fifteen vessels can be loaded and unloaded simultaneously. Lighters and labor are availablein abundance. The crane equipment of the Greek free zone consists of one 15-ton crane, two 5-ton cranes, and five 2-ton cranes nperated by steam. At Sulina, Rumania, grain is transferred by floating elevators, capable of handling up to 120 tons per hour, and work can be contin- ned both day and night. THE LOAD FACTOR AT PORTS OF THE UNITED STATES In evidence of the lack of equilibrium in the tonnage of inbound and outbound cargoes of vessels engaged in foreign commerce with the United States, the following statistics of the commerce of certain of our principal ports during the calendar year 1927, prepared by the Bureau of Research, United States Shipping Board, are of interest: a of a “© acy Dy 18 8 AY -q, y 4 ~. {a i= hf 1g m 15 n= mn ne AN Te 16 ag 'S, a 1d th in We FOREIGN TRADE ZONES 75 1827 Per cent, mpor of ex- ports 927 Port Per cent, mports of ex- ports Port [ports | Exports [mports | Exports $2 ny New York, N. Y._.}i3,404, New Orleans, La] 4, 177, 355 Baltimore, Md... 1,452,413 Los Angeles, Calif. 510, 657 Buffalo, N. ¥...... 3681 624 Philadelphia, Pa... 2 541,000 an Francisco, Calif _____ i Houston, Tex. .... Boston, Mass__.... Norfolk, Va.___._._}| Jalveston, Tex..... Toledo, Ohio... Portland, Oreg,.___| Baton Rouge, La... Seattle, Wash_____.! Sandusky, Ohio... Fort aan Tex__ Uperior, Wis._...- Newport News, Va_ Charleston, 8. C... Mobile, Ala_.__....| Tacoma, Wash... Tampa, ‘Fla... 2.7] Duluth, Minn. .... Rochester, N. Y_._, Portland, Me... Savannah, Ga...... Long tons 1,434, 523 ", 520, 203 1,922, 194 5, 663, 401 1, 587, 467 “021. 335 17 119 232 9 232 199 3eaumont, Tex_._ detroit, Mich. __._. acksonville, Fla__. Tey West, Fla... Shieago, Il. ______. orain, Ohio. __._._ Julfport, Miss | Cleveland, Ohio__.. Fairport, Ohio. __. Pensacola, Fla..... Brie, Po. civ Texas City, Tex... Freeport, Tex ___.. Tscanaba, Mich___. Chester, Pa ...-...| Ashland, Wis__.___| Wilmington, Del___ Tverett, Wash. _.._ Dgdensburg, N.Y... Wilmington, N. C. Anacortes, Wash__. Bellingham, Wash. Olympia, Wash_... Port Angeles, Wash. __oeocuennni Brunswick, Ga....., Miami, Fla. ooonaa Long tons 6, 929 459, 404 326, 533 147, 867 80, 559 2,982 27,442 157, 842 137, 454 77, 339 232, 248 86, 427 54, 236 2, 846 223, 410 143, 734 195, 238 15, 622 193, 450 151, 662 113, 655 36, 685 1. 8R2 Long ton! 703, 545 125, 436 120, 716 269, 760 336, 819 92, 559 8, 940 216, 304 231, 805 48, 238 92, 028 219, 579 233, 530 83, 839 55, 145 98, 762 11, 565 186, 519 1, 990 32, 954 60, 920 98, 678 27.709 1 367 269 55 2 2, 268, 153 2. 606, 647 258, 160 1,909, 461 1, 843, 288 !, 863, 509 1, 644, 285 1, 069, 984 804, 399 1,099, 975 1,082, 579 -. 158,197 850, 664 357, 821 547, 047 586, 986 725, 673 783, 864 575, 534 154, 599 410. 140 38 E 8 75 “) 51 249 39 = 1 308 148 1,688 9 9,721 460 187 36 1 1 A I t t 21 118 “a 99, 567 56, 208 60. 380 28, 730 50, 877 15, 699 347 110 84 It will be seen that in a number of cases the exports were many times the imports, while at a few ports the reverse was true. The situation is really more unfavorable than these figures indicate, for the reason that in several cases the imports were made up of articles not obtainable in the countries to which the exports were destined, and vice versa. Under existing conditions vessels operating at ports of the United States, with the exception of New York and perhaps one or two Other major ports, find it difficult to obtain cargoes of the proper kind and in proper quantity for economical operation and profitable returns. Some ports have a superabundance of heavy cargo of small value, which must be carried at low cost in order to meet foreign Competition; but such ports are frequently lacking in the high-grade “Snails for topping out and for providing a remunerative haul. b few ports have an excessive quantity of high-class goods for export, ot are lacking in bulk and dead-weight cargo for making up full ds and providing a basis for regular and frequent sailings. Ves- oy! are usually obliged to enter several ports in order to make up a bo The cost of operation is heavily increased by such practices, ut under the prevailing conditions there is no alternative. Mig development of a substantial transshipment business would It - ein new cargo for ships, both inbound and outbound. ing Le 0 the load factor, especially on trade routes reach- hy Sra ler countries, which are sources of important raw materials ch do not now purchase sufficient American goods to give bal- 76 FOREIGN TRADE ZONES anced loading. The concentration of foreign goods in United States ports would enable our ships to secure more favorable cargoes to such countries. Among these are included the countries of Central and South America and the countries and provinces of the West Indies, the markets of which we should strive to develop more fully. INFLUENCE OF EUROPEAN FREE PORTS ON THEIR MERCHANT MARINE AND SHIPPING In connection with the study of free ports and the advisability of establishing such ports in the United States, consideration has been siven to the question of the influence which existing free ports of Europe have exercised on the merchant marine and shipping. In his report on the free port of Copenhagen, Consul General Marion Letcher expresses the view that although the tonnage of Danish ships has increased steadily during the 34 years of the exist- ence of the free port, the increase has been due in only a minor degree to the free port. The following is a quotation from his report: It is interesting to note, in regard to the question of Danish shipping, that statistics show that the actual number of Danish ships which entered the Copen- hagen Harbor decreased between 1900 and 1922 (the last year for which the statistics are stated), the total number in the first year mentioned being 13,274 and in the latter 10,936. The loss in numbers, however, was offset by an increase in tonnage, the figures being 2,146 thousand tons against 2,527, respectively. The foreign ships entering the harbor also decreased from 7,760 to 4,727, but with increasing tonnage, the figures being 1,196 thousand tons against 1,236. Of the 4,727 foreign vessels which entered the harbor in 1922, 2,838 were Swedish, 281 Norwegian, 858 German, 244 Dutch, 179 English, 241 Finnish, 38 American, and 53 of other nationalities. The figures stated do not include the ferry boats operating between the free port and Malmo, Sweden. Statistics showing the number of ships and the tonnage (net reg- stered) which entered the general harbor and free port, respectively, reveal that in 1910, 16,003 ships of 2,763 tons entered the general harbor, while 2,196 ships of 1,329 tons entered the free port. In 1925 15,637 ships of 3,622 tons entered the general harbor as against 1,757 ships of 1,271 tons for the free port, and in 1926, 16,660 ships entered the general harbor of 3,854 tons, while 1,730 ships of 1,351 tons entered the free port. The year 1927 shows that 16,922 ships came into the general harbor of 4,064 tons as compared with 1,726 ships of 1,471 tons in the free port. Consul R. A. Bornstein points out that the free port of Malmo can hardly be said to have exercised any notable influence on the devel- opment of the merchant marine. He states that: The established trade routes and business practices are difficult to change, and establishment of the local free port can not be said to have diverted any con- siderable portion of the Scandinavian and Baltic transshipment trade from the Danish capital, which for many years has been regarded as the natural entrepdt for Scandinavia by foreign business men. vies to oral Test ly. INE r of een . of eral of ist- ree ‘hat oen- the 274 ease rely. but 236. lish, can, oats reg- ely, eral 925 757 wed ons Ame MDS OT wvol- Ange, non- 1: the andt FOREIGN TRADE ZONES 77 However, vessel statistics show that for 1923 there were 95 ships berthing at the free port, increasing in 1924 to 200 vessels, and in 1927 there were 209 using the free port. Consul General John Ball Osborne, in his report on the free port of Stockholm, states that the Swedish merchant marine has shown a steady growth during the last few years, but that it can not be said that the opening of the Stockholm free port has exercised any direct influence in this direction. Statistics, however, reveal that the num- ber of vessels using the free port in 1921 were 276, with 105,124 tons, as compared with 508, with 223,812 tons, in 1923. In 1926 there were 878 vessels, with 349,659 tons, while in 1927 there were 983, with 448,658 tons. It is stated by Consul H. C. Von Struve, in his report on the free port of Gothenburg, that although there has been a considerable expansion of the Swedish merchant marine during the last few years, it has not been due to the free port, but to other causes. Statistics accom- Panying the report, giving the total number of vessels and the tonnage (net registered) which entered and cleared the free port, show that during the year 1923 there were 2,155 vessels of 1,646,746 tons, while In 1925 there were 2,823 vessels of 2,147,555 tons, as against 3,632 Tessels of 2,565,445 tons in 1927. Consul General G. Bie Ravndal states, in his report on the free port of Hamburg, that the existence of the free harbor has not directly assisted in the development of Germany’s merchant marine, though its influence in increasing shipping has indirectly had an enormous effect in this direction. Consul Leslie E. Reed, in reporting on the free port of Bremen, holds the view that the enormous business of the port is probably due in a large degree to the freedom of Bremen from all customs tariffs before 1884 and the prompt establishment of a free port upon the entry of Bremen in the Customs Union in 1888. He further states that the Bremen steamship companies, particularly the North German Loyd, have not only benefited from the free port, but it has been WMstrumental in the establishment of these companies and influential ‘tt their operation. According to Consul Reed’s report, the influence of the free port of Emden on the development of its merchant marine is not so pro- Dounced as in the case of Bremen. This, he states, is due to the general tendency of the centralization of large steamship organiza- tions in important cities such as Hamburg and Bremen. In the reports received on the free ports of Flensburg, Kiel, and Cuxhaven, it is stated that the free harbors have had no important fluence on the development of the merchant marine. Vice Consul Augustus Ostertag states that the free port of Bremer- haven has had a marked influence on the development of the mer- 78 FOREIGN TRADE ZONES chant marine and shipping. Statistics giving the net registered tonnage of vessels entering the free port show that there was an increase from 1,500,000 tons in 1921 to 2,700,000 tons in 1926. The influence of the free port of Stettin on the merchant marine is not believed by Vice Consul Harry L. Franklin to have been of considerable importance. The Spanish free ports of Cadiz, Barcelona, Santander, Almeria, and Bilbao are reported to have exerted very little influence on the merchant marine. The free port of Cadiz serves chiefly as a source of steamer’s provisions and supplies, and, while a majority of the vessels calling are of Spanish registry, it can not be said to have been of any importance in the development of the Spanish merchant marine. Vice Consul Howard A. Bowman, in his report on the free port of Trieste, states that the institution of free zones at the ports of Trieste and Fiume has encouraged the establishment of regular steamship lines to Greece, Turkey, the Danube, Russian Black Sea ports, and, after the opening of the Suez Canal in 1869, to India and the Far East. He states that the existence of the free zones is vital to these shipping lines, as they could not thrive without a regular flow of traffic sufficient to maintain the lines in operation. The reports on the free ports of Genoa and Leghorn indicate that these free ports have not influenced the development of the Italian merchant marine to any marked extent. It is the opinion of Consul General H. P. Starrett that the free zone at Genoa has probably influenced the entry of certain items into the trade of the port as a whole. Consul K. de G. MacVitty believes that the privilege of importing raw materials free of duty, which is accorded local manu- facturers at Leghorn, for use in the production of goods destined for foreign markets, has facilitated and enhanced to a considerable extent the foreign trade from this district. In reporting on the free zones of Saloniki, Consul Charles J. Pisar states that: With the expansion of the transit trade through the free zone of Saloniki there will undoubtedly be an increase in the number of vessels using this port. At the present time the trade of this port is served by the vessels of many nations, some of which operate in regular services and others in tramp services. Vessel and tonnage statistics of this port show that during the year 1927, 1,540 ships unloaded 424,486 tons of foreign cargo and loaded 16,169 tons for foreign destinations. It is obvious that any general increase in the foreign trade of a port carries with it an increase in the number of vessels calling. The extent and frequency of vessel service are determined by cargo offerings, and the successful operation of ships is directly affected by the amount and character of cargo which can be procured. Un- FOREIGN TRADE ZONES 79 red an rine 1 of ria, the ree the ave tant f, of aste ship «nd, Far 1080 r of hat lian 1sul bly 1S a y of au- for ant RAT niki ort ons, ear ded less the increase in traffic be wholly absorbed by foreign lines, the merchant marine of the home country should be benefited. In coun- tries which are largely dependent upon other countries for the trans- portation of their foreign commerce, or which do not have an excess of vessel space to take care of increased business, the free port, even where instrumental in developing new trade, might not exercise a Pronounced influence upon the merchant marine. These conditions do not prevail in the United States. The United States Shipping Board was created by an act of Congress approved September 7, 1916, entitled “An act to establish a United States Shipping Board for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a merchant marine to meet the requirements of the commerce of the United States with Us territories and possessions and with foreign countries; to regulate carriers by water engaged in the foreign and interstate commerce of the United States; and for other purposes.” The act of June 5, 1920, known as the merchant marine act, sets forth the policies to be followed by the board in its administration of the merchant marine, nn the following language: . That it is necessary for the national defense and for the proper growth of its foreign and domestic commerce that the United States shall have a merchant Marine of the best equipped and most suitable type of vessels, sufficient to carry the greater portion of its commerce and serve as a naval or military auxiliary Ih time of national emergency, ultimately to be ‘owned and operated privately by citizens of the United States ; and it is hereby declared to be the policy of the United States to do whatever may be necessary to develop and encourage the maintenance of such a merchant marine. The question of the establishment of free ports in this country is one directly affecting the maintenance and operation of our mer- chant marine. We are seeking to expand our foreign trade and to bring about conditions which will permit the successful operation of our ships, It has been necessary for us to maintain service on some toutes which to-day do not offer enough cargo to return a profit to the operator. On other routes the load factor is unfavorable, and on still others we have been unable to secure a proper share of the trade, Particularly do we need to attract a larger share of the high- Pay commodities and the more valuable basic materials, such as those which have for many years filled the warehouses of London and Hamburg. Free ports properly located and properly designed {0 permit the most efficient handling, loading, and unloading of vessels should aid in the fulfillment of these basic needs. fa ng. TZO ted T= 7. CONCLUSIONS _ As a result of a study of all available information, the conclusion 18 reached that free ports have aided the development of commerce and merchant shipping in a large number of countries where now established. Especially has this been true of the free ports of northern Europe, located at great centers of population, politically divided, Where free ports have operated as entrepéts or centers for trans- shipment to nearby countries. As the geographical position of the United States is not analagous to that of the countries of northern Europe, this condition favorable to free ports does not exist to the same extent. There is no doubt that free ports, properly located in this country, would have some influence in developing our commerce and our ports by stimulating international trade of a character in which the country has heretofore taken rather an inconspicuous part. This refers particularly to the development of important consign- ment markets and trade emporia for the accumulation and redistribu- tion of goods essentially of foreign origin. The free port or zone is Merely a device calculated to permit the conduct of international trade of this character in countries having high protective tariffs With the same facility with which such trade is conducted in countries having low or limited tariff schedules. In our country the protec- tive tariff has made possible a higher standard of living than prevails in other countries. Our concern should be to see that in providing means for promoting international trade we do not at the same time permit any operations in free zones, if established, which might injuriously affect any of the privileges and benefits which our tariff system has conferred upon labor and industry in the United States. For these reasons it is believed that until such time as careful inves- tigations have been made, in cooperation with every industry affected, the functions of free ports if authorized in the United States should be limited to the receipt, storage, unpacking, repacking, recondition- Ing, sorting, grading, mixing and dividing of commodities, or other Manipulations which do not involve a change in the form of the Commodity. After adequate investigation and specific approval in Bach case by Congress, the permissible activities might be extended to include refining of certain products and certain classes of manu- tactures. Some of the bills introduced during the last few years with refer- 8nce to the establishment of free ports have contemplated that authority be granted public corporations in all cases where the speci- fied requirements are met. There is apparently no sound reason for authorizing free ports so indiscriminately as these bills would permit. 2 32 FOREIGN TRADE ZONES The experience in Europe indicates that an excessive number of com- peting free ports in the same general trade area tends to defeat the purpose for which they are designed. On the other hand, there may be areas where it would be desirable to authorize more than one free zone within the same port of entry, which would not be permissible ander the terms of some of the bills heretofore introduced. For these reasons it is felt that the best procedure with relation to the estab- lishment of free ports, if Congress authorizes them, would be one similar to that now followed in connection with the adoption of channel improvements at our harbors. Under this plan, Congress might call for examinations to be conducted by the Bureau of Oper- etions, U. S. Shipping Board, and Board of Engineers for Rivers and Harbors, War Department, of specified localities with a view to the establishment of free ports or foreign trade zones therein. Such examinations should include an exhaustive investigation of the navi- gation and terminal facilities; the position of the port as an outlet for exports and as a port for the receipt and distribution of imports; its advantages or disadvantages with respect to the concentration of products of foreign origin and their redistribution to other coun- tries; its relation to the established trade routes of the United States; and its influence in attracting more cargo to American ships; the rail and highway communications; and the suitability of the loca- tion for proper coordination of rail and water routes, In brief, the investigation, which should precede the authorization or establishment of a free port, should not differ materially from the port and trans- portation investigations which the Corps of Engineers and the United States Shipping Board have made, in connection with the functions devolving upon these establishments. Attention is particularly invited to section 8 of the merchant marine act of June 5, 1920, which authorizes the Shipping Board, in coopera- tion with the War Department, to undertake certain specified func- tions with the object of promoting, encouraging, and developing ports and transportation facilities in connection with water cominerce, The following is quoted from this act: That it shall be the duty of the board, in cooperation with the Secretary of War, with the object of promoting, encouraging, and developing ports and transportation facilities in connection with water commerce over which it has jurisdiction, to investigate territorial regions and zones tributary to such ports, taking into consideration the economies of transportation by rail, water, and highway, and the natural direction of the flow of commerce; to investigate the causes of the congestion of commerce at ports and the remedies applicable thereto; to investigate the subject of water terminals, including the necessary docks, warehouses, apparatus, equipment, and appliances in connection therewith, with a view to devising and suggesting the types most appropriate for different loca- tions and for the most expeditious and economical transfer or interchange of passengers or property between carriers by water and carriers by rail: to advise FOREIGN TRADE ZONES 83 0m- , the may free sible ‘hese itab- one a of ress per- and the such i avi- itlet arts; tion yun- tes; the oca~ the ent 118~ the the with communities regarding the appropriate location and plan of construction of wharves, piers, and water terminals; to investigate the practicability and advantages of harbor, river, and port improvements in connection with foreign and coastwise trade; and to investigate any other matter that may tend to pro- Wote and encourage the use by vessels of ports adequate to care for the freight which would naturally pass through such ports; * * * It will be seen that the above item requires the Shipping Board and War Department to conduct investigations quite similar in nature and scope to those which should precede the authorization of a free port. These Federal establishments have jointly conducted extensive investigations of port and shipping conditions, the results of which have been made available in a series of 22 volumes known as the Port Series and in the volumes of the Transportation Series and Miscellaneous Series. The free port is essentially a maritime insti- tution. It has its economic cornerstone in the load factor, and its proper location is at the crossroads of shipping lanes. If Congress determines that free ports should be established, not only their loca- tion but the planning and facilities should be properly coordinated with our trade routes, in order that the raw products of foreign Nations may be brought to our shores and the portions unsuited to or not required for our consumption may be redistributed to other countries. ‘These operations demand the intelligent articulation of land and water transportation routes as related to the most advan- tageous use and distribution of the world’s products. The problems involved are so closely related to the merchant marine and to the development of navigation and terminal facilities that none of them should be considered independently of its bearing upon these important subjects. ‘Ine ATa~ .ne- rts -I'Ce. vy of and nas rts, and the ito; cks, vith ca of ize Part 2 THE FREE PORTS OF EUROPE In connection with consideration of the probable effect of the establishment of free ports in the United States on commerce, ship- ping, and port development, it was considered desirable to have full information regarding the free ports of Europe and their rela- tionship to the commerce and industries of the countries to which they pertain. Examination of available data with respect to the free ports of Europe disclosed the absence of information of the nature required to properly understand the situation. The coopera- tion of the State Department was therefore sought with a view to obtaining from consular officers abroad reports covering the ques- tions upon which available information was considered inadequate. To secure uniformity of treatment in the reports of consular officers, a standard outline was furnished. The reports of consular officers submitted in response to this request have been of inestimable value to the War Departmént and the Shipping Board as affording new light on conditions at European ports and giving a basis of experience on which to predicate opinions as to the probable effect of the establishment of free ports in the United States.” These reports, and other data of interest to this study, are published in the following pages. THE COPENHAGEN FREE PORT [From Marion Letcher, American consul general, Copenhagen, Denmark]; History. —The Copenhagen Free Port Co. (Ltd.) was founded July 7, 1894, for the purpose of building, organizing, and operating a free port in accordance with the terms of the charter granted April 27, 1892, under the enabling act of the Danish Parliament passed March 31, 1891. Construction was commenced immediately after, and the free port was opened up to traffic on November 9, 1894. The actual construction work was carried out by the Copenhagen harbor board under an agreement with the corporation, the expense of the basins and the necessary quays being borne by the first named and that of the equipment by the latter. Description.—The free port occupies the northerly part of the har- bor of Copenhagen and * * * is particularly well situated with reference to overseas as well as the bulk of the Baltic shipping. The southernmost part of the general harbor is used largely by smaller pm fe Emi at Bw SY oe 25 B50 3 PEER 9B ds BE g0 5 AR IMENT or Oo Le = El WwW & = 7 Aw =. © — EEE eo BE Hoo Bose Been 8 EL er no wn BS an Fo ege Toe dob .__U.S. SHIPPING BOARD FREEPORT OF COPENHAGEN DENMARK SUBMITTED! unl (2 oF well INVESTIGATION Sho La ooo OF ENBINEERS JESIDENT MEMBER, BOARD OF NGINEERE FOR RIVERS AND \RBOAS, ACTING ‘DIREOTOR BUREAU OF OPERITONS. PRLON at DRAWN BY HYVER ee XO m7 FREE PORT OF COPENHAGEN 85 vessels in the domestic trade, the bay southward being too shallow for large seagoing craft. Vessels which visit the free port and there- after proceed to Baltic ports or the Kiel Canal round the small island of Amager and follow the Drogden Channel which parallels the east coast of that island until the deeper waters of the Baltic are reached. The total land area of the free port is 128 acres, and the water area 82.5 acres. There are five basins with piers running their full length appropri- ately equipped with cranes for loading and discharging vessels and skirted by railroad tracks. A sixth basin, representing the northern- most extension of the free port, was constructed just after the war to take care of the increased traffic which it was believed would flow to Copenhagen after the settling of Europe to a peace basis, but the ex- Pectations which gave rise to its creation were not realized, and this basin remains unequipped and not even inclosed in the free port. The total length of the piers in use is 5,220 yards. The docks are paralleled by railroad tracks and goods may be transferred to cars either direct from the holds of vessels, or from the warehouses which lie adjacent. The depths of the different basins and the length of the piers adjacent are as follows: Name East Basin... West Basin ___ IIIT Middle Basin __T1TTTTTTTTTT Depth Feet 30 26 26 Length of piers Yards 1,295.7 1,004. € 615.7 Name North Roadstead. ooo ooomnae-. Kronelgbs Basin ..o...o..._.__. Yew Basin... Depth Feet 26 31.2 29 | Length of piers Yards 1,000. 1 1,007.6 The hoisting equipment consists of 40 electric cranes having from 13% to 214 metric tons capacity, 7 steam cranes, one 20-ton crane, 4 Pheumatic grain tubes, 3 grain elevators, and 7 coal elevators, and in addition the general harbor authorities have a floating crane of a Capacity of 50 tons which is always readily available for use in the freq port. The warehouses are equipped with numerous freight Elevators for distributing goods to the upper floors. One series of Warehouses has galleries running their length along and over the Quays to which cargoes can be delivered from and to the holds of Vessels and thence by hand trucks to the second and third stories. The elevators and the pneumatic tubes on the outside of the older Brain silo, working together in discharging grain from the same ship, have a capacity of from 1,200 to 1,400 tons per working day of tight hours, while approximately 100 tons per hour can be discharged from another ship moored on the opposite side. 36 FOREIGN TRADE ZONES The warehouses, some 40 in number exclusive of the two grain silos, have a total floor space of approximately 200,000 square meters. The silos have a capacity of 11,000 metric tons each. One building, having a floor space of 8,000 square meters, is devoted to office pur- poses and in addition a number of private concerns own their own buildings erected on ground leased from the corporation. The num- ber of these is around 100. The personnel connected with concerns operating in the free port numbers around 600. The tracks of the national Danish railway lines run into the free port and freight may be shipped to or delivered from any part of the continent, including Sweden, which is reached by a ferry linking to Malmo, on the opposite side of the Oresund (Sound), and all domestic points are reached by either the national or private lines. The ferry also carries passenger trains uniting Stockholm with western and central Europe through Hamburg and Berlin. The free port has its own electric power plant, whick supplies power for cranes and light. In addition, a number of incidental conven- iences, such as banking, postal and telegraph facilities, are offered patrons. ddmainistration.—The corporation exercises the powers granted under its charter through a board of directors consisting of seven members and operations are directed by a general manager assisted by a chief engineer. The general regulations governing operations are set forth in the rules for the administration of the free port promulgated by the Ministry of Public Works under date of October 19, 1894, * * #: The customs authorities exercise control over the exits from and entrances to the free port both by land and water, and as the area is inclosed by a high iron fence on the land side no necessity exists for regular patrol service during the day. The gates are closed to traffic at night time but a vigilant watch is maintained both on the water and land sides to prevent smuggling during the night. The free port itself maintains a night watch service consisting of eight men, but this service has to do with the security of goods within the free port and protection against fire rather than with the prevention of smuggling operations, although it naturally cooperates with the customs authorities in the respect last named. Operations permitted and prohibited in the free port.—General limi- tations as to permissible operations within the free port are set forth in article 19 of the concession,® but these were actually established by a law bearing the same date as the original enabling act. Under the article stated the establishment of power factories for the manu- facture of artificial manures, or margarine, is forbidden, as are also the printing of books, newspapers or music, and bookbinding, without 18ee p. 108, ep———— grain neters. ilding, € pur- r owl num- ncerns ie free of the ing to nestic ferry 1 and Dower nven- Fered anted seven sisted n the 7 the * 1 and ares exists ed to n the The eight n the ntion the {imi- orth ished nder anu- also noub FREE PORT OF COPENHAGEN. GRAIN SILO SHOWING LIFTING EQUIPMENT ON ONE. SIDE FREE PORT OF COPENHAGEN 87 Li 2 3 3 4 3 5 - 1, special legislative authority. - Under the same article the Secretary of the Interior (Ministry for Home Affairs) is empowered to license any other form of activity, including retail stores, with the special Proviso that no difficulties shall be offered to the manufacture or sale of articles destined for export or for the provisioning of vessels. Up to the present date, however, no manufacturing operations in the free port have been undertaken, nor have any retail stores been established. Dispatch in unloading vessels.—On an average, 25 tons of goods in sacks, 15 to 20 tons of miscellaneous merchandise, and approxi- Mately 15 tons of oil cake are discharged per hour. Grain is dis- charged at the rate of from 1,200 to 1,400 tons per day of eight hours, No figures are available on which comparison between the discharge capacity in the free port and in the general harbor could be based, but, generally speaking, it may be said that faster service Prevails in the former than in the latter. The inner harbor has 26 coal cranes with a capacity of from 30 to 80 tons per hour and there &re 3 privately owned grain elevators with a working capacity of from 20 to 60 tons per hour. Reconsignment irade.—Understanding the meaning of this term t be the distribution of foreign goods billed to-an agent, jobber, or Wholesaler in the free port through subsequent consignment in hulk or otherwise to subagents or buyers in Denmark or abroad, there appears to be no statistics available by which trade of this cate- Bory might be distinguished from goods entering into the trans- shipment trade. There are about a hundred privately owned warehouses built on leased land in the free port, others rent space in the free port ware- houses, while still others handle the distribution of foreign wares, Whether to domestic buyers or buyers abroad, in a casual way, that 8, through immediate withdrawal, or through storage in the general Warehouses of the free port as circumstances require. It is to be Noted, however, that in the case of wholesalers or jobbers doing Purely a domestic business no advantages are gained by use of the freq port and foreign goods consigned to such are commonly dis- Charged in the general harbor. If the goods they have ordered abroad form part of a general cargo discharged in the free port they are Sherally transferred to the owners’ warehouses within the city Sther direct from the ship or within the period of free storage per- Mutted, that is to say, two weeks. Transshipment trade —While exact figures of the transit trade are Dot available, official statistics on the subject not being distinguished from the total of exports cleared from and through the free port, the approximate present volume is 100,000 metric tons. Compared 47068°—92qg___ = 38 FOREIGN TRADE ZONES with pre-war conditions there has been a decrease of about one-third, due to the economic collapse of Russia, the lowered purchasing capacity of the States of the Baltic rand and the other causes stated hereinafter. a Much of the transit trade consists of general cargo and includes & variety of articles of merchandise of foreign manufacture or produc- tion. The statistics for 1926 show that about one-half of the esti- mated tonnage of the transit trade was made up of the following articles of non-Danish production in the approximate amounts stated : Tons 29, 000 8, 000 5, 500 4, 500 3, 000 The foregoing statement disregards the coal and fuel oil credited to free-port exports, as the statistics of these items undoubtedly include and probably consist wholly of fuel supplies of vessels which have bunkered in the free port during the year. Manufacturing in free zone.—Although under the charter of the corporation all kinds of manufacturing may be carried on in the free port subject to permission previously obtained from the Secretary of the Interior, except in respect to those particularly prohibited under article 19 as referred to above, no activities to this kind have yet been established. Shipbuilding and ship repair in free zone.—There are no facilities of this kind in the free port but excellent facilities are offered in ship- yards in the vicinity, particularly in the establishment of Burmeister and Wain, the largest of its kind in Denmark, located immediately across the main harbor channel, about three-quarters of a mile distant. Influence of free port on the development of foreign trade.—Undoubt- edly Danish merchants have profited to a certain extent from the transshipment of foreign goods to the Baltic States, particularly those on the south, but this trade has not developed in accordance with expectations entertained during and immediately following the war. In the first place, the easy accessibility to Baltic ports of small vessels carrying full cargoes from the ports of Northern Europe and the rail facilities offered from Central Europe, leave no occasion for the use of larger vessels which would break cargo at Copenhagen. The nearness of the free port of Hamburg, which has easy access to the Baltic through the Kiel Canal, the recent establishment of a free port at Malmo, Sweden, just across the sound from Copenhagen, rail connection between Sweden and Central Europe by steam ferry FREE PORT OF COPENHAGEN 89 “1rd v sing ated log 8 duc- aati ving ants l'ons 000 000 500 500 .. 000 ited edly hich she Teo .ary ited 18Ve ag of hip- ister sbely Tile ibt- the arly nee the mall and for zen. 5 to free gen, arry between Sassnitz, Germany, and Traelleborg, Sweden, the accessi- sility of Central Europe to the Baltic through Stettin, Danzig, and Koenigsberg, and the easy accessibility to the Baltic of light French and English craft, are factors of such importance as almost to dispose ’f the advantages of using the Copenhagen free port as an entrep6t for the distribution of European goods. The United States is thus eft as practically the only manufacturing country of capital rela- lonship to foreign trade which could advantageously use the Copen- lagen free port, but the postwar establishment of a direct freight service between American and Baltic ports and the maintenance by 3 Danish line of a similar service through Danzig, have greatly reduced the profits derivable from this source. The postwar develop- Tents in Russia have likewise greatly affected the Copenhagen free Jort’s expansion. Influence of free port on the development of the Danish merchant marine.~—~While the tonnage of Danish ships has steadily increased n the 34 years since the Copenhagen free port was established, it is 10t believed that the increase has been due in more than a minor degree to the free port. Speaking generally, Danish tonnage is “ployed either in the general carrying trade abroad or in the lelivery of goods from foreign ports for Danish consumption, and the transshipment of parts of cargoes discharged along with Danish Teight, in the free port is but an incidental part of the traffic. The transshipment trade, especially in so far as general merchandise is *oncerned, is more apt to be shared in by foreign ships than is the delivery of products for exclusive home consumption such as grain, foodstufls, mineral fuels, and fertilizers. It is to be observed, inci- lentally, that an appreciable amount of the materials just mentioned each Denmark through transshipment at Hamburg. It is interesting to note in regard to the question of Danish shipping, that statistics show that the actual number of Danish ships which tered the Copenhagen Harbor decreased between 1900 and 1922 (the last year for which the statistics are stated) the total number in the rst year mentioned being 13,274 and in the latter 10,936. The loss QU numbers, however, was offset by an increase in tonnage, the figures deing 2,146,000 tons against 2,527,000, respectively. The foreign hips entering the harbor also decreased from 7,760 to 4,727, but Mth increased tonnage, the figures being 1,196,000 tons against 1,236,000. Of the 4,727 foreign vessels which entered the harbor in 1922, 2,838 were Swedish, 281 Norwegian, 858 German, 244 Dutch, 179 English, 241 Finnish, 33 American, and 53 of other nationalities. The figures stated do not include the ferry boats operating between ‘he free port and Malmo, Sweden. . The following table represents the number of ships and the tonnage Wet registered) thereof, which entered the general harbor and the 30 FOREIGN TRADE ZONES free port, respectively, at 5-year intervals between 1900 and 1925, and in the vears 1926 and 1927. Vagp ND co A eS Bn 0 A Vm _. mee General harbor Number Tonnage 18, 740 1€, 016 . “6, 003 Ww 18,499 © 13, 364 5 15,637 | {en 16, 660 2 854 16, 922 4, 064 Thous. md 2 65° Free port Number | Tonnage Thousands 2,204 685 2,127 1,048 196 1,329 1,973 1,047 1,825 964 1,757 | 1,271 1,730 1,351 1,726 1,471 Statistics covering growth of commerce and shipping in free port, etc.—The number and tonnage of vessels entering the free port in the period from 1900 to 1927 are given in the preceding table. The table following shows the tonnage (metric) of foreign mer- chandise, which was discharged in the free port, and of shipments abroad of merchandise undistinguished as to origin, that is, partly domestic and partly foreign, from the free port, in the years 1917 to 1926, inclusive, the merchandise in both cases being distributed into 25 groups corresponding to those used in statistical records at hand, * * * Sg ~~ by le fo Sc E=odBE = 8 1 feo oa °c EEEEE 8 | BhhsBitsd Ted bk bd 3 wa] SO CO OF nD bo) [All units metric tons, with the exception of animals] Live animals (head) ........____.___ Animal food products. _____......._..____. p— (rain and grain products. ____._____...._____ Si Seed: Fodderstuffs....____.. .. RAR A Rn Garden products: Fruits. . EE YOCEIIeS . - o oeeo ooo. i Beverage, including alcoholic beverages __. ecccce——— Spinning material o.oo... ._._______ eee Yarn: Cordage..... en pm Dry goods. _. RR CIOthing. oo Skins, hair, feathers, bone, and manufactures thereof ______._.___._______. Tallow, oil, rubber, rosin, ete... ______ Lumber and products thereof... ____...___ —— Plantstuffs___________________ mmm Paper and products thereof __________ A ceccc—————— Other manufactures of plantstuffs_....___________._. __________ 77" """ Chemical-technical articles..........._._.. _.. ...__._____. _________. Minerals and products thereof ____. a {ron snd products thereof. __...._____. A E Other metals and products thereof ______.__. ._.______. wena Other unspecified metals. _..._..._._____.____ lo... Cars, automobiles, machinery, instruments. _. Other produets_ ..._____......._._____.__. Shipments, contents unknown... ______ Total. _____ | Imports 1,433 104, 693 28, 084 8,759 19, 571 3, 682 1,053 1,853 1,656 12 1,065 18, 799 13, 574 12,128 17.136 3 26, 180 218, 749 35, 593 5 ED 9,824 822 145 696. 577 1017 G18 Exports Imports | Exports Imports 3 24 § reupnpey 2,021 705 3,640 43,022 3,143 3,742 2,573 | 114,482 269 906 470 14, 493 3,601 2,279 7,766 34, 104 5,846 5 840 1,507 | 823339 3,832 9% 837 6,471 851 211 150 4,536 8 456 6 5,199 559 663 3® 10,843 19 6 . em 311 304 392 5,624 1,443 5, 408 408 60,114 18,973 23,508 | %8) 220 442 2, 267 495 | 40,848 841 10, 941 114 11, 210 ——— 95 enn. 305 527 19,710 1,077 41,282 59,090 257,468 34,150 307, 562 9,151 i 58, 602 10,389 1 46,00¢ 254 1,756 38 10,73 Clemo 34 13 45¢ 3,35 , 3,047 3,137 = 681 2,387 1,450 - 200 210 43 145,187 | 400,631 74.838 ' 881.671 1019 920 1921 Exports Imports ' Exports Imports | Exports 8 3 19,029 27,876 195, 216 21, 735 48, 140 5,073 32, 218 4,125 31, 653 7,753 L722 2,073 2, 964 2,982 2, 565 106 ¢, 28° 1,408 H= oom 2, 80¢ 6,950 10, 820 15,351 6, 532 3,82 20, 315 3,106 12, 396 2, 549 217 4 23,110 1,997 359, 843 84,806 43, 164 6, 694 4,313 2,005 10,8251 5 830 1, 45 1, 031 504 387 208,800 | 858,353 | 210,276 | 884,600 | 207.677 P = 2 O jt. [All units metric tons, with the exception of animals] 1922 1923 Imports | Exports Imports | Exports Ave animals (head). ooo como Animal food products_______.. meee drain and grain products. ooo eed: Fodderstuffs___. SeEEE—— Garden products: Fruits... BRR FE OREIO8 cv sw i i ER SR A EA Ea leverage, including alcoholic beverages. __._.. a pinning material. cco ccoioaiianianaa. RRS varn: Cordage... _____._.__ mca Ory 200dS. acme. emer ———— Clothing. mm manmn 3kins, hair, feathers, bone, and manufactures thereof ___________ Tallow, oil, rubber, rosin, ete. . ooo. umber and products thereof. _ ae anteater ae SERRE RA GR Ss 2aper and products thereof __________._____... Other manufactures of plantstuffs. __._.___._.o____._._. Chemical-technical articles... ooceoooooo_ . ee Minerals and products thereof... JE Ton and products thereof... essen Bre tesems Other metals and products thereof... aiaaos Cars, automobiles, machinery, instruments ____.____________._____. Dither Produots. «.oevrvsi sme ssassnrnss PERE Shipments, contents unknown.. - 16, 818 '62, 742 43,841 24, 649 57, 261 = 855 1, 141 1,331 5 940 3,252 31,343 6, 198 25, 910 15, 577 163 21, 381 103, 731 56, 733 7,618 8,87 3,¢01 871 Is 20 2, 743 4°22 2,26 6, 598 .2, 146 251, 647 300, 892 45,292 62, 545 2,846 5,636 4,480 B. RAD 2a, 706 36, 407 42, 217 7,412 7,406 2,153 1,695 254 L 183 ” 225 “Rg 8,004 10,433 3,669 2,113 3, 420 7,023 69, 833 12, 560 23, 610 14, 05% 3. 29,33 99, 97% r= 4, 975 15,230 1,832 3,740 £421 1,627 Aa 3,712 31, 431 2,647 1, 062 * re 5 499 4 240 Nh Total _ _______.__. 343. 735 1 182.916 1, 405, 804 265. 596 ' RO Imports 20, 843 259, 970 75, 214 55, 110 63, 542 2.349 %,723 4 459 5, 944 6, 195 6, 506 78, 654 18, 445 31,571 13.262 34 28, 572 153, 745 45, 602 “1121 74 1, 732, 925 Exports 2: 34,132 47,706 4, 408 298 8, 464 3,478 9, 406 309 1,077 108 10,226 22,639 3,349 7,038 2,075 31 1, 562 8 35¢ sg 23 1 7 311 208, 693 1825 Imports | Exports 12, 856 168, 626 67, 856 43, 011 56, 165 2,372 9,357 3,685 5,916 434 5,465 61, 823 14, 992 30, 255 15,804 315 24, 06¢ £10, 08: 74 21) 1% 1 23, 15. 36, 496 4, 469 4,348 5, 583 2,879 10, 451 159 1,654 50 10, 338 22,873 7,998 5,095 1,361 oc 4, 1% 87,984 97,997 3,18" 6,62. 073 248 20 1,472,021 | 339, 136 1928 Imports | Exports 15, 216 248, 060 57, 908 55,22. 64, 97 2, 260 8, 00: 5,184 7,011 1,027 4, 867 69, 466 204, 22¢ 30, 20 14, 1¢€ 3 23, 095 28, 9083 5,205 7,714 5, 532 3,272 5, 580 205 1,786 213 11, 438 17,986 8, 207 2% ne 4,9, 78, 607 8,370 2,736 7,239 2,379 217 1,061,750 | 295,940 C BD a : Warehouses in the Copenhagen free port, 1922 [From information furnished the Shipping Board by Copenhagen Free Port Co.] rig- ure 3 Name Shed 5__-_______ Shed 4_____. Ground Peg. Floor ares-—i.2 2 817 8,340 | 2,802! wu) 1 Number of floors 3 Construction Iron concrete; upper story, wood with iron concrete sides; roof, tar on iron concrete; 1 Bre wall; raised floor. L wooden shed—tar roof going to be pulled own. " t Goods Destined for— lifts Miscellaneous 0008 mmm moomoo ee 4 __do___ Persons lifts Hoists 8 3 2 Ey 3 J 5 3 3 8 1 ; 3 N FREE PORT OF COPENHAGEN. GRAIN SILO WITH OTHER WAREHQUSES IN VICINITY 3 | Bheds 2and 3... Warehouse 1. coccmcaaen Langelinie shed... .cev.ne Shed 1....___. mma Lighter shed... ...__. Shed tt aoeacmmnacnen Silo warehouse _______.__.. Corrugated iron shed, be- Yas to the East Asiatic [ Shed g. g. belongs to the East Asiatic Co. Shed ru Tac cieiaamaacnees hed 8. 8c insaiamianmine Factory loft... coon. 5 IO 1] 12 13 14 15 18 3hed A_...... [RRS Warehouse A..... ._...... Thod B.cousssmssnuaspsmmns 21.77) 17 18-19 20 21 Shed Doo. Warehouse Bo... . «eee... 0 or Shed E, north. _......._.__. Warehouse Coo ococemeeene-. 6 > Wx Warehouse Door cmon oon 5,627 3,1 3,443 | 9.185 14,115 | 3 and 1; cellar. Same construction as No. 1; sides, upper floor, gortugated iron; 3 fire walls; raised ground oor. Brick; floors, iron, concrete; roof, irom, con crete with sloping sides slate; 2 fire walls; raised ground floor. Brick, chalk, stone, and iron concrete; raised ground floor, Brick; iron and brick floors; iron and concrete pillars; upper story and roof iron construc- tion; roof, slate and tar, glass; 2 fire walls; raised ground floor. Open wooden shed. —aecee coc aeammenccmcaeas Ferny wooden shed; sides corrugated plate; 2 fire walls; brick gablgs; back side of floor raised. Brick walls; lofts, wood; outer walls of silos in interior iron concrete; grain machinery. [ron construction; sides and roof, corrugated iron: raised floor. 12, 838 5 and cellar. 5080 1 and cellar. 7,047] 2 and cellar. 470 2 717 470 | 2 645 1 1 1,528 3. 359 11,000 tons of grain. 2 816 1 2,174 768 2,756 2 973 2 533 2 [ron concrete; upper story, wood construc tion; tar roof on concrete; raised ground floor. Wooden shed; sides, corrugated iron; tar roof. Same construction as No. 8; back side of flooy raised. Brick; iron and concrete pillars; floors, iron and concrete slabs; wood planking; upper story, wood eenstruction; roof, zine; sloping sides, slate. Brick gables and fronts; roof, iron construe- tion with corrugated iron and glass; raised floor Brick building; wood pillars; fioors, wood, and every second, iron and concrete; 2 fire walls; grain machinery; ground floor raised. As No. 15; grain machinery beneath roof: raised floor. Wood construction; brick gables; 1 fire wall: sides, corrugated iron; tar roof; grain trans ported beneath roof; raised floor. As Nos. 18-19 with corrugated iron gables; no fire wall; raised floor. Cellar, ground floor, and towers in gables, brick; bottom of silos, exterior of building, fire partitions, irom concrete; grain ma. chinery. Wooden shed; sides corrugated iron, tar roof, brick gable, 2 fire walls, concrete floor. fron concrete throughout except upper story, wood; roof concrete tar, sloping sides tile; the building heated; all floors concrete. As No. 23, between the two a shed for empty packages. 750 2, 687 8 213 1 1 B 1,268 1. 437 1,013 | 6875'8 and cellar. 1 1,324 4.338 1,017 3 woz | i, 623 1. 401 t G80 11,000 tons of grain. Silos. 2, 653 1, 120 2, 568 6,148.6 and cellar. 6 and + eellar. 1 v.32 | 6, 468 meen@Oimee Miscellaneous geods, especially coffee. Mostly leased in small partitions to merchants. Miscellaneous goods. ooo ooo. sem EID sms wi sna Grae omen Miscellaneous g004d8......... amunOO ceaas —- meena ee 80. The stories leased out to different merchants; ground floor used by free por} for general goods. Miscellaneous goods —.ocacacnan. Grain and general goods__........ Grain and general goods. _c....... Miscellaneous goods and grain... cem--GOo_.. Ll. Grain... _ Misoepnmons goods, part leased out. The stories leased to different merchants; ground floor and eellgr used by Free Port Co. remain, 6! reeeeel 2 wise few = td be male ® 3 H © = - n by = o o or Vem LO I rig- are Bicycle factory... ....._.__ E12T. J | Open 8hed 2_____.._._.____! Open Shed 3... ooo. Open Shed ocean] Lumber Shed I... .......| amber Shed ©... __ “umber Shed - rane umber Shed 4... ...____| umber Shed 5. ooe.o.. Open Shed 5... mm North Shed ~ cama 26 7 3 9 0 31 fa 3 36 37 3# 30 North Shed Zoeoooomomneaee] Fort Shed 1. ____....) Fort Shed enn Wharfshed..___.... _._.___ Klubiens Shed... ........ Sound Shed 1.____._.______ Sound Shed 2... .______ Sound Shed So Sound Shed a. Open Shed 6... _________. y ¥ af Ground area—m. 566 305 2, 562 | 3.030 1,584 8 288 L, 800 3474 [182 3,816 437 2 087 2, 087 i 405 | L, 265 , 405 R06 , 325 1, 405 t 405 5, 850 { 510 Warehouses in the Copenhagen free port, 1922—Continued From information furnished the Shipping Board by Copenhagen Free Port Co.] Floor area—m, Number of floors Construction Pestined 1, 140 209 2, 405 2, 904 3 1 Brick building, iron pillars and joists, wooden floors; roof, slate; wood floors. Wooden shed, tar roof, concrete floors. __..... Leased to different merchants__._. Part of it leased out, miscellaneous 2008 cee d0annn. 1 Wooden construction; sides corrugated iron, brick gables, 2 fire walls, tar roof, raised floor, concrete floor. Wooden construction; sides corrugated iron, brick gables, 3 fire walls, tar roof, raised floor, concrete floor. Wooden construction; concrete gables and sides, tar roof, 1 fire wall, concrete floors. Wooden construction; sides corrugated iron, brick gables, 7 fire walls, tar roof, backside of floor raised, concrete floor. Wooden construction; tar roof, earth floor. .... ww sg Osis isa ag ss RAR ‘Wooden construction; tar roof, wooden floor.) Wooden construction; tar roof, earth floor__._ Wooden construction; sides corrugated iron, gables brick, 1 fire wall, tar roof, backside of floor raised, concrete floor. ABN Be cian vauaisan ms wags —— Wooden construction; sides iron, concrete, gables brick, 2 fire walls, tar roof, backside of floor raised, concrete floor. is No. 30... AS NO. 89. cco mae Wooden construction, sides corrugated iron, wooden floor. As No. 39 and partly isolated side walls....... AB TOBY. inp ii ag a Wooden copstruction; wooden floor, tar roof, 2 iron concrete fire walls. AB NO. 30... wer mmm mms mown rms mmm me ii i wif i 0 i mt Wooden construction; wooden floor, tar roof, |..__.do___.______.. w 9 iron concrete fire walls. 1,519 | 3. 111 1,800 2,454 1,170 3,775 437 2 038 oe especially for timber __._____ caenl0 rem Leased out, timber___._______.____] Misyslianatns | 1 I mmm EH 2 SR 2,036 4 310 | 4, 160 1,310 700 1,230 4, 310 4310 5,745 4415 Goods lifts | Perso : Hoists 2 . 1 Overhead, >on frane. Overhead, 5-ton crane, AER ER AR TTT Heating sald. eww wn mn oe in E vo = TL FREE PORT OF COPENHAGEN 95 W harves—quays in the Copenhagen free port Name Construction East Whart_________.. ite | South Wharf East___.| Concrete and granite on piles. East Silo Wharf !___|._._.cav oo... West Silo Wharf 1 __J|12070 TL TTI South Wharf West 1__|___. 2. West Wharf_._._.___|/727] wn gs Railroad Wharf... _.|.__. Be Middle Wharf ____701007C - Coal Wharf1.______ Lumber Wharf i. North Wharf sr nlVl Bim to RRR Wooden construction... Jonerote and granite 3 , on piles. RN o and Wharf... Wooden construction ort Wharf _ Iron concrete cais- sons—granite. Whart__________. elven or aw i Sound Wharf... ....do.... Length Width of water front Total width Rails on water front Meters | Meters ' Meters 816 | 8.87-1 62.8 | 12] 9.42 sel esl mv 313.8 | 11.12 313.8 | 11.12 94.2! 9.18 596.3 | 12.55 133.41 100 - 41.2] 13.34 100.0 15.0” 392.3 13.16 188.3 12.7 156.9! 9.8 67.01 9.° 240 ©5 316.6 v.5 56.5 2 56.5 2 5 Ace 87.6 2? + —— 51.5 i 172.6 < 172. t rr Rails mehind build- ings Num- ber of electric cranes Depth a—— 5 | 8.1 ——— & 8.2 1 euewgpys 8.2 1 11] 82-¢" ry am oma 251 L from] - 22 2-41 17 Meters 9.1 9.1 75 7.& 7.5 7.5 7.5 7.8 9.5 9.5 95 ! Piers: The hoisting equipment consists of 40 electric cranes having from 134 to 23% Tai ttony sapalihs 4 Dneumatic grain tubes, 3 grain and 7 coal elevators, In addition, the general harbor authorities have a oating crane of 50-tons capacity which is always readily available for use in the free port. oal cranes. COPENHAGEN FREE PORT—LAW OF MARCH 31. 189138 ArticLe 1. Under the direction of the Copenhagen port commission a free Port for commercial and industrial purposes will be constructed on the western Side of the interior roadstead (bay) of Copenhagen immediately north of Kastel P oint, with its corresponding lands, which in regard to customs and production ‘axes will be considered as foreign territory. The free port will have two basins. The one to the south will have a width at its base of 780 feet. The dike, by means of which this basin will be sepa- rated from the interior bay, will be of 3,000 feet, and, in so far as possible, wilt be constructed in a straight line with a continuous width of 250 feet. The territory of the free port will be limited to the west by the railroad men- tioned in article 2, and will be situated in such a way that the branch west of the northern port will be on land belonging to the Copenhagen port commission. The free port will be connected with the customhouse by means of an inclosed Wall which will pass through the citadel Frederickshavn. Lands adjacent to the free port can be included in the free port, and still Continue to be private property, in accordance with a special agreement with the company mentioned in article 3 and subject to ratification by the legislative Power, Arr. 2, The secretary of the interior is authorized to construct a railroad from the free port to the Copenhagen customhouse, passing through the Vogn- Man market until it reaches the Nordsjaelland railroad, and a classification Station alongside of the free port. _ All these improvements will be considered from every point of view as form- ‘0g a part of the system of State railways. The secretary of the interior is equally authorized to conclude all the arrange- Reairle necessary to obtain for the State railways the areas necessary for the uture construction of a railroad over the existing dike at the extreme western hy ds CW in report of United States Tariff Commission, Information Concerning Free Zones in Ports od States, issued in 1919. 36 , FOREIGN TRADE ZONES ArT. 3. In order that the installation of the port and the railroads mentioned in articles 1 and 2 may be carried out it is necessary that a company with a bonded capital of 4,000,000 kroner be formed within four months after the pro- mulgation of the law to take over the construction and equipment of the port. By equipment is understood the warehouses, cranes, railroad, ete. It will also defray the expenses of the upkeep of the construction work by the port authori- ties in the free port. This construction work (referred to in art. 1) will be determined in detail by the secretary of the interior. In exchange for these obligations the company will take over the exploitation of the free port for 80 years, but the State may terminate the concession at any time after 25 years have expired. The company will collect the wharfage duties of the free port during the period of the concession. (See art. 9.) The secretary of the interior, who is authorized to award the concession mentioned for the period indicated, shall stipulate in the concession that no other concessions will be awarded for the installation and exploitation of a free port within the limits of the port of Copenhagen during the period of exploitation. In the concessions it shall be stipulated: (a) That the company must have its principal seat of business in Copen- hagen. } (b) That all the directors must be Danish subjects. (¢) That the company must furnish security, by means of a deposit or in any other satisfactory way, that the sum of 4,000,000 kroner (allowing a de- duction for the expenses caused by the formation of the company, as well as the loss of the interest during the time elapsed since the formation of the com- pany until the whole port is open for exploitation, as will be later on deter- mined by the secretary of the interior) is at any and all times available to carry put the buildings and constructions that may be indicated in detail by the secretary of the interior in accordance with this law. (d) That of the net yearly income one-half is to go to the port commission and the remainder to the company until it receives a yearly interest of 4 per cent of the capital invested in the construction. Any resulting surplus will be divided in the proportion of 4 to 1 between the port commission and the com- pany until the port commission also receives for the same year an interest of 4 per cent on its total capital invested in the improvements made by it, the value of the latter to be fixed by the secretary of the interior. Should there still be a surplus, it will be divided in equal parts between the port commission and the company. , The concession will also stipulate the amounts to. be set aside for the amor- tization and reserve fund to be created by the company. After 25 years of exploitation the State will have the right at any time to demand of the company all the property and the accumulated reserve fund and appropriate the same for transfer to the port commission. In this event the State or the port commission (besides taking over the bonded debt of the company, contracted with the consent of the Secretary of the Interior) will pay to the bondholders the value of the bonds as quoted on the Copenhagen Stock Exchange during the last 10 years. The average of each year will be obtained by taking one-half of the total sum of the maximum and minimum averages of the quotations for each month. Bondholders will at no time be required to zive up their bonds at less than par nor can they demand a quotation in excess of 125 kroner for every 100 kroner. The company must furnish an annual documentary accounting of its expend- itures to the Rigsdag for its approval. Three years after the opening of the ‘ree port to exploitation the secretary of the interior may, with the consent of FREE PORT OF COPENHAGEN 97 ad a TY t. 30 ui ae se 20 TS rt In 10 Wf nN Om 18 J) I - "Y 16 on er 815] n= af 18 'a JN SP - 0 ad nt ne Vy sk ad SE CO -q9 d= ne the legislative powers, relieve the company from the obligation to invest all the capital stock above indicated. In the same way he can grant permission to the company (with the consent of the legislative powers) to increase its capital aver 4,000,000 kroner, either by increasing the latter or by issuing a bonded loan. The treasury will guarantee the interest on and the amortization of the bonds which the port commission will issue for the purpose of obtaining funds for the onstruction of the free port, including the construction of the customhouse, oy setting aside for this purpose a fixed and unalterable annual contribution. The amortization will extend over a period not to exceed 60 years. However, this guaranty shall not exceed 8,000,000 kroner. The sums which the State treasury will have to advance in accordance with this’guaranty must be reim- bursed by the port commission as soon as possible. (This obligation of the port commission can not be, however, an obstacle for the collection of passage dues an vessels through the port of Knippel, dues which were fixed by royal decree of Oct. 30, 1816.) ArT. 4. The lands and property necessary for the installations will be exappro- priated in accordance with the provisions established by decree of March 5, 1845, for the exappropriation of lands for railroads. However, under this agree- ment no compensation will become due to the city of Copenhagen for exappro- oriation of its lands or for damages. Arr. 5. For the installation of railroad communications, ete. (mentioned in art. 2), the Federal treasury may use a sum up to 905,000 kroner in addition to the expenses for exappropriation. ART. 6. The lands used for the free port as well as the railroad construction above mentioned will be free, while used for this purpose, of all taxes and other Tues which may have formerly been imposed thereon. The warehouses and nstallations constructed on this land and pertaining to the company, as well as the buildings for public administrative or exportation offices, will also be free of all taxes generally imposed on buildings and of the land tax which is tollected by the city of Copenhagen. (This exemption does not include, how- ever, the water tax.) The same privilege will be extended in the territory Indicated to the buildings belonging to the railroad. The port commission is authorized to issue the bonds indicated in article 3 on unstamped paper, be they personal or payable to bearer; and the transfer of the personal bonds, or of those which may have been converted later on into such, may take place without the use of stamps. Contracts made with reference to the installations mentioned do not require any stamps, and the bonds issued by the company tan also be extended or transferred under similar conditions. Materials which shall be employed in the construction of the railroad will be admitted free of customs duty. ART. 7. The lands of the free port necessary for the installation of facilities will be reserved and at the proper time turned over for this purpose on payment of the expenses which the port commission may have incurred in their purchase; or, in case they have come to be the property of the port commission by filling In, they will be obtained by paying the sums which the formation of these lands and their protection against the water may have cost in addition to the interest corresponding to the period elapsed between the conclusion of the improvements and the delivery of the lands. ART. 8. The secretary of the interior is authorized: First, to leave without effect the law of March 31, 1864, by which a port duty Was imposed on outgoing vessels. . Second, to exempt overseas vessels from the port duty established by said law for incoming vessels on cargo transshipped in the port and sent abroad by vessel, observing the regulations which may be issued in this respect by the secretary of the interior. 18 FOREIGN TRADE ZONES The above facilities shall go into force at the time the free port will be opened to traffic by the company mentioned in article 3. At the same time the duties for incoming vessels will be reduced (see No. 2 above) to 30 ore per registered ton of cargo unloaded. If the vessel was completely loaded, and unloaded its entire cargo, it will pay this duty according to measured capacity. If the vessel was not completely loaded or does not unload its entire cargo, it will pay the duty of the quantity unloaded converted into registered tons according to the rates of the customhouse; the duty must always be paid, how- ever, in such a way that it will never be higher than that which would correspond to the measured capacity of the vessel. The secretary of the interior may decide that instead of the port duty above indicated of 30 ore per registered ton an equivalent duty may be paid on the articles unloaded, which in such case would have to be fixed for every class of articles in accordance with the tariff schedule of the customhouse. The reduc- tion of the port duties can only take place by. process of law; but this is no obstacle to the privileges and exemptions of duties which may already have been granted under the authority given to the secretary of the interior by the law of March 31, 1864, and which continues in force. No port duties will be collected in a free port; in their place there will be paid wherever articles go from the free port into Danish customs territory the same duty as collected in the port of Copenhagen. This duty, based upon the rates applied to the article under the customs tariff act, must be equal to the port duty. The calculation will be based on units of one-tenth of a registered ton. If the tariff on any one article is inferior to one-tenth of a registered ton, it will nevertheless pay for the latter amount. The tax on vessels under the law of July 4, 1863, Chapter V, will cease at the same time that the free port is entirely open for exploitation. Art. 9. The wharfage tax will be collected in the free port in accordance with the rules which may from time to time be put into force for the public wharves of the port of Copenhagen. Art. 10. The budget fixed annually for the free port of Copenhagen, as well as all annual events, will be communicated to the Rigedag. The port commission, created by law of September 30, 1858, will be increased oy four members, each section of the Rigsdag to elect two. These members will hold office for three years. As long as the guaranty of the State mentioned in article 3 for the loan con- tracted by the port commission remains in force, the port council can not, without the consent of the legislative powers, make any further expenses than those necessary for the exploitation, conservation, and necessary improvement of the port. It can not, moreover, decide by itself on new extensions or works to be undertaken. Art, 11. Merchandise received for deposit in the warehouses of the free port belonging to the company mentioned in article 3 can be sold, mortgaged, insured against fire, ete., without any further requirement than the delivery or exhibi- tion of samples of the merchandise, according to warrants or certificates of deposit. More definite regulations will be fixed by law in regard to these cer- tificates. The secretary of the interior will decree all the necessary rules and tariffs for the administration of the free port. ArT. 12. The products obtained in the territory of the free port must, on entry into the territory of the Danish customhouse, submit to the regulations which may at any time be established under the ordinary tariff acts. No fac- tories for artificial fertilizer, margerine, bookbinder shops, or printing establish- ments can be established in the territory of the free port without the consent of the legislative body. ve he er and ty. ‘E50, ons OW- ynd ve ‘he of ne- no Ve -he oe he he he red on. at ith ves vell sed ors on- out se -he He ort red Die ~f er- nd on ms ac- sh- anh FREE PORT OF COPENHAGEN 99 CHARTER OF THE COPENHAGEN FREE PORT JOINT BTOCK co.! The secretary of the interior, ete.: In accordance with the authority granted me by the law of March 31, 1891, [ approve herewith the charter of the Copenhagen Free Port Joint Stock Co., organized on the 25th day of April of the same year with a capital of 4,000,000 kroner for the purpose of carrying into effect the management of the free port mentioned in said law during a period of 80 years (the territory of the free port will be treated as lying outside the customs territory of Denmark). This charter #ill go into effect as soon as said free port has been constructed by the Copen- hagen harbor board and equipped by the company with the installations for its dperation. All of these acts to be subject to the following conditions: . Arr1eLE 1. The free port will be constructed by the Copenhagen harbor board according to plans approved by the secretary of the interior and based on the stipulations of law No. 44, dated March 81, 1891 (art. 2). These plans have been submitted to the company, but the harbor board reserves the right to make such modifications as, by agreement with the company, may be found necessary a8 the work progresses. ArT. 2. The work to be undertaken by the harbor board is as follows: Construction of a breakwater and of the new basinsin the free port to the depth and with the installations agreed upon. To prepare the lands redeemed from the sea by the harbor board that are to %¢ included in the free port. Acquisition and preparation of additional land for the free port, including the tonstruction of a mole to separate the southern basin of the free port from the ‘terior bay. This mole, which is to be 250 to 270 feet in width, to be partly I the customs territory and partly in the free port. The construction of the wharves from the quay of this mole toward the interior Jay also forms part of this work. Construction of a canal for flat-bottomed boats between the southern basin of the free port and the interior bay; a fence to separate the territory of the free dort from that of the customhouse; customs guardhouses; streets, sewers, and drains and drainage canals for the street. The city of Copenhagen is to be con- Stlted in regard to these various constructions whenever it may be necessary "0 do so. The arrangement of all streets in the free port. The fencing in of the road of communication provided by the aforementioned law between the free port and the Copenhagen customhouse, the roadbed to be Macadamized; another road is to be constructed at the Government's expense and under the direction of the secretary of the interior, the land on both sides of the road to be prepared, as well as all adjoining roads, to such an extent as May be necessary for the main road proper. The inclosure of the territory of the free port toward the part called Langlinie nd widening and installing therein a harbor for pleasure crafts. } ART. 3. In order to separate the territory of the free port from that of the Customhouse, there shall be constructed on the mole that separates the southern Yasin from the interior bay two iron fences 6 feet apart to permit the passage of the guards. Of these two iron fences or railings, the inside and higher one Will be placed on the line dividing the free port from the customhouse district. On the mole mentioned above, instead of a passageway for the guards, an ele- ated road 30 feet wide, inclosed, and from 6 to 7 feet above the level of the Mole, will be built; beneath there will be constructed two passages between the — i - a Printed in report of United States Tariff Commission, Free Zones in Ports of United States, issued 100 FOREIGN TRADE ZONES free port and the customhouse district alongside of the wall of the quay and facing the interior bay. This passageway will be made a regular road in all its width. Streets and sewers will be constructed according to plans which will be fur nished by the secretary of the interior. ART. 4. The expenses necessary for the aforementioned work will be defrayed by the harbor board from port funds supplemented by a contribution from the State for the customhouse fence and by a contribution by the free port com- pany—established by act of November 30, 1891, and which will be approximately 80,000 kroner—for the construction of the passageway indicated in article 3. This elevated promenade over the mole will permit the company to construct below the same a storehouse, of which they will have the exclusive use. ° ART. 5. The improvements to be made by the free port company (the southern part of which will be preferably given over to commercial purposes, while the northern part will be especially devoted to industrial purposes and the deposit of large and bulky merchandise) are: Construction of roads for the distribution, transportation, and deposit of merchandise in the territory of the free port and of its junctions with the rail- roads which, in accordance with article 2 of the above-mentioned law, and under direction of the secretary of the interior and at the expense of the Government, will lead from the free port to the customhouse of Copenhagen and to the rail- road of Nordjaeland, passing through the market of Vognman, and for a dis- tributing station alongside of the free port. Consolidation of the land on the aforementioned railroads up to a distance of 2 feet on each side of the cut. Construction of water mains, etc., with all the branches pertaining thereto, excepting the sewers and canals of the streets mentioned in article 2. Construction of warehouses and storerooms, such as those mentioned in article 4, as well as the buildings for the customhouse, administration, ete. Installation of drains and other machinery necessary for the service of the free port as well as the installation of a power plant. Installation of electric-lighting system. Providing closed launches. ART. 6. The improvements for the equipment of the free port will be under- taken by the company in the manner, extension, and time which may be indi- cated by the secretary of the interior. However, the secretary can not demand that the storerooms beneath the elevated road of the eastern mole should cover an extension of more than 800 feet. In order to meet the expenses which these improvements may involve, the company may, if necessary, employ all its capi- tal stock (4,000,000 kroner), less a reduction of 3 per cent (amounting to 120,000 kroner), which has been adjudged by the company to the Danish Mortgage and Exchange Bank as a commission for the formation of the company, and the amount of interest lost by the company during the time elapsed since its forma- tion until the free port is open for use and the exact amount of which will be determined by the secretary of the interior. The bond prescribed by the above-mentioned law (art. 3, No. 3), which pro- vides that all the capital stock with the exception of the above-mentioned reduc- tions should be at all times available for the construction of the buildings and equipment mentioned and as provided for by the secretary of the interior, has been furnished by the company and certified to by the above-mentioned bank in a letter written to the secretary of the interior under date of April 11 of last vear. FREE PORT OF COPENHAGEN 101 and ita fur ved the am- ely > 3. 10h ern the nit of ail- der nt, ail- lan nee ato. in the fer~ 1di- and ver 1e8e 1pi- 300 and he n9- ho Imro~ ac- and ior, ned 11 | ART. 7. The secretary of the interior will submit annually to the Rigsdag, for tg approval, a detailed statement of the amount which the company may have 18ed of its capital stock. | Three years after the opening and use of the free port the secretary of the nterior may, in accordance with article 3, second last paragraph, of the law Above mentioned, and. with the approval of the legislative power, relieve the 0mpany from the obligation of using its entire capital stock. Art. 8. All the designs and plans for buildings and equipment to be con- tructed by the company must be inspected and approved by the secretary of he interior, but such inspection can not be made by the Copenhagen harbor oard. ART. 9. Concerning the joint accounts between the State railway and the free ort: company in regard to the construction of the junctions connecting the allway in the free port with those of the State, and with the State railway eading to the Copenhagen customhouse, and eventually with those railways vhich the State may construct over steam floats in the free port (see art. 28), ‘hese shall be prepared by special arrangement approved by the secretary of the anterior. The State reserves the right to construet and use a direct route to pass through ‘he territory of the free port, beginning at the distribution station near the quay vall of the dock until it reaches the wall communicating between the free port Wd the customhouse. ART. 10. As soon as the improvements to be made by the port authorities are jufficiently advanced so that construction on the buildings mentioned in article 5 A3y be begun, the harbor board will authorize the company to start work thereon. The same action will be taken for the construction of buildings to be erected by tivate parties for industrial use. The company should employ the greatest letivity possible on its construction, so that it will in no way interfere with or lelay the buildings to be erected by the harbor board. . . _ Arr. 11. The secretary of the interior will determine. the date on which the Tee port will be open for use and communicate the same to the company for ‘heir compliance therewith, and will at the same time enforce the provisions of article 8 of law No. 44, dated March 31, 1891. ; - Art. 12. The free port. company will have its principal place of business in ~Openhagen. The secretary of the interior is authorized to name one or two of she directors of this company, who may number three or more, respectively. All the directors must be natives and Danish citizens. . The provisional statutes of the company in force during the period of con- struction, ag well as the final ones, and the modifications which may be intro- Iuced therein, will not be valid unless ratified by the secretary of the interior. , Art. 13. In accordance with the resolution of the secretary of the interior \®Xamine, however, article 34 hereinafter stated) the company has the right ‘0 exploit the free port during 80 years from the date of its opening; the com- any, however, is under obligation to carry on this exploitation in such manner "8 to attain the purposes of a free port. The secretary of the interior will ‘Pprove all contracts of lease which may be made between the company and pri- Yate parties, as well as all tariffs (including the rates for electric lighting and stun power which the company may furnish to private parties within the Tee port) and the rules and regulations governing the management of the free Port. These tariffs and regulations can not be suspended without the consent ol the secretary, except in very urgent cases, when approval must be obtained to om as possible thereafter. The company must permit merchandise depos- and in Open or inclosed spaces within the free port leased out to private parties, which it was impossible to receive in the warehouses of the company. to 102 FOREIGN TRADE ZONES be prepared or manipulated in any way that the proprietors or their representa- tives see fit. The company shall, at the request of the interested party, receive goods on deposit and issue therefor certificates of deposit and warrants, which may be transferred without the necessity of a stamp and under such conditions as will be more definitely provided for by law. Every person has a right, upon payment of stipulated sums and by observing the regulations in force, to make use of the installations in the free port. The company will submit to such regulations of the secretary of the interior as he may make for the purpose of obtaining statistical information in regard to the traffic of the free port. The appointment and distribution of the officials and laborers necessary for the management of the port will be made by the directors of the company. who will also make all regulations in regard to the service. ART. 14. The secretary of the interior will determine the amount to be paid for the use of the rolling stock of the State railways over those of the free port. Art. 15. The buildings and installations indicated in articles 5 and 6 will be kept in good condition by the company during the period of the concession; they also must be kept insured for their total value. . All installations, ete., indicated in articles 2 and 3 (streets and buildings for recreation, unless managed by the city of Copenhagen), will be kept in good condition by the harbor board against reimbursement by the company of the corresponding expenses as approved by the secretary of the interior. How- ever, the expenses for the upkeep of the quay walls of the eastern mole as well as those for the upkeep of the breakwater will be borne by the harbor board. The city of Copenhagen, in accordance with the agreement made with the harbor board, takes charge of the repairs of the sewers and drains mentioned in article 2. The company shall not obstruct the execution of such repairs. ArT. 16. The directors of the company will furnish each year, for the approval of the secretary of the interior, a statement of the revenues and expenditures. The amendments which the secretary may make in such statement must be observed by the company which can not, without the consent of the secretary, incur any expenses that do not appear in the approved budget, nor exceed the expenses indicated therein. The revenues will consist principally of: (a) Rents paid by public institutions for sites or buildings. (b) Rents derived from the leasing of inclosed or open storage places, offices for samples, and other, ete. (¢) Pees for the use of cranes and other apparatus of the free port. td) Fees for transportation and manipulation of cargoes. () Rents of sites for industrial establishments. ©) Revenues from the use of electric light. (¢) Revenues from the use of motor power. (h) Revenues from the use of the quay. (9) Revenues from the interest on the capital employed by the company. (7) Other revenues. The expenses of administration will consist principally of: (a) Salaries and other emoluments to directors, officials, and workmen of the company. (b) Office expenses. (¢) Expenses for management, repairs, and insurance of the buildings, ware- houses, and other equipment of the eompany. (d) Reimbursement to the harbor board for repair expenses on the construc- tions made by it in the free port. (See art. 15.) (e) Tax for the use of the wharf. (f) Taxes for the management, if there be any. nta- eive sich ions pon ake such Be of Sary any. raid ort. il be don: lings rood the low- well ard. the oned rs. oval ares. it be ary, { the Fees §f +he TATE truc- FREE PORT OF COPENHAGEN 103 (9) Reimbursement to the harbor board of the additional expenses incurred for police surveillance.’ (h) Other expenses and charges that may arise. ART. 17. The directors of the company shall promulgate regulations for accounting. The annual return, which must be made within four months after the close of the fiscal year, shall be reviewed by two auditors of which one shall be chosen by the secretary of the interior and one by the bondholders of the company, These auditors will be paid a yearly fee out of the funds of the management, the secretary of the interior to fix the amount to be paid to the auditor chosen by him. After review by the auditors the secretary of the interior will render a decision, after which the bondholders will be paid their dividends. The auditors shall have the right to examine the books, inspect the cash, and sal for information in regard to the management at any time. ART. 18. The secretary of the interior may also call on the company for any information in regard to the management of the free port. Any party which may consider itself prejudiced by any action of the company may file a complaint with the secretary, who. after hearing both parties, will render a decision. ART. 10. Merchandise which leaves the free port and enters into the Danish customs territory must submit to the rules as well as to the tariff schedule then in force. In accordance with article 4, law No. 44, of March 31, 1891, there ean not be installed within the territory of the free port and without the previous consent of the legislative power factories for the manufacture of artificial manures, or margarine, nor bookbinding, or printing industries for books, newspapers, or music. ‘The consent of the secretary of the interior is necessary for the estab- lishment of any other industry, as well as for retail stores, within the territory of the free port. The secretary shall not, however, oppose any difficulties when- aver the articles manufactured or sold are for export or for provisioning vessels. The use of the free port is subject to State control in order to protect the in=~ berests of the customhouse. Special care will be taken to prevent the consump- tion of dutiable articles within the free port, unless such duties have been paid. ArT, 20. The rents to be paid by Government institutions to the company for Juarters within the territory of the free port will be determined by the secretary of the interior. ArT. 21. The police of the port of Copenhagen will have authority over the free port (the free port forming part of the port of Copenhagen) whenever tecessary, and in the exercise of this authority will pav special attention to the requirements of the free-port ecmpany. ART, 22. The bonds issued by the company may be extended or transferred without the usual stamps, and the contracts which the company may enter into for construction work are also exempt from the use of such stamps. Art. 23. All warehouses and equipment belonging to the company, the build- ings for the offices and management of the company, and for the offices of the Government within the territory of the free port will be exempt from all federal and local area taxes (land taxes); however, the water tax is not included in this SXemption. A®T. 24. In accordance with law No. 44 of March 31, 1891 (art. 8), no port fees will be collected within the free port; articles leaving the free port for entry into the Danish customs district pay to the harbor board a tax which will be equal to the tariff rate placed upon the article by the regular customs tariff act, and equivalent to the port tax. This tax will be calculated upon the basis of one-tenth of a registered ton; even if the rate upon any one article does not reach the amount usually paid for one-tenth of a registered ton, payment will be made on this basis. 47088°—20-—R 104 FOREIGN TRADE ZONES Art. 25. The wharfage dues in the free port will be the same as those paid at all public wharves in Copenhagen. They will be collected by the company under the control of the harbor board and deposited in the treasury of the company. The wharfage dues paid by vessels anchoring near the customhouse territory on the east side of the eastern mole in the southern basin will not be paid to the company. The secretary of the interior will establish rules for the division between the company and the harbor board of the wharfage dues paid by vessels which during their stay in the port of Copenhagen may have used either the wharves of the free port or any other public wharves within the port of Copenhagen. ART. 26. Vessels to which an anchoring place may have been assigned in the customhouse district on the eastern flank, in front of the storehouses constructed by the company or in front of the passageways beneath the elevated road, will be obliged, unless they are discharging articles for the construction of the free port or loading similar articles, to vacate their places in favor of those vessels which come to load or unload articles for or from the construction of the free port. No cargo can be placed on that part of the dock situated between the wharf wall and storerooms or passages of the company that would obstruct the traffic of the moving cranes constructed by the free-port company. It is also pro- hibited to place such articles on the wharf in such a manner as to impede the: traffic alongside of the wall. "a No articles to be loaded or unloaded ean stay on the wharf longer than sunset of the day following that on which they were placed there for loading or were unloaded, unless there be no room for them in the warehouses of the company. Arr. 27. The free-port company is not required to contribute in any way to the expenses occasioned for custom surveillance within the free port, whether such surveillance be by land or by sea. The Government will maintain, without any expense to the port company, an office for the liquidation of customs duties in the customhouse pbuilding located within the territory of the free port; this building, however, will be constructed by the port company. Should either the company or any private party demand any special surveillance of their inter- ests, such service will be paid by the interested party according to the general rule covering such cases. Art. 28. The lands situated to the north and the south within the limits of the free zone and which in the port project have been set aside for steam winches may in the meanwhile be utilized by the company; they must, however, be available at any time to be used as originally intended and must be returned in the same condition in which the company received them. ART. 29. The yearly net proceeds of the free port will be apportioned as: follows: } ; First, 5 per cent of the surplus will be set aside in such securities as the secre- tary of the interior may determine to constitute the reserve and improvement fund; that is to say, to cover extraordinary expenses and for the renewal of equipment or major repairs which may become necessary, etc., and which, in accordance with article 15 of this charter, should be made at the expense of the company. This fund may only be used during the period of the charter and with the approval of the secretary. Second, of the remaining surplus the port company and the harbor board will each receive one-half until the share of the port company. represents 4 per cent on the capital invested in construction work during the year for which the account refers to. Any remaining surplus will be divided in the proportion of 4:1 between the harbor board and the company until the harbor board, in the same manner and for the same vear, has received 4 per cent on its capital FREE PORT OF COPENHAGEN 105 at ly o Y 50. nn ds. ie sf 10 ad i} EQ is FP x1 LC j- e: +1, a 4: J) TT ok 8 8 © ul 8 1 "y i Q- £ £ 1 FE 4 1 al 3) Invested on constructions within the free port. Should there still be a surplus it will be divided in equal shares between the harbor board and the company. The amount of the capital to be invested by the harbor board will be deter- mined by the secretary of the interior under the following conditions: . 1. The account will include: (a) The value of the lands redeemed by the harbor board and which enfer the free port ready for use—4,100,000 kroner. (6) The value of the wooden quays (Bolvaerker) in the northern port, and which will be included in the free port—2,350 feet, at 140 kroner per foot, 329,000 kroner. (c) All the expenses which the harbor board has had or will have, under the Provisions of article 4, and which are not related to the aforementioned lands, (6) wooden quays, (b) adding thereto the loss on account of interest. From this total there will be deducted, however, the expenses incurred by the harbor board in the construction of the east end of the eastern dike in the southern basin, which is to be used as a wharf for vessels larger than those which here- ‘ofore have been able to use the same; in other words, all expenses that are necessary to deepen the front of the mole in order to increase the height of the wooden quay under water and also for the comstruction of a macadamized roadbed on said mole. (d) The loss in the guotation of the bonds issued by the harbor board for the construction of the free port and the commission paid for the issuance of said bonds. 2. Of the total amount of these respective sums there will eventually be made a reduction of the values of the lands (by taxation) which have been set aside for the construction of the steam winches. This reduction will take place on the day the land will be turned over for the purpose mentioned. Arr. 80. The payment of the surplus to the port authorities (in accordance with art. 29) will be made at the time dividends are paid to bondholders. Arr, 31. The secretary of the interior can permit the port company to in- Crease their capital over 4,000,000 kroner, by issuing more bonds or by raising a loan, only with the consent of the legislative powers. Agr. 82. If circumstances make it desirable, there may be included within the free port land belonging to the harbor board situated to the north of the ree port and including the walls of the old wharves; and the use of this land will then be confined, by special arrangement, to the free port company. In order to obtain the ‘incorporation of this land the free port company must vefore the expiration of 10 years since the opening of the free port file a written request and prove that at least three-fifths of the lands in the northern part of the free port as indicated in article 28 have been made productive. The port authorities may, after obtaining this land, lease the same for a maximum period of 10 years. The lessee will at all times be bound by this period; in tase the land is incorporated in the free port the right is reserved fo the free port company to evict the lessee at the time of the incorporation, although the lease may not have expired. The eviction will, however, be compensated by an indemnity paid by the company and agreed upon by experts. By special arrangement between the free port company and the respective Proprietors, and subject to the legislative approval, lands adjacent to the free Port may be included therein. They will continue to be private property, however. Arr. 33. During the life of this charter no others can be granted for the establishment and management of a free port within the port of Copenhagen. ART, 34, Twenty-five years after the opening of the free port the State will be authorized to demand at any time from the free port company the transfer 106 FOREIGN TRADE ZONES of all its property ag well as of the reserve fund, or that the same should be transferred to the harbor board. If this should happen, the State or harbor board will assume responsibility for the bonded loan issued by the company with the approval of the secretary of the interior, and will furthermore pay to the bondholders the value of their bonds according to the average quotations which they may have had on the Copenhagen Stock Exchange during the last 10 years. The average for each year will be arrived at by taking one-twelfth of the total of the average highest and lowest quotation for each month. How- ever, no bondholder will be required to have his bonds redeemed at less than par; on the other hand, they can not demand reimbursement at a higher pre- mium than 125 per cent. Agr. 35. If the company should violate in any way any of the obligations herein mentioned, the secretary of the interior may have the charter annulled by judicial sentence, and in such case the company will be obliged to vacate the territory of the free port within a period fixed by the secretary of the interior and remove its buildings or other improvements or turn them over to the Govern- ment for the value of the material as appraised by experts. Art. 36. With the exception noted in preceding article No. 35 the secretary of the interior reserves the right to decide on every question subject to interpreta- tion, so that such questions can only be taken before the courts by agreement with the secretary. Art. 37. This charter can not be transferred to any other party without the consent of the secretary of the interior. Department of the interior, April 27, 1892. INGERSLEYV. RULES FOR THE ADMINISTRATION OF THE FREE PORT OF COPEN- HAGEN § 1. There is reserved to the anonymous free port company the execution of all works in connection with transportation, packing, ete., of the merchandise which may be deposited in the free port outside of the lands and buildings which have been leased. The company may therefore prohibit other parties to carry on work of this nature without its consent. It is not necessary, how- ever, t0 obtain the permission of the company to carry on transportation by hand or on ordinary carts—inerchandise to be loaded or unloaded merchandise not included-—over the territory of the free port. Nor is this permission neces- sary for the crews of the vessels anchored within the free port in order to carry out such work as may be assigned to them. 2. For all work carried out by order of the company as well as for depositing packages in the warehouses or in open spaces belonging to the company, the interested parties will pay the fees according to the tariff promulgated by the secretary, which will also contain the rates referring to rents either for a fixed period or for an indefinite period and which will be subject to abrogation by giving a notice in advance for the period of days indicated therein. These general rates are only applicable to the open or closed depositories within the free port, while in regard to other leases and especially in regard to leases of lands for factory purposes special arrangements will be made in each case with the company and submitted for the approval of the secretary. 3. For each lot of merchandise which may be the object of the manipulation before mentioned (including transportation), the interested parties must present to the company—besides other necessary documents, such as manifests, etc.—in the first place, a statement which will contain a declaration as to the $ As printed in report of United States Tariff Commission, Free Zones in Ports of the United States, issued in 1919. FREE PORT OF COPENHAGEN 107 be hor any ay ons ast ifth IW an ITE ons ted ate ~or T= - of fea ant “he A - all 188 ngs ies TR oy se OS- Tv ng “he he ed y age ‘he of th on 19 48, he - lass of merchandise, its rate or measurement, marks, number of pieces, and lestination, and in the second place, the order specifying the nature of the work to which the merchandise is to be submitted, and in case of insurance ‘he statement should state the sum and the nature of the risk. (See art. 7.) These two documents will be signed by the party giving the order or by the oerson which the interested party may have indicated to the company as being withorized to sign for him. Blank forms for this class of documents will be sold in the offices of the company. 4. When the company, after investigation, has found no reason to refuse sxecution of the order and has received the documents above mentioned and for which it will issue receipt on request, it will be obliged to execute the order 38 soon as possible. 5. For the transportation by railroad—transportation which will be carried "it by the company—the same rules will apply as govern merchandise carried on State railways, excluding, however, the regulations referring to rates and ‘axes and including such modifications as circumstances may demand. For any other transportation which the company may carry out, the rules ind regulations now in force in regard to land and maritime transportation will be applied. For the storage of merchandise by the company the rules and regulations hereafter stated in paragraphs 15 to 25 will be applicable. 6. The company will always insure the merchandise whenever requested to do so and whenever it is possible against fire or other damage (par. 3) with bhe insurance companies whose names will be always on file in the offices of the ‘ompany. _ The free port company is not required to aceept any insurance against fire Or a period of less than three months. It is not responsible for any losses which may occur by failure of an insurance company to make payment; this logs will be distributed among all the parties having suffered damages in pro- portion to their respective losses and to the total of the compensation obtained. Whenever insurance on merchandise is requested from the free port company the latter is authorized instead of the petitioner to determine the conditions of insurance and to eventually settle all matters between the insured parties and the insurance company. The insurance will be considered valid as soon 28 the company has notified the insured party that the insurance has been arranged. No increase of the amount insured can be made after a request for nsurance has once been filed with the company. 7. Unless otherwise provided for in these regulations the company may ask payment in advance for any services which it may render. It is especially Provided that whenever the company brings suit against the right of the inter- sted party in regard to merchandise which may have passed through the free dort it has the right that the necessarv sum for the prosecution of this suit %e deposited with it. 8. The company is authorized to establish the rules governing the circulation within the free port, admission to its building, ete., as well as to take such steps i may be necessary to make these rules effective. . 9. The company shall keep the regulation books for accounting purposes. See especially par. 12.) 10. The company shall prohibit all its officials, employees, or workmen to re- teive under any form presents or tips in connection with their duties in the free port, and will see that this prohibition is duly carried out. 11. The contracts for the lease of storerooms and sites will be drawn up in Accordance with the forms annexed to these regulations. 12. The lessees will be obliged to keep deposit books, in accordance with com- mercial rules. for the merchandise which mav be deposited in the free port. 108 FOREIGN TRADE ZONES The lessees of buildings for carrying on retail commerce and for industrial purposes and who may have been subject to certain restrictions at the time the contract was made in regard to their business in the free port, whether such restriction applies to the class of merchandise or to the way in which the same should be disposed of, are for this reason compelled to submit to the regulations for control which the company may adopt for the purpose of carrying out the conditions of these contracts. It is especially provided for that the retail mer- chants can only sell those articles which are exclusively used for the provisioning of vessels, and upon a request therefor having been received from the shipowner or his representative. This request, on which the receipt of the article must appear, will be filed in the books of the retail merchant. The lessees can have work carried on in the quarters leased to them by their own workmen who must be provided with identification plates, which the com- pany will furnish. When a workman stops working for one of these lessees he must deliver his identification plate to the lessee who will return same to the company. 13. No quarters or lots, or any parts thereof, can be subleased without previous written consent of the company. 14. The lessees can not use within the free port any other lights or motor power except that furnished by the company at a fixed rate. 15. The company may refuse to receive articles for storage whenever there is sufficient cause for such refusal. 16. The company has the right to verify by reweighing the weight of any merchandise as declared in the documents. In case any merchandise has been declared at less than its weight the company will be entitled to receive the fees for the undeclared weight plus the expenses which the reweighing may have occasioned. The company has also the right to open any packages or containers to verify whether the articles have been correctly declared. If the declaration of the contents appears to have been correct the company will have to bear any ex- pense connected with the opening of the packages. On the other hand, if the declaration of the contents was incorrect the interested party will have to bear such expenses. 17. For any merchandise placed in storage the company will issue at the request of the interested party and subject to the payment of the stamp tax, either a certificate of deposit and guaranty, as provided for in law No. 34 of March 30, 1894, or a certificate of receipt. Such certificate will be made out in accordance with the forms annexed thereto. 18. At the request of the interested party the company must state in these certificates of deposit the amount of the expenses to which they will be subject during the period indicated in the certificate, as they will appear from the books of the company. 19. When such certificate of deposit has been issued for a lot of merchandise they may be later on returned with their respective receipts and new certifi- cates may be demanded on the payment of the fee of 50 ore. When partial certificates are desired corresponding to a fraction of a lot of merchandise and for which certificates have already been issued, these cer- tificates may also be extended upon the payment of a fee of 50 ére for each new certificate, and upon condition that the older certificates be returned, together with their respective receipts. 20. The company has the right to have at its own incentive and at the expense of the interested party carried on such work as may be necessary for the preser- vation of the stores of merchandise. trial the such ame ‘ons the ner- 1ing ner 1ust heir OT = sees x tn ous star eis Any cen ‘ces Ave ify “he AK- -he ear ‘he 1X, of Jit nae set kas ise fie ~f ow OT 18 AT WAR DEPARTMENT U.S SHIPPING BOARD 3 ant Le “pf FREEPORT OF GOTHENBURG SWEDEN SCALE Br 8 00 1050 Boe SUBMITTED: SES Pent Cfo HAIGH, SORPY Neti TSR READ AND HARBORS TAS ACYiNG DIRECTOR, BOREAL OF OPERKTIONS US SHIPPING BOARD ORAWN BY HYR FREE PORT OF GOTHENBURG - 109 21. Stores of merchandise will be received after the issuing of the certificate of deposit and guaranty, which has been issued in accordance with the rules aid down in the law of March 30, 1894. In the same manner they will be returned upon the surrender of such certificates which must have thereon a note canceling the certificate or be provided with a receipt signed by the depositor Ir his representative, according to the forms attached to these regulations. The tompany may deliver samples of stores of merchandise, but only against the re- *eipt thereof having been noted on the certificate of deposit, and in case a certi- fcate of guaranty was issued a similar note must be made thereon. 22. The depositor is personally responsible for storage expenses which may be mcurred. Any interest which may eventually accrue from the amount deposited 'n favor of the company and mentioned in the law of March 30, 1894 (par. 8), "ill belong to the company. The company is required to liquidate upon request Any account referring to stores of merchandise. , 23. The company will keep books in detail for every deposit made; special books will be kept for the certificate of deposit and guaranties which it may issue 3nd in which books the texts of the certificates will be transcribed literally, Neluding all notes that may have been made thereon after their issuance; all his in accordance with paragraph 7 of the law already mentioned. ~ 24. Whenever the balance in favor of the company for storage, transportation, Preservation, and insurance of stored merchandise will exceed three-fourths of the value placed thereon by experts named by the tribunal of commerce and naviga- tion, or if such merchandise or pait thereof is threatened with deterioration, the *ompany will have the right to sell all or part thereof within eight days after lotice of such impending action has been published—three times in the Berlingske Tidende or posted at the Copenhagen Stock Exchange, and the interested party 18s been notified by registered mail at his domicile or place of business—that Such sale will take place within eight days after the publication of such notice. Should there be any balance after all the claims affecting this merchandise have deen settled, the company will turn the balance over to the interested parties. it this balance has not been claimed within 10 years after the sale, it will become ‘he property of the company. _ 25. The responsibility of the company for merchandise deposited in its ware- ouses is fixed by the law of March 30, 1890, for all cases in which a certificate *f deposit and guaranty has been issued. . In case the company has only issued certificate of receipt, its responsibility or the custody and delivery thereof will be determined by the general rules of the laws referring to custodianship. In this case responsibility will cease Whenever the damage be of such a nature that it might have been discovered through ordinary examination, and if the interested parties had not called the tention of the company to the damage before removing the merchandise or had the same inspected legally in any other way. The present regulations to remain in force until further orders. Department of public works. October 19. 1894. THE FREE PORT OF GOTHENBURG. SWEDEN [From Consul H. C. von Struve, Goteborg, Sweden] ol Brief history of the port.—It is impossible to decide at what period = the world’s history the Gota River (Gota Alv) attracted the notice o the traders. It is, however, certain that the facilities for com- erce afforded by the estuary of this great river were appreciated 110 FOREIGN TRADE ZONES by commerce and seafaring men at a very early date. The Gota River, deriving its waters from Sweden as well as from Norway, flows through the vast Lake Vanern and, after its decent at the Trollhattan falls, glides slowly through fertile plains to mingle with the waters of the North Sea. Traders in days past were quick to grasp the advantages that this highway offered. Its outlet was pro- tected by a rocky archipelago, the country through which it flowed was capable of profitable cultivation, and the sea and lakes were well stocked with fish and the forests with game. Excavations and re- searches are said to prove that 10,000 years ago the land was occu- pied by men. Coming down to the middle ages one finds that repeated attempts were made to establish a town and trading port at Lodose, a few miles up the river from Gothenburg. Neighboring States, however, perceiving the advantages enjoyed by such a seaport town and fearing that much of their own commerce should be diverted, attacked and destroyed Lodose repeatedly until, during the war of 1611, it was burnt, never to be built up again. At the commence- ment of the seventeenth century King Carl IX founded a town on the site of the present city of Gothenburg, but it shared the fate of Lodose. Gustavus Adolphus, however, perceived that Sweden would ever depend on the outlet of the Gota River, and therefore he devoted his energy to the founding of what is now the city and port of Gothen- burg and one of the commercial centers of northern Europe, which attracts shipping not only from Scandinavia, but from many other countries. Description.—The city of Gothenburg has a population of 233,245, and, as stated, is situated at the outlet of the Gota River in latitude 57° 42’ 4’' N., longitude 11° 57” 54’’ E., about 42 nautical miles east of the Skaw (the northern point of Denmark). The harbor is shel- tered from the sea by a rocky archipelago, but can be entered by almost any vessel. The principal entrance from the sea is past the Vinga Lighthouse, erected on the most western island of the archi- pelago outside Gothenburg, and about 10 nautical miles from the port. There is no material rise or fall of the tide, and vessels can enter any time of the day. Unlike many other northern ports, Gothenburg is seldom affected by ice, and in the event that ice should accumulate there are icebreakers available to keep the port open for traffic. As a result of the situation of the town and its harbor, Gothenburg is well suited to serve as a center for the collection and distribution of goods, not only from and to the wealthy interior of Sweden, but to other nearby countries as well. With the political and industrial peace which prevailed in Sweden for some years after the World War, in conjunction with the economical stability which the country enjoys, the city of Gothenburg felt fully justified in pressing forward the con- struction of the free port, and after many vears of thorough investi FREE PORT OF GOTHENBURG 111 ota ay, she ith to TO- ved voll re- cu- hat ort ing orb ad, of .ce- on . of ald ted an- ich her 45, 1de ash rel- by she hi- ort. ny ris ate As vell ds, her ace in YS; J le zations, planning, etc., the building of the free port was finished in 1922 and inaugurated on August 30, 1922. Location—The free port is situated on the north bank of Gota River, opposite the business section of the city, with which it is connected by a bridge. * * * Area.—The area of the free-port zone to-day comprises about 27,300 square meters, of which 18,000 is land and 9,300 water, but considerable areas for the future extension of the free port are re- served. The whole area is surrounded by a fence, 3 kilometers long (excluding the fence toward the sea), which will embrace not only the whole free port but also its range station. Terminals and berthing space—Gothenburg is the terminal of the Swedish State railways, Bergslagernas railways, and other private railways, and, as mentioned above, the center for all imports and Exports, as well as transshipments to and from Sweden, and all goods tan be directed to and from the free port by railroad, if required. There are no extra costs for directing goods to or from the free port, 3s compared to those ruling at the customs harbor. Transportation Within the free port is looked after by the free-port company in Accordance with a special tariff. The total length of the present luays is 3,730 feet with a water depth of 29) feet. There are two dlers, the south pier, which is 600 meters long and 70 meters broad, “acing the city, and the northern pier, 350 meters long and 100 meters broad. Between the two piers there is a water basin, 100 meters broad. At the entrance of this water basin there is room enough for 8ven the largest vessels to turn, and special mooring buoys are laid 0Ut to assist vessels in maneuvering. In addition to this basin there 3 8 smaller one, which stretches north from the entrance of the larger one, also 29% feet deep, but only 50 meters broad and 200 Meters in length. Railway tracks.—The whole free port is fully equipped with railway tracks to a length of over 40,000 feet, of which 16.000 feet are along- Side the quays. Warehouses.—The buildings in the free port consist of one adminis- tration building, one warehouse, three sheds, and one canteen, in bddition to which there are watchmen’s and customs houses. The "otal floor area is almost 250,000 square feet. The administration building, erected just opposite the entrance of the free port, is built of red brick, four stories high, 50 meters long, Bnd 17 meters wide. This building contains offices for the free-port “Ompany, post, telegraph, office for the harbor master and the harbor ®gineer, as well as some offices for private firms, and also rooms for the Warehousing of goods. . On the northern pier a 4-story warehouse is erected. It is built of ed brick in the same style as the administration building and is fully 112 FOREIGN TRADE ZONES equipped with all modern appliances, cranes, lifts, central heating, ete. The total floor area is 52,000 square feet. In addition to the buildings mentioned, there are three sheds built of concrete, one on the southern and one on the northern pier, and one on the eastern (inland) side. These sheds are not heated in the winter and are therefore not suited for goods which can not be stored in cold rooms, but in the warehouse and administration building there is ample room for such goods. The two sheds situated on the piers have a floor area of 148,000 square feet and the inland shed, which is specially built for the storing, unpacking, etc., of motor cars, has a floor area of about 21,000 square feet and can without difficulty receive 200 cars and still have sufficient room for the un- packing and handling. There are 25 doors leading into it, and the building will be fully equipped with pumps for petrol, air compressors, ete. The administration building, warehouse, and sheds thus consist of the following storage room: Square feet Administration building (2,200 square meters) ____. ee o_- 23,000 Warehouse (4,800 square meters)... _.._..____ meme 52, 000 Southern shed (5,200 square meters)_____._.. feceee——.-- 56,000 Northern shed (8,800 square meters) ___ ____ 95, 000 Inland shed (for motor cars) (2,000 square meters). . 21,000 In addition to the storing facilities mentioned, which are all under roof, there are very extensive grounds for storing in the open air, but it may be mentioned that the increasing traffic necessitates the con- stant extension of the free-port facilities and the city of Gothenburg has prepared plans for the provision of additional accommodations. Rail and highway connections.~The principal railroad connections with the customs harbor as well as the free port are: Gothenburg—Stockholm, to central and northern Sweden, with con- nections to the Baltic and eastern Europe (Swedish State Railways). Gothenburg-Trollhattan—Oslo-Karlstad—Falun, to central and northern Sweden and Norway (Bergslagernas Railways, a private company). Gothenburg-Malmo—Trelleborg, to southern Sweden, with con- nection to Germany over Trelleborg—Sassnitz. Gothenburg—Boras—Alvesta, to south-central Sweden, with connec- tion to the Swedish southeastern coast (Boras—Alvesta Jarnvags Aktiebolag, a private company). ; Gothenburg-Stromstad, to northern parts of the west coast of Sweden (Swedish State railways). Gothenburg—Skara—Gardsjo, narrow-gage railway, 220 kilometers to the interior of northeastern parts of the province of Vastergotland. The principal highway connections with Gothenburg are as follows: Gotbenburg-Stromstad; Gothenburg—Trollhattan—(Oslo)~Karlstad; Gothenburg-Stockholm; Gothenburg—Boras; Gothenburg-Malmo. TREE PORT OF GOTHENBURG 1138 tC. nilb and the red ng the ed 5 tor oub 1n- the rs, . of s feet noo J00 J00 J00 000 der ub 9) $C] urg ns. ns m- 9), nd ate Y~ AV 8 "i rO ve: qd: Administration.—The harbor of Gothenburg, including the free port, is owned by the city of Gothenburg and is administered by the Gothenburg Harbor Board. The members of this board are nomi- nated by the Crown, the city council, the magistracy of Gothenburg, and the Gothenburgs Handelskammare (chamber of commerce). This constitution of the board gives sufficient guaranty that all lawful rights and interests will be fully respected and prevents any competi- tion with the customs harbor which might easily result if the free port Were rented out to a private company. Thus all the by-laws govern- Ing the port of Gothenburg also apply to the free port, with such alterations and additions as the business of the free port necessitates. However, the administration of the warehouses and all activities con- nected with the storing, transportation, etc., of goods within the free zone have been delegated to a corporation, Gothenburgs Frihamns Aktiebolag (Gothenburg Free Port Co. (Ltd.)), created with the sole object of dealing in a careful and businesslike way with all goods entering the warehouses, etc., at the lowest possible cost. According to the terms of its contract with the city of Gothenburg, this com- Pany is responsible for carrying out this function “in the most advan- tageous manner possible for trade and commerce.” The share capital of this company is kr. 300,000 ($80,000), and the shareholders are entitled to receive dividends up to 5 per cent. As, however, all the capital of the company is invested in 5 per cent Government stock, the company need only, in order to assure this dividend, fix its dues and charges at a figure sufficient to cover costs actually incurred for labor and material. This company also has under its administration and supervision the free warehouse building situated in the customs harbor in the center of the city. Number of guards.—There is a special customs department in the free port, consisting of 41 men in all. This department is under Supervision of a survevor, and additional men are— Controllers... Clerks. ______. Master. ___ ____ ._._aoo- Supervisors. _ o-oo Guards 2 o & These men attend and manage the clearing of goods imported from the free zone into the customs zone and collect dues. Annual cost of administration.—No statistics are available covering the yearly expenditures of the customs department in the free port. All payments of salaries are made from the customs head office in Gothenburg, and no special statistics for the free port department Are kept. With regard to the costs for offices and other expenditures, these are paid by the city of Gothenburg in the customs harbor as well 431n the free port. According to an old agreement Gothenburg has the 114 FOREIGN TRADE ZONES privilege to receive a certain share of all duty paid on goods imported through the Gothenburg customs, but in return the city has to provide its customs authorities with offices, inventories, etc. The above- mentioned share of duty, which is rather ample, generally gives the city quite a surplus. The expenditures of the Gothenburgs Frihamns Aktiebolag (includ- ing those for the warehouse in the customs harbor) are shown in the annual report for the year 1927, as follows: — Income from the free port... ____.____________.___.______ S—— Income from the warshouse in customs harbor ____.____ Expenditures for the free port .___.__.._.__ o_o... Expenditures for the warehouse in the customs harbor 1927 | 1926 Kronor ' Kronor 210,000 | 151,000 91, 000 91, 000 301,000 © 242, 000 77, 000 | gu 30, 700 32, 000 107,700 | 99. 000 The net profit for 1927 was thus Kr. 193,500 against Kr. 145,000 in 1926. The dividend of 5 per cent has been paid to the shareholders; Kr. 5,000 were reserved for the upkeep of the buildings; Kr. 2,543 were written off on the new warehouse; and Kr. 171,000 were paid to the city of Gothenburg, against Kr. 124,000 in 1926 and Kr. 109,000 in 1925. This company thus shows very satisfactory results and the increased figures from 1925 to 1927 show the progress of the free port. Operations permitted in free zone.—The free port is more or less to be considered as a part of the country outside of the customs frontier. The chief operations permitted, with a few exceptions mentioned below, are that merchandise of almost any kind may be landed, stored, manufactured, repacked, and transshipped to other parts of the world without anything being paid in customs or other dues to the Swedish Government. Only on the removal of goods into Sweden proper—goods destined for Swedish consumption or use— do they have to pass through the customs barrier. By special permis- sion from the King industrial undertakings may be conducted there. The handling of wines and spirits, which is monopolized in Sweden, is only to be done by the wholesaler entitled thereto, which is Aktie- bolaget Vin-& Spritcentralen. Any goods may be expedited duty paid or unpaid after clearance performed in the free port. The dis- tribution may take place either by water to and from the free port, by land, by train or other conveyances, or by mail. Operations prohibited in free zone.—Retail trade must not be carried on in the free port. However, after permission from the King the sale of victuals and other ship chandlers’ goods may take place on conditions prescribed by the King. Permission for industrial activities does not include book-printing or similar activities, which, FREE PORT OF GOTHENBURG 115 ed de ve- he d- in OT , 000 , 000 ’, 000 = , 000 , 000 1, 000 in rs, 43 to in he rt. to er. ad .d, of to to is- re. 1, 1e~ ty ge ot, be ag ce .al h. because of more favorable conditions, are likely to harm similar activi- ties in the domestic market or are of a nature to cause danger or incon- venience to the establishments or goods stored there. Goods are not to be stored openly and exhibited to the public. Any goods, free of duty or dutiable, which by regulations in force for the prevention of Infection of diseases, human or animal, are subject to certain protec- tive measures or which are entirely prohibited to be imported into the tountry, are also prohibited to be imported into the free port, or as the tase may be, are subject to the same protective measures as pre- scribed in the customs harbor. Foreign goods imported into the free port may not be consumed or used within the free zone unless ordinary duty has been paid. No building or set of rooms within the free zone may be used as private residence. Dispatch secured in unloading vessels.—The free port in Gothenburg does not offer any special discharging or loading facilities as compared With the customs harbor, for which reason the dispatch is the same In either harbor for a vessel berthed at the quay. The only advantage that the free port offers in connection with the discharging or loading of vessels is that the port is fenced in, for which reason the work on Quays, etc., is not disturbed by passers-by or onlookers. Reconsignment and transshipment trade.—As the free port is still in father an early state of development one can not say that the recon- Signment and transshipment trade has yet reached any considerable extent, but it is evident that business men, who prior to the inaugura- tion of the free port were compelled to use the customs harbor, have how been able to build up rather an important transshipment trade. So far, owing to the still rather unstable economic situation in the Baltic States and Russia, this traffic has only been directed to Norway, Denmark, and Finland, and the goods thus shipped mostly consist of dried fruit, tea, coffee, and textiles. When economic conditions in the Baltic States and Russia are normal again it is fully believed that the reconsignment and transshipment traffic via the free port in Gothenburg will reach large dimensions and the extension of the port referred to, for which the city of Gothenburg has made plans, is then ®xpected to be carried out. Shipbuilding and repairs and manufacturing.—So far neither ship- building nor ship repair are carried on in the free zone, but there is a all factory for the manufacturing of silk neckties and two work- Shops for the making of sails. The latter are chiefly occupied in the Manufacture of tarpaulins of American cloth. Influence of free port on the development of foreign trade and of the Merchant marine. — While the inauguration of the free port has proven to be of considerable advantage to a number of American and other foreign exporters and to some Swedish importers, the operations ®onducted in it can hardly be said to have had any large influence 116 FOREIGN TRADE ZONES either on the development of foreign trade or of the Swedish merchant marine. The lines of imports chiefly in evidence in the free port are automobiles and dried and fresh fruits. The considerable expansion of the Swedish merchant marine that has been noticeable in the last few years is due to other causes. With the new and easy regulations on bonded warehouse goods offered importers in the customs harbor, it is now almost immaterial to an importer or merchant if his goods are discharged in the free port or in the customs harbor. It only makes a certain difference when, for instance, a large consignment is to be repacked and distributed at the importer’s convenience and duty paid in accordance with the distribution. But with the excellent present shipping facilities offered importers and merchants, not only between European countries but also between cross-Atlantic countries, the import of such large con- signments, stored in the free port and distributed from there, is not so common as it used to be when shipping facilities were not by far as developed as they are to-day. A merchant can now get his goods from almost any country in such a comparatively short time that it satisfies his customers, without his keeping large stocks on this side. It is, therefore, not believed that the free port, when only considering it as a free zone with certain regulations on goods imported or exported within that free zone, has to any large extent contributed to the very noticeable development of the port of Gothenburg. Statistics. —The following statistics show the development of the free port from the year 1923 up to 1927, inclusive: Statistics showing the development of commerce and shipping within the free port of Gothenburg, Sweden Y ear UD i i pt fs Tommmmmnenen LS ——_—— __ oo Temes * . © - Teme v Vessels arrived Vessels departed | Number Net registered tons ' Number Net registered tons 1,080 -329 -410 67. 81% 026, 247 1,016, 772 1,073, 202 1,003, 797 f, 283 979 1,075 7, 398 1417 67: 1 815 820, 499 -» 018, 199 1, 074, 262 t, 095, 469 1_9R1. A686 Total Number Net registered tons 2,155 2, 657 | 2,823 3,345 | 3,632 : 1, 646, 740 2,034, 971 2,147, 555 2, 189, 266 o pas’ 44f Number of lighters and barges calling at the free port 1923__. 1924___. 1925. cn FOPB. cc comm mm i 1927. 2, 584 3, 430 2, 813 2, 897 3 256 ant are sion ast ods rial yort en, ted the red out on- uv SO - a8 ods tit de. ing ted Ary he t of red 40 171 355 260 445 - - - WAR DEPARTMENT U.S. SHIPPING BOARD FREEPORT OF MALMO SWEDEN Sep— ——— 0 SUBMITTED: -~: Ere Conetl INVESTIGATION DRAWN BY MY 8 LEGEND | WAREMOUSE, : OFFICE. § ADMINISTRATION BUILDING } CUSTOMS WAREHOUSE AML fumll. 5 LOCOMOTIVE SHED B TRACK SCALES, 7 HOUSE FOR CUSTOMS £7F FREEPORT BOUNDAS FREE PORT OF MALMO 117 Railway trafic Cars Jischarged. commen eneneeen Cars loaded... oooonn TOA eee een 1927 7,724 11,778 10, 388 12,536 13,716 2,626 4,101 2,908 3,377 3,355 10,350 | 15,879 13,206 | 15,013 | 17,071 1923 Freight traffic Inward freight: BY 808 em m—ann Byrail. oo By vehicles... .oooneo.- Total. eevee mc msmmm—————— Outward freight: BY 508. irom ————————— By rail. emmeem————- By vehicles. oo -cumemmnmmne DOLBY mim i i 0 10923 WA Metric tons Metric fons 223, 998 316, 645 enna 133,435 114,047 19, 207 338,045 1 469,377 272, 464 | “62,716 335,180 397, 395 41,038 33,404 471,837 1925 1926 Metric tons 335, 059 152, 029 20, 253 508, 241 1027 Metric tons 2173, 628 114,018 15, 005 402, 651 Metric tons 305, 164 140, 880 16, 455 462,479 348,221 | 396,050 138, 920 26, 542 30, 727 32, 257 27,880 34,278 36, 354 402,642 | 461,055 | 507,531 Total turnover of freight 1923___. 1924___.__. 1925 ____.- 1926. __ 1927 __ Metric tons 673, 225 041, 214 805, 294 923, 534 t, 015, 772 No further statistical information, such as for example the kind or value of the goods handled, is available. THE FREE PORT OF MALMO, SWEDEN IFrom R. A. Boernstein. American consul. Malmo, Sweden] Brief history of the port—About 150 years ago Malmo acquired its first, boat harbor and a navigable channel with a depth of 4 feet. Since that time the work of developing and improving the harbor has hardly ever been interrupted. The customs port has now a total uayage of about 4,000 meters with a depth of from 6 to 7.25 meters. To obtain a larger quay and site accommodation the construction of the industrial harbor was commenced in 1914. This has been extended so that at the present time it has a quay frontage of about 500 meters in length with a depth of 7.25 meters. A large tract of land has, at the same time, been reclaimed by means of filling in. The most important feature of the new harbor improvements is the free port. Through it Malmo is opened for the international exchange of commodities and by virtue of the 9.25 meters depth of water in the free harbor the city is in a position to reap the full benefit of its stra- begic location on the sound. 118 FOREIGN TRADE ZONES Proposals for the construction of a free port in Malmo were pre- sented as far back as 1882, but the necessary legislation was not carried through until 1907 and it was not until then that the plans for the free port could be taken up for discussion in earnest. Exten- sive investigations were carried out and a uniform plan was drawn up relative to extensions in the future. In 1917 the Government sanctioned the construction of a free port in Malmo and the same year the work was commenced. In excavating the basin and entrance channel filling material was procured for the reclaimed land. Nearly a million cubic meters of clay, sand, and chalk have been dredged from the bottom of the sound. These dredging operations have been fraught with great difficulty owing to the fact that, to a,great extent, the work has been carried out in the lime-stock rock which in part was very hard. While the dredging operations were being carried out the work of building the quays and warehouses also proceeded. The extension of the free port which was handed over to the care of and administration by Malmo Frihamnsaktiebolag on the inaugu- ration of the free port (September- 27, 1922) comprises 684 meters of quayage with a water depth of 9.25 meters (30 feet). Description.—The city of Malmo has a population of 117,000 and is situated directly opposite Copenhagen on the sound, which is the most important trade route to the Baltic Sea. It is estimated that on the average 60,000 vessels pass through this strait or call at the many ports on its coasts annually. The free port is located close to the industrial and customs harbor of Malmo. - * * * Area.—The area of the free-port zone comprises 157,600 square meters of land, of which about 86,000 square meters are at the present time vacant plots of ground. Other parts of the land are used for streets and kindred purposes. The total free-zone area, inclusive of the water area, is about 414,200 square meters, Type of inclosure.—The land area is inclosed by a fence of galva- nized wire net with a height of 3.15 meters above the concrete base in which the iron rods of the fence are fastened at intervals of 1.95 meters. The length of the land fence is about 2,062 meters. The sea fence consists of wooden piles 0.7 meter apart and with a height of 3 meters above the level of the sea. Both land and sea fences are provided with electric lighting. Terminals and berthing space.—Malmo is the terminus for the Swedish State railways and entrance port for the Danish and conti nental railway traffic. The free port has an independent railway station, which enjoys the right to forward and receive goods by rail to and from Swedish and foreign stations to the same extent and at the same rates as the central station for the Swedish State railways at Malmo. The Swedish State railway places cars at and removes FREE PORT OF MALMO 119 Te i 10! 10S 2n- wn ant 2412) vas of ud. ty od ~f ATE *1~ TS nd he at he <O \ Tre nt or ~f a= in 25 he ht 7p ae pe vy il ab yi 5 od them from the railway transfer of the free port without cost. Trans- port operations within the area of the free port are performed by the free-port company in accordance with a tariff fixed by the local zovernment board. The receipt and delivery of goods and counsign- ment and the payment of freight takes place in the free port in the Office of the State railways. As previously stated, the quayage consists of 684 meters (2,244 feet) with a water depth of 30 feet. Railway tracks—In all, 7,100 meters of railway tracks have been aid down in the free-port area. The railway equipment of the ree port also includes a weighing machine of “Stathmos’” make for a maximum load of 50 tons and having a bridge length of 8 meters. This machine is located on the main track and the weighing is per- formed as the wagons pass slowly across the bridge, thus reducing switching and shunting expenses to a minimum. Warehouse of the free port—The free-port warehouse is built of lerro-concrete and bricks, and has a basement and three floors. This building is 120 meters in length and has a width of 34.8 meters on the ground floor. The floor area under roof is about 16,000 Square meters (172,222 square feet). On the side facing the sea there are broad exterior platforms within the operating radius of the wharf tranes. The warehouse is divided into three sections by means of "Wo transverse fire-proof walls. On the side facing the shore there are six freight elevators of 2 tons’ capacity, built in fire-proof shafts. The pavement of the ground floor lies 1.12'meters above the upper Surface of the rails, thus on a level with the bottom of the railway Wagons. The maximum load on the ground floor is 2,250 kilos per Square meter and 1,800 kilos on the other two floors. Warehouse for customs clearance in the free port—Customs clear- ance of bulk goods usually takes place where the goods are discharged or loaded. General merchandise and goods which must be unpacked, on the other hand, are cleared in the customs warehouse situated at the main entrance of the port. This warehouse has a length of 54 Meters and a width of 13.8 meters and has two clearing rooms, one of Which may be heated in cold weather. This building also contains rooms for the staff of the customs warehouse employed at the free Port and another room in which goods, having passed the customs, May be stored pending payment of the duty assessed. A large section of the building has been fitted with storerooms for the freight service of the Swedish State railways. Goods can thus be handed over direct from the customs clearing warehouse to the tailway for transport. Administration building.—The administration building is situated at the main entrance, and has on the ground floor accommodations for: 47068°—29— 9 FOREIGN TRADE ZONES 1. The customhouse, viz, the collector of customs, customs offices, and office apartments for the customs officers and for examination of travelers’ light luggage. 2. Officers of the Swedish State railway. 3. The berthing master. On the first floor the Malmo Free Port Co. have their offices. The second floor contains—besides rooms for the staff of the custom- house—also a number of office chambers and stock rooms to be let to private firms. The basement is arranged into storerooms. Rail and highway connections.— The principal railroad connections with the two ports of Malmo are: Malmo—Stockholm, northern Sweden, and steamship connections with eastern Europe. Malmo—Goteborg—Oslo. Malmo—Trelleborg and the Continent (ferry). Malmo-Copenhagen (ferry) and the Continent, etc. The principal highway connections with the ports of Malmo are: Malmo—-Landskrona~Helsingborg—Goteborg; Malmo-Lund-Eslov- Stockholm; Malmo-Kristianstad; Malmo—-Ystad; Malmo—Simri- shamn; Malmo-Trelleborg; ete. Administration.—Since the inauguration of the free port at Malmo in 1922 it has been the opinion of the Harbor Board of Malmo, a municipal institution, that the free port company, which by virtue of a long-term contract rents the free port from the city, competes detrimentally with the customs port, and the board believes that a more economical administration of the two ports may be obtained if under one management. It, therefore, submitted a request to the city council for the appropriation of 800,000 Swedish crowns ($214,000) for the purchase of all the stock of the free port company. On the 20th of February, 1925, the city council granted the request. For a while much difficulty was experienced in making purchases as the majority was held by a few persons who believed that in time the free port might become a very remunerative enterprise and who were, therefore, reluctant to dispose of their holdings. The high hopes entertained for the success of the free harbor can not be said to have been realized, however, and the board has now succeeded in obtaining the desired majority. The free harbor is controlled and operated by the Malmo Frihamn- saktiebolag (Malmo Free Port Co.). This company, appointed port administrators by the city, was formed for the purpose of devoting itself exclusively to the management of the free port. The company has charge of the cranes, warehouses, and storage grounds, and per- forms all operations in discharging and loading vessels, transport of goods within the area of the free port, etc. The entire organization is thus concentrated in one body, as is the case in most large free ports in other countries. 120 FREE PORT OF MALMO 121 3 3 n 2 - 1= af on i=! ne } Fame () 3] 18 ng a .d 1e 18 y. t. 1S 18 10 h 4 1 vb g y re 9 In a The tariffs for discharging and loading and for all other operations Carried out by the free-port company are fixed by the local govern- Ment board, on the reports of the chamber of commerce and the com- mercial and shipping board in Malmo. In fixing the rates due care has been taken so that the shipping charges over Malmo free port shall not be higher than over any other Scandinavian port. The managing director of the company is at the same time manager of the free port and in this capacity responsible for the supervision of the regulations in force pertaining to the free port. Number of guards.—In the free harbor there is a special customs administration, divided into preventive service, customs warehouse, and customs office department with a surveyor of customs as manager. The customs attend to the surveillance of the boundaries of the free harbor area, manage clearance of such goods as are imported into the Customs zone, and collect duties due the public treasury from vessels calling at the free harbor. The guards are 22 in number. Annual cost of administration.—The annual cost of administration for the free-port company amounts to about 56,000 crowns ($15,008), and for the customs administration in the free port 140,000 crowns ($37,520). The cost of customs administration includes, in addition to salaries, rent of building to be paid to the free-port company. Operations permitted in free zone.—The distribution of goods takes Place by water to and from the free harbor, by land with train or other "onveyances or by mail. Goods may be expedited with duty paid or unpaid after clearance Performed in the free harbor. _ Business of all kinds is permitted, with the exceptions mentioned nthe regulations, a copy of whichis enclosed. An exception exists 8 to wine and spirits, a monopoly in Sweden. These goods may be disposed of in the free harbor only by wholesaler entitled thereto, that is, the Aktiebolaget Vin- & Spritcentralen. Warehousing of goods under the supervision of the free-harbor company for reship- Ment to foreign countries is, however, permitted for anyone. Retail frade in goods stored in the free harbor is not permitted. However, ater by permission from the King, sale of victuals and other ship ¢handlers’ goods may take place under the conditions prescribed by ‘he King. (See below under “Operations prohibited in free zone.) . Goods may be stored, examined, and tested, repacked and divided 0 the free harbor without payment of customs duties, transit dues, “0st, of surveillance, or other dues to the public treasury. A Special permission from the King is required for conducting indus- Mal activities in the free harbor. i Operations prohibited in free zone—Retail trade must not be car- ed on in the free harbor. Permission for industrial activities does 10t include book printing, job printing, or other like activities, which, 122 FOREIGN TRADE ZONES because of more favorable conditions, are likely to harm similar activities in the domestic market or are of a nature to cause danger or inconvenience to the establishments or goods stored there. Goods which, according to regulations in force, for the prevention of infectious human or animal diseases, are subject to certain protec- tive provisions or which are entirely prohibited importation into the country, are also prohibited to be imported into the free port or, as the case may be, are subject to the same protective measures as prescribed in the eustoms harbor. Dispatch secured in unloading vessels, equipment, etc.—QOwing to the fact, that vessels calling at the free port from foreign ports, are not subject to customs examination, thus permitting loading or unloading to be begun immediately after the arrival of the vessel and allowing, after landing, prompt disposition of the goods by the proper consignee, quicker dispatch can be obtained for both vessel and goods than in the customs harbor. In addition, the free harbor is provided with the most modern equipment for the loading and unloading of goods and with other arrangements to facilitate the work, for instance, hoists in warehouses, weighing machines for wholesale quantities, ete., all of which contribute to quicker dispatch in the free harbor than in the customs harbor. The free port is equipped with nine traveling cranes of from 2¥% to 5 tons capacity worked by electricity. Of these cranes six of 2% tons are situated on the quay in front of and east of the warehouse. They are fitted with adjustable jibs. By means of these cranes goods can be discharged direct from the vessel to any of the floors or the base- ment of the warehouse. The other three cranes, each of 3 to 5 tons capacity, are erected on the quay west of the warehouse and are constructed for discharging cargo with or without automatic grabs. Reconsignment and transshipment trade—The free harbor is still in an early stage of development and neither the transshipment nor reconsignment trade has yet reached notable proportions. According to the director of the free port company, the traffic of this kind hitherto practiced has not been of a regular character, and therefore statements relative to country of origin and distribution would be of no importance. He adds that when the economic situation among the Baltic States and Russia has become more stabilized it may be expected that the free harbor of Malmo will be made use ofrto a much greater extent as a storage and transshipment port. Shipbuilding, ship repair, and manufacturing in free zone.~—~Neither shipbuilding, ship repair, or manufacturing is carried on in the free zone, although such activities exist in the neighboring customs harbor. Influence of free port on the development of foreign trade and of the merchant marine,—Partly because of the reasons previously men- FREE PORT OF MALMO 123 r 1 3 3 JL 3 1 tioned, the Free Port of Malmo can hardly be said to have exercised ny notable influence on the development of foreign trade and of the @erchant marine. It is a matter of common knowledge that the Free Port of Malmo which was expected to give to this city a commer- cial development eventually rivalling that of Copenhagen, has thus far proved a great disappointment. Established trade routes and business practices are difficult to change, and the establishment of the local free port can not be said to have diverted any considerable Portion of the Scandinavian and Baltic transshipment trade from the Denish capital, which for many years has been regarded as the natural entrepos for Scandinavia by foreign business men. This attitude is resented greatly by Swedish importers, especially as fegards goods destined for Sweden, direct shipments to this country being desired. The free harbor was built under war conditions and proved an ®Xtremely expensive undertaking. The interest on the investment is ery heavy. Growth of commerce and shipping in free zone.—There is given below ® table furnished by the director of the free port showing the business of the port from 1923 to 1927. inclusive: TC —— J 1023 1 1924 1 1925 1926 [ 1997 3 y 1 5 ) 1 pr r ) - gq 2 i weemoneo—...DUmber__ EE ———— Railway Wagons outgoing. ....-.......number.. Wantity of goods landed _....._._.___metric tons. . Janiicy of goods loaded. SR — yillway goods received... JL. TIII0T0 TC Yllway goods delivered... TTI TTT 3000S taken into StOrAge.-..... ....-...- ion oo “8lance of stored goods at the end of the year.ao.... “UStormhouse collection... Swedish crown... 95 60,414 1,823 23,909 | 2,841 7, 489 J, 301 8,010 2052 we 353. 963 12. 090. 606 184 209 82,119 92,437 2,151 2, 400 28, 791 41, 007 5,670 4191 4,164 3, 608 19, 209 21,712 15,385 12, 005 ew 3013 4,000 1, 7680. 608 12,084. 605 ! 2. 354 360 It may be of interest to note that for the first quarter of 1928, the uantity of goods landed amounted to 31,789 tons, and the quantity of goods loaded to 3,528 tons, which figures closely approach those {or the entire year of 1927. This remarkable increase in the business of the free port is explained by the fact that, inasmuch as the city of Malmo owns the Malmo customs port and practically all shares in the free port company, vessels have been diverted from the customs Port to the free port, when there has been a lack of berthing space in a former, the profit in either case going to the city. It is chiefly odstufls, such as rapeseed cakes, etc., which have been discharged V diversion from the customs port in the free harbor. - Quantity and kind of goods discharged and loaded in the free port of Yale during 1927.—The following table shows the quantity and ned of goods discharged and loaded in the free port of Malmo during 927, When not otherwise stated, the figures represent kilograms. 124 FOREIGN TRADE ZONES Kind of goods Goods discharged Goods loaded Domestic Foreign Domestic | Foreign Kilograms Drugs, not specified. _.o.ccomaio-. i APN. sn sium is AER RR sR Waste, not specified... eaeoccmiammcmmcammoe ark, COR oe eccrine mmm CN eee eee mmc JSower bulbs and 100tS_ aan Brushes. ooo ecac ice ee rt —————— i 3oats, rowing and sailing... J Books and printed matter... o.oo oimmeaaan TIOTIVEIL ccm i 5 ie tn Cement Manufactures. wooo ooo comocacommmmmmeamaaen Living animals, birds ...... RR Varnish... A. Fish, salted or preserved... .... wn _ Rapeseed cakes and cattlomeal _.__. .. .. ooeeoooon AEOMODIIES oo mmm m cen Bicycles, all kinds of ol Fruits, berries, and vegetables: Frolic mn [RE Dried. .icaicismqgue Comme Preserved or salted... mrs Seed: Linsead and rapeseed _ _ oo emcees Other kinds, not classified as grain... oeocua-cee —- Paints and dyes: Red ocher..._coemm—-- Other kinds... TBE... wom Fucose.--m-n- Sroats: Of corn____..... “Other kinds. _.aeooo.. Fertilizers: Bolt5 Of POLI. cv smmsis mms sm ss a RR wh ——— Other kindS__.coooocaen RR Re demp..__. EIS — ROBIN. api mm sie rs Sp RRR Hides and skins: BOW imipramine PION crim spn ss sis em So 5 rt NSRP, Musical instruments... .... | 7:3 I Coffee. —acnernn- C008 oom. Caoutchoue: Wp im mmm mmm Prepared______.____ —- Chemical elements_..____.____ omen Shenson ashnion) preparations... mmm TT op ir gg me mt Toal, charcoal, pitcoal, coke, and briquets-..... ....-.. TIEMTIO BOOMS wire wim ssi rs i ir km oe a me i DOL IOTS er mm mm gt i Chalk-—ground, purified, or precivitated _......... .... 3PiCeS ace cmmmaes ws Meat and pork... ._...-_. 24 Machine grease and cart grease ._..____ oo... Machines, implements and tools and parts thereof...... Metals—lead, raw, and waste. - ccvoooe coma ooo. Metals—iron and steel: Pig iron and waste... -- Forged or rolled— Beams... Sheet fron... _ccoauon Other kinds... Tubes, all kinds..._.... Sheet-iron goods oc ccumamnn. Cast iron, other kKindS..e ceoccueei aan oo only and alloys— AEB, CaDIOE con uma renames wat im—— Other kinds....... .. ww Minerals, not fertilizers. ... ve bi 2 BE. copia mmm imme mA RHEE BERR MIDOTAY. o-oo oem mmm eee mmm mmm mmm mmm aman m ma Pasteboard and cardboard... oceans fecce aan Topo all Kinds... cemcccccmccccemmmmenmmmm camo a mmm mee Fabrics of board and PAPer....o.occeecccccmrammaneensafoeamnomann- Paraffin, ozokerite, and ceresin®....-.....-. esr mare HA Leather Strans. cccceeweer Kilograms 3592 748, 83 4,10 1, 87. 25, 04" 4,832 35¢ 1,280 ORN Kilograms Kilograms RSG ER 3, 536 4 6,82. 13, 575 14,973 1, 555, 403 9 758 — 974, 100 127,280 3 762 om 1, 104, 205 AALS runasacerd] 100 100 17, 52% 1, 548 202, 464 TTT 0, 400 3,478 24 828 425,000 1,134; 127 61,126 5 £36 30, 772 74, 290 BRE 27, 9° 21,17 106, 538 92 840 ERO IT 10, 167 a1, 20 471, 15. 12,07, 50, 64 3,737, 77 22, 41¢ 974 = IIIT ag ET 6, 200 TTU0s 10057, 884 RRR Tea TT ag) 6 18.087! 141, 987 4, 352 1, 56¢ 6, 007 741, 504 86, 481 92 2p4 ORK 224, 76¢ 856, 511 ;, 050,19 191, 30: 10,89: aor 100, 730 100, 720 5 605 18,287 [ccm cmmemmnzea 5,338,008 |__oooooo. 99, 65 10,409 {oem 73,326 ommend ame OF |e meme 23,130 ewammsmmen fur nme OT daa ¥REE PORT OF MALMO 125 3 6 86 20 WG 0G a1 8 a0 = 50 evi 130 Goods discharged Goods loaded Kind of goods Domestic ! Foreign Domestic | Foreign Sand and gravel......_.....__.__. ee Sirup_____ TTT LT a Butter, natural... __.0 ol Sugar, refined... Grain: Unground— Oat oe eee BAY. viens aes, Maize. ..._.._. Vetches.._.._..... ACen Wheat... . Ground, meal.......__.. Spirituous liquors... Stone: Raw. ._........... Manufactured— Morte. nu onmocsmmmpngnms 3 Other Kinds... vn -sminninn Enitted BOOS mecca oo eel March ___________.TTTTTT deids 07 Pallow__” Par 77 Tobacco: Raw, leaves, and stems___.__. Manufactured. -oo ooo... Empties, used... Nish of] ____, “imber: . ad iis vend vmmememmenena--CUbic me ars. SJOBDRIS ooo J Telegraph POIBS oe a LH So Jak boards... mmm Yea Joinery... .. ive Matches. - Wing 22777. Pextils fabrics: Totton... eo “nen... mmm mmmccmm ca Tate. ________..___ meme Other kinds... oeeeoomoiee memmenen Goods, not specified abeve. TTTTTTTT TTTToTTeTn Kilograms 931, 000 | Kilograms 70, 000 522, 873 1, 400 TS) Kilograms | Kilograms 440,000 ___.__._... punmgans 304. Red ELS eer TE 486,980 1, 666, 836 12, 500 ai 23, 280 B, 729, 880 175 862 534, 661 854, 371 559, 436 7. 598 So" £6, 100 2, 538 85% 9, 538 666 66, 087 8 301 Bemmmmmemmi tm mm———— ST iaz I nian cvonnsnns nc wn 232, 185 790 TX 2 104 oT 30 324, 155 a1 mmm] a1 SOIT 15.70 mR 14f 4, 955 27,940 19. 9R4 2, 226 1,355 1,827 3,130 91 148 . J PET RE meet fee mee Kind and quantity of goods forwarded over the land boundary of the free port of Malmo during 1927.—The table given below shows the kind and quantity of goods forwarded over the land boundary of the (ree port of Malmo during 1927. When not otherwise stated the Agures vepvesent ilooramie. Kind of goods Goods arrived Goods sent Port duties paid drugs, not A FR e oi Waste, not specified... dark, cork... _____ ] i. beh [Tron om Tlowerg and plants: LL oe i MS SITE a ena aS eI Cn —— oats, rowing and sailing... SILI 4 Sa 00 inted matter... __ SII “iE Cement manufactures. ........... oT Animals, living, birds... Varnjgy” 7 Kilograms 780 Kilograms 124 685, 832 3, 630 1, 850 23, 877 Crowns 2.80 1,028.71 2.72 5. 58 17.90 100 56 7,250 262 6 1, 256 1,027, 654 231, 895 3 5B. 305 -90 1.68 21.74 1. 56 18.00 3.55 384.26 201. 69 . 45 29 95 [26 FOREIGN TRADE ZONES Kind of goods Goods arrived Kilograms PIoly, SAIN OF DIOTIPVE cuss wsmmmmmn samme sess won mms ms sons se so mm eg pn Rapeseed cakes and cattle meal ___. gma lesa so Automobiles... ooeeieaaeaa ond Dispeimmm apne Sutomobiles o_o... i... cm pusenewe 1,921,145 Aeroplanes and parts thereto. . cero oo emma 204 Bicycles, all Hinds. «.aemoeooeom nieve cm co emmm---PIOCES Bicycles, all kinds_ o.oo... mmm mm EER 2, 267 Fruits, berries and vegetables: Fresh, red whortleberries_. _.__......._- 672 ther kinds. ...... 173,932 Dried cocuzconcisapas 49,702 Preserved or salted... 408 Seed: Linseed and rapeseed... ....__.... Other kinds, not classified as grain... Paints and dyes: Bod othrd. ce uummnmsvmmmmmmmms Other kinds... Fancy goods... Glass: Window_._____._.. Other kinds...._.... Jlucose......-- Groats: Of grain. oo... Other kinds. ..... Fertilizers: Salts of potash. aaa Other kinds. . « -veeeeanes Hemp. --cam mmm mmm me Resin. __..-... dats eee. Hats. ooooooeaoaaan. Hides and skins: RAW. oceans Manufactured. ococenenan. oo FOS... cssunumasss + Musical instruments LATO oo corso some ri pn Railway and tramway material: Rails, with acessories. «ooo cover aomcraemnurmrc cee an . Other Kinds. ocr occ arc ccminnmmscamaa meas = Coffes. oo u-- RR Cocotte om anne ei Qaoutchoue: RBW. ic cmmumgemmmnmes vs www www rennin wma————— Manufactured. cvumommoceaee JE Chemical elements. . o_o ooaoeor aioe BE Zhemico-technical preparations... cans Bran... vo Sra —————— C10bR@S cee occa tame meme Joal, charcoal, pitcoal, coke, and briquets oon Jonfectionery and chocolate. oom cme Canned goods. - EERE RR Basket ware... mm SD SAR R NObIONS - - ccm emacs cma Chalk, ground, purified, or precipitated. .. mmm DIES. eee semen mma Meat and pork... wan sms mmm ——— TOYS. ceccccaaan A Earthenware: Wall plates. oo ocmvrmmccaennn [ENE ERT 1,248 Porcelain and glazed ware........... —— 47,451 (Glue, all Kinds. oeeeuoomm acca AR 1, 597 Manufacture of leather and skin.. evra 506 DUBE wa si sp oe a ws arses me J. 794 Machine grease and cart grease. - o-oo oe omcom anaes mane Mena, implements, and tools, and parts thereof........ veemenea] 801,940 Metals: Lead, raw and waste... {ron and steel— Pig iron and waste........ Forged or rolled— Boas. .cnuqeeis bonsai . Bhoot Iron, . ccuws se resomnonmwnumen —— Other kinds vcueomcacmaaaaa- emma Tubes, all kind~ PI Wire. _.._____.. A —— Sheet-iron goods... | Cast iron, other Kinds. oo. coommcmoacceniamcranaennn Copper and alloys thereof, manufactured. rome] Other kinds, manufactured... sem moni SAR SRR ERIS Minerals, not fertilizers Goods | Port duties sent paid Kilograms 7, 695 4, 876 22,270 | 2,351 167, 844 300 51 1, 260 i Crowns 17.28 14.61 16.69 17, 632. 50 724.48 2, 55 38,25 2,98 672 2.00 763,438 2,196.38 233, 431 983. 80 11, 051 149.63 1,005,070 1,717.80 78, 390 209. 45 100 .15 8,374 37.76 46 1.38 2,108 7.17 3,842 30.08 204, 555 435. 26 3,426 | 5.13 2. 948 44.76 426, 500 1,433, 927 58, 707 4,793 6,303 54, 803 3, 508 4, 252 499 17. b47 164. 63 23.39 89. 20 3.61 52. 63 4, 506 2, 245 268, 372 1, 218, 951 6.89 5.21 1,724.12 9 123.56 10, 150 786, 50 479,76 4,648 50, 647 6, 342 12, 243, 230 439 26, 202 261 4,540 8,008 952 924 8,420 38, 586 670 | 13,784 701, 862 86,481 2, 239, 927 263, 263 764, 967 804, 192 177, 824 2,170 i 32,174 | 9, 249 | 968 57 B48 16. 22 379.69 719. 68 18. 66 22.79 44.39 3, 680. 28 3.9 186. 41 1.38 43.03 73.09 57.20 4,98 13.82 8.13 167.10 6.73 11.19 9,777.30 120.70 1.999. %8 263. 9 764.9 295. 11 177.78 6.5} a7. 7k 3.3, 2.% 4,30 £8 ro WL J 3 a ¥ 8 30 [i%3 80 45 19 76 38 Ai 08 2% 13 "8 W 37 38 96 45 a9 a3 39 20 .61 B3 89 21 12 56 jd o 0 26 23 R2 3.13 1,10 i 719 -, 36 170 >] 24 a FREE PORT OF MALMO Kind of goods Goods ' Goods arrived sent Milk, dry and condensed. wee omm ee omcomoaee Purniture, new... ooo--...... ils; Fat____. Mineral. .____.._.... oT Yasteboard and cardboard. ..oow. ov acccoceoceeee - mgs wee BDO meme m memes x brics of board and DADEL. —oonoon conn noaseannne Jaraffine, ozokerite, an. OOIESINE -oovaooccoooomem emma OLAE0 OUT. - «occas commas oo cman ree Soyer SUBD. o...-- - and and gravel. _.._... on ing nC Breve i TL MS 00ts and shoes, not referable to leather manu. wens wares Abattoir waste... .... arr St Sutter, natural... FE ws JHnge ___________ ___. oT ugar, refined. noone... . rain: Unground— a DA AE yt tami Dats...... ... .. SeRERR Sp ET nnmmmmmntse es SAAR Rn AIT rnin gna masta en A AAR FEM rvs wanna dB EERE A Nheat... mmemess mmmmmmomeeeoee Peas. _ - mansar, MBE. en imi oe . Ground, flour..... . Spirituous liquors: i Brandy and spirits (liters) o_o ocavemmeooonoos Other kinds (liters). ...oocovu--- Other kinds (kilograms) ...... - Stone; RAW. eornmmenan Manufactured— MADE. cusps mesons . Other kinds... _... Lnitted goods. eee. March ___ ____ TTT. RO Tallow ea... Par 7777 “obacgo; Raw, leaves and stems... .-occeu- Manufactured: SR Cigars and cigarettes. cocraeevnn- 2mm mes 2 Other kinds... RNR EA impties: New_. ~ Used_. Tish ofl Kilograms 08 Kilograms 1,702 467 "BL, 460° 924 rmmmmmem TTI Tae 18,877 95 6, 239 1,134, 807 10, 289 106, 761 241 | 17, 700 25, 500 553 561, 000 2,186 430, 866 313 1,100 74 | 15,493 1 TUTTE 125 20, 150 2,703 UIE 14, 059 301, 687 66, 750 ', 488, 904 185, 223 204, 865 281, 676 37, 065 8, 384 363, 562 504, 737 1, 614, 200 16, 070 16, 040 43 100 923, 280 1,798 1,439 214 13, 254 1,993 10,271 6,707 600 59, 081 100 1,967 231, 484 2, 409 11,499 12,950 Jommcnmmn a 1.700 154 208 6, 924 “9,785 10, 486 mper wanna RBI RS. LT amen meme Telegraph DOME remem III I er = Dak A — Joinery_____ Serene tn - 1) ToT Lo Watches. "I. I Wadding ~7"7ITIIIIITIOTT eer en ETE A Vine TTT VitrilL TTT NB Textile fabrics: oo rer a Pi — ee ————— i ——— Botton. LTT ITI <nen and hemp...... .... -.. ee Or INAS co nn rR aR sons TTI Foods, not specified above. — ~ —ocone- To Total port duties in 1927. —-_ 345 97 27,223 49 739 330, 630 15, 605 36, 145 6,349 149 21, 578 40 169 15, 538 6 407 3,155 12,163 3,813 1,13¢ 86¢ 3, 61( 6. 840 6,514 9, 006 26, 869 5. 065 + BHT 784 id, 433 127 Port duties paid Crowns 4.48 2.08 18.10 2, 029. 86 7.71 162. 04 3.00 53.10 4.74 2.13 84.15 11.73 646. 14 1.39 2.47 95 2.0L 76. 10 7.53 135.75 179. 25 2,919.88 83.35 368.71 853.01 30.91 10.81 £59. 33 8.09 6.47 «32 L7% 10.05 .95 85.18 20.11 10. 15 156. 43 150 1.47 1,736.12 568. 74 162. G0 1.69 19,42 3.82 88.68 47.14 2.34 5.42 19. 58 . 55 208,76 24 2.53 233.07 9. 60 112.27 66. 43 101. 64 38.85 17.61 83.33 102.73 62, 625. 83 I ie rr. TW FOREIGN TRADE ZONES (Translated in Military Intelligence Division, General Staff) FREE FORT OF MALMO CO. A Proclamation of His Royal Majesty Concerning Regulations for the Free Port of Malmo; Given at the Palace at Stockholm on August 28, 1922 On the basis of the provisions in sec. 8, art. 2, of the order of November 15, 1907 (No. 117), concerning free ports and at the suggestion of the owrier of the free port of Malmo, His Royal Majesty has seen fit to establish the following regulations for the free port of Malmo. CrarrEr 1. REGULATIONS ON MOVEMENT OF FREIGHT SECTION 1. LANDING PLACES FOR SHIPS Arricie 1. Ships that have arrived at the free port may not land anywhere else than at the places assigned them by the traffic division of the management of the. free port at the recommendation of the management of the free port; nor can a ship be moved from one place to another inside the free port unless the traffic division has granted permission for that, after having consulted the man- agement of the free port. Arr. 2. In assigning berths in accordance with what is stated in article 1, care shall be taken that in case two or more ships reach the free port at about the same time, that ship for which a request for a berth has been made in advance shall be given the preference unless special circumstances cause other action to be taken; but no attention will be paid to such a request if the vessel does not arrive on the day on which it was stated in the application that it would arrive. Ships propelled by engines shall in all cases be given berths before other kinds of craft. SECTION 2. UNLOADING AND LOADING OF SHIPS ArticLe 1. The transfer of freight from ship to dock or vice versa within the free port shall be attended to, if the management of the free port finds that this can be done without inconvenience, by the employees of the owner of the free port, lifting and carrying machinery belonging to the equipment of the free port being used, provided this is approved by the master of the vessel; but the master of the vessel shall not be considered to be released thereby from the duties in connection with unloading or loading that are incumbent upon him under the law or from the obligation to meet other expenses of unloading and loading charged against the ship. ArT. 2. In case the unloading or loading is impeded by the negligence of the master of the vessel or some other person who is to take charge of the freight, the manager of the free port has the right to order, if this is found necessary, that the ship be warped into another berth immediately or else, if this is refused, to have such warping done; and the person causing the delay will be responsible both for the cost of the warping and also for the expense that had to be borne by the owner of the free port for making means of transportation and labor available and for the delay in unloading or loading. Arr. 3. In addition to what is prescribed in paragraphs 1 and 2, loading and onloading and transactions connected therewith shall be governed by such portions of the port regulations for Malmo covering this subject as are applicable SECTION 3. TRANSPORTATION BY RAIL In regard to transportation of freight by rail to and from the free port, thos? nortions of the railroad traffic regulations and the legislation in connection there FREE PORT OF MALMO . 129 Tt With governing railroad traffic in general that are applicable shall be in force; but what is said in sections 6 to 9 below shall govern when it comes to assistance within the free port in loading or unloading freight which assistance, according 0 the freight contract made, is to be charged to the transportation corporation. SECTION 4. TRANSPORTATION BY WAGON, ETC. 5, ne g Te nt +; ae Me Te ne ni ye e 28 it. he is ee It er in ne »d 1€ 18 1e ve wr ne \le +d ch 18. ;86 vie Freight which comes to or is to go from the free port by land otherwise than by rail must be delivered to or removed from the place indicated by the official in charge of the administration of the free port, by the person who is to see to the transportation. SECTION 5. FORWARDING AND ASSISTANCE CHAPTER 2 Art. 1. Freight traffic fo and from the free port, is well as unloading and oading there may, unless hindered by other statutory provisions, be carried on at any time of day on holidays or weekdays; however, the chief customs inspector of the free port shall have the right to decide, in consultation with the manager of the free port, to what extent traffic across the boundaries of the free port may oe carried on at certain times only along a portion of the ways of access otherwise intended for traffic. Art. 2. The owner of the free port is authorized after hearing the chamber of commerce concerned and commercial and maritime delegations from Malmo, fo fix such office hours for the management of the free port as may seem reasonable 1D view of the requirements of traffic. Arr. 3. Customs examination of ships and freight coming to or going from the free port shall, if no special hindrance is encountered, take place whenever talled for by the shipper; but the person who asks for the issuance of papers ab other than the working hours in the free port or the time at which papers are generally issued, must state the reason for this to the proper division of the customs service at the said time for working or issuing papers; otherwise the "equest may be disregarded. For transactions that take place outside regular hours, compensation must be Siven by the person causing the transaction, in the case and for the reasons given in the free port regulations. Papers issued outside regular hours are to be vonsidered as if this had been done during the next following period for general work or issuance of papers, unless this should lead to a lowering of the fees which the government is entitled to. SECTIONS 6. AID WITHIN GENERAL LIMITS ArT. 1. Except in connection with transactions for the account of the 2overnment, not referable to the traffic of the free port, the owner of the free bort is given the exclusive right, unless otherwise or elsewhere specified, to have any transportation or other aid which may come up with regard to goods within the free port and outside the buildings or other storage places which are turned Iver to others executed by its own employees. ART. 2. What is stated in Article 1 shall not prevent others than the owner Of the free port from providing transportation over the territory of the free port direct]y to or from its boundary by vehicle or porter, in which there is not in- cluded, however, the necessary loading or unloading within the general territory 3 the free port. Neither shall the crew of a vessel lying inside the free port be forbidden hereby "© perform the work that may be needed for the ship, without leave from the 130 FOREIGN TRADE ZONES owner of the free port, nor the proper railroad officials to attend to the unloading or loading that is incumbent upon them according to the freight contract made by the railroad. SECTION 7. CHARGES FOR SUCH ASSISTANCE For assistance rendered in accordance with section 2, article 1 and section 6, article 1, by arrangement of the owner of the free port, the latter shall be entitled to receive compensation in accordance with a published tariff established by the government of the Province of Malmohus at the recommendation of the owner of the free port, after hearing the opinion of representatives of trade and commerce with regard thereto. No change in such tariff may take effect earlier than one month after its publication. SECTION 8. REQUESTS FOR AID Armices 1. A person who desires to receive assistance provided by the owner of the free port as contemplated in section 6, must make a wrtiten request therefor to the manager of the free port, inclosing, if this is considered necessary, the shipping papers for the goods in connection with which aid is asked. Such a request must contain information both as to the marks, number, kind, and quan- tity of freight and as to the nature of the assistance that is desired. ART. 2. After the receipt of the request mentioned in article 1, the manage- ment of the free port is bound to grant the assistance, to the extent that and as soon as circumstances permit, unless the management finds, after having made an investigation as quickly as possible, that the owner of the free port should refrain from furnishing help, for some generally applicable reason, and sends a statement to that effect to the applicant without delay, if his address is known to the management. SECTION 9. ASSISTANCE WITHIN TERRITORY LEASED TO INDIVIDUALS ArricrE 1. Assistance that is requested at buildings or other storage places within the free port that are leased to other persons may, unless there is some other regulation to the contrary, be given not only by the employees of the owner of the free port but also by those persons in the employ of the lessee whom the management of the free port has tried out and found to be qualified for the execution of such work within the free port, to the common interest. ART. 2. With regard to compensation for and asking for assistance that is given by the employees of the owner of the free port in accordance with this gection, the provisions made in sections 7 and 8 that are laid down for the case under consideration there will apply, as far as they are relevant. CHAPTER 3. STORAGE ON THE PrEMises oF THE OWNER oF THE FreE Por1l SECTION 10. APPLICATIONS FOR STORAGE Articie 1. Any person who desires to have goods deposited for storage in the buildings, storage rooms, or storage places inside the free port, must make written application for this to the management of the free port, stating the markings, number, kind, and quantity of the goods and, if this may be consid- ered necessary, the shipping documents for the goods must be inclosed. The management of the free port may refuse to accept goods for storage wher a generally applicable reason therefor is shown to exist, but notice of such refusal shall be sent to the person concerned, when his address is known to the manage’ ment of the free port, as soon as possible after the receipt of such an applicatio? as just mentioned. FREE PORT OF MALMO 131 £2 a 9 od 8 oY a 18 er OT 16 3 em 8 ie id a mn os ne er ne 10 o ia JP 2m in ke he ea en al oud an If goods brought into the free port that are not in possession of government officials are not taken away from the free port or removed to a building or place of storage such as those mentioned above within eight days after being brought IR or within some shorter period of time that the manager of the free port may have fixed, it shall be considered that a request has been made of the owner of the free port for storage of the goods, even though such application was not actually made. If the goods which are treated of in section 1 of the regulations of June 14, 1917 (No. 340) ,» on the sale of intoxicants are brought into the free port by anyone else than those persons who are entitled to bring in such liquors according to article 1, section 10, of the said regulations it shall be considered that application for the storage of such goods with the owner of the free port has been made as Soon as they are unloaded within the territory of the free port, but in such a Case attention must be paid to what is laid down in section 26 below regarding the right to dispose of the goods. ART. 2. Goods which are accepted for storage in accordance with the provisions of article 1 must be specially marked by the management of the free port. ArT. 3. Rules are laid down in the regulations on free ports with regard to bayment of a special fee for storage as mentioned in article 1, in accordance with a tariff established by the government of the Province. SECTION 1l. CHECKING UP ON GOODS REPORTED . The management of the free port has the right to verify the correctness of the Information given in accordance with article 1, section 10, concerning goods for Which application for storage has been made, whenever this is found desirable. by making an examination of them. The expense of such an investigation is to be borne by the owner of the free Port if the correctness of the statements is proved by the investigation, but Otherwise it is to be borne by the person requesting storage. SECTION 12. CERTIFICATE OF RECEIPT Artrcee 1. It is incumbent upon the management of the free port to issue a Certificate showing the acceptance of goods for storage as provided in section 10, % copy of which shall be made and kept by the management for future reference. . Arr. 2. Only in case the examination discussed in section 11 precedes the Ssuance of the certificate of acceptance is the owner of the free port responsible for the correctness of the statements in the certificate concerning the nature and Quantity of the goods; and it shall be stated in the certificate besides to what ®xtent the statements made in it are based solely on the application submitted Or also on a special examination of the goods. . Arr. 3. Notice shall be given specifically in the certificate of acceptance men- tioned in article 1 that the certificate of acceptance itself is not to be considered 35 showing how much of the goods mentioned in the certificate of acceptance is Stored inside the free port for the person concerned from that time on. SECTION 13. INSURANCE Goods that are received for storage after application has been made in accord- ance with section 10 shall, if the owner of the goods requests it in writing, be in- Sureg by the management of the free port against damage from fire or other cause, bug the management of the free port is not bound to take out insurance in any Other insurance company than that which the management finds suitable. 132 FOREIGN TRADE ZONES SECTION 14. APPLICATION FOR REMOVAL FROM STORAGE If the goods mentioned in section 10 are to be removed from storage, the owner of the goods must either return to the management of the free pert the certificate of acceptance of the goods issued in accordance with section 12, after it has beer provided with a suitable acknowledgment of the receipt of the goods, or else must turn.in a special removal document with receipt, made out on a form which shall be furnished to the person concerned by the management of the free port. Special records shall be kept by the management of the free port of removal effected in this way. SECTION 15. DETENTION AND SALE ArTicLE 1. As a condition for letting out goods which have been stored ir accordance with the provisions of section 10, the management of the free port has the right to demand the payment of the charges allowed by law for the trans portation, storage, insurance, and guarding of the goods, as well as reimburse: ment for any special expenditures made by the management of the free port in connection with the goods. Art. 2. If the person for whom the goods are stored owes more than half the value of the goods left in storage or in any event owes at least one year’s storage charges or if any of the other charges mentioned in article 1 has not been paid within a year after it is made, the owner of the free port is entitled, after written notice of such action has been given to the person putting the goods in storage or by publication in newspapers of general circulation if his address is not know? to the owner of the free port, to sell within a reasonable time, not less thay eight days after the issuance of the notice, as great a portion. of the goods, put not less than whole packages, as may be considered necessary for covering the charges of all kinds due the owner of the free port in connection with the goods in question. Unless other statutory provisions have already been made or may be made in future, such sale shall either be conducted by duly advertised auctiol or, in case of the goods covered by article 1 of the regulations of June 14, 1917, on the sale of intoxicants, by secret bids for redemption by those who are entitled to import such liquors according to section 10, article 1, of the same regulations: and the goods shall always be sold as uncustomed. The same action shall be taken in case it is ascertained by examination made by three persons selected as experts by the competent chamber of commerce that there is danger of the goods in storage being destroyed. ArT. 3. When sale has been made in accordance with section 2, any balance that may be left from the proceeds of the sale after indemnification of the owne! of the free port for unpaid charges on the goods, including the cost of examiné tion and sale of the goods, shall be kept for the owner of the goods and shall be put into a bank so as to draw interest until called for by the owner. If the owner does not put in an appearance within five years after the date of sale, the principal and the interest thereon becomes the property of the owne’ of the free port. Cmaprer 4. LEasiNg oF BuiLpiNgs aNp OpeEN SpacEs FoR Sprcian Wors SECTION 186. THE LEASE ArTicte 1. In leasing buildings or open spaces for the special operations per mitted inside the free port by the regulations, the owner of the free port shal draw up a written contract with the person to whom the lease is made, co taining stipulations on the following points: That the lessee may not, unless the management of the free port has given permission in writing, store or receive FREE PORT OF MALMO 133 er te en 1se rh Te ral in art ns- LO in rhe 120 aid -o1n 1ge wn an wb he rds ay ion 17, led nse. de Boods for another in the buildings or open spaces rented by him or transfer such Places wholly or in part to another; that the lessee may not, without receiving Written permission from the management of the free port in each separate case, store goods in the space leased that are of such a nature as to be liable to damage 80ods stored in nearby places; that if the lessee fails to a marked extent in the Performance of the obligations devolving upon him or violates the rules govern- ing the free port he shall be considered to have forfeited his rights as lessee and to be obligated to give up at once what has been rented by him, and the owner of the free port shall be entitled to rent by lease or otherwise to some other Person what has been vacated by him; and that the lessee furthermore pledges nett to observe the provisions laid down in these regulations or based on em. ArT. 2. Rules are laid down in the regulations on free ports for determining the charge that is to be made for buildings or storage places leased in accordance With article 1; a tariff specially established by the government of the Province shall be followed. SECTION 17. CHANGE IN NAME If, after the making of a lease as discussed in section 16, there is a change in the style of the lessee or if any person who, alone or in conjunction with another, 's entitled to sign the firm name, changes his place of residence, or if the post- Office address of the lessee is changed, a written report of the change shall be re to the management of the free port within eight days after it goes into tMiect. If the management of the free port finds, after receipt of the announcement of change in the firm and after consultation with the chief of the customs serv- Ie at, the free port, that the change is of such a nature as to cause the cancella- ton of the right to use the buildings or open spaces by the person making the teport, for reasons connected with the security of the owner or of the free port Or the public treasury against loss, it is the duty of the person to whom the buildings or open spaces have been rented to vacate what has been rented at the request of the owner of the free port within a reasonable time, stated in the equest, but he shall be entitled to reimbursement of the amount paid in advance 38 rent for the building or space, to the extent that the advance payment covers the time after which the evacuation is to be completely accomplished. SECTION 18. BOOKKEEPING rig nee net ht: he ) of aor rE The person to whom the lease was made shall keep books; in the manner Which the chief of the customs service at the free port, in consultation with the head of the free port administration, may see fit to prescribe, concerning the goods that are brought into or taken away from the building or uninclosed Pace rented in accordance with section 16; these books must show plainly to whom each shipment from the building or open space was sold and the amount of it, The aforesaid chief has the right to examine such books at any time, either in Person or through a suitable subordinate, in so far as it may be considered Becessary to determine whether the stipulations laid down for carrying on the Work heing done inside the free port are being proverly respected. SEOTION 19. RETAIL SBLLING IN GENERAL er” all on” she 18 In enforcement within the free port of the general prohibition of retail sale, “hibition or other display to the public within the free port of wares kept there, contained in the free port regulations, the general customs service shall 134 FOREIGN TRADE ZONES have the right to issue such further detailed regulations, at the recommendation of the chief of the customs service at the free port and the management of the free port, or either of them, covering the occurrence of said sale, exhibition, or display, as do not conflict with other ordinances. SECTION 20. TRADE IN NAVAL STORES The following general provisions shall apply to the retail sale of ships’ pro visions and other necessities which may take place, according to the free port regulations, by special permission of the King, in addition to what may. be ordered in each special ease upon granting of such permission or on other suit- able occasion: The supplies contemplated above may not be sold by the dealer until he has been given a special order blank for them, filled out with his own hand by the owner or master of the vessel concerned or by the authorized agent of one of them. However, the dealer is not prevented, if there are no other provi- gions in the way, from having imported goods passed through the customs in the ordinary way and taken to his storehouse after this is done. The order blanks must contain both a sworn statement by the person filling them out that the goods are intended for use on the ship and that they will not be removed from it to a vessel within the boundaries of the Kingdom or its territory without customs duties being paid by such tradesman as sells or otherwise uses in his business goods of the same or a similar kind, and an acknowledgment of re- ceipt of the goods signed by the person filling out the blank. The dealeristo see to it that the goods issued upon presentation of the order blanks are properly taken on board and taken charge of there by the right person. He must keep strict account of the goods taken into his store and delivered from it, in the manner that the chief of the customs service at the free port sees fit to pre- scribe after consultation with the management of the free port; accounting for guch goods brought in or taken out must be done without delay and backed up by invoices and, if this can be done, by freight or other similar bills, and likewise by the order blanks mentioned above or, in case of passing through the customs for the account of the dealer himself, by the bills or permits issued by the customs authorities. The chief of the customs service at the free port and the manager of the free port shall have the right to examine such books at any time, either in person or through a competent subordinate, and likewise to have an inventory made of any of the goods in question that remain on the spot, during which the necessary assistance must be given by the dealer without charge. When a shortage is found upon such inspection and it is proved that the cause thereof can not be attributed solely to the nature of the goods, the dealer shall be obliged, upon order of the chief of the customs service at the free port or that of the general customs service, in case of dispute, to pay im- mediately to the cashier of the customs service the customs and other fees which would be due for importing the missing goods into the Kingdom through the customs. The dealer shall be obliged to heed the limitations of the right of sale which the chief of the free port customs service may find it necessary to order in consultation with the management of the free port, in special cases to avoid evident abuse of the provisions on the right of sale and consumption of ships’ supplies within the free port contained in the free port regulations; and the dealer shall be liable to the consequences stated in sections 21 and 22 of the regulations on free ports, in so far as they apply, in case of failure to fulfill the obligations devolving upon him according to this section. nm he 97 ‘= rb be £- ar yn of i= he ws he m ut 1i8 en ee st in e- or od Wd zh ad rb ks se he ub ab he he a- ch he ie ary id os’ he ne ne FREE PORT OF MALMO 135 CaaprrEr 5. RESPONSIBILITY FOR Goops SECTION 21. RESPONSIBILITY IN GENERAL ArtionE 1. The owner of the free port is responsible for goods that are placed in storage in accordance with the provisions of chapter 3, as well as for goods. placed hiv care, ART. 2. The owner of the free port is free from all responsibility for goods within the free port which are not cared for as stated in article 1, unless otherwise ordered by regulations laid down elsewhere. SECTION 22. ASSUMPTION OF LOSS If goods which can be proved to have been accepted by the owner of the free port for further shipment or storage can not be delivered by him within 14 days After request for that has been duly made, the owner of the goods may consider them as lost, without having to furnish proof of loss. SECTION 23. DAMAGE FROM STORED GOODS A person who makes a request for storage of goods in accordance with section 104s responsible toward the owner of the free port for damage caused by keeping the goods in storage, in so far as the damage is not of a kind generally connected with the storing of goods of similar type. SECTION 24. CARE OF GOODS IN STORAGE The management of the free port has the right to have such measures taken With regard to goods stored in accordance with section 10 as the management finds absolutely necessary for the preservation of the goods, without securing Permission from the owner of the goods, and at his expense, bub notice of the taking of such measures shall be gent to him as soon as possible if his residence is known to the management of the free port. SECTION 25. WASTE Scattered or spilled substances and similar refuse that is left on ground inside the free port that is not rented to others by the owner of the free port becomes the property of the owner of the free port. CuapTeEr 6. GENERAL PROVISIONS SECTION 26. IMPORTATION OF INTOXICATING LIQUORS The goods covered by section 1 of the regulations of June 14, 1917, on the sale of intoxicants may be stored in the free port only by a person who, according bo section 10, article 1 of the said regulations, is entitled to import such beverages; but others may likewise bring such goods into the free port for reexportation by Water to a foreign country or some other Swedish free port. without anv change being made as to nature or packing. SECTION 27. SUPERVISION IN CASES WHERE THE RIGHT OF EXPORTATION AND IMPORTATION 18 RESTRICTED Artrcrr 1. Direct supervision to see that improper disposition is not made Inside the free port of goods the importation of which into the Kingdom ig pro- hibited under regulations in force for the prevention of contagious diseases of man or beast or for other like reason, or of goods which can be imported into the Kingdom only on the observance of certain conditions, is to be the duty principally 4706R°—20—nun-10 136 FOREIGN TRADE ZONES of the owner of the free port, as is likewise direct supervision to see that goods for the exportation of which from the Kingdom certain special conditions are laid down are not thus improperly exported. Art. 2. In exercising the supervision discussed in article 1, it is the duty of the owner of the free port, whenever there is any question as to the disposition or removal of goods the right of which to importation or exportation may be con- sidered to be restricted as stated in the same article, to make a report as soon as possible to the customs service of the free port, upon the examination made by which it shall depend to what extent and under what conditions the person concerned may be allowed, according to the regulations in force, to keep or remove the goods or what measures must first be taken with regard to the goods according to the regulations. Arr. 3. With regard to supervision inside the free port to see that the rules in force for preventing the bringing in of contagious diseases into the Kingdom by ships, their passengers or crew or the men who unload them are being followed, what is said in articles 1 and 2 may be applied in the corresponding way. SECTION 28. PAYMENT IN ADVANCE The owner of the free port is entitled to collect in advance the charges for the use of buildings, storage rooms, or storage space inside the free port, or equipment therein, as well as premiums on insurance asked for and fees for such labor or other such assistance as the person handling the goods is granted by the owner of the free port. , SECTION 29. BOOKS KEPT BY THE OWNER OF THE FREE PORT The owner of the free port shall keep a complete set of books showing what he does in the free port. SECTION 30. SOJOURN WITHIN THE FREE PORT Article 1. The manager of the free port should see to it that persons who have been guilty of unlawful importation or exportation of goods or have carried on illicit retail trade inside the free port are not employed for performing labor or doing any other work inside the free port, and he may also, at the instigation of the chief of the customs service of the free port, forbid undependable persons to stay inside the free port. ART. 2. Members of the traffic force employed permanently or temporarily by the management of the free port shall wear special service badges which are approved by the chief of the customs service at the free port. ArT. 3. A person, who, in accordance with section 9, is accepted for per- Forming work for a lessee within the free port, shall, when at work, wear a special service badge approved by the chief of the customs service of the free port, which badge will be furnished by the management of the free port, and the service badge shall be returned by the lessee concerned when the wearer of it leaves hie employ. Art. 4. For admittance in general to the warehouses inside the free port or to other buildings or open spaces rented to individuals, special permits issued by the management of the free port shall be required of others than persons in the service of the authorities of the free port, but no hindrance or delay must be caused to the health authorities in the performance of their duties hv this, or to policemen engaged in the performance of their duties. ART. 5. Traders who are inside the free port are absolutely bound to respect the rules which the employees of the free port on duty there may find it necessary to issue with regard to supersivion. I 1 8 Ir Ie 2 ao 0 FREE PORT OF MALMO SECTION 31. OBLIGATION TO MAINTAIN SECRECY 137 . Information concerning goods stored with the owner of the free port must hot be given to anyone but the person who proves himself to be entitled to receive the same. SECTION 32. PROHIBITION OF IMPROPER EMOLUMENTS The owner of the free port shall forbid all persons employed under it per- manently or temporarily to accept or demand compensation or emoluments of kind whatsoever for the performance of the duties incumbent upon them, to which such persons are not entitled according to the regulations in force, and he shall likewise see to it that any violations of the prohibition thus issued that are noted are followed up. $e *® SECTION 34. ISSUANCE OF TRAFFIC REGULATIONS e t ir ae If further regulations concerning order or safety for the free port or entrance to places or buildings located in it are necessary, beyond what is prescribed in these regulations or elsewhere, such will be issued by the government of the Province at the recommendation of the owner of the free port or after he has been given a hearing, but such regulations must not contain directions for service of government employees inside the free port or for interference with the per- formance of the officials’ duties under the statutes in force. SECTION 35. POSTING OF REGULATIONS One copy of these regulations shall be posted up or otherwise kept where the public can see it in the premises used by the owner of the free port, in the room where papers are given out. @ 1 T Wi Q CrarTeER 7. PENAL Provisions SECTION 36. PENAL CONSEQUENCES If anyone violates the provisions of these regulations or those issued under them, he will be punished by a fine of from 20 to 1,000 kronor, both inclusive. SECTION 87. COMMUTATION OF FINES Fines which are imposed under these regulations will go to the government If the full amount of the fine imposed can not be collected, it shall be commuted according to the general penal statutes. RECTION 38. PROSECIITION 1 i+ Tr Offenses against the provisions of rules laid down in or in accordance with these regulations are to be prosecuted by the public prosecutor after information has been submitted by the management of the free port or the chief of the customs Service at the free port. Action is to be instituted in the police court at Malmo. These regulations will go into effect on the day on which the conditions for the opening of the free port for use are reported by the general customs service. All concerned are to act accordingly. In testimony whereof we have signed them with our own hand and had them authenticated by our royal seau. The Palace at Stockholm. August 28, 1922. (r. 8.) GusTAF. The Treasury Department. FF. V. THORSSON. | 2 4 ~~ FOREIGN TRADE ZONES THE FREE PORT OF STOCKHOLM, SWEDEN [From Consul General John Ball Osborne, Stockholm, Sweden] History of the Stockholm free port—The free port statute, passed by the Riksdag in 1907, authorized the establishing in Sweden of customs: free harbors. Although the plan to establish a free port in Stockholm originated many years ago, no action was taken in the matter until 1916, when a committee was appointed by the City Council of Stock- holm to investigate the question and prepare plans for the construction of the harbor. The recommendations of the committee were adopted the following year, when it was also decided that a temporary harbor should be constructed adjacent to the permanent harbor. This temporary harbor was opened for use in 1919 and, after having been repeatedly extended and improved, it was incorporated with the permanent harbor, which was completed on September 27, 1926. Description of the port.—The Stockholm free port, which is stated to be one of the most modern and best equipped in the world, is located at Lindarangen, about 2 miles east-northeast of the center of the city and about 1 mile from its eastern outskirts. The total area of the free port zone, including the harbor, is 504,000 square meters (about 5,500,000 square feet), and the area of the ground is 282,000 square meters (about 3,000,000 square feet). The quays have a total length of 1,215 meters (about 4,000 feet), with a depth in most parts of 10 meters (about 33 feet) alongside. They are built of cement reenforced with steel pilings, surfaced with paving blocks and macadam, and are built to bear 3 tons per square meter. The cost of construction is stated to have been 8,000,000 crowns ($2,144,000). The free port has several gantry cranes of 214 to 5 tons capacity, 8 bridge cranes of 5 tons capacity, and 8 double bridge cranes. The latter have two sets of machinery and can be used for vessels berthed at the quay in double rows for discharging from one to the other. There are three warehouses in the Stockholm free port—two large new ones on the northern pier and an older one a short distance away. They are all built of concrete, with special fireproof divi- sions, and are fitted for the storage of different kinds of goods, including perishables. They are divided into large storage rooms and a number of small separate rooms which are rented to various firms for storage of their goods. Warehouse No. 1 (the oldest) measures 8 by 45 meters (262 by 148 feet) and has three floors of a total area of 8,000 square meters (86,000 square feet). Warehouse No. 2 measures 80 by 36.4 meters (262 by 119 feet) and has four floors with a total area of 9,000 square meters (97,000 square feet). The third warehouse, which is the most recent and contains the offices of the harbor and of other concerns, is 80 meters long (262 feet) and has a minimum breadth of 55 meters (180 feet). It has six floors, including the cellar, with a total ares of 222 R352 % GREIRIW TE QHD S 52 8&8 DTeEII RoR PP AIRE ® "m2 Te Quod J So =P o> DO = wn 0a 2 ERE an ER vg FREE PORT OF STOCKHOLM. BIRD'S-EYE VIEW OF FREE PORT FROM SOUTHEAST FREE PORT OF STOCKHOLM WARFHOUSES OF FREE PORT FROM THF. NORTHEAST FREE PORT OF STOCKHOLM. VIEW OF NORTHERN SIDE OF THE NORTH PIER FREE PORT OF STOCKHOLM 139 22,000 square meters (237,000 square feet). The warehouse is steam heated, and goods can be delivered to each floor direct from a ship by cranes. At the east end there are special arrangements for the storage of grain, including three silos. There are numerous railway tracks within the free port zone and these are connected to the general Swedish railroad system. A highway and a street-car line connect the free port with the city of Stockholm. In addition, goods are often transported to and from the free port by water in small steamers or lighters, the numerous Waterways in the vicinity of Stockholm and extending a considerable distance into the interior facilitating this method of transportation. Administration.—~—The free port, although owned by the city of Stockholm, is operated by a municipal corporation, the Stockholms Frihamns A/B, of which the city of Stockholm owns the entire Capital stock. The administration of the free port was given the form of a corporation solely to allow a more adaptable and business- like operation, unencumbered by the rules and regulations of a department of the municipal administration. It is, however, gov- trmed by the ‘Regulations for the free port of Stockholm’ that have been issued by the Swedish Government, and all the dues and charges in the port have been determined by the governor’s office of Stockholm, after having been examined by the Chamber of Com- Merce of Stockholm. The guarding of the port is carried out by the Swedish customs department, and as there is only one gate to the zone, only about 20 customs officials are required for the entire port. The free port is entirely self-supporting, and in addition it pays the city a certain sum annually (stated to have been 500,000 crowns during the last two years) for the privilege of operating the harbor &nd an annual rent for the ground of 118,000 crowns ($134,000 and $21,624, respectively). Operations in the free-port zone.—Goods in the free-port zone may be inspected by the consignee or persons authorized by him to do so. They may also be unpacked and repacked in larger or smaller parcels. All retail trade within the free zone is prohibited. Manufacturing Activities are permitted only when sanctioned by the King. Dispatch secured in unloading vessels.—On account of the up- fo-date equipment of the free port, vessels may be loaded and un- loaded there as fast and faster than at the other harbors of the city, "0d both operations can be performed at the same time, giving a ick turn-around for ships using the port. ; The time required for loading 1,000 tons of freight in an ocean Tighter is stated to be eight hours. of Trade of the free port—From the outset coffee has constituted one the principal commodities imported through the free port, and FOREIGN RADE ZONES the majority of Sweden’s importation of coffee passes through if. American automobiles have also been an important article of import ever since the opening of the port. Fresh fruit from southern Europe and the United States and grain from North and South America show a very marked increase during 1927 on account of the improved storage facilities that became available that year. The free port caters principally for the import trade. The foreign transshipment trade is of less importance, being confined to shipments for Finland and the Baltic republics during the winter. Manufacturing in the free zone.—As mentioned above, the per mission of the King must be obtained in order to commence manu- facturing activities within the free-port zome. It appears that several firms have contemplated the use of the free port for this purpose. As yet, however, no definite steps have been taken in this direction, with the exception that a Swede, Mr. Tornblad, has applied for and received permission to manufacture airplane pare chutes within the free-port zone. The parachutes are intended chiefly for export, and it is stated that manufacturing will be com- menced in the spring of 1928. No shipbuilding and no ship repair is performed within the free 140 Zone. Influence of the free port on Swedish trade, etc.—It can hardly be said that the free port has as yet exercised any great influence on the development of Sweden’s foreign trade. The favorable development of the trade during recent years would undoubtedly have taken place even if there had been no free port. It appears that the free port up to now has only offered competition to the other harbors in Stockholm. It is, however, too early to make any definite state- ments regarding the Stockholm free port, which is developing rapidly in importance as merchants are beginning to realize the advantages it offers. The Swedish merchant marine has shown a steady growth during recent years, but it can not be said that the opening of the Stockholm free port has exercised any direct influence in this direction. Statistics.—The number of vessels (steam and motor) making use of the free port during the vears 1921 to 1927 has been: Yaar CY nui of RRR 5 ' - Internal novignin) Foreign navigation oo a eo —— Number Tonnage | Number | Tonnage | Number | Tonna#e ee—————————— Total 248 "64 21 522 491 7 wi 16, 245 58, 879 278) 10512 54, 052 81, 572 30 185.6% D1, 656 <7 132156 508 | 223,50 96,913 | 82 | 132490 605 | 229.4% 83, 510 97| 177.871 ses | 261,34 116, 267 | 146 | 233,302 878 | 340,60 132’ 552 231 | 315 106 gge 448.6 n4 FREE PORT OF STOCKHOLM 141 if. rb rm th he The total quantity of goods entered into the free port from abroad by sea has been: — Yaar Quantity Year Quantity pg 777mm ens Gage orn on Serr Sq TTT Kilograms 25,767, 47¢ 35, 819, 98 70, 123, 84. £6, 118, 458 LID cme im i sm mm mR VID cw 927... , po Kilograms 63, 044, 296 125, 455, 064 139, 830, 517 on ta AP u- ab VE 1i8 a9 rg ad The quantity of the principal commodities entering the free port has been as follows (in kilograms): Y ear Noffae Fruit, ete. Grain (not oais) Machines (automo- biles) fe 16, 049, 452 17.753, 123 19, 759, 389 19, 204, 516 17, 555, 167 23, 084, 608 20. 094. 142 1, 543, 162 2, 413, 720 3, 537, 585 3, 858, 035 2, 633, 086 5, 620, 144 0. 344. 39¢ 2, 363, 935 1, 388, 675 2,878, 239 4, 290, 705 2,917, 788 7,677,704 13 485 134 101, 996 246, 359 4,173, 704 6, 290, 000 5,995, 150 6, 896, 952 = 2g7 711 Yo 08 oe ae nt 100 wh in be {ly 08 ag m 8 aoa 124 524 112 03 8 356 The customs dues, including the excise taxes on sugar and rubber bres, have been as follows: poy Customs dues. ete. TT aar Customs dues, ete. @1 3 so a Crowns 1, 447, 224 1,969, 71: 5, 116, 03¢ 8. 078. 194 £7 RN. Lr URE 1927 ee Crowns 8, 567, 275 7,784, 627 10.919. 574 Port charges—The harbor fee at the free port amounts to 15 re (4 cents) per net register ton upon arrival from a foreign port, and the same upon departure for a foreign port. In the case of arrival from and departure for Swedish ports the harbor fee is 8 ére (2 cents) ber net register ton. In addition to the harbor fees, vessels have to Pay the ordinary charges for entering a Swedish port, such as light- Bouse dues, etc. The storage charges for goods in the free port are given in a tariff, Printed only in Swedish (copy attached). The first column is the charge in gre per 100 kilograms per week, the second and third “lumng the charge in ore per;metric ton per month for outdoor Storage, exclusive of tarpaulins, and indoor storage, respectively. The storage charges for the common commodities imported from the United States are given below. —__cooates are given belo®¥. ooo * Tranglateq by Military Intellizence Division, General Staff, and printed in part 142 FOREIGN TRADE ZONES | Per metric ton per month Per 100 kilos per week | Outdoor | Indoor Articla Ore |Cents| Ore | ents | Gre | Cents — _.| 4001 107.2 Druggists’ supplies......_.. Cotton and cotton waste: Pressed. coocaaaoaaaon Not pressed... _..ooiceoroamaamnnnn. Fat, animal and vegetable lard, tallow, ete... Meat, not conserved .......-- Vehicles: Motor cycles .__ooooo__ a ——— —— Other, not specified. ._..____ eee Fruit, not conserved. ...._... RE Instruments, all kinds_.. 3 A SR BARS COT. mo economia HA Cocos and chocolate (not confectionery)... . ww Rubber: Unprepared...ceeuunn [ER PEBIVITI cco cymsagumn smssoo op g gt oka 1 SE 0 0 Chemical elements and compounds, not specified... _cemmunan Coal and coke, briguets. oo. ooo emommoo oa iaaa OUTRO iis or oe RRBs tr mt rir mi Spices and colonial produce, not specified... —— THOALHBE.. .. com mmm HAR HS RR WARE 0 ia C0 ce wm rere prvi mw mn som mm SRA ER WR se Machines, implements, and parts thereof .......... SEA Metals: . Tron not specified, iron alloys, railway material, and nails... Iron wire, plates, and tubes.......... memes Thin sheet metal and iron goods. ......connoo - Copper, lead, zinc, ete., and alloys thereof. ........ _.... ... Articles made thereof ooo eoucimimnaceean. al Oils: Thick oil and lubricators.... 4 Volatile oils, gasoline, ete... _. Mineral oils and distillation products of charcoal and tar, not specified. oo imme emaae Grain and flour. .ooveeeaaaot J Tobacco: Unprepared._ o.com. Finished...ocuvmnunnrs: = Threshing machines_.._._.. 10 | 5 10 4 4 227 L3 2.7 L1 11 134 35.9 2%8 71.9 106 28.4 106 | 28 4 200 | 53.6 400 | 107.2 160 | 42. 9 180 | 492.9 10 L5 7 5 5 Q 2.7 400 107.2 £0 600 160.8 19, 186 49.8 £0) 400 107.2 13] 184, 85.9 511 214! 574 600 160.8 900 | 241.2 280 | 75.0 600 | 160.8 200 | 53.6 900 | 85.8 4 1.1, 160 ‘0 2.7] 268 5 13] 134 2 .5 80 2.1 214 3 2.7 214 -0 2. 268 214 100 10 268 42.9 71.8 35.9 | 21.4 57.4 57.4 71.8 26.8 71 R 240 + 64.3 400 | 107.2 200 | 53.8 120 | 32.2 320 | 85.8 320 | 85.8 400 | 107.2 150 | 40.2 400 | 107.2 234 3 100 120 200 120 1 200 26.8 32.2 53.6 32.2 RQ a 150 | 40.2 180 | 48.2 300 | 80.4 180 | 48.2 300 | 80.4 180 | 48.7 180 48.1 5 2 € 120 120 120 100 186 400 400 32.2 32,2 32.2 26.8 49.8 107.2 107.92 180 | 48.2 190 | 32.2 280 600 (00 75.0 160. 8 120. 8 UY COMMUNAL PUBLICATIONS OF STOCKHOLM (Issued by the statistical bureau of the municipality of Stockholm, No. 59) RATES FOR THE USE oF BUILDINGS, STORAGE SPACE, OR WAREHOUSES IN THE Free Port oF StocksoLM Laip Down BY THE OFFICE OF THE (GOVERNOE. DeceMBER 24, 19257 A. GENERAL REGULATIONS *® For bulky goods which are not mentioned in the table of rates and for othe goods which, because of their packing or for other special reasons, take up ar unusually great storage space, the rate for storage under roof shall be 50 ére pe? cubic meter per week and for storage in an oven space shall be 25 dre per cub meter per week. For goods which at the request of the owner are stored in a way which require greater space than might otherwise be used, the charge shall be for the actus space occupied. For goods which are stored in an open space and for which rates are paid aceord ing to weight, the corporation pays for the supporting boards. 1 Translated by Military Intelligence Division, General Staff, FREE PORT OF STOCKHOLM 143 7] 1ts 79 3.6 7.2 2.9 9.9 0.8 1.2 5.0 0.8 3.6 = 8 3 2 1.8 1.2 i. 8 A 8 7.2 0.2 17.2 0.2 8.2 30.4 18.2 0. 4 18. 2 iq 2 18.2 1 9 5.0 0.8 nn 8 aE WR. ner an hel Sie Goods which are stored in an open place, with the exception of alkalies, asphalt, 3h, bark, bones, briquettes, glass, iron, purple ore, coal, copper, cement wares and crockery, ore, sand, slag, acids, slate, and brick, are covered by the corpora- tion, at the request of the owner, with tarpulins or in some other way at the lowest tates prevalent in Stockholm. In drawing up the bill a period of seven days shall be counted as a week, as shall also any part thereof, while a whole calendar month shall be counted as four weeks. In the bills the weight shall be counted to the nearest 100 kilograms. The minimum amount to be charged for the storage of goods is 2 crowns. The payment shall be made, unless other arrangements have been agreed upon, bY the person in whose name the goods have been stored. Under no condition shall the corporation be responsible for damage caused by the elements. B. SPECIAL REGULATIONS Goods which are brought to the free port by sea from domestic or foreign ports shall be stored free of charge for three days and nights, exclusive of Sundays and holidays. For the remaining days of the first week the charges shall be 20 dre Per ton per day if stored under roof and 10 ére if stored in an open place. For 800ds of this kind which remain longer, the regular storage rate shall also be paid for the first week. Goods coming to the free port by land or sea from a domestic port and shipped bY sea to a foreign port shall be stored free of charge for six days and nights, “elusive of Sundays and holidays. If goods of this kind remain longer than that, a charge of 10 dre per cubic meter per week is made for ore, slag, and such Sood, as well as for pit props, and for all other kinds of goods the charge is 20 Ore per cubic meter per week, calculated from the day of deposit, and in so far as he rates according to Section C are not lower. Goods which within 8 days after the arrival of the vessel are reported as in bransit and which as such are shipped within 20 days, shall be stored free of charge for 9 days and nights, exclusive of Sundays and holidays. Goods which at the latest time of unloading of the vessel are reported for reexport May lie in storage free of charge for a period of twelve days and nights, exclusive of Sundays and holidays. . The above periods of time are calculated for goods which have been imported n this way, from and including the working day next after that when the ship hag completed landing its cargo, and in the case of goods which came by land, from ang including the working day next after the one when the goods were placed on the wharf, in all cases exclusive of Sundays and holidays. ; For goods which lie for more than 24 hours in the special customshouses of the Tee port the corporation may charge a fee amounting to the charge for one week for every extra day. The corporation may also move the goods to another place Within the free port, this being done at the owner's risk and expense. Offices, vacant storehouses, and vacant outside space may be rented by the Corporation on special conditions. res 1al r~ 144 FOREIGN TRADE ZONES THE FREE PORT OF HANGO, FINLAND [From James R. Wilkinson, American consul, Helsingiors, Finland} No free port functioning in Finland.—A free port was established in Hango in 1921, but it was taken over by the Government before it was quite completed and is now operated as an ordinary port. A summary of the history of the Hango free port is embodied in the fol- lowing paragraphs. Free port agitation due to future Russian trade.—During 1920 certain Finnish business men were seized with the notion that great trade expansion was impending in Russia and that the most natural trade route between Petrogad and the western world would be the railroad line between that city and Hango Finland. Accordingly, the idea of a free port in the latter city was conceived and was agitated until the Finnish Government passed a law giving the necessary powers for the establishment of free ports. THE FREE PORT LAW Law passed. —There being no law in Finland providing for free zone or free port activities, it was of course necessary to pass one. Accord: ingly, a law providing for free ports was enacted on March 31, 1921 The main provisions of the law are as follows: Free ports may be established in appropriate places—The law pro- vides that free ports and free warehouses may be established in any appropriate place in the country under certain conditions duly set forth. Free port defined. —A free port is defined as a zone in which goods may be cleared, warehoused, repacked, manufactured, and otherwise handled without regular customs procedure. A free warehouse is defined as a place in which goods may be handled as in the case of 8 free port. State and Finnish citizens have right to establish.—Section 2 of the law provides that the right to establish and operate a free port if vested in the State, which may delegate its right to municipalities; corporations, and cooperative societies the boards of directors of which are Finnish citizens. A proper application must be submitted to the Government and the opinion of the community concerned must be heard. Status of free port with regard to ordinary trade.—To all intents and purposes goods going to or coming from the free port have the same status as goods exported from or imported into Finland. State to provide regulations for free ports. —Section 4 of the law gives the Government the right to promulgate the regulations necessary for operating free ports. These regulations may pertain to custom® procedure, tariffs, safety, and other matters. It also provides that tariffs shall be no higher than what the upkeep, expansion, and 2 moderate profit necessitates. in 1, +] Win de de ad of ‘he oT ne ]- 3. 10” IY th. yds ise is fa he 18 9, ch he he nd 1né 705 uy ms jab a WAR DEPARTMENT Ne, ol p U.S. SHIPPING BOARD gma Lm < i FREEPORT OF DANZ| G ———— 500 “ SUBMITTED SE IN CHARGE OF JOINT AJOR CORPS OF ENGINEERS INVESTIGATION RESIDENT MEMBER BOARD OF ENG'RS FOR RIVERS AND HARBORS ACTING DIRECTOR BUREAU OF OPERATIONS ORAWN BY AJIMSG, U.S. SHIPPING BOARD. 192¢ FREE PORT OF DANZIG 145 Director responsible.—Section 6 of the law provides that a free port shall be managed by a director, who shall be responsible before the law in all matters connected with the operation of the port. Nore.—A law also dated March 31, 1921, sets forth in great detail the con- ditions under which a free port may be established. Finnish Government assists establishment.—The Hango free port was established in 1921 under the legal form of a corporation with a capital of 2,500,000 Finnish marks ($63,000). The capital was, of course, too Small for the construction of the piers and warehouses which had to be built, and so the company applied to the Government for a 6,000,- 000 marks loan ($151,200), which was granted at a low interest rate. The Government leased to the company a plot of land (348.4 acres) at a nominal rental. This assistance was given on the understanding that, the company construct and operate the free port. Results—Russian trade did not materialize and the free port built Oh nothing more than great expectations failed. In fact, the port Was never actually operated as a free port. Work on the first pier and Warehouses was hardly completed in 1924 when the company found itself in financial difficulties. The Government was finally forced to take over the whole business for 6,700,000 Finnish marks ($168,840), this sum representing the loan which had been given to the free port “mpany plus accrued interest. Warehouses and pier—* * * Only one pier was completed and fonnected with a railroad line from Hango. The pier is 150 meters, Or 492 feet, in length. The warehouses have a total area of 127,811 Square feet, of which area 20,181 square feet represent heated space. Prospects —Although some talk is heard of the formation of a new SToup to operate a free port, the prospects are that it will be many Years before anyone can be pursuaded to put any money into a project. The Government has evidently given up the idea of lending any BSsistance. THE FREE HARBOR IN THE PORT OF THE FREE CITY OF DANZIG [From Edwin C. Kerap. American consul, Free City of Danzig] The port of Danzig emerges from prehistory in the tenth century 8 a trading post for fish, salt, and amber at the mouth of the Vistula River, Its location has maintained its function as a center for dis- Tibution and exchange between the Vistula Basin and its connections fo the south and the Baltic and North Sea ports. Because of its Sentral position the development of the port and of the city of Danzig hag been continual since that period, though in varying degree deter- Mined by political circumstances. At the end of the last war Danzig Was again made a free city by the treaty of Versailles, in view of its Uermgy, population, with a free access to the sea through its port Batted to the Polish Republic. 146 FOREIGN TRADE ZONES The establishment of Danzig as a free city did not, however, make the port of Danzig a free port. Polish customs duties are charged and collected at Danzig on all goods entering the port. The only exception to this is goods landed in the free harbor, a small ares within the port area of Danzig, which has been used as a free harbor since 1896, when Danzig was a part of Germany. Its functions ther and now are the same. Description.—The free harbor of the port of Danzig is located at the entrance to the port, * * * Tt includes a total land area of 15.1570 hectares and a water area of 7 hectares. Other statistics give the water basin as 640 meters long on the northern bank, 500 meters long on the southern bank, and 85 meters across the western bank, the eastern end being the entrance. There is reported an average of 3.4 to 4 meters of water alongside the bank, with an aver age of 8.6 meters in the center of the basin. There are no tides. The entire length of the embankments is used for berthing vessels. the number depending on their length. There are no slips for individ- ual vessels. The land area is occupied by warehouses and railway tracks, while on the embankments, which are of stone masonry, number of cranes are placed for use in unloading vessels. The Danzig Harbor Board owns 12 warehouses in the free harbor. with a total area of 16,964 square meters. Three of these, covering about 2,100 square meters, are being razed to be replaced with a new warehouse of about 3,900 square meters space. Private firms own three warehouses with a total area of 2,835 square meters. Besides these warehouses are a number of small sheds for offices, tools, etc. to a total of about 1,000 square meters space. The entire area of the free harbor is inclosed in a high metal fence. The railway tracks are connected with the main line and yards serving the adjoining port at Newfahrwasser and are a part of the same system. The main roadway of the port passes and enters the ares through gates in the metal fencing. Administration.—The free harbor is not administered as a separate area, but is included with the whole port of Danzig in the administra: tion of the Danzig Harbor Committee. This is a special organization composed of five Danzig citizens, five Polish citizens, and a neutral Swiss president. Because of this lack of separate administration the harbor board report that no separate statistics of administration cost for this area can be given, and few statistics of its separate operation are prepared. The guard of the free harbor is maintained by about 50 policemen from the regular police department of Danzig. About 84 customs officers are detailed from the regular Danzig Customs Administratio? for service in this area as needed. This last figure includes packers 8% well as inspectors. Lv et Ic — YR op “pee pms + oq Bama SX & -< ng a HEE me 220 3 ©» LER SARIS E EBES S4zggse Sad Fo & WEE 5g 0g oo hE TB = © © © Sw = £0 — ® tw Fie 2B B Woe 238) ® do P mB Eon ww =m HS EBEE3 Ra 8 = Ree TRE FREE PORT OF DANZIG. VIEW OF SHIP UNLOADING ON NORTH SIDE OF FREE HARBOR OF DANZIG ALONGSIDE THE NORDHALLE OR NORTH WAREHOUSE FREE PORT OF DANZIG. VIEW OF NORTH SIDE OF FREE HARBOR AT DANZIG SHOWING CRANES LOADING COAL 146—2 FREE PORT OF DANZIG 147 Utility —No manufacturing, or merchandizing, or shipbuilding is Provided for or permitted in the free harbor. Goods unloaded from vessels may be stored in the warehouses without customs clearances, and may be repacked so long as this involves no industrial operation. A special set, of books must be maintained by the importers covering Such transactions. Ship repairs are permitted, but no plant is stalled for this purpose. From these facts it can be seen that the free harbor serves little More than a convenient form of bonded warehouse. In actual prac- tice it has been used mainly during the recent years for the handling of bulk cargoes for which no free harbor was necessary but for which the free harbor cranes offer means of handling, lacking in other parts of the port crowded by similar cargoes. This is seen in the only statis- ties of operation in the free harbor obtainable from the harbor board. According to these statistics, the following goods were handled at the free harbor during the year of 1927: 1,350,000 tons of coal, 176,000 tons of phosphate, 1,308 tons of ore, 45,000 tons of scrap metal, and 37,000 tons of merchandise. Only in the latter item is seen operations for which the free harbor is especially destined. Various importers Stock goods in the warehouses of the free harbor pending sale, when they are cleared of customs duties and delivered. Failing such sale, they are sometimes returned to the sender, when no customs manipu- “4tion is necessary. Any bonded warehouse could, however, serve the same function. Influence.—Because of the conditions outlined above, the estab- lishment of the free harbor at Danzig can not be said to have had much fluence of any kind in the development of the foreign trade of the Port of Danzig and none in the development of the Danzig merchant Marine, This may be due to its restricted functions. The importa- tion of goods for manufacture and reexport is handled by a form of rawback, whereby the need for a free harbor is eliminated. Dispatch, of vessels.—The time of loading and unloading vessels Varies with the size of the vessel, the cargo, and the number of laborers and cranes available, as in other parts of the port of Danzig where Smilar working conditions exist. The harbor board state that no Werage can be given, but report in practice that one steamer unloaded 1,620 tons of ore in 47 working hours and another 300 tons of merchan- dise i, 19 working hours. (Enclosure) R (Translated by Military Intelligence Division, General Staff) BGULATIONS CONCERNING THE FREE DISTRICT OF NEUFAHRWASSER Wo following regulations concerning the free district of Neufahrwasser are ton lay the bases of articles 107, paragraph 2, and 167, paragraph 2, of the cus- Of the . of the union of July 1, 1869 (B. G. Bl, p. 817), as well as of the resolution ederal council of October 24, 1895 (art. 565 of the minutes). 8 FOREIGN TRADE ZONES Arr. 1 The part of the harbor place Neufahrwasser situated in the basin of the harbo? near the mouth of the harbor eanal, which is limited on the land side by a fence for preventing the smuggling and watched on the water side by the customhouse authorities, forms with the water surface belonging to it a free place of deposits ir the sense of article 107 of the custom law of the union. ArT. 2 The fence for preventing the smuggling which is built at the expense of the merchants in Danzig and is to be maintained permanently by them consists of a wrought-iron pole fence on the inner side of which a strong wire netting with meshes not over 4 em. in width is to be fixed. The height of the fence and of the netting must be, including the foundation and calculated from its bottom, not less than three meters. If according to the terrain the height of the fence outside of the free district is not sufficient for the custom safety the fence and the netting must be increased accordingly at the demand of the custom authorities. In case, in future, parts of the wrought-iron fence are replaced by buildings all the openings at these buildings situated in the cellar and on ground floor such as windows, doors, and loopholes, as well as the loopholes in all the floors on the side of the fence, must be closed by iron netting, locks, and leaden seals according to the rules prescribed for the bonded warehouses in order to prevent smuggling. If there are near the fence of the free district no public streets or roads, a turn- pike-road closed towards the military fiscal terrain by an ordinary wire fence must be built by the merchant's corporation at the demand of the custom author- ities connecting the two end points of the iron fence at the south and north side of the harbor basis. It is watched constantly by a post provided with a patrol boat, for which a guard house on the northern side is built. This border line must be well illuminated during the night, Tor the facilitation of the communication with the sugar warehouse and suga! refinery of Danzig situated outside of the fence small gates are to be erected which are to be opened only in case of necessity acknowledged by the authorities and on the demand of them and on extra payment for the additional work of the official personnel. Constructive changes on the borders of the free district mus? be approved by the custom authorities. ART. 8 The district separated in this way is to be considered, as far as the measuret resulting from the following regulations are concerned, from the viewpoint of the custom laws as a foreign country. Inside of it the movement of ships, their unloading and loading as well 8¢ storage and handling of goods are free of any custom control as far as there are no restrictions according to article 6 and the question is not of domestic sug which is to be considered a domestic product (art. 19). Art. 4 The custom control &f this district is to be limited by guarding it from the outside and watching that persons and goods which come from the district 8° to be treated, according to the general custom law rules, as if they arrive directly from foreign countries. FREE PORT OF DANZIG 149 Art. 5 HoT nee 15€ in Factories (except workshops for repairing ships) as well as retail shops (art. 11) Nd residences (except those necessary for living of persons the permanent Presence of whom in the free district is necessary for the purpose of surveillance and management) are not allowed in the free district. Merchants’ offices may be permitted. ART. 6 the f a th she aot ide ing 188, OT ors eals ant Preparation of goods which are not considered industrial ones is as a rule Permitted inside of the free district. The kind of preparation expected must be announced in advance to the custom authorities for their approval and per- Mission, Repacking of goods is allowed but the custom authorities have the Tight here also to prohibit any extraordinary repacking the purpose of which May cause a decrease of the custom duties. The final decision with regard to permission and prohibition in both cases depends on the revenue board of the country. ArT. 7 Tradesmen who want to keep special storehouses in addition to the rooms and Places destined for the general use must state the kinds of goods to be stored, Obtain the revocable permission from the custom authorities and submit them- Selves in writing to all the provisions of these regulations. 11 nce 107- side grol nine 1gal ch and the sh res - of | a8 are oat the are otly ART. & I. The owner of the storehouse must keep record books on all the goods Stored in the house from which the stock on hand may be evident at any time. The books must be shown at the request of the chief of the custom office for Wspection. These regulations do not concern goods which pass the free district ¥ithout being stored regularly. 2. The custom officials must be allowed to enter into all the rooms located Dside of the free district as long as these rooms are opened or work is going on in them; in the last case the rooms must be opened immediately at their request. 8. The owner of the storehouse must furnish to the custom administration any Wormation asked by it on the movement of the goods. 4. The owner of the storehouse must take care that no evasion of custom duties and Government taxes from the storerooms and places is executed, no retail trade (art. 11) performed, and that no manipulation and repacking in the store- 10uses which are in contradiction with the regulations is made. % Every store house owner must oblige all his clerks and workers to observe ;Tictly all the custom law regulations and inform immediately the custom admin- "tration on all the violations as soon as he ie aware of them. 5. The storehouse owner as well as the clerks and workmen must use for them- elves inside of the free district only those goods which are in free distribution 1 the country or for which the custom duties have been paid. Goods taken for “amination for commercial purposes for which the custom duty is not paid are *Xempted from this restriction. - In each case in which the storehouse owner is guilty of violation against the rr and obligations resulting from these regulations, especially concerning the a of a careful supervision of his personnel (art. 8, No. 4), he must submit wp bef to the payment ordered by the administration of a conventional penalty tage 1,000 marks, fixed definitely by the custom authorities, without the right of » Ug any legal steps; a criminal suit may be brought against him in addition. ston If the violation can be attributed to the offense of a clerk or workman of the ehouse owner the offender, without prejudice to & criminal suit which can 150 FOREIGN TRADE ZONES possibly be brought against him, must be immediately excluded from the work i the free district on the demand of the custom authorities. 8. If a storehouse owner was fined for the reason of custom evasion or that of neglecting his duty for careful supervision of his personnel, the custom authorities can annul his permit for keeping a storehouse in the free district; the customs authorities have the same right against a storehouse owner who, in case of art. 7; does not exclude immediately the guilty clerk or workman from the work in the free district in spite of the request of the custom authorities. ART. 9 The equipment and providing with food of ships going to sea from the stor® houses inside of the free district is allowed. But the delivery of the goods must be made according to the written order of the shipowner or his representative (art: 11, b). The order on which the receipt of the goods by the receiver is certified must be kept with the books of the seller. ArT. 10 It is not allowed to all the owners of loading places or storage places inside Of the free district to sell, exchange, or give away any kind or amount of goods 10 the sailors of sea ships, captains or sailors of river ships, to peddlers, secondhand dealers, clerks, and laborers working in the free district. Art. 11 Under retail trade mentioned in articles 5 and 8 of these regulations we under stand the selling or delivering of goods of all kinds in amounts smaller than 50 kg. gross, of wine and alcoholic liquors in amounts of less than 35 liters. The selling in smaller amounts is allowed in the following cases: (a) If the goods are sent by the seller from the free district and are presented hy him at the customhouse for payment of duties. In this case: (1) If the custom duties for the goods are paid directly the receipt of the pay’ ment must be kept with the books of the seller; (2) If the goods are sent under the custom control, the customhouse in whicl the payment is to be made and the date and number of the corresponding custo? papers must be noted in the books of the seller. (b) In case mentioned in article 9; (c) If the goods are sold or delivered to a storehouse owner inside of the free district and the latter gives a written explanation, which must be kept with h books, that the goods are not assigned for the use in the free district; ] {d) In case of the delivery of samples, if a custom duty for them is to be pail and if they are destined for a free trade, the custom duty must be paid immediately after taking them from the storehouse or they must be noted in the books # those for which the custom duty is to be paid in future; (¢) In case of public auctions. Concerning the latter, an official register is to be kept and presented at the sustomhouse.” ART. 12 The police gurveillance in the free district is accomplished by the harbor ad ministration, local police administrations, and railway police administratio according to the regulations of competence existing already or to be established in future. FREE PORT OF DANZIG 151 in of jes ms 7 “he .0ré 5 be arts aed . of 5 50 and {er- , 50 The tod The custom administration does not assume any responsibility for the safety 80ods stored in the free district, also no obligation for the verification of the ght of disposal by the applicant before the official clearance by the customs Wthorities ArT. 183 A clearance office in which the necessary payment of custom duties is made is Siablished in the free district under the name ‘Custom clearance office of the "ee district’; it is equipped or shall be provided with equipment corresponding o the needs of the trade. ArT. 14 Rooms necessary for the clearance office and the official custom work, for a temporary storage of goods for which the customs duty is not to be paid at once for those which can not be sent away immediately after the payment of duties for them has been made, as well as for goods the establishment of identity of which ¥ith those of domestic origin brought in the free district from fhe German custom frritory, must be provided for by the merchants of Danzig, who must erect he Decessary buildings according to the direction of the custom authorities. The merchants must also furnish the money for a possible enlargement of the isting office rooms. Concerning the space offered the merchants have the same obligations as Meseribed by article 5 of the railway custom regulations to the railway adminis- ation by which the spaces which are not used for the purpose of the custom ad- Ulhistration must accordingly be heated and lighted by the merchants. The merchants must also take care of the lighting of the whole free district sige of buildings and especially of the border line on the side of the water and he entrances and exits of the free district. 3 Balances necessary for the official weighing of goods, except the weights, must ® furnished and maintained by the merchants also. Art. 15 ay” dich AT ; ref his aid cely a8 the The process of clearance and fixing of hours of business must be regulated “eording to the rules established on March 19, 1891, for the customhouse Bair with regard to the railway custom regulations and those with regard to MWeance and exit towards the sea through the mouth of the Vistula. es The time of loading, unloading, and work inside of the free district is not ig ted as far as it does not concern the clearance of domestic sugar (arts. 3 and ArT. 16 Ships which, according to art. 8 of the custom regulations for the mouth of the Stula, keep their flags during the entrance, must haul down the flags at the Omen of their entrance into the free district, while ships of the inland and Boing navigation which load, unload, or carry domestic sugar preserve their Olestie qualities (art. 3) and keep the flag flying as a signal of identification. Arr. 17 ad 10D 100 \ Ships assigned for the free district may moor or lie at anchor in the basin of the 0 of the free district in case of necessity after the permission has been tig “Ned from the custom authorities and under the condition of keeping a tance of at least 5 m. from the border of the free district; they must be put 47068°—99— 11 152 FOREIGN TRADE ZONES ander special observation at their own expense besides. Ships which have 2 use the large crane on the northern shore of the basin of the harbor may obtal? the permission from the custom authorities for mooring or lying at anchor La front of it also under the conditions that they are not assigned to the free distri’ and there is even no objection for the permission if the ships, owing to their length come, in mooring in front of the crane, closer than 5 m. to the border line © even extend partly into the free district. In other cases the mooring or lying # anchor in the basin of the harbor outside of the free district is not allowed. The traffic of persons and carrying of goods is permitted for the entrance int¢ the free district and for leaving of it only in places, on the land as well as watt! front, specially assigned for the passage and if a customhouse permission I required for the goods transported the transportation of them is allowed onl! during the customs hours. ArT. 18 Domestic goods brought into the free district are considered foreign goods An exception is made only in case they are marked on the declaration list or” case they are put under the special custom control owing to special reasons ant by the request and at the expense of the agent. ArT. 19 The existence of such reason is at the present time acknowledged as far # domestic sugar is concerned which— (a) Is stored to the north and south of the basin of the port for the purp%® of preserving the identity of that consumed and additional supply [Nr (0) Is brought with or without declaration list into the free district for tH transportation into the country by water with an accompanying bill of ladivf or after the payment of the consumption duties. For taxation of sugar mentioned in (a) which is kept during the bringing © it into the free district or out of the district and during the loading of it unde’ 3 constant supervision of the customhouse or is locked up by officials and whic! must be marked by the customs authorities as such before it is brought into rt free district, the regulations on the sugar duties are applied under the conditi?’ that the declaration for storage or the declaration for clearance accompa? shipment through the free district. The sugar mentioned in (b) must, according to article 111 (the two last pa™® graphs) of the custom law of the union of July 1, 1869, be presented for examin? tion by the customhouse in the free district showing the corresponding acco? panying lists, declaration lists as well as declarations for the payment of tase? after this the necessary steps (accompanying, guarding, or official locking i for the establishment of the domestic origin or for securing of the custom righ” are ordered as means of the necessary control. In cases (a) and (b) the bringing of the sugar into the district and carry it out of it must officially be certified by the accompanying papers. ArT. 20 All the goods provided with documents for their dispatch must be cart’? away from the free district immediately under the supervision of the cust clerk. go If this is in special cases impossible, these goods must be officially locke py or guarded at the expense of the agent until they are carried away from free district. FREE PORT OF DANZIG 153 » {0 ain + in ou] thy s OF 7 at into a ter 1 18 nly Ads: vin and ~ 88 056 in rhe ting g0 ef § pie the to? nied ar¥ in¥ of <5 up) ht Anh Arr. 21 . The further dispatch of the goods from the free district, either in railway eight cars or in ordinary wagons or by ships, is accomplished as much as possible %Y the customhouse in the free district. ART. 22 ; If the giving of the permit for the dispatch of the goods is to be transferred 0 the customhouse at the canal of the harbor in Neufahrwasser or to the main Wstomhouse in Danzig and its customhouse branch at the railway station, his ig done according to articles 23 to 25 by means of a special transfer note hown in the inclosed samples A or B. The transportation is accomplished by locking up of the goods or by official eompanying of them. How far these rules can be changed depends on the ‘Pinion of the customhouse authorities. ART, 23 If the transportation is to be made by water or in a land carriage in a locked Dace, only those carriages the locking space of which is examined and approved Y the main eustomhouse in Danzig according to a drawing and description Tesented, can be used. | The owner of such a carriage receives a certificate which is to be presented to he tustomhouse in the free district at its request. The administration has the '8ht to issue general regulations for the arrangement of these carriages so that a { leeling is prevented as well as to order the necessary measures for the control the use of them. 1 Ig, taking into consideration the regulations, the permit for transportation in locked space, except in special cases, can not be given, the goods must be fompanied by an official. ; Lhe owner of the goods must present to the customhouse two similar copies the declaration filled up according to the form prescribed as well ag all the oossary bills of lading; he must, besides, deposit a security in the amount of © approximate value of the taxes for the goods to be shipped according to the ulations issued by the administration. If there are no objections to be raised ainst the declaration or the security, the customhouse prepares the bill of on Tance after a general examination of the load has been made if a special reason £ hy examination exists. One copy of the declaration, together with the bills 1 Ading, must be sealed, and the envelope is given to the person in charge of fi. pment or to the accompanying clerk for delivery of it at the receiving e, The duplicate of the bill of consignment remains in the place of clearance. he consigned load must be delivered to the receiving office without stopping is arbitrary place, the receiving office examines the locking, if the latter was bier takes the goods in the care of the customshouse, clears up, if there are no toi, the bill of consignment, and sends the bill of clearance to the place of ca ArT, 24 16% of up ag A Permit may be given more easily to persons engaged in transportation (boat a lighter owners, carriage owners) for the transportation in closed carriages Mer the following revocable conditions. b The Persons engaged in transportation must deposit a suitable security fixed i the administration and in case of improper use of the privilege granted to *I0 op jp case of illegal action of their personnel, in addition to the punishment 154 FOREIGN TRADE ZONES of the offender, they are obliged to pay according to the regulations of the 1a¥ a conventional fine up to 1,000 marks fixed definitely by the administration. For shipment made by these persons the declaration of the gross weight 12 the bill of consignment is not necessary; it is sufficient if the number and the kind of packages loaded, as well as a general commercial denomination of the goods as far as they are known to the transporter or can be determined from the bills of lading, are declared and the transporter adds to his declaration that more accurate information on the contents of the packages loaded can not be gived by him.? . The clearance then takes place according to article 23; a deposit of security 12 each case in the approximate amount of customs duties for the goods to be sent is not necessary. By approval of the administration the declaration of the aumber, kind and gross weight of the packages to be shipped, as well as the declaration of the contents in the bill of consignment can be omitted if the shipment is made in closed vehicles officially approved by the customhous® authorities (art. 28) or is accompanied by a customs clerk. Arr. 25 If goods assigned for the individual clearance to the customhouse on the aarbor canal in Neufahrwasser or to the main customhouse in Danzig and ite oranch at the railway station in Danzig arrive from the free district in railway cars the bill of consignment is made out according to the inclosed model B- The proceeding is the same prescribed in article 23 with the difference that i0° stead of the owner of the goods or the transporter (art. 24) the railway adminis’ tration is named in the bill of consignment at the declaration and the bills of lading in question are delivered instead of by the transporter or the accompanyiné zlerk by the conductor of the train. The locking up of the railway cars can be omitted if this is allowed by article Y of the railway customs regulations. The supervision by the customhouse by whic? the goods are taken at the place of their destination is extended only to the unloading of goods into the rooms which are to be provided for according to article 5 of the regulations mentioned above and in which the goods are locke! up by the customhouse administration. The bill of consignment required sent back to the clearance office. ART. 26 If the goods received are to be sent to another customhouse place than th# mentioned in the accompanying bill, accompanying list, or declaration, accordin8 to articles from 22 to 25 the rules issued under the regulations of the customs 1a¥ of the union must be used. ArT. 27 Violations of the rules of these regulations are fined according to article 1# of this law with a disciplinary penalty not over 150 marks if a higher penalty ¥ aot incurred according to articles 134 ff of the customs law of the union. ART. 28 These regulations are to be carried into effect from the day of the opening’ the free district. Berlin, May 28, 1896. (Signed) MiQuUEL, Manister of Financt® Not printed. Ww 1n 2d ds 11s re an in ; Sind ;he she he ae -hé 8 ay B. in Lis” of ing pe] ich the 0 ced , 18 hat ing at | 5% , 19 y WAR DEPARTMENT. . U.S. SHIPPING BOARD BREMEN . pREEPORT. BRUNOAS ER OUTER: HARB, Zui] TRANSIT SHEDS : "7 STORAGE WAREHOUSES E BREMERHAVEN a, EE SA EIN FRET We Eri tout AS 22) Wad he FREE PORT OF BREMEN THE FREE PORT OF BREMEN, GERMANY [From Leslie E. Reed, American Consul, Bremen, Germany] 135 Brief history of the port—One of the most vital questions for the free State and city of Bremen, which, with its 340,000 inhabitants, is one of the smallest States in Germany, has always been the main- ‘enance of its connection with the sea and its harbor facilities. Since the seventeenth century the places for loading and discharg- ing of vessels were frequently changed, as, owing to the ever-increasing draft of vessels, the Weser River did not permit the larger draft vessels to go up as far as the city of Bremen. It was owing to this situation that the harbor of Vegesack, about 17 kilometers (about 10 miles) below Bremen, came into existence in the seventeenth century. Soon, however, the draft of fully loaded vessels was such that the ves- sels were not even able to come up as far as Vegesack, but were forced to stop at Elsfleth or Brake, where they had to anchor in the open tiver, near the shore, and start discharging cargo into smaller vessels, which brought the cargo up to the city of Bremen. This was not the only inconvenience resulting in a loss of time and causing unnecessary expenses. Hvery vessel had to pay extra taxes to the Grand Duke of Oldenburg for permission to discharge cargo at these places. In the end these amounted to a very large sum, which had to be borne by the owner, merchant, and the consumer. As all this did great lamage to the Bremen trade, the various States on the Weser River ame to an agreement in 1823 to the effect that all charges and extra taxes were abolished and that, furthermore, the three interested States—the free State and city of Bremen, the Kingdom of Hanover, and the Grand Duchy of Oldenburg—should keep the channel of the tiver in a navigable condition. In the years following, however, the channel left much to be desired, and the larger vessels were still not able to reach the city of Bremen. This was the cause of Bremen looking for a suitable harbor further down the river. In 1827 it acquired from the Kingdom of Hanover a territory near the city of Geestemunde and called it Bremerhaven, which, however, owing to the ever-increasing traffic, proved too small and had to be enlarged by further acquisitions in the years following. In 1875 a project was started which had as its aim to straighten Bnd deepen the Weser River from Bremen as far as the sea. The plans were finished in 1881 by Oberbaudirektor Franzius, of Bremen. But the German Government, as well as Oldenburg and Hanover, then refused any financial assistance. The project would not have been Carried out but for the fact that Bremen in 1884 declared its willingness t0 enter the German Customs Union, after Hamburg in 1881 and Lue- beck in 1868 had declared the same intention. The free State of Bremen started the project on its own account, as the harbor was one of the most vital questions. The definite date for the inclusion in the 156 FOREIGN TRADE ZONES customs union was fixed for Bremen as October 1, 1888. Up to that date Bremen had to build its own free harbors, which had to be con- structed separately from the other part of the city and harbor terri- tory, if it were to keep up its importance as a harbor for sea-going vessels. This was an easy matter for the port at Bremerhaven, where the harbor already existed, but a different thing altogether for the city of Bremen itself, where the harbors had first to be excavated. For this purpose an area, northwest of the old town, close to the river, known as the St. Stephens Church meadows, was taken. As the town itself reached at that time already as far as that, and houses and streets had been erected on one part of the meadow, several streets had to be replanned or changed, houses had to be torn down, ete., to give the space for the new free harbors. The section of the present free port known as “Freihafen I” was opened to traffic on October 21, 1888. In the course of years, how- ever, the port proved too small for the demands, and another section, known as “Freihafen I,” was constructed and opened in 1906. Description.—The Bremen free ports, Freihiifen I and II, are sit- uated along the river and not far from the center of the city. The dimensions of Freihafen I (free port No. 1) are 2,000 meters (2,188 yards) in length, 120 meters (131 yards) in width, and 60 meters (64 vards) in width at the entrance. Vessels with a draft of 5.7 meters (18 feet 8 inches) are still afloat at mean low water. Twelve sheds—of them, one for general cargo and one for lumber—are situated directly on the quays. In all, they have 90,500 square meters (974,142 square feet) of storage accommo- dations. Behind these are 14 warehouses, with 140,000 square meters (1,506,960 square feet) of storage accommodations. Two railroad tracks are on each quay, and two more are before and behind the warehouses, respectively. On the quays are 96 traveling cranes of a lifting capacity of from 1.5 to 10 metric tons and 15 cranes between the sheds and the warehouses of a lifting capacity of 1.5 tons. As a recent improvement there has been erected beside shed 9A, at the head of harbor I, a heatable fruit shed with 4,500 square meters (48,438 square feet) of floor space that is equipped with the most modern installation for the storage and sorting of fresh fruits. The increasing extension of the fruit trade made this necessary. The dimensions of ““Freihafen TI” (free port No. II) are 1,720 meters (1,882 yards) in length and 110 to 135 meters (120 to 148 yards) in width. It has 3,000 meters (3,282 yards) of quay accommodations. The largest vessels that are able to reach Bremen are still afloat at mean low water. There are 7 sheds on the quays with a total storage accommodation of 80,000 square meters (860,120 square feet); behind these, 2 warehouses with storage accommodations of 27,000 square FREE PORT OF BREMEN, VIEW OF BASIN OF FREE PORT NO. 11 FREE PORT OF BREMEN. GRAIN DOCKS, FREE PORT NO. 1 | 561 FREE PORT OF BREMEN. HARBOR ADMINISTRATION BUILDING IN FREE PORT NO. | 156—2 FREE PORT OF BREMEN meters (290,628 square feet), and 3 or 4 railroad tracks on each quay, as well as 3 between the sheds and the warehouses. On the quays are 64 traveling cranes of a lifting capacity of 2.5 tons and 5 of a lifting capacity of 5 tons; also 6 cranes of lifting capacity of 1.5 tons between sheds and warehouses. Rail and highway connections.—Both harbors are connected with the Bremen Railway. The railways in the harbor are owned and operated by the free State of Bremen. Their total trackage amounts to 170 kilometers (106 miles), with two large freight stations in the harbor territory and two locomotive sheds for 24 heavy engines. Both harbors are also easily accessible from the city, tram cars running right up to the free harbor, though it is within easy walking distance of the commercial center of the city. Highways available for motor transport radiate from Bremen to all parts of Germany. Administration.—A characteristic of the Bremen seaport traffic is the cooperation of a large number of independent undertakings. Three means of communication—railroads, vessels, and motor trans- port—are found in the harbor. The harbor is, for the shipping and forwarding organizations, the place of transshipment. To those interested in the goods themselves, the harbor gives the opportunity to inspect, to receive, or to deliver them. The harbor is thus a place for business dealings with the goods, their warehousing, and their reception and delivery. The traffic of the Bremen port had to be organized in consideration of these three points of view. The port, as part of the waterways, is regulated in its operations by the port regulations. These contain the regulations of the traffic police, which protect the harbor from dangerous or inadvisable uses being made of it by vessels. The harbor master superintends the carrying out of the regulations, and his subordinate officials, the harbor inspectors, render the necessary assistance in making fast. As the improvement of the harbors, in consequence of the modern developments of shipbuilding, requires great expenditures, port dues are charged, which are collected by the harbor office. In naturally difficult dock basins or those which, owing to their construction, are difficult to navigate special harbor pilots are employed. The port, as part of the railway, is served by the harbor railway as a general public one. In spite of this, the German National Railway (Reichsbahn), as well as the former Prussian State Railway, refuses to acknowledge it as such, except where it has forced itself through in the single ports in the course of the historical development. The consequence is an extremely varicolored picture in the different German places, very detrimental to competition with foreign ports. In Bremen the harbor railway is the property of and is worked by the Bremen State: in Hamburg the German National Railway man- 157 FOREIGN TRADE ZONES ages it in the name of that city; in Emden the German National Railway is the proprietor of and manages the railway in its own name. Wherever the harbor railway is an independent undertaking, it is the cause of financial anxiety to the seaport town. Since the docks ‘are provided with entirely modern equipment, cranes, gangways, lifting gear, etc., their manning requires trained gangs, their upkeep a special expenditure, and payment therefor a special cash department. Thus the conception of the dock adminis- tration as being an office independent of harbor construction arises, viz, a works and traffic administration separate from the construc- tion administration. It is natural that such an administration is only for the general traffic. Special depots, as, for instance, for tim- ber, ore, and coal, and industrial depots, are often best utilized by being leased. The dock administration limits itself to one part of the port traffic; the shore work of transshipment. The latter comprises the shifting of goods in the quay sheds and the work of the lifting gear. The ships’ -work therefore, in discharging and loading, does not come under the dock administration, but is the work of the stevedores. The improvement of the lifting gear, such as hydraulic moving of grain cranes, has brought about the fact that a division between ship and shore work is often no longer possible, so that in such cases the ships’ work is also undertaken by the dock administration. By engaging dock laborers for the work of transshipment, the dock administration associates itself with the other harbor managements in labor questions. The administration is an employer and, as it has no regular workers such as municipal employees, it is obliged to engage its own dock laborers. As a rule, it is, therefore, a member of the employers’ union (Hafenbetriebeverein). The work for mixed goods and piece goods is for the most part manual work; machinery for conveyance on a small scale and for stapling goods is only just being developed. The upkeep of the expensive and sometimes very delicate lifting gear requires special skilled labor and special workshops. This technical department needs the closest cooperation with the construction works, so that daily experiences can be utilized and advantageously employed for new undertakings. A fusion with the construction works is, however, not to be recommended. The difficulty of making a profit from the dock administration has always been a source of anxiety, and since the war the situation has become more acute, as the competition of the foreign harbors of Antwerp and Rotterdam, as well as the struggle of the German ship- ping companies for their position in the world, tend to keep the dock dues low. Although the dock administration has never been an important source of income to Bremen, the question of a subsidy for it is now receiving consideration. It is therefore all the more necessary 158 FREE PORT OF BREMEN. LOADING OF HEAVY GOODS IN FREE PORT NG. 11 FREE PORT OF BREMEN 159 to create improvements in the organization and rationalization of the work. In case of transshipment, the ships’ work is carried out by steve- doring companies. The ships’ work is legally the work of the vessels, as they have to load or discharge the goods alongside. It is carried out partly by independent undertakings, partly by subsidiary organ- izations of the shipping companies, and partly by their own adminis- trations. At special docks the consignee very often takes over the execution of the ships’ work, because the lifting gear hanks, looper, elevators, etc., are so arranged that a division of the ships’ and shore work can scarcely be made. - As a rule, a special dock charge is made lor the facilities afforded to the ship for work executed bythe lifting ocear which belongs to the dock administration. The commercial handling of the goods is a matter for the shipper and consignee, which they often have carried out by their local forwarding agents or so-called “controllers.” In such cases. the forwarding agent’s workmen and the warehousemen are employed. The goods are counted, weighed, sampled, packed, marked, examined as to damage and quality, etc. The greater part of this work can be done in the through-transit warehouse in the quay sheds, so that all extra shifting of the goods which would involve charges is avoided. In many instances the dock administration claims the weighing as its share of the work, leaving the rest to private firms. The absolutely necessary warehousing of the goods in all large seaport towns, staple goods as well as goods sent through forwarding agents, is carried out partly in the merchants’ own warehouses, and partly in public warehouses. The administration of the latter lies sometimes entirely in the hands of the public warehousing company, but sometimes it is carried out by specially formed corporations. The closer the physical and material connection with the transshipment traffic in one place is the sooner the idea of a fusion of the dock admin- stration and the warehouse administration arises. This has been carried out in Bremen and recently in Berlin and Stettin, too, while Hamburg possesses a specially formed warehouse administration as Well as the State dock administration. By the fusion of the admin- Istrations, in addition to the general advantages inherent in every Concentration, there arises the possibility that they need not limit their managing company to the narrow limits of a dock administra- ton, whereby further important advantages result. . The various authorities having to do with the port and harbor ‘acilities of Bremen are as follows: 5 (a) Highest Bremen authority for matters of Bremen shipping and commerce: ot tation fiir Hifen und Eisenbahnen (State commission for port and railroad); €, 4 Stintbricke; Senator Dr. Apelt. Bra, Management of the harbor and docks of the city of Bremen: Hafenbauamt en: office. Verwaltunesgehiude Hafen I., Hafenbaudirektor Hacker. 60 FOREIGN TRADE ZONES (¢) Harbor master for the ports of the city of Bremen and Vegesack: Harbor- master Fahlbusch, president of the Bremen River Pilot Association; office. Hafenhaus, Hafen 1. (d) Register and clearance office for vessels and harbor bureau: Hafenbureat, Hafen I. (¢) Chief inspector of harbors for all harbors and loading and discharging places of the city of Bremen: W. Segnitz; office, 40-41 Verwaltungsgebiude, Hafen I. (f) Surveyors of hatches and cargoes: H. Hoeljes and B. Wieting; offices, 42 Verwaltungsgebiude, Hafen I. (g) Surveyors for vessels and provisions: As under oH. (rh) Harbor police: Office, police quarters, harbor II. (3) Administration of quays, warehouses, and sheds: Bremer Lagerhausgesell: schaft (A. G.) Hafenhaus, Hafen I and II (Bremen Warehouse Co.). Number-of guards.—The free port is guarded by an iron fence of about 3 meters (about 10 feet) in height and is only accessible by four main entrances and three smaller ones. The gates are controlled by customs officers, and everybody who wants to leave the free port must be examined. There are always 100 men of the Sicherheitspolizel (safety police) on duty in the free port. These do patrol service on the docks day and night, and there are 15 night watchmen on duty for the sheds, who are paid by the Lagerhausgesellschaft. Annual cost of administration.—Figures for the annual cost oi administration for the free port could not be obtained, but there is transmitted herewith a copy of the annual report ® of the Bremen Lagerhausgesellschaft, which manages the free ports and the ware- houses, for the years 1926 and 1927. This organization is partly State and partly private in character. A new arrangement was made between it and the State of Bremen, effective October 1, 1926. According to the report attached hereto, a payment of over 1,500,000 marks (about $40,000) was made this year to the State of Breme?d covering payments for improvements made by the State, interest; and share of profit since October 1, 1926. A translation of the profit and loss account for the fiscal year 1927 and of the balance December 31, 1927, has been made and is attached hereto. Operations permitted in free zone.—All usual operations in connec tion with port traffic are permitted in the free zone. The arrang® ment of goods and samples for inspection by possible buyers is per mitted in space rented by the exhibitor. Operations prohibited in free zome—The following prohibition? regarding retail trade have been made by the Bremen authorities and apply to the free port in Bremerhaven as well as to those in Breme? (Translation) 1. It is prohibited to offer goods of all kinds for sale on land or on board ves gels without orders in advance. The retail sale of foodstuffs may be permitted by the police authorities, in th parts of the harbor lying outside the free port, on special application. In the free port the regulations for enforcement of the customs are applicable. eat - r ib 21 n <7 wv Sg nN {3 Y le 6. 0 afl Uy at oT al re” AP ns ad +1) - spa" he he FREE PORT OF BREMEN. FLOATING GRAIN ELEVATOR ALONGSIDE STEAMER FREE PORT OF BREMEN 161 The police permit and that from the customs authorities, if any, must always be carried and shown to the police or customs authorities on demand. 2. It is prohibited to sell used ship’s equipment, left-over goods from vessels, Sweepings, garbage, and such things to peddlers or to turn over such left-over goods, sweepings, garbage, etc., to the firms undertaking the cleaning of the vessels. 3. The sale of goods by the ship’s crew is also prohibited. The ship’s master must watch out that no business with peddlers or dealers is carried on from their ships. Dispatch secured in unloading vessels.—As Bremen deals with about 80 per cent of its sea-borne trade by rail and only 20 per cent by inland waterways, it has equipped its docks most thoroughly with railways. In the dock quarter there are about 10 kilometers of railway on each kilometer of quay. Besides the German National Railway shunting- yard, there are in the dock area two large shunting yards owned by the municipality. Bremen has also several locomotive sheds and 24 heavy locomotives. By means of this equipment, as well as the very modern equipment of the docks, sheds, and warehouses, Bremen is able to handle consignments in bulk very quickly and accurately, and all ordinary or small consignments are also treated with dispatch. Through this organization Bremen has so far been able (unlike other seaports) to avoid traffic delays even in times of difficulty. It might be of interest to give a short description of the warehouses: All the quays are equipped with warehouses. On account of its large import trade in raw cotton, Bremen has laid stress on roomy interiors, good light, and fireproof construction. On the side facing the water these buildings have a continuous series of sliding doors, so that they may be thrown open at any point directly opposite the vessels. The newer warehouses are from 200 to 300 meters long and from 40 to 66 broad. They are divided into compartments about 100 eters long, separated by fireproof walls with trap doors and auto- atic sliding doors. Sprinklers have been fitted on the ceilings. The dock area also has its own high-pressure water supply and special fire stations in case of fire. The State warehouses are situated behind the quay buildings, with which they are connected by transport Cranes, which lift the goods out of the sheds into any floor of the Warehouse and from thence to railway or wagon. In these warehouses there are more than 60 elevators. They are provided with cellars and are three or four stories above the ground floor. The private Warehouses have a capacity of 73,000 cubic meters. Bremen has also a considerable import of grain, therefore it has SPecially arranged its organization for this trade by establishing par- ticularly efficient grain elevators with direct access to the railway. There are two jetties built at right angle to the bank, between which lie the storage buildings for empty sacks, and an elevator of (provi- Slonally) 23,000 tons capacity. At each jetty are berths for two ves FOREIGN TRADE ZONES sels and on each are two railway tracks. On the bank between them is a loading platform and over this there are eight pneumatic elevators. With these latter eight different part cargoes of grain can be dealt with at the same time and transported in different directions. They may either be weighed automatically on the jetty, put in sacks, and loaded into the train, or transported by means of chutes and dis- charged into barges from a lower levee, or in bulk over automatic weighers, loaded directly into the barges. It is also possible to chute the grain on to rollers and to transport it by this means to the ware- house, after which it can be stored in silos or on the floor or may be forwarded by rail. In the same way grain can be discharged again from the warehouse into seagoing vessels or barges. The capacity of the 16 pneumatic conveyors is about 4,000 to 8,000 tons per 8-hour day, the average annual capacity about 800,000 tons. This capacity may be more than doubled by increasing the working hours. The warehouses for grain are not particularly well equipped for storage over long periods, but are most suited for storage in transit, to equalize any irregularity in the separate consignments from the sea- port to the inland destinations. Nevertheless the warehouses are provided with all apparatus for removing the grain; for example, to take it from one place to the other, or to dry it in hot air. The instal- lation was made during the early years of the war, and an addition is now being carried out. Besides these fixed installations for handling grain, Bremen has also a State-owned grain elevator. Reconsignment and transhipment trade.—In regard to the reconsign- ment as well as to the transshipment trade no special figures are available. The principal commodities in this business, however, are cotton, tobacco, drugs, rice, coffee, grain, and bananas. Manufacturing in free zone.—In the free port zone no manufacturing is done. Various industries, however, have plants just outside of the free zone or on the docks within the customs limits of Germany. Although in olden times Bremen was mainly .a place for staple and transit goods, but was not so important a consumer and industrial user, it has developed during the last few decades, and largely by the construction of its free port, to an important production center. Many industries have settled in and near the city of Bremen owing to the free port. In the State-owned territory Bremen set aside abou? 6,500,000 square meters of territory along the river or its harbors, of which at present about one-third is still available, for industry The main local industries are lumber mills; rice, oil, and flour mills; spinning and weaving mills for cotton and jute; oil refineries; choc olate, rubber, and linoleum factories; iron smelters; and a large ship’ building industry. Shipbuilding and ship repair in free zone.—In regard to shipbuilding and repair work done in the free port zone, the Deschimag (Deutsche 162 i Tae LL LT, a % LE, TR OT oe nd QE Ra Bat Zag oc & ga mT oO © a w FREE PORT OF BREMEN. DISCHARGING ORANGES IN FREE PORT NO. | FREE PORT OF BREMEN 163 Schiff und Maschinenbau A. G.) has only one small floating dock and 8 small repair shop in the free port. - Influence of free port on the development of foreign trade.—~Although the Bremen free port was only established in 1884, the importance of Bremen in foreign trade may be said to be due in a very large degree to a “free port.” In 1884 Bremen first agreed to enter the German Zollverein (or customs union), and prior to that date the city State had constituted, in actual fact, a free port, as it did not recognize the establishment of any tariffs by the Kingdoms of Prussia or Hanover or by the German Confederation. Bremen’s importance as 8 commercial and transshipment center was therefore largely due to the fact that it was a free port. This fact was recognized by the immediate establishment of a free zone in the Bremen port simul- taneously with the entry of Bremen into the German Customs Union In 1888. Influence of the free port on the development of the merchant marine.— The development of foreign trade for Bremen has been synonymous with the development of the merchant marine. The North German Lloyd Steamship Co., the Roland Line, the Hansa Line, the Neptune Line, the Bremen-Hamburg-Africa Line, and other well-known ship- owning firms have been able to do an enormous business in freight, Probably in a large degree as a result of the freedom of Bremen from all customs tariffs before 1884 and the prompt establishment of free Ports upon the entry of Bremen in the customs union in 1888. It should be pointed out, however, that the Bremen steamship companies, particularly the North German Lloyd, have not only benefited from the free port but have been instrumental in its establishment and influential in its operation. Statistics.—Considerable quantities of goods arrive in Bremen from foreign countries which are not unloaded in the free zone. The Bremen statistical authorities do not compile separate statistics for the movement of goods through the free port alone. However, it hag been ascertained from the port authorities that practically all foreign goods arriving in Bremen come through the free zone with the exception of the following four commodities: Grain, lumber, ores and Mineral oils, and oil nuts. The total value and quantities of goods arriving at the port of Bremen by sea each year since 1899 have been obtained and the values of the four commodities in question during the same years have also been calculated and deducted therefrom. The result should give the approximate figures of the commerce through the Bremen free port. Figures can not be obtained for the Years prior to 1899, as the statistics were kept differently then and Ae useless for purposes of comparison. 3 oe oe + 164 FOREIGN TRADE ZONES The following figures show the total quantity in metric tons and values in dollars of the imports into the city State of Bremen (includ- ing Bremerhaven) by sea during the years mentioned. Below each total is given the total for grain, lumber, ores, mineral oils, and oil nuts, and the result of the subtractions represents the estimated ficures for the free ports. 1899 es £0. 1 —— 1901. ceemmmmmmee, 1902 eon emmea] 1003 cme. VIDE issirimin wi wns A008... comm mmrim were 1606. _ __ 1907 coo eeeer een 1908. mccain mean Quantity Value $154, 761, 000 17. 619, 000 1.632,232 * 137, 142,000 2,318, 522 | 188,210,000 726,200 | 21,029,000 1,502,322 166,281,000 183, £70, 000 29, 449. 000 161, 121, 000 2,485,158 184, 570, 000 695.346 92,300,000 1,789,812 162, 270, 000 2,692,315 210, 450, 00C 815,338 25,000,000 1,776,977 | 185, 450, 000 2,513,632 | 226, 500, 000 690,507 21, 777,000 1,823,125 204, 813, 000 2,896,063 | 228, 280, 000 047.705 | “25,781,000 1.940,258 202,449, 000 2,035,248 | 245, 145,000 949,200 | 32,326,000 1,986,048 712.819,000 3,504,192 299,985,000 1,058,233 37,021,000 2.445.050 262. 964, 000 Metric tons 2,330, 833 . 698, 601 3,012,187 981,935,000 875,387 32 800, 000 2 136.800 vm wpe Quantity | Valus Metric tons 3,079,454 | $278, 825,000 1,084. 346 43. 025, 000 235, 800, 000 mm 3,167,134 | 306, 695, 000 1,204, 543 43, 750, 000 TAA ln 1.062.501 | 262,945,000 em peo 3,958, 403 352, 015, 000 1,800, 728 54, 503, 000 BRS 2,157,675 1 297, 512,000 —_— 4,132,419 | 387, 380, 000 1,607,723 27, 675, 000 JB En 2,524,606 350.405, 000 _—=. mmm 4,368,295 406,888, 00C 1,916, 172 57, 179, 000 A 9,452,123 349, 700, 000 eee rr LOO. co ii mmm LOUD comm mmm mon mm mm LOI) smi nan ms RRA 1912. ____ 191% 21993 eae 4,328,074 3,184, 763 1,143,311 ooooomeanet Zmmo=mn —— 2,754,599 | 356,830, 000 1,159,917 57, 488, 000 1.504, 682 299,342,000 ——— mm 2,838,119 482, 130,000 1,279. 888 56; 454, 0 425, 676, 000 rr a ee | 2,476,143 385,215,000 1,961,277 | 52, 154, 0 ! 3,214,806 | 333, 061, 0 _mmmme———, em | 345150 | 672, 710, 000 2,005, 053 69, 073, 00 2,005,058 69,075 040.007 503.637, 00 1024 eon 1925__ . 1026 seca 1 * Statistics for the calendar year 1927 compiled by the Weserbund, an association of Bremen shipowners, semiofficial in character, give the figures of total imports and exports for the free port of the Breme? State (which includes Bremerhaven). Deducting the values of the four commodities above mentioned, which are usually discharged elsewhere than in the free port, the following figures remain, which are estimated by the Bremen port authorities to represent appro®” mately the quantity and value of the foreign goods received in the frap zoNE Jd 100 100 00 00 100 on 0 0 00 0 100 100 00 X00 0 0 100 100 100 000 N00 700 100 0 0 0 d, ve en he ad -h Je 0 FREE PORT OF BREMERHAVEN i 165 J RRA 1, 940, 097 —~--- $508, 637, 000 Quantity and value of foreign goods exported from free zone—Deduct- Ing the figures showing the total quantity in metric tons and value in dollars of the exports from Bremen (including Bremerhaven) by sea during the year 1927, the totals for flour, grain, and pod vegetables, and oil cakes, which are usually received elsewhere than in the free ports, the following ficures remain: Exports: Metric tons... Value___ Imports: Metric tons... - Value EE HR wi 1, 843, 156 —me--- $238, 370, 000 * ® * (Translation) Profit and loss account, in reichsmarks, of the Bremen Lagerhaus-Gesellschaft Co. for the fiscal year 1927 and of the balance December 31, 1927 PROFIT AND LOSS ACCOUNT PROFIT Carried forward from 1926_____ ...co.... 1,881.88 [rcome from 1927— From capital: Interest _________.._.. 807.45 From overations: Share. ___..._...._ 58,680.70 61. 370.03 TORS. ieee 2,961. 50 DONSES. ono oemwewemmemeaemo- 1, 356. 95 PROBE. ooo 57,080.58 61,370.03 BALANCE ON DECEMBER 31, 1627 TIARILITIRS ASSETS From capital: Demands on the organiza- tion for the amount set aside as operating capital. 150,000.00 Securities. ..oooceeen.---. 6,237.50 Bank and savings bank credits. _.o...oeeooooo_.. 21,884.67 Demands for Joans........ 180.00 Cashonhand......cc..... 316.02 o — 178,618.19 “tom operations (shares from 1928 and 1927): For the company.......... 62,671.63 For the board of directors, officials, and welfare work. 25, 869. 84 ——.. 88. 541. 47 From capital: Capital... AE EAA Reserve.._____ J Special reserve. ——- Loan fund. o.oo eaanaas Share of profit for the board of direc- tors for 1926. .cccuuivimucununanunn Tax reserve... cc scunsnimiunmn nme Dividends from 1926. ____.____.____. Creditors... .oa-oo. oo. —- From operations: Share for board of directors, officials, and welfare work from 1926 and B27 ccc Ni Profit and loss account: Profil. ccciicnasananssnsnesnn 57,052. 58 Disposition of profit— 10 per cent dividend... 14,000.00 Special reserve... 1,762.50 Fee to the board of directors. —acovcemo-- 8,281.75 Tax reserve. ...._._._.. 13,000.00 Loan fund. _......_.. 2,000.00 Carried forward....... 18,028.33 57,052. 58 287, 159. 68 BORIS iin mm mimi meme ea_.267.159, 66 THE FREE PORT OF BREMERHAVEN, GERMANY [From Augustus Ostertag, vice consul, Bremerhaven, Giermany] Brief history of the port.—Bremerhaven, Germany, was founded during the year 1827 through the efforts of Johann Smidt, then lord Mayor of the free Hanseatic city of Bremen. During the year above Mentioned a parcel of land was purchased by the city of Bremen from the State of Hanover to establish a shipping center near the 166 FOREIGN TRADE ZONES mouth of the Weser River to care for the future growth of the shipping activities of the city of Bremen. The population of Bremerhaven during the first year it was founded was 19 and has steadily increased, until in 1927 the population totaled approximately 25,000. Bremerhaven serves chiefly as a terminal port for Bremen, particularly for vessels drawing too much water to proceed up the Weser River as far as Bremen. Bremerhaven is the terminus of the trans-Atlantic liners of the United States Lines and the North German Lloyd Steamship Co. The object of the founding of Bremerhaven was to assure for the city of Bremen proper port facilities in its future expansion to main- tain its position as a leading shipping center of Europe and to estab- lish a port nearer to the mouth of the Weser River in order to enable deep-draft vessels to make Bremen a port of call. © Description.—Bremerhaven is situated on the east bank of the Weser River, near its influx into the North Sea, in latitude 53° 33’ north and longitude 8° 34’ east. The city of Bremen, also located on the Weser River, is 36 miles distant inland from the port of Bremerhaven. The area of the free zone at Bremerhaven is 3 square miles. In this area there are 22 terminals, with berths for 35 vessels, There are also 22 municipal warehouses and 95 privately owned sheds for the storing of merchandise. The free zone includes the harbor basins with the new and modern piers. which are reached from the Weser River through locks. Bremerhaven has rail connections with all points in Germany and to other parts of Europe. The main line from this port is the Bremen line. The main highways leading out of Bremerhaven are the Bremen Road, the Stade Road, which leads further to Hamburg, and the Cux- haven Road. These highways are only in fair condition. Administration.—The port of Bremerhaven is controlled and operated by the municipality of Bremen, of which Bremerhaven is 8 part. The free zone area is patrolled and guarded by 100 customs officials and 30 police officers. The annual cost of the administration of this port is not available. Operations permitted and prohibited in free zone.—This information has been furnished by the American consulate at Bremen, Germany, in its report on Bremen. The official regulations from the “Bremen Gesetzblatt’ were quoted, which also apply to this port. Dispatch in unloading vessels.—The dispatch in unloading vessels in the free zone area of Bremerhaven, is quick and modern in every respect. The average speed for discharging cargo from vessels #b this port is about 3,000 tons a day. All modern loading and unloading appliances are available and this port compares very favorably with others in Germany in dispatching cargo. 12 ad yl al 0 18 vl 18 7) - Ie le 16 37 vd ~f in re Ya 19 aT ad 1 Tl a3 d 3 1a n n Ty nn § y + J WAR DEPARTMENT 2 -3 crggpofl BOUNPARL-- w FREEPORT OF CUXHAVEN, GERMANY sop oT 500 0 ~ © 1000 SUBMITTED: XA Y «2 Emus (206) a Rrs OF PNONEERS | INVESTIGATION RESIDENT MEMBER BOARD OF ENGRS FOR RIVERS AND HARBORS. i === RG DRAWN BY SLV ACTING DIRECTOR, BUREAU OF OPERATION U.S SHIPPING BOARD. 192) FREE PORT OF CUXHAVEN 167 . Beconsignment trade.—The major portion of merchandise unloaded In the Bremerhaven free zone is for reconsignment, chiefly to Bremen and inland points. The principal commodities imported from the United States are cotton, flour, grain, tobacco, lumber, lard, and fresh fruits. The United Kingdom furnishes chiefly coal, while bananas are imported for transshipment from the West Indies. Transshipment trade.—The transshipment trade at Bremerhaven is not very extensive. Small quantities of flour and dried fruit from the United States are transshipped to Scandinavian countries, and bananas from the West Indies are also transshipped to Norwav and Sweden. Manufacturing in free zone.—There are no manufacturing indus- tries in the free zone area of Bremerhaven. } Shipbuilding and ship-repair facilities —The only ship-repair facili- ties available in the free zone area of Bremerhaven are those of the North German Lloyd Steamship Co. These yards are well equipped and offer their facilities to all vessels which need repairs while at this port. Influence of free port in trade and merchant marine. —The establish- Ment of this free port has had a marked influence on the increase in trade and merchant marine at Bremerhaven. The statistics given below show the net registered tonnage of Vessels entering this port between the vears 1831 and 1926: Yaar 831 18g 777mm S80. 860-0 870 177 88y_ "77" I8gp ~~" Shipping entered, net regis- ered tons 50,07 100, 000 150, 000 300, 60 “50 [,000 ... 1. 300. 000 Year B00... 910.._.._... Gil. M2 Js — Lain 1915... Shipping 2ntered, net regis- ered tons 1, 450, 00, ', 950, 000 , 100, 000 2, 300, 000 2, 400, 000 1, 100, 000 DIONE] Year Nbc cpu OF] es nsmmw HE cess 919... 920 cco. Meee Shipping entered, net regis- ered tons 300, 00C 450, 000 600, 000 400, 000 650, 00 1, 500, 00( 2 000. 000 Year 928 oe... 1924... O25. WO_... Shipping entered, net regis- tered tons 2, 150, 000 2, 100, 000 1, 900, 000 2, 700, 000 Additional statistics on the port of Bremerhaven have been for- Varded and included in the report on the city of Bremen furnished by the American consulate at Bremen, Germany. THE FREE PORT OF CUXHAVEN, GERMANY [From G. Bie Ravndal, American consul general fn charge, Hamburg} NovemsER 10, 1928. Brief history of the port—Cuxhaven as a free port was never of ny importance until the last century, although the first dykes were Probably built during the eleventh century. Throughout the Middle Ages it was a Province of Hamburg, being part of the bailiwick of Rittsbitel, It has always been a port subordinate to Hamburg 47068°—920— 192 168 FOREIGN TRADE ZONES both politically and commercially, and such is its status to-day. It is now used chiefly as a port of distress, a fishing port, and a landing station for the Hamburg-American Line passenger vessels, passengers being transported by special trains from Cuxhaven to Hamburg, thus saving them the 65 mile trip up the river by boat. * * * * Dimensions and area of free zones—The free port is very small, comprising only 207.8 acres. * * * Terminals and berthing space.—The free port has only 600 meters of quay length, though vessels can be anchored in the free port area. There are only eight cranes in the free port. Warehouses, number and capacity. — There are only two sheds in the free port, having an area of 3,915 square meters (42,141 square feet) One of these sheds is used for the fish trade. Rail and highway connections.—Cuxhaven has good railway con- nections with the German railway system and is also connected by good automobile roads with Hamburg. How controlled and operated.—The Cuxhaven free harbor is under the administration of the Hamburg free port officials. Guards. —There are no special guards kept in the free harbor and it is policed by the ordinary Cuxhaven city police. A high fence is built around the entire harbor and is controlled by the customs officials. Annual cost of administration.—Cost of administration is unobtain- able, as it is really included in the Hamburg free port administration costs. Operations permitted and prohibited, dispatch in unloading, and reconsignment and transshipment trade.—Operations permitted and prohibited in the free zone at Cuxhaven are theoretically the same as those permitted in the free port at Hamburg, though the Cuxhaven establishment is so small and insignificant that its functions are almost negligible. Regarding the dispatch with which vessels are unloaded, reconsignment trade, and transshipment trade, inquiries from officials and others elicited almost no replies, except that, 88 the free harbor activities were almost nonexistent, no details oF figures could be given, except that transshipments during 1927 totaled 27,322 metric tons. Manufacturing and shipbuilding in free zone.—There is no mani” facturing in the free zone. No shipbuilding or repairing facilities are established in this area, all sich activities being centered at Hamburg. Influence of free port on the development of foreign trade and of the merchant marine—The operation of the free port at Cuxhaven has no effect whatsoever on the development of foreign trade or of the German merchant marine. le ,Y. ng ATS o, H, ATS bY ne £). 11 YY er nd ia ms 1) =~ On nd nd as rel) A780 are 108 as NT od 111~ es at the 188 he WAR DEPARTMENT U.5.SHIPPING BOARD FREEPORT OF EMDEN GERMANY SCALF IN FEET ta —— ———] 1,000 0 1000 2000 3000 SUBMITTED: APPROVED: Got Pept GOSS JOINT INVESTIGATION RESIDENT MEMBER, BOARD OF ENGRS FOR RIVERS AND HARBORS. DRAWN 8Y HN.B, Vk aa eA borden CTING DIRECTOR, BUREAU oF OPERATIONS, U.S. SHIPPING BOARD == FREEPORT BOUNDARY ¥ present pont Zo WAREHOUSES: FE FREE PORT OF EMDEN 169 General remarks. —With the excellent facilities offered by the free bort at Hamburg, it is naturally to be expected that the free port at Cuxhaven is unable to compete. Particularly is this so since there 1s not the slightest intention or desire to compete, as the management and control of Cuxhaven and its free port is under Hamburg. In view of the almost complete inactivity in the Cuxhaven free port, an endeavor was made to ascertain why it was ever created and why it exists. The free port was established before the war to handle transshipment business brought in by the Vaterland (now Leviathan), the Bismarck (now the Olympic), Imperator (now Beren- geria), and such gigantic vessels that might come to Cuxhaven, where the passengers would entrain for Hamburg, but would not come up the river to Hamburg because of their size. There are no vessels how on the Hamburg run that can not comfortably navigate the river to Hamburg, and hence the Cuxhaven facilities are not being used. The Hamburg-American Line some years ago rented one of the sheds which is now used by the Hamburg-Harburg Water Con- struction Board to store and cut timber for their construction work. This shows the present insignificance of the free port of Cuxhaven. It is generally hoped, however, that conditions will some day change again and warrant accommodations for large ships plying between Hamburg and the United States. THE FREE PORT OF EMDEN. GERMANY [From Leslie E. Reed. American Consul. Bremen. Germany] Brief history of the port.—The Ems River begins 28 miles southwest of Minden, Germany. It then flows through the Province of West- Phalia and traverses the western section of the former kingdom of Hanover to the wide shallow basin called the Dollart, near the town of Emden, 10 miles below which is the Dutch town of Delfzyl. About 80 miles below the Dollart it joins the sea. For the last 15 miles of its course the Ems has a wide estuary, which is principally occupied by the island of Borkum and the sands near it. The port of Emden is, in history, mentioned in connection with the invasion of the Romans in 12 A. D., when they entered the Ems River with a fleet. In German history Emden is mentioned first In 1040 under the name of ““ Amuthon’’ as a port and fortress. Dur- Ing the fourteenth century Emden was under the régime of leaders of the East Frisian tribe of Abdena. These were expelled in 1433, however, by the Hansa cities (Hamburg, Bremen, etc.), as they fded the pirates known as the Vitalienbruder. The development of Emden as a seaport then set in, though the Emder were always Seafaring people. The town of Emden concluded treaties in regard $0 800, traffic znd commerce with Yranes, Scotland. Sweden. Dane. 170 FOREIGN TRADE ZONES etc., and had its own mail service from 1570 on with Bremen, Ham- burg, Cologne, Amsterdam, Antwerp, and other cities. By its trade and by the admittance of some thousands of refugees from France, Flanders, Holland, and England, which they had left or been expelled from for religious reasons, the town of Emden had at the end of the sixteenth century about 20,000 inhabitants. This period was the city’s most prosperous one. The number of vessels whose home port was Emden amounted in the year 1570 to more than 1,000. In the meantime many foreign merchants made the town of Emden their home and traded successfully from there. This, how- ever, caused jealousy in the Hansa towns, which caused the English merchants, called the merchant adventurers, to be expelled from Emden. With this act, and also owing to disputes between the city and its rulers, the Counts of Ost Friesland, the decline of Emden’s trade began. The endeavors of the Prince of Brandenburg, at the end of the sixteenth century, to revive the trade of the port of Emden by transferring the navy as well as the Brandenburgisch-Afrikanische Kompagnie in 1683 from Pillau to Emden did not show the desired results. The efforts of Frederick the Great were also unsuccessful. He induced Emden merchants to found three trade companies—the Asiatic in 1750, the Bengal in 1753, and the Levantic company in 1767. The Asiatic company was particularly promising, but none of them showed the desired results. They did only a little trade up to the Seven Years’ War, suffered under the influence of the su- premacy of foreign nations, and collapsed under the effects of the Seven Years’ War. The year 1806, in the Napoleonic period, cleared nearly the total Emden fleet away. Emden lost to English privateers in this year 3,000,000 gulden in property and all its seagoing vessels, so that if had to start again afterward. Later Emden demanded from the Prussian State the restitution of its old rights and privileges, but before this had been decided upon the Congress of Vienna had decided in 1815 that Ostfriesland and Emden should be ceded to the English-Hanoverian sovereigns. Under this régime the Emden trade declined considerably. This is best shown by the following figures: 1805: Seagoing vessels of 2,400 tons (of 2,000 kilos burden each)... ..__-- 368 1864: Seagoing vessels of 4,572 tons (of 2,000 kilos burden each) _______- 75 After the Hanoverian war (1865-66) Emden came again under the sovereignty of Prussia, and thereby, in 1871, of the German Empire- During the first years after the Franco-German War the developmen? of the Emden trade was satisfactory. Emden had: In 1872: Vessels of 7,751 registered tons In 1873: Vessels of 8,888 registered tons In 1R74: Vessels of 9.380 registered tons I= le ©, dd Ne Ne rt ni = sh 118) y ag 160 my j y 18 xd iL. ne in of 1p a 0 FREE PORT OF EMDEN. VIEW OF THE ALTER HAFEN AND RATS-DELFT BASIN IN BACK. GROUND al ar it he ub 1d he le a3 38 75 18 a, -t 35 30 1 Q FREE PORT OF EMDEN. PART OF NEUERBINNENHAFEN, WITH TRAVELING BRIDGES IN RACKCROIIND TREE PORT OF EMDEN 171 After 1874, however, the trade of the port of Emden declined again. This was due to the inadequacy of the harbor accommoda- tions and river channel for the seagoing traffic, which was caused by the change from sailing ships to steamers as well as by an unfavorable tariff for the port of Emden. Negotiations in this regard took place between the interested parties and the Prussian State and resulted in the improvement of the channel of the Ems River, as well as in im- provements of the existing dock basins and the constructions of new ones. The project was agreed upon in 1879, and work was started at the beginning of 1880. In 1888 the Emden Harbor was transferred to the German Government. Some time later the Ems-Jade Canal (through Oldenburg to Wilhelmshaven) was handed over to the public. From that time the channel was always navigable, and uninterrupted building activity in the harbor construction, as well 8s in the regulation of the Ems Channel, set in. From 1892 to 1899 the Dortmund-Ems Canal was constructed for vessels up to 800 tons capacity. The outer harbor was declared as a free zone in 1901 and the new inner harbor after its completion in 1913. Location.—The harbor facilities of the city of Emden are situated about 35 miles (63 kilometers) inland from Borkum Island, on the Ems River. The channel from the sea has, at mean low water, a depth of 10 meters (32 feet). The management of the channel is in the hands of the Reichsverkehrsministerium, which is endeavoring to increase it to a depth of 13 meters (41 feet 6 inches). At present vessels with a depth of 29 feet can safely reach the port of Emden. The difference of the tide between high and low water is generally 3 meters (9 feet 6 inches). Dimensions of free zone.—The port of Emden, which has a total Water area of 148.5 hectares (367 acres), consists of : Acres Alter Binnenhafen (water area, 10 hectares). __. i Binnen Hafen (water area, 34 hectares) - a ieee. 84 Industrie Hafen (water area, 30 hectares). ._____. 74 Neuer Binnenhafen (water ares, 57 hectares) .__.._ 141 Aussenhafen (water area, 17.5 hectares). _ .- 43 Of the above-mentioned basins, the Neuer Binnenhafen and the Aussenhafen are free ports, whereas all other basins are within the Customs limits of Germany. In explanation of the peculiar situation of the various basins, it should be stated that in olden times the city of Emden was situated directly on the Ems River, but the constant working of the tides and the waves of the North Sea during stormy weather brought about a 8reat change in the Ems River bed, so that the city of Emden itself 8 now situated about 3 kilometers (1.8 miles) from the embankment °f the Ems. The land on which the new harbors are erected is all eclaimed land. with the exception of the center of the Binnenhafen 172 FOREIGN TRADE ZONES as marked in the plan of Emden (boundary of the former island Nesserland). The various harbors, with the exception of the Aussenhafen, do not have direct access to the sea, but are only entered and left by means of locks. They are connected with each other. Terminals and warehouses.—The Alter Hafen, the farthest inland basin, and also the oldest part of the Emden Hafen, is right in the center of the city. It covers a water area of 10 hectares (25 acres) and has a depth from 4.5 to 6 meters (14 feet 10 inches to 19 feet 8 inches). Its length amounts to 435 meters (479 yards) and the greatest width to 165 meters (182 yards). Some private sheds are found there, and farther uptown some old warehouses are alongside the water front, whereas on the right bank the rails of the Reichsbahn (German National Railroad) touch the basin. This section of the port, however, is of hardly any importance to the foreign trade, as, owing to the level of the water, vessels of large draft are not able to come up so far. Mostly smaller coasting vessels and barges having direct cargo for the port itself discharge the cargo here under supervision of the customs. A pivot bridge (railway) divides the Alter Hafen from the Binnen- hafen. This section of the harbor covers a water area of 34 hectares (74 acres), has a depth of 5.3 to 7 meters (19 feet 8 inches to 23 feet), its length amounts to 2,030 meters (2,233 yards), and its averag® width to 95 meters (105 yards). This basin has three cuts on its left side on which various fishing companies and small shipyards are situated. On its right side.there is a cut for the government shipyard with a small dry dock. This harbor has open storage space of about 3,500 square meters (37,574 square feet), as well as 1,000 meters (1 ,100 yards) quay accommodations, of which about 50 per cent ig connected with the Reichsbahn (German Railroad). The so-called Zungenka! has a length of 440 meters (484 yards). This quay is equipped with a shed of 1,660 square meters (17,868 square feet) storage capacity; five traveling cranes of 2.5 tons lifting capacity each, and one fixed crane of 10 tons capacity. To the right of the Binnenhafen is the Industrie Hafen. It has @ length of 1,250 meters (1,375 yards), a depth of 9 meters (29 feet 0 inches), and a width of 165 meters (182 yards). On the left bank the Nordseewerke (a shipyard) is situated, and further up a briquette factory. On the right bank is the Hohenzollernhiitte, a smelting and refining mill. The above-mentioned sections of the harbor are situated inside the customs boundaries, and the following sections are free harbors: The Neuer Binnenhafen, which is also separated from the Binne™ hafen and the Industriehafen by a pivot railway bridge, was given ove to public trafficin 1913. It hasan area of 41 hectares (101 acres) and? a st 8 "8 le 11 I) 0 Pp sb f n= 2s 2) re A 8 rd ab No ad al th ys sd a 6 ne te d 16 in” ig FREE PORT OF EMDEN 173 depth of 10.5 meters (34 feet 5 inches), its length amounts to 2,040 Meters (2,244 yards), and the greatest width to 460 meters (506 yards). The only quay accommodations existing in this section of the Yarbor amount to 280 meters (308 yards) and are situated to the right of the Seeschleuse (locks). This quay has 13 loading bridges of a capacity from 6.5 to 15 tons per grab (4 of 6.5 tons each, 4 of 12.5 tons each, and 5 of 15 tons each). The loading bridges have an aver- age output of 130 tons per bridge per hour. These loading bridges are mainly intended for the transshipment of coal, iron, steel, and ore, of which scrap iron, steel, and ore are usually shipped in barges through the Dortmund-Ems Canal to the Westphalian district, whereas the coal usually arrives in barges and is transferred to steamers as cargo or as bunker coal, though, of course, British coal also arrives here and is either used for local consumption or as bunker coal. In this harbor large space is still available for subsequent enlargement of the harbor territory, as well as for industrial undertakings. There are also 10 floating cranes here of a lifting capacity of 3 tons each and two floating 2rain elevators of a capacity of 2,000 tons each per hour. The Emden Aussenhafen constructed in the years from 1899 to (901, has a water area of 18 hectares (422 acres), a depth of 11.5 meters (37 feet 8 inches), a length of 1,280 meters (1,409 yards), and a width of 130 meters (143 yards). In this basin 14 large steamers can be accommodated. It has a quay 930 meters in length (422 yards), which is equipped with nine traveling cranes of 3 tons lifting capacity each and one traveling grain elevator. It is also equipped at the outer end with three traveling bridges of 5 tons lifting capacity each and a capacity of 75 to 90 tons per hour, a slewing crane of 40 tons lifting capacity, and a coal dipper of 32 tons with a capacity of 90 tons per hour. It has adequate connection with the railroad. The two sheds erected here have an area of 12,000 square meters (129,600 square feet). All the above-mentioned equipment and accommodations are on the left side of the harbor, whereas the right side is undeveloped. Much space is still available here for the construction of sheds and warehouse accommodations in case the future development of the Emden Harbor should require More space. Two locks connect the Aussenhafen, which is alongside the open iver, with the other basins. "The oldest of these locks is 110 meters (360 feet 8 inches) in length, 14.5 meters (47 feet 5 inches) wide and 6.7 meters (21 feet 9 inches) deep, whereas the Neue Seeschleuse has 8 length of 260 meters (853 feet), a width of 40 meters (131 feet 2 Inches) and a depth of 13 meters (42 feet 6 inches). All locks are Worked by electricity. All vessels, when their dimensions permit, have to use the older lock. 174 FOREIGN TRADE ZONES Rail and highway connections.—Both free harbors are connected with the Reichsbahn (railroad), which owns and operates all the railway facilities in the harbor. Access to the free harbors is not good, as they are about 3 kilometers (1.8 miles) distant from the city and are connected with it only by one road and a railroad line. 4 street car line also connects the city with the free harbors, Administration.—The management of the free harbors, as well as the other harbors, of Emden is in the hands of the Preussische Wasserbauamt Emden. The quays, sheds, etc., and the necessary equipment, as well as the storage space, are rented to private under- takings. The free harbor accommodations are rented at present to: 1. Emder Verkehrsgesellschaft A. G. (a branch of the Hamburg- American Line, Hamburg) has rented shed No. 3 on the left side of the Aussenhafen and the necessary equipment. 2. Hafenumschlaggesellschaft m. b. H. (Harbor Reloading Co., (Inc.)), an undertaking in which the Prussian State as well as the city of Emden is interested, rents shed No. 2 on the left side of the Aussen- hafen. This shed was converted for the storage of grain, and one traveling crane, adapted for use as a grain elevator, has been stationed here. This company has also rented the 12 loading bridges in the Neuer Binnenhafen, whereas the firm Fisser & v. Doornum has rented the other loading bridge in the Neuer Binnenhafen for the transfer of coal. At the end of the left bank of the Aussenhafen there are other bunker-coal firms, which have rented storage space there for bunker coals. Further the Deutsch-Amerikanische Petroleum Gesellschaft has three oil tanks there. The port as part of the waterways is under the port regulations. These contain the regulations of the traffic police, which protect the harbor from dangerous or impracticable uses being made of it by vessels. The harbor master superintends the carrying out of the regulations, and his subordinate officials render the necessary assist ance in making fast. Because of the expenditures which are required for the improvement of the harbors, port dues are charged, which are collected by the harbor office of the Wasserbauamt. The port as part of the railway is served by the German National Railroad, which is the proprietor of and manages the railway in its own name, Since the docks are provided with modern equipment, cranes gangways, lifting gear, etc., their operation requires trained gangs and their upkeep special expenditures. Payment therefor is collected from the various private firms which rent the docks. Contrary t© the practice in the port of Bremen, the ships’ work (discharging and loading) as well as shore work (transshipment of the goods into the sheds and into the railroad cars) is executed by the various private d e of Y 1S Ve ¥ ys 1 y - 18 d 18 18 o 37 3T t Se Ce y o “ot J 2 FREE PORT OF EMDEN 175 firms. The dock laborers are engaged by these firms themselves, and there is quite an abundant supply of them. The difficulty of making a profit from the dock administration has always been a source of anxiety, and since the war the situation has become more acute. Not only the competition of the foreign harbors, Antwerp and Rotterdam, but also the strong competition of the German harbors, Bremen and Hamburg, is felt very much and tends to keep the dock dues very low. The transshipment of bulk cargoes, such as iron, coal, ore, grain, otc., is carried out by the Hafenumschlaggesellschaft, which has ented for this purpose the special equipment. This company 'eceives the orders from the forwarding agents or consignees. The various authorities having to do with the port and harbor facilities of Emden are as follows: (e) Highest authority for matters of Emden shipping and commerce: Preus- sisches Wasserbauamt Emden. (b) Management of the harbor and docks of the port of Emden: Preussisches Wasserbauamt Emden. (¢} Harbor master for the port of Emden: Harbor master Fahland, president of the Ems Pilot Association. (d) Register and clearance office for vessels and harbor bureau: Wasser- bauamt, Hafenbureau. (¢) Harbor police: Reichswasserschutz Emden, Nesserland. (f) Administration of quays and sheds: Emder Verkehrsgesellschaft A. G. ; Hafenumschlaggesellschaft m. b. H. Number of guards.—The free port is guarded by an iron fence of bout 3 meters (about 10 feet) in height and is only accessible by three main entrances and two smaller ones for the railway traffic. The gates are controlled by custom officers, and everybody leaving the free port must be searched.” There are always 30 men of the Reichswasserschutz stationed in the harbor, doing patrol service on the docks as well as on the water, day and night. Besides, there Are four night watchmen on duty for the sheds and the transshipment sl tpment in the Neuer Binnenhafen. These are paid by the private mg. Annual cost of administration —Efforts to obtain figures for the "nual cost of administration of the free port have been thus far “Nsuccesstul, as the port facilities of Emden, including the free port, Arg Operated by a department of the Prussian Government (Preus- ches Wasserbauamt Emden), which publishes no report. Should hey later be secured, they will be promptly forwarded. 18ures for the construction of the Emden free ports as well as the er basins have been obtained and are given herewith. ] % 176 FOREIGN TRADE ZONES Construction costs of Emden Harbor since 1880 (1914 to 1 923 not included) Construction, ste. Binnenhafen, including Vorflut Canal ooo oommccmmoamimnan nooo AUSSETNALOI oo ooameomcmmmmmme= mmm nn memmmemesea—cmmneseemoeasos Correction of the Ems fal Way. voce ovommoiao mma Construction of the Dortmund-Ems Canal up £0 1902. oocoommenmmmmmnann Neuer Binnenhafen and lock (1918) -eeoen-- RR > various constructions: QEESCNIOUSO. ceo mem mmm ammo mmm mmm mmm mmm oa a Shed 1, including equipment. oovuammoo cian Hg aR Shed II, including equipment. «o-oo emo momma moon me Shed III, including equipment. oo cooeormemrano amma WOSE TOILE oo coe mm emcee amon mm me eeeeemesemecmesomareas sos Quay of the Aussenhafen (850 THOLOTS) oo ome oeeam mamma amamn mamma HAIDOE TAIWAY «eco come-cmmc mmm mmm mmm mamm mmm mannan mses oo Coal tipper occ ami amrn mmaeeeme mmc mmm 40-400 CTANO_ moo oemeene Rr Ha a Dredgers, tugs, barges, etc... ee emmmmmmm——m———— Current expenses, 1902 to 1914: Harbors, 320,000 reichsmarks each Year... couc-vemammomnaamnnsinannnn. Ems River, 310,000 reichsmarks each year. ....-..- ag Current expenses, 1924 to 1027: Harbors, 620,000 reichsmarks each year. .oooowocooooommaane on Ems River. 350,000 reichsmarks each year ._.. mmm Cost * Reichsmarks 6, 890, 000 | 8, 950, 000 6, 770, 000 74, 680, 000 23’ 420. 000 31, 640, 473 9, 130, 950 1, 61,900 7, 780, 8% 5 576, 180 L, 100, 000 330, 000 576, 000 394, 000 725, 000 2, 270, 000 490, 000 220, 000 50, 000 3, 180, 000 4, 160, 000 3, 410,000 2, 480, 000 1. 400. 000 261,899 78, 571 137,14 03, 808 172,618 540, 476 116, 666 32, 381 19,048 757, 138 900, 468 811, 8% 500, 478 233 326 LL —— Operations permitted in free zone.—All operations usual in conne¢- tion with port traffic are permitted in the free zone. Business offices: repair shops for vessels, and official residences (Dienstwohnungen) fof persons whose permanent presence in the free zone is necessary fo! supervision and administration purposes are permitted. Operations prohibited in the free zone.—The following prohibition= are in force in the free zone: Industrial undertakings, the retail trade, and the construction 0: residences in general are not allowed in the free zone. The retail sale of ships’ stores and provisions is allowed in the free zone only by permission of the police. Used ship’s equipment, left-over goods from vessels, etc., can only be sold in the free zone to certain firms by permission of the police Dispatch secured in unloading vessels.—As the greatest part of the cargo that arrives or leaves Emden is in the transit trade and mostly consists of bulk cargo, such as iron, steel, ore, coal, etc., the Neue! Binnenhafen, where most of the bulk cargo (with the exception o grain) is dispatched, is equipped with the most modern equipment The railway facilities are adequate, and thus Emden is able to d¥ patch consignments in bulk very quickly. It might be mention that, during the British coal strike in 1926, 600,000 tons of goods Wer handled at Emden in one month. The two sheds on the quay of the Aussenhafen are roomy and 8% divided in various sections. Ample light is also available. On th? side facing the water, as well as at the back, these sheds have a co” tinuous series of sliding doors, so that they may be opened at any po? directly opposite the vessels or railroad cars. The dock area has 1 own high-pressure water supply, special fire stations, and its ow’ electric service station; all cranes are driven by electricity. FREE PORT OF EMDEN 177 173 150 100 304 180 899 571 143 208 618 476 (66 381 | 048 13% 466 " 408 475 296 oC 1@5y for for ns nf ‘ref nly 1c8- the stly quer 1 of ante is ned ore ar® the 20 oink , i wh Owing to the fact that the import of grain has increased, one shed of the Aussenhafen has been specially prepared for the storage of grain. One traveling grain elevator as well as two floating grain elevators are Available for this purpose, and steamers are discharged within a short time. Reconsignment and transshipment trade—~—No reconsignment and ‘ransshipment trade is done in the free zone of the port of Emden, 8 the larger ports of Bremen and Hamburg do this business for Ger- Many. The freight arriving at Emden is practically all shipped up ‘he river or by canal to the interior of Germany. . Manufacturing in the free zone.—In the free zone no manufacturing 's done. Various industries have plants outside the free zone, how- &ver, in the harbor territory or on the docks within the customs limits of Germany. In the harbor district ample space is still available for Industry, The main local industries are shipyards, fishing industries, umber trade, and smelting and refining trade. Shipbuilding and ship repair in free zone.—No repair shops and floating docks are within the free zone. Influence of the free port on the development of foreign trade.—Although the Emden free port was only established in 1901, the importance of Emden in foreign trade, mainly as a port for the transit service of bulk cargoes to the Rheinish-Westphalian district, may be said to be dug ip 5 very large degree to the free port and its connection with the Dortmund-Ems Canal. The principal trade of the free ports consists of bulk cargoes of ore, iron, steel, and coal, and also some finished iron nd steel products, which are either destined for the Rheinish-West~ Phalian district or are shipped from that district to foreign countries. In the case of coal, a great part is used as bunker coal at Emden, as Emden is an important bunkering station, and coal sold here is about 10 Per cent cheaper than elsewhere, owing te the low canal freight Tom the Rheinish-Westphalian district to Emden. Statistics attached hereto show the sea-borne traffic of the port of Emden, giving the number of vessels and their total net registered tonnage for each year from 1890 up to the present (with the exception of the years 1914-1922). These figures, although they do not indicate the amounts of cargo carried, show a very large increase in the traffic f Emden after the establishment of the free port in 1901. The aver- %%e annual net registered tonnage arriving at the port of Emden during the 10 years 1900-1909 was eight and one-half times as much 8 the average annual tonnage during the previous 10-year period 1890-1899. » Tiluence of free port on the development of the merchant marine.—The lence of the free port at Emden on the development of its merchant Maring is not so marked as in the case of Bremen, due to the general “dency in the twentieth century toward the centralization of large FOREIGN TRADE ZONES steamship organizations in important cities such as Bremen and Hamburg. The following steamship companies, though not important in over- sea trade, are located at Emden: A. G. Ems, Atlas Reederei A. G. Emder Dampfercompagnie Nuebelt & Fritzen A. G., Schulte & Bruns; also various fisheries and companies interested in canal and river traffic. These undertakings, however, are all interested in the European coasting trade. Statistics.—The greatest part of the goods that arrive at Emden trom foreign countries is unloaded in the free zone. The Emden statistics do not show the movement of goods through the free zone alone. It has been ascertained from the Emden Chamber of Com- merce, however, that practically all foreign goods come through the free zone, with the exception of about 50 per cent of the lumber arrivals and about 90 per cent of the general cargo. The total quantity of cargo arriving at the port of Emden by sea each year since 1901 has been compiled from the “Annual reports of the Chambers of Com- merce for Ostfriesland and Papenburg,” and the tonnage of the twO above-mentioned classes of commodities has also been calculated and deducted therefrom. The results should give the approximate figures of the commerce through the Emden free ports. Growth of commerce and shipping in free ports—The following figures show the total quantity in metric tons of cargo arriving at the port of Emden by sea during the years mentioned. Below each total 18 given the total for lumber and general cargo, and the result of the subtraction represents the estimated figures for the free ports. Quantity, in metric tons Quantity, in metric tons Quantity, in metrie tons Quantity in metric tons re 1901 _. IBZ on 1908 _ cena 1904. eee. 1008. wu manne 175, 983 33,003 142, 980 244, 414 50, 994 103, 420 368, 099 52,189 215 910 363, 009 37, 360 325,730 642, 736 34, 235 608, 501 141 S—— 1907 cee 1908. cee ee 1909. oc ccmeae 1910. nnaena 767,190 27. 525 739, 665 903,310 130,071 773, 239 , 001, 635 61. 430 940, 175 4, 011, 648 66, 138 040, 175 1, 463, 946 59,422 1, 404, 524 1911 ee, 4012 ma 1018... 1924 cree 1925 cccnen.. 1, 563, 540 44, 541 1, 518, 999 1, 569, 648 36, 233 1,533, 415 1, 555, 690 99, 987 1,455,703 1,624,205 130,779 1.483, 426 1,904, 470 62, 012 1 841. 56° 926 nooner 1,88 78 62, 040 - Sr 1,822,08 A 2, 465, 2% |. 369, 379 1027 comme d FREE PORT OF EMDEN (Enclosure A) 179 EMS PILOTAGE TARIFF I= ar IF] or ne [Extract] A. Sea pilotage fees are paid according to the draft and the gross registered tonnage of the vessel, as given in the following tables, 1 decimeter equals 3.9 inches: ——— S71 en ne n= ae Js of Draft (decimeters) UD to 30__. - Over 30 to“ __ Over 31 to: . ee OVEr 3210 © moomoo dver33to: ma DVEr 34 £0 Fd Looe Jver 35 to; ° J . Jver 36 to * Amount Reichs- marks 1 1 1" 52. 8F 3.57 420 &.00 AT. FIs 33 ho 3 Draft (decimeters) ! Amount Reichs- marks 36 30 49 ver 37 to A8_ ees ver 38t0 39... ver 39 to 4” a Jver 40 to - i i IVEL ALLO inns wammmmianine SVE 42 10 MB. irish For every decimeter more. -_...... 8, 57 ..29 n.00 nl 43 14 2 as n- yO nd te 0S rb 18 Additional fee based on gross registered tonnage: Gross registered tonnage —————— Amount Gross registered tonnage Reichs marks 30 3 UP £0 100. oo moomoo Over 100 to 200 ___._________. Over 200 0 300_ __...__... __ Over 300 to 400 ________ ________ Over 400 to 50 i Over 500 to 60u $7.14 8.57 10. 00 1]. 47 “3 <q Over 080 10 700. comune Over 0 to 8M. occa srnmansmnl Over 800 £0 900_ _ oon. Over 900 to 1,000... _._..._.... Tor every 100 tons more. ._._.. _.. (0 Amount Reichs- marks 66 | $15.71 72 17, 14 78 18.57 84 20.00 8 1.43 he ibys triC ,719 ; 4 , 083 = , 220 841 rr , 279 The tariff is applicable for the distance from the sea to Emden Roads or vice versa. For pilotage from Delfzyl to Emden or vice versa one-half of the tariff has to be paid. The fees are to be paid in reichsmarks. B. Harbor pilotage is charged for in the following percentages of the sea pilotage cog: Emden Roads to Aussenhafen or vice versa... _ a—- Shifting of vessel in the same harbor basin_______. ER Emden Roads to Neuer Hafen or vice versa or shifting of vessel to a second harbor basin.._.__.___._ _ em ee Emden Roads to Binnenhafen or vice versa or shifting of vessel to a third harbor basin... oo... A ES For compensation and deviation measurements in the harbor an additional fee of o_o. C. Exceptions.— Vessels in ballast pay one-third of the gross registered tonnage fee. Loaded vessels calling at the port for bunkering purposes, and vessels which discharge, load, or additionally load up to 30 per cent of their burden, pay one- half of the tariff for draft and one-third of the gross registered tonnage fee. Loaded vessels are only such vessels as are carrying cargoes of at least 30 Per cent of their burden or loading capacities. Per cent 8 6 10 12 10 FOREIGN TRADE ZONES (Enclosure B) TUGBOAT TARIFF For tugboat service at Emden, from the roads to the Neue Schleuse (new lock) or from the road to the Aussenhafen (outer basin), from the Neue Schleuse to the Aussenhafen, or from the Neue Schleuse to the Neuer Hafen, or from the Neuer Hafen to the Binnenhafen (inner basin) and also vice versa, as well as for the shifting of vessels in any of the basins, the following rates are charged, aceord- ing to the size of the vessel towed, for each tugboat: Up to 1,000 gross registered tons (60 marks) From 1,001 to 2,000 gross registered tons (65 marks). From 2,001 to 3,000 gross registered tons (70 marks: From 3,001 to 4,000 gross registered tons (75 marks). From 4,001 to 5,000 gross registered tons (80 marks) From 5,001 to 6,000 gross registered tons (85 marks’ From 6,001 to 7,000 gross registered tons (90 marks; From 7,001 to 8,000 gross registered tons (95 marks, From 8,001 to 9,000 gross registered tons (100 marks) For tugboat service from 6 p. m. to 6 a. m., as well as on Sundays and holidays, an additional fee of 25 per cent has to be paid. During the ice period an addi- tional 25 per cent is charged. When the extra ice tax is in force is determined by the harbor authorities. Steamers calling at the port of Emden for bunker coal obtain a rebate of 20 per cent on the above fees and do not pay any additional tax for night or Sunday and holiday work. (Enclosure ©) EXTRACT FROM THE EMDEN HARBOR TARIFF } Seagoing vessels, as well as sea lighters, have to pay the following harbor dues: (1) According to their net tonnage capacity, i. e., for each cubic meter and each 20 lay days: Reichsmarks Vessels up to 100 cubic meters, inclusive, net tonnage capacity... 0. 018 Vessels over 100 and up to 200 cubic meters, inclusive, net tonnage capacity. _-_._-. memmeen- L025 Vessels over 200 cubic meters, net tonnage capacity coo... .05 (2) According to the tonnage of goods discharged or loaded: For each ton in Class T mmm 209 For each ton in Class eee. L075 For each ton in Class . 065 For each ton in Class .05 For each ton in Class V. .04 (Class I, grain from oversea countries; Class II, manufactures of iron and steel; Class III, pig iron, hardwood; Class IV, cement, softwood, and pig iron for oversea countries; Class V, coal, coke, ore, briquettes.) Steamers calling at Emden Harbor for bunkering purposes are also exemp? from the payment of harbor dues, according to net tonnage capacity, in case *they load other cargo. For such cargo, however, port dues, according to the weight of the cargo, as mentioned under (2) have to be paid. FREE PORT OF EMDEN 181 {Enclosure D) NEW TARIFF FOR THE MOORING AND UNMOORING OF VESSELS IN THE EMDEN HARBOR For persons employed in the mooring and unmooring of vessels in the Emden Harbor the following rates are demanded for the mooring and unmooring of vessels: For vessels up to 750 gross registered tons (8 reichsmarks).. 1,000 gross registered tons (10 reichsmarks)._. 2,000 gross registered tons (12 reichsmarks) . 3,000 gross registered tons (14 reichsmarks). 4,000 gross registered tons (15 reichsmarks) 5.000 gross registered tons (16 reichsmarks’ $1.90 2.38 2. 86 3.33 3. 57 3. 81 For every further 1,000 gross registered tons or part thereof an additional 1.50 reichsmarks ($0.36) is charged; an excess up to 50 gross registered tons is, however, not considered. For Sunday and night work an additional tax of 50 per cent is charged. As night work the time from 10 p. m. to 6 a. m. is considered. (Since February 1, 1928, steamers calling at Emden for bunker coal, are exempted from this addi- tional tax.) Vessels whose port of registry is in the district of the chamber of commerce and industry for Ostfriesland and Papenburg obtain a rebate of 25 per cent on above dues. The previous additional tax of 25 per cent for vessels shifting without the assistance of tugboats is omitted from now on. This new tariff comes in force on September 26, 1926. Emden, August 20, 1926. } (Signed) Tur DIRECTOR OF THE PREUSSISCHE WASSERBAUAMT. (Inclosure E) Tariff in force since January 1, 1928, for the execution of shipping matters, including clearing of vessels in the Ems ports A. Bulk B. Not cargo uniform and uni-| cargo, form cotton Cargo, and cotton genaral sxcepted ! cargo C. Coal, sto. English pounds sterling ——— Freight vessels, incoming with cargo and outgoing in ballast or vice versa 150 to 200 gross registered tons. .._._. ee een Qver 200 to 300 gross registered tons... .. -- Qver 300 to 400 gross registered tons... .._.__..__..__. [OS Over 400 to 500 gross registered EONS... Loe Over 500 to 750 gross registered £008... oof oo Over 750 to 1,000 gross registered tOMS. oo oomonoooooooo oon Over 1,000 to 1,500 gross registered tONS. . «ooo acca ane Over 17500 to 2,500 gross registered tons ERR AR a Over 2,500 to 4,000 gross registered tons ern meen me HR HR horn Ouer 4,000 to 5,000 gross registered tons em mmm rer 5,000 to 6,000 gross registered tons ee em Ver 6,000 gross registered tons. 2/2 3/3 4/4 55 | 5/6 7 0/10 19712 15/15 17/17 21/— 26/5 3/3 4/4 5° a os "¢12 15/15 Y— 22/10 26/6 32/10 Discharging coal steamers OD £0 1,000 t0NS CAPACILY- —._..meeenmmoeeanmees Soret ——— Over 1,000 to 1,250 tons A. Qver 1,250 to 1,500 tons CAPACItY «mecca <a ane Over 1'500 fore ennantty Loo -mommmmaes oe 5/6 7 8/8 10/10 182 FOREIGN TRADE ZONES Above English pounds sterling have to be converted into German marks at the rate of exchange in force at the day of payment. Uniform cargo means cargo of one and the same article. (1) Incoming and outgoing vessels with cargo, if served by the same firm, pay additional 50 per cent to the above charges, otherwise incoming and outgoing the full tariff. (2) Vessels with part cargo up to one-half of its capacity pay half of the tariff, over one-half the full tariff has to be paid. (3) For all cargoes, incomimg and outgoing, about which more than 10 B/L’s are made out, the clearing is accounted for in Group B. (4) Vessels which call at a port only for bunkering or docking purposes or in ballast to start on a time charter pay only one-third of the tariff, but at least £2/2 (casualty cases excluded). (5) For the execution of the encashment of freight a bank commission of 10/00 is charged. (6) In case the ship broker advances money to the vessel, which he is not obliged to grant, the shipowner has to pay 2% per cent commission on the ad- vanced money. (7) In cage the shipowner does not send the remittance within 14 days after the receipt of the account, the usual interest, payable on account of deferred payment, will be charged from the shipbroker. (8) For the issuance of documents for the part delivery of cargo, the consignee is charged with 0.50 reichsmark ($0.12). (9) Above charges are also applicable to vessels in charter. (10) Refunds are not allowed to be made in any form. Additional clause for Emden: Sailing vessels and motor sailing vessels, 8% well as sea lighters in the North Sea and Baltic trade according to special tariff In force since January 1, 1928. Dig VEREINIGTEN SCHIFFSMAKLER. (TEE ASSOCIATED SHIP BROKERS.) (Inclosure ¥) Sea-borne trafic of the port of Emden (including high sea fishing vessels) — pe he — Arrivals Departures Arrivals Departures year no -.. 801. oo. imme 28mm Mmmm Mpg Wee YF um BR Manan Womans Wee mmm ; ; a 08 cm arsine IM. cis Num-| Net reg- per of | istered ressels! tonnage 572 345 796 375 | 43 962 905 266 07: 03 22% 814 673 837 o45 27, 249 27, 298 54, 416 71, 845 71,293 75, 282 80, 396 57,221 27, 361 iT, 992 168, 117 229, 435 352, 045 532, 657 489. 701 Num- | ber of vessels B28 1,113 827 850 | 40 937 ', 044 1025 124 071 097 590 ,643 ,784 700 Net reg- istered tonnage 1p 81¢ “4,427 “7, 648 0, 816 “9, 570 4, 361 7, 491 7, 484 2, 984 3, 658 93, 99€ 223, 624 362, 45% 520, 760 472, 217 Year 906. oe. WB aeaen Wie vuunane 1. yo DRO J “eas “2 aa. Rov wmncs Re wenn 2 coin | TR 1926 _ -....-- 19927 ___. _.. Num- per of 7essels) .038 963 © 053 298 383 709 761 913 on7 458 , 06° ~ 535 , 937 2 415 Net Yop isteres tonnage 527, 552 390, 857 686, 461 885, 917 1,017, 685 "918, 338 ' 986, 024 1627, 538 , 563, 502 , 006, 962 "1093, 365 1, 790, 122 2, 707, 586 1,789, 494 Num- ber of vessels! 1,874 5918 ,032 %, 241 "365 684 730 915 ~ 863 1,614 2,098 2, 560 3,323 2 468 Wet reg” istered tonnage 512,42 §05, 598 680, 167 874, 899 1, 026, 862 (211, 139 (, 276, 033 1,637, 96 1, 554, 588 1, 048, 154 1, 096. 7% 1, 786; 738 9, 743, 238 7 417, 950 <2 on - J1 nr 30 Ol A= er od ce i? £, BT d af lx os “1 9 2 19 3 H 8 ¢ 1 i B a0 -REE PORT OF FLENSBURG. GRAIN ELEVATOR REE PORT OF FLENSBURG. CRANES FOR HANDLING COAL FREE PORT OF FLENSBURG 183 (Enclosure G) CUSTOMS DUTIES COLLECTED AT THE PORT OF EMDEN FROM 1890 TO 1927 The following customs duties were collected at the port of Emden during the folowing years: —— — ADPril, 1890 to 1891. Lori, 1891 to 1892.7. April, 1892 to 1803 10 ADril, 1893 to 18041. ADril; 1894 to 1895. 1. Abril, 1805 to 1896. 27 Abril, 1896 to 1807720" Abril, 1807 to 1808... Abril, 1898 to 1809... ADril, 1899 to 1900... ADril, 1900 to 1901... April, 1901 to 1902.1 Abril! 1902 to 1003. veichsmarks 507, 506. 9¢ 188,728. 7¢ 60, 361. 5( 153, 979. 65 ‘04, 425. 41 113, 470. 9¢ 178, 857. 5( 178, 775.3. 517,348. 2. 164, 020. 8 ‘69, 285. € 701, 593. 3. TOR, 872. 45 A mount $120, 856. 41 116, 363. 99 109, 609. 64 108, 090. 39 7,720. 3 2 254. ¢ "3,537. Lk 43,994. 14 23,178. 1 '10, 481. 1F 135, 544. 1€ 167, 046. 03 190. 207.73 4pril, 1903 to 1904_____ April, 1904 to 1905_____. April, 1905 to 1906_____. +pril, 1906 to 1907__ ____ pril, 1907 to 1908_ ___.. -pril, 1908 to 1909_____. ~pril, 1909 to 1910_____. \pril, 1910 to 1911. _____ April, 1911 to 1912. ____. April, 1912 to 1913______ ‘wpril, 1913 to 1914. _____ April, 1926 to 1927. _____ April, 1927 to 1928 _____ Amount Reichsmark: 837, 200. 7¢ 933, 917.9. 866, 496. & 711,713. 0- 584, 929. C 144, 502. 40 751,282. & 937, 122, 6c 972,435. 6 781, 406. 7 868, 900. & 2, 237, 263. Oc 3.032 208. 11 8199, 333. 52 222, 361. 42 206, 308.77 169, 455. 48 139, 268. 83 105, 833. 91 178, 876. 78 223,124. 4 231, 532.35 186, 050. 22 206, 881. 07 532, 681. 67 721, 975. 27 THE FREE PORT OF FLENSBURG, GERMANY [From G. Bie Ravndal, American consul general in charge, Hamburg) Brief history. —Flensburg, with a population according to census of June, 1925, of 63,139, is the largest city of the Province of Schleswig. The city is built around the shore of Flensburg Bay, and is a typical “fiord city. It possesses an excellent harbor and before the war had ® larger merchant marine than any other German port on the Baltic. . Before 1864, Flensburg was a Danish city and at that time special- “Zed in trade with Greenland. Since 1866 it has been under Prussian tule, After the World War the fate of Flensburg was determined by a Plebescite held March 14, 1920, which gave a German majority and hence the city remained German. It is the most northern port of Germany, except for some ports in East Prussia. The new Danish- German boundary line runs through the middle of Flensburg Bay. k lensburg is said to form the linguistic boundary between Danish nd German. Before the war, the establishment of a free port at Flensburg was der gonsideration. As a result of the war, northern Schleswig, Flensburg ’s hinterland, was ceded to Denmark, and thus this port’s Mportance was materially decreased. In July, 1923, after two years’ York in preparing the free harbor, it was opened to traffic and it was hopeq that through the establishment of an active free-port business ' make up in part for the loss of business occasioned through the cession of northern Schleswig, Flensburg would regain its maritime Mportance, so cetion.—The free port in Flensburg is situated on the eastern he of Flensburg ’s inner bay, and consists simply of a wharf for trans- ay ent purposes, and contiguous areas for manufacturing purposes, of which are not considered within the German customs area. 4706R°—920_ 19 184 FOREIGN TRADE ZONES Dimensions and area of free zone.—The free port has an area of 74.1 acres. It consists of a basin some 500 meters in length and 50 meters in width, on each side of which is an area of some 150,000 square meters which are set aside for industrial activities. Terminals, number and berthing space.—The only wharf of the free port is about 500 meters (1,640.4 feet) in length. Warehouses, number and capacity. —On the wharf is a newly cob” structed grain elevator * * * with a capacity of 6,000 metric tons. It is equipped with an elevator having a capacity of 100 metric tons per hour. There is also a warehouse with 5,000 square meters (53,820 square feet) of floor space equipped with two electric cranes, one of 2 and the other of 3 metric tons capacity. Railway and highway connections.—The free-port zone is connected with the Reichsbahn and the local Flensburg railway. There are three tracks along the quay and the industrial sections on each side of the basin are also connected by rail. The same railway tariff i applied to the Flensburg free harbor as for the Flensburg station and direct routes connect the free harbor to Hamburg, Kiel, Husu Niebull, Westerland, Pattburg, and Fredericia. The local line con” nects directly with Cappeln and Satrup. How controlled and operated. —The Flensburg free harbor is adminis” tered by the Flensburger Freihafen Lagerhaus A. G., a company which has taken over the management of the port under contract: fmport and export control is, of course, exercised by the official customs administration. Number of guards—The company managing the free harbor does not keep any special guards in the free port, the Flensburg police also policing this small area. Annual cost of administration.—I1t is estimated that the expensé® of administration of the free port total only 24.000 marks (85.712 yearly). Trade operations permitted in free harbor —Manufacturing processe® are permitted in the free harbor under the same conditions as in the customs area. . Trade operations. prohibited in the free zome.—All retail business ¥ prohibited in the free harbor as well as such trades which are co” sidered to be injurious to trades carried on within the customs zo? Despatch secured in unloading vessels. —In the free harbor goods m8} be discharged without customs control, stored and manufacture according to desire. The equipment is sufficient for the amount business at present carried on in this free harbor, though no statisti’ comparing the speed with which vessels are loaded or unloaded af? available. Reconsignment trade.—Flensburg specializes in the handling of gr? and feeding stuffs destined for the cattle-grazing districts of Schles" 3 50 N0 00 mn- re 10 ors £5, ced are ide SE OD 1101s nN- nis" any act. cial [oes fice nsed 719 aed ho aa 15 nol” one of red to tit qr gral? aw 14 _U.5.SHIPPING_ BOARD WAR DEPARTMENT FREEPORT OF HAMBURG GERMANY jar. JOR CORPS OF ENGINEERS LSIDENT MEMBER, BOARD OF N° INEFRS FOR RWLRS AND RTs, COR, BURERY OF OPERATIONS 1. SHIPPING BOARD. 1000¢ IRAWN BY HY.F FREE PORT OF HAMBURG 185 Holstein and the Mecklenburgs. During the year 1927, 27,000 metric tons of grain and cattle food were imported through the free port. These commodities originated chiefly in the Black Ses districts and in South America. In addition, some 800 cubic meters of wood from Lithuania and 1,100 tons of fertilizer from Belgium were held on con- Signment in the free port. However, statistics showing the amount of "consignment business carried on are unobtainable. Transshipment trade—Transshipment traffic at the Flensburg free harbor is almost negligible. Last year only 300 tons of Russian barley Was transshipped via Flensburg free port to Denmark. Goods from the hinterland exported via the free harbor to Denmark included only 3,000 tons of coke and 500 tons of briquettes. Manufacturing in free zone—In the free harbor there is a small Plant for the manufacture of emery paper and about 100 metric tons of emery paper and emery cloth, valued at about 100,000 marks ($23,800), are manufactured annually. In addition, there is a small Mineral grinding plant which grinds some 500 tons, valued at 25,000 Marks ($5,950), annually. Shipbuilding and ship repair in free zone.— There are no ship con- Struction and repair works in the Flensburg free harbor. Influence of the free harbor in the development of foreign commerce. — According to a statement by the magistrate of Flensburg, the free harbor has had no important influence on the development of Flens- burg foreign trade. Influence of free port on the development of the merchant marine.— The above-mentioned authority also states that the free harbor has had no important influence on the development of the merchant Marine, Statistics.—The following figures give the total amounts of goods Woved and transshipped via the free port of Flensburg: 1923, 49,877 tons, value about 32,000,000 marks. 1924, 64,707 tons, value about 43,000,000 marks. 1925, 69,791 tons, value about 44,000,000 marks, 1926, 82,364 tons, value about 49,000,000 marks. 1927, 86.728 tons. value about 58.000.000 marks THE FREE PORT OF HAMBURG, GERMANY [From G. Bie Ravndal, American consul general in charge, Hamburg] Brief history of the port.—Hamburg is situated some 65 miles from the Mouth of the Elbe, the city itself being on the right-hand bank of he river, According to the census of June, 1925, its population was 079,196. The port of Hamburg forms the gateway through which the ebb “nd flow of traffic between all of northern Europe and oversea points 36 FOREIGN TRADE ZONES sccurs. A great many factors have combined to contribute to Ham® burg’s present commercial position. Its situation near the mouth of Germany’s second largest river makes it a logical transshipment point for goods going by water down the Elbe from the vast hinterland served by that river, and no small part of such traffic originates in Czechoslovakia. As ocean-going vessels can navigate to Hamburg; it is the logical point to transfer goods from river barges to ocean-going ships. The Elbe is navigable for 867 kilometers, as far as Melnik in Czechoslovakia. The first historical mention of Hamburg occurs in connection with the campaigns of Charlemagne, whose armies crossed the Elbe in 804 and took possession of a castle located in what is now the old part of the city. The historical development of this port, though extremely interesting, is too lengthy to find a place in this report. It may be of interest, however, to mention that in the twelfth century it first became of some importance commercially because of the development of Lubeck on the Baltic, which necessitated the existence of a North Sea port to work in connection with it. In view of the comparative unimportance of Lubeck to-day it is interesting to realize that his” torically Hamburg’s commercial activities originated merely as aft adjunct of Lubeck in order to handle trade passing from Baltic ports through Lubeck, to North Sea ports. It was at this time (1189) that the city secured from Friedrich Barbarossa a charter by which it wa? granted complete exemption from the payment of customs duties on the lower Elbe. This might be called the origin of the free-harbo? idea. At the same fime Hamburg took upon itself the duty of reg” lating the course of the river for purposes of navigation, and through out the centuries the channel has been continually dredged and lighthouses maintained throughout the length of the river from Hamburg to the sea, a distance of 65 miles, solely at the expense of Hamburg. It was not until April 1, 1921, that Hamburg turned over to the National Government the duty of keeping the Elbe fro? Hamburg to the sea in a navigable condition. Hamburg’s foreign trade was greatly enhanced through its membe’” ship in the Hanseatic League, that famous association of commerci cities, the recognized head of which was Lubeck. Although ths? league had, to all intents and purposes, ceased to exist by the beg? ning of the eighteenth century, the tradition of that great organizatio? has been kept alive by Hamburg, Lubeck, and Bremen, and the official title of Hamburg is still “Die freie und Hansastadt Hamburg (the free and Hanseatic city of Hamburg). Until Hamburg united with the several German independent principalities in forming the Empire of Germany, it was an independent city, and even to-day te city government has a great many characteristics of a sovereign an independent state. For example, it has its own Auswiirtigess® m- of int nd in Igy ng in ith 204 ; of ely y of ‘rst ; ent rth ive nig an rts, hat was on bor gu” gh” 4nd o1l E of vel «1 nel” cial this gin 100 the ig ! ted the :he, and mb FREE PORT OF HAMBURG 187 (foreign office) and receives diplomatic representatives from other German States. In 1871 Hamburg joined the German Empire as one of its con- Stituent States, but it is noteworthy that it did not at that time join the German customs union. In other words, the entire city of Ham- burg was then practically a free port, and as far as the German Customs was concerned it was an extended bonded warehouse. Thus the city of Hamburg, the districts of Altona, Wandsbek, and Wil helmsburg and the whole course of the lower Elbe were excluded from the customs area and 120 customs stations were provided along the lower Elbe. This situation, however, was not satisfactory to Ger- Many as a whole and great influence was brought to bear upon Hamburg to have it join the German customs area. Bismarck took fn active part in urging this step and his proposals were accepted only on condition that not a mere bonded warehouse district, but a fegular free-harbor area where industrial concerns could settle without restrictions and which should continue to remain outside the customs Brea. would be established. This was agreed to on F ebruary 2, 1882, though the actual incorporation of Hamburg with the German cus- toms area did not take place until October 15, 1888, on which date the free port was leeally established. Ee Location.—The free port has been built on the marshes mostly on the left-hand bank of the river immediately opposite the city of Hamburg, which is located on the right bank. * * =* Dimensions and area of free zone.—The size of Hamburg’s harbor ireq, including industrial areas in the free port, Peute, Billwirder- Moorfleth, accessible by open canals, is 10,000 acres. The area of the free port only is 3,340 acres, of which 1,500 are land and 1,840 are Covered by water. Of the total area of 1,250 acres of water occupied by basins for seagoing ships, 1,100 acres lie in the free port and only 150 acres are within the customs area. Thus, of the area available for seq going vessels, only 13.6 per cent is not free-zone area. At Hamburg there are 860 acres of water, occupied solely by basins for Myer craft, of which 375 acres are in the free harbor and 485 in the German customs area. Terminals; number and berthing space~The total length of water o Nbage with and without quay walls at Hamburg totals 105 miles, i of which are in the free port. The length of berthing space in fro burg for seagoing vessels is 20% miles, 18% of which are in the By port. Berthing space for river craft totals 10 miles, of which ts Miles are in the free port. The length of berthing accommoda- y US at dolphins for sea-going ships totals 19% miles, 16% of which Wy 0 the free port. For river craft, such accommodations total 24 3, of which 11% are in the free port. |88 FOREIGN TRADE ZONES Warehouses; number and capacity.—There are 86 state-built quay sheds at Hamburg, having a length, end on end, of 11 miles, and an area of covered floor space totaling 154 acres, 87 acres of which are in the 58 state-operated quay sheds. The total area of covered floor space in warehouses is approximately 200 acres, 126 acres of which are under the Freihafen-Lagerhaus-Gesellschaft, a semiofficial organi zation handling the leasing of warehouse space in the free harbor. Rail and highway connections.— The free harbor is amply provided with railway spurs running along the wharves and forming a direct connection with the German railways. There are also excellent highway connections, and Hamburg’s free harbor is now well served by numerous motor-truck companies maintaining regular and fast trucking services from the free harbor to Kiel, Berlin, Bremen, and other cities within distances properly served by motor trucks. There are 227 miles of railway track along the port of Hamburg, 45 of which are on the right bank of the Elbe and 182 on the left bank. * * * Administration.—The various free-harbor activities are managed partly by the city of Hamburg and partly by private enterprises. This division is the result of the historical development and experience, and results from the city’s policy of allotting berthing accommodations impartially to all comers, insisting that harbor facilities should be employed in conformity with their intended purposes and that they should be employed according to their various capacities. It has, therefore, been deemed best to keep the control of harbor facilities which might be subject to monopoly in the hands of the Government A sharp line of demarcation, however, can not be drawn. The ware: housing business, for instance, is partly operated by companies, the stock of which is owned both by the city and by private individuals: A few state-owned quays have been leased to leading shipping com- panies, which carry on business by means of their own ships. Of the 86 quay sheds erected by the State, 58 of them are operated by the State and 28 have been leased to private organizations. All harbor services other than quay operation and warehousing however, are purely private undertakings and such activities include lighterage and towing, the harbor shipping service and the cartag’ business. The highest authority having control over the harbor the Senate, which has delegated its authority over the port to the Deputation fiir Handel, Schiffahrt und Gewerbe, This committee ha# a senator for its chairman and is composed of members represent” ing the Hamburg Senate (executive party), the House of Burgesst® (legislative party), the finance committee, the chamber of commer? the chamber of industries, the chamber of retailers, the chamber of consumers and the workmen’s council, the quay administration, th? port captain’s office, the office of trade statistics, the free-port offic? uay an are 007 aich anl- ded rect ent ved fast and 1g) left wed (QS. nee ons { be vhey has, ities ent. are” the als 0m- the the sing ade tage wr is the , had ant” ages rel: Tr of the [ce “REE. PORT OF HAMBURG. STORAGE. OF LOGS AT SHED 4 FREE PORT OF HAMBURG 189 = J E 2 7 .? the ships measurement officials, the ships registry office, the nautical college, the shipping office of the board of fisheries, are all under this Committee. The most important of the above-mentioned offices is the quay administration, which manages the state-operated quays, administers its own budget and keeps the physical equipment of the harbor up to date. Some idea of the enormous amount of detail connected with this office may be gathered from the fact that its Staff consists of some 800 clerical and other employees, while it usually ®mploys between 4,000 and 6,000 workmen. In this connection it is interesting to note that although the Gov- trnment controls the use of most of the sheds, it does not interest Itself in transshipment in midstream. Such transshipments consti- bute about 60 per cent of the total. Port charges, tonnage dues, and other incidents of administration are given under the last section of this report. To control the entrance of goods from the free harbor to the cus- toms zone, there are 41 customs stations on the borders of the free harbor. There are 1614 miles of customs palisades barriers erected on shore, and 1 mile of them on floats. Operations permitted in the free zone.—Activities which would be legal within the customs area are legal if carried on within the free Zone except as noted in the following section. Operations prohibited in the free zone.—The Hamburger Freihafen- Lagerhaus-Gesellschaft, a stock company owned in part by the city of Hamburg and in part privately, controls the rental of warehouse Space in the free harbor, and its rules and regulations, copy of which 18 attached, indicates activities generally prohibited in the free port. These regulations, because of the nature of the company, are virtually Hamburg law. - According to these rules, warehouse quarters which are rented may not be used for purposes other than those specified 0 the contract, nor may third parties use the quarters rented without Permission. However, forwarders, quartermen, warehousemen, etc., May warehouse goods for the account of other firms and shipping ®ompanies may warehouse goods for their own account or when delivered to them for shipment. Offices may be sublet to other mer- Chants, In the warehouses rented only the ordinary commercial treat- Ment, of goods may take place; any further treatment or refining of 800ds can be done with special permission only. It is forbidden to pack or repack goods in order to save customs duties when imported to Germany or in order to prepare them for smuggling purposes. No one is permitted to have living quarters in the quarters rented. The Personal use and consumption of duty-free goods in the free port 5, with some exceptions, forbidden. It is also forbidden to retail oF peddle goods in the free port or to buy goods from ship crews. All ~—— "Not printed. 190 FOREIGN TRADE ZONES ship chandlers must apply for permission to the president of the Freihafen-Lagerhaus-Gesellschaft for a permit to do business, and goods may be sold for equipping ocean vessels only against a written order of the shipowner, and the order slips must be preserved. Spirits and tobacco orders from shipowners must be on special forms pre- scribed by the harbor officials. With some exceptions specially provided for, any retail sales of quantities weighing less than 50 kilograms, in the case of liquids of less than 36 liters are forbidden. Any person renting quarters in the free port must keep accurate accounts of all his merchandise, the accounts to be preserved for 10 years. Ship chandlers’ and quartermen’s businesses, etc., may be checked from time to time by the free-port office. Quarters may be sublet only with the special permission and approval of the Freihafen- Lagerhaus-Gesellschaft. The person renting premises is responsible for any violations of the customs, postal, tax regulations occurring in his quarters. In the case of severe violations the person found guilty is excluded from the free port and no other leaseholder may admit him or his goods in his quarters. A person who has rented quarters in the free port, if found guilty of an offense against the free-port regulations, is liable to a fine not exceeding 10,000 reichsmarks. In severe cases his goods may be cemoved at once and he may be excluded from again entering the ‘ree port. Complaints against the decisions of the Freihafen- Liagerhaus-Gesellschaft, must be addressed to the senate. For the purpose of preventing customs and tax violations he who has rented quarters for the manufacture of spirits or perfumery mush provide a room in which his workers may be personally searched by the customs officials. Dispatch secured in unloading vessels—Probably no other port in the world pays more attention to and takes greater pride in its loading and unloading equipment. In the construction of such equipment the principle of combining the utmost possible speed in the handling of the cargo with the provision of every safeguard for its protectio? against damage has been applied. The first electric cargo crane ever built was constructed at Hamburg and the same is true of the twi? crane, the triple crane, and, as far as Europe is concerned, the electric truck as used for dock operations. It has been the aim of the Har” purg authorities to eliminate every unavoidable delay, and Hamburg has never begrudged its port any money necessary to keep abreast of the times in such developments. SERRE ERRERE ga ast BE EE goe 5s 0 Bags mB 2a 3B Ber or oy = BB [=] © 5 3.7 = RB Ref BRy BE BogeZs BREET 2 THERE FREE PORT OF HAMBURG. SEMI-GANTRY. CRANE AT WORK FREE PORT OF HAMBURG. UNLOADING AN AMERICAN LOCOMOTIVE "REE PORT OF HAMBURG. THE STEINWAADER INDUSTRIAL DISTRICT IN THE FREE PORT, WITH VIEW OF THE CITY AND THE ALSTER IN BACKGROUND ON FREE PORT OF HAMBURG 191 The following figures will give some idea of the enormous amount of equipment on hand, practically all of which is in the free port: Number of public and private hoisting appliances available for transship- ment purposes... ._._ smi wri Sy DUG This number includes— Stationary cranes on shore for very heavy loads__ Ce Traveling quay cranes on the water side of quay sheds and on Freila- dekais.__ eam ms me Stationary cranes near quay sheds and on Freiladekais..__________ Hoisting apparatus in and on other buildings. e. g., customhouse sta- tions, warehouses, ete_ Floating steam winches__ Floating cranes... ___. Floating grabs__.. Floating coal elevators___. Floating grain elevators__ Coal-tipping devices... Locks_____._- Landing places- Mooring posts. ccc. Bridges in the harbor area_ _ __ 10 916 178 630 123 22 8 6 29 5 6 272 8, 900 86 Although comparative statistics comparing the speed with which vessels are loaded and unloaded in Hamburg with the speed in other Ports, are not available, it is highly probable that nowhere in the world ire goods handled with such expedition. Some ides of the usual speed with which vessels are discharged may be gained from the following regulations regarding discharging at Hamburg. Winter time is considered between October 31 and March 1. Net registered tons Summer errr 3 Meet meen Jon TTmmT TTT Ouys 7 TTIITTITTTTT Jayg TTT = SE S— Se Boa I SAYS nn. Bo ev— ay « eee dg) mmm Winter qaays, up ‘°. SR AUR ne A HR SS days, up’ em eece mamma days, up mms mea AaYS, UP Leeman ADS, MI wnuvamammmmmmss rw mm CURTIS, KETV Vo rissa i i i days, up ta. HE Reemeeae '0 days, up to. hE '1 days, up pr 2dayS, UD veo cee cme days, UP * Ye pan LTS MD crs usisons om sions sm som mms DAAPE MD bh cusmnmmmnn wm mmm mmo 7 days, up to. rl 8 days, up to_. BS RR General 200 300 400 500 300 000 a0 i 700 200 500 ry 500 5, 000 5. 500 Bagged goods 200 300 400 600 290 5 000 ! “10 £00 100 550 2,700 2, 300 3, 600 4, 000 Grain seeds in bulk 600 800 1, 000 1, £00 1,400 i, 800 ,200 2, 500 7 000 3,000 8, 000 8, 500 8, 000 8, 500 a. 500 192 FOREIGN TRADE ZONES It may be of interest to know that a regular tariff of fees is charged for lifting heavy pieces by crane. It is as follows: For single pieces from— 2,501 to 10,000 kilograms, 0.30 mark for each 100 kilograms. 10,001 to 20,000 kilograms, 0.35 mark for each 100 kilograms. 20,000 to 50,000 kilograms, 0.40 mark for each 100 kilograms. 50,001 to 100,000 kilograms, 0.45 mark for each 100 kilograms. 100,001 to 150,000 kilograms, 0.50 mark for each 100 kilograms. A reduction of 20 per cent is allowed on bigger lots of similar pieces totaling more than 150,000 kilograms. Transshipment trade, nature, extent, and principal commodities, sources and distribution.—The following figures give the quantities and percentages of goods transshipped at Hamburg for the years 1923; 1024, 1925, and 1926: In quay sheds (state and pri- rately operated) On wharves setween ship and railroad direct On all quays In midstream (including some warehousing and ndustrial plants) 7 any Tons | Per cent Tons Per cent Tons Per cent Tons Per cent INCOMING TRAFFIC 10); SES 1924 oo 925... was 19926 1, 251, 000 , 942, 000 , 246, 000 | . 684, 000 23 1,748,000 | 12 30 422, 000 : 34 112, 000 i 2g £5. 000 1 4,909,000 35 1,334.000 33 4, 358, 000 35 3. 749,000 | 34 9, 159, 000 8, 620, 000 8 071, 000 7 202 000 3 30 6 OUTGOING TRAFFIC mm wr gas TIL 998 oT . 977, 000 +817, 000 $794,000 | ’ 286. 000 29 58, 000 28 72,000 26 92, 000 171 1,134 000 2, 035, 000 1, 889, 000 1, 886, 000 3. 000, 000 30 29 27 <hr 4,739, 000 4, 656, 000 5, 076, 000 | 7 870, 000 1 3 73 Bulk goods from overseas are thus, to a very large extent, trans” shipped at Hamburg. Among the innumerable commodities which enter into this trade may be mentioned rice and rubber, which ar often ultimately exported to the United States, and flour, wheat and other grains imported from the United States and transshipped at Hamburg to Scandinavian and Baltic countries as well as to the hinterland. Practically every commodity that enters into foreig? trade finds a place in Hamburg’s transshipment activities. Transshipment charges payable for the actual transshipment of the goods over the quay are charged partly to the vessel and partly to the representative of the cargo as per tariff fixed by state. Al imported and exported goods are classified into five different grad®® according to which charges are made for évery 100 kilograms. Di tinction is also made between shore and water transshipment. FREE PORT OF HAMBURG 193 ad ling | 168s and 23, am ome “and ants) Per cent » 87 6 a6 ‘3 3 2 ans’ hich ale sab ped the lo . of ely all ade? Dis | Manufacturing in free zone.—There are three chief industrial districts in the harbor, Steinwarder, Kleine Grasbrook, Veddel-Peute and Billwarder-Moorfleth. These districts, together with the shipyards scattered about the port, occupy a combined area of 2,800 acres, which is about half that used for actual shipping purposes. The following table gives the various kinds of industries throughout the harbor and includes manufacturing plants situated in the harbor though not in the free harbor. Name of industry Num- ber of works Area covered in acres Number of work- men Shipbuilding and allied industries-.... .__... aes Shemical industry_......________ 00. TTT TTTTTITTTTTTTIT 3uilding industry and manufacture of building material __...__..__.._.___ Joal utilization, Including gas Works... ..oooool IIIT Jil and grease manufactories. ...._. _....___... [JJ] flour mills, ete... TTT Ee Woodworking and timber industries..........._..._.... _........_____ Ton and meta] working industries... ____. A BRERA iron momma Tetallurgical industry... . EH mm mre st rem arm dectrieity works. 1. _____..___..._____.._ [IIIT ye works and paint factories. ..._.. {Ammer pm————— aT TREIIIIL wer apis SAR ERA AEA Hm me mt mt mmm ie meme eres ingine building, excluding ship’s engines... __. I —— BOWING IDAUSEEY «ceo oooe ooo ooo IIIT Rubber industry... ....... ..... [UR iron and metal foundries. - -....... SE Electrical industry... .............. SRA Guts and sausage'skins TTT TTT Miscellaneous industries employing less than 100 workmen. ooo... 90 32 13 8 10 12 501. 0 84.0 51.8 40.4 45,1" 2.4 22.0 21.9 29.8 31 2.8 9 14 2.5 “a 19, 960 1,486 574 1,071 1, 605 +, 106 1, 637 -, 003 1, 652 R27 299 nd 31% ang 1,284 235 186 180 492 34.315 ls a Totals 10 937.1 i — The following industries are located in the free harbor and in the Customs area below the Elbe regions. This is practically all free zone ares —— ‘Name of industry Num- ber of works Area covered in geres Number of work- men Shipbuilding and allied industries.........__.. ee 2081 ANA BAS woo ereeeeii ils and greases. -__---on ooo eveammeenm Flour mills, ete... 22711177 nr ~hemical industry. o.oo... Sani JLodstufls. TTT EE Woaq, including timber. _......_._______.. Metallurgical industry... _. etn yes and PAINS. Lo enim "fon and other metals. _. ..................._ ee — ngine building. ....... ....._... ooo. ent III Xubber industry. ooo. moomoo rele III foundries ___ LITT eee Building material ._____ J TTTTTTTTIITTTIIITTTT Sn is and sausage skins. o-oo en Sloctrical industry... Miscellaneous. 10, 206 o77 1, 086 423 27 152 843 25 71 are 174 1,240 204 : 25 244 B24 | 2530 165.0 24.8 19.4 14.8 10.3 8&7 42 £.8 "8 4 9 17 “b 7 a — Totals. ___ A comparison of the figures given for industries carried on in the free harbor with the total industries carried on in the entire port, Ndicates the paramount importance of theindustriesin the free harbor. 194 FOREIGN TRADE ZONES Shipbuilding and ship repair in free zone.—Shipbuilding is Ham- burg’s leading industry, and there are 90 works covering over 500 acres and employing about 20,000 men at this port. Of these, 59 yards covering 405 acres are situated in the free port. The number of working men varies according to the amount of shipbuilding going on. As there has been a strike among shipyard laborers since October 1, 1928, no definite number can be given now, though the local press ~laims that 20,000 laborers are out of employment as a result. Prob- ably 10,000 to 12,000 would be the normal number employed in ship- yards in the free harbor. The largest yards are those of Blohm & Voss, the Deutsche Werft, and the Vulcan Werft. The products of these yards are world renowned, Blohm & Voss having constructed the Vaterland, now the Leviathan, and the Bismarck, now the Majestic, and the Vulcan Werft constructing the Imperator, now the Berengeria- In August, 1928, Blohm & Voss launched the Europa, a 46,000-ton vessel which, with its sister ship, the Bremen, will be among the fastest in trans-Atlantic service. Adequate facilities exist for the repair of ships, and there are ample floating ‘docks to meet the normally large requirements, as will be seen by the following list of floating docks at Hamburg: i ca Blohm & Voss: N On daemons enna De emcee mmm ne A ) or .. BO: Ts my ip ini pg ws escaimeg (Vulkan Works): No. va. ol No Deutse! No. Wertt: TTT mre mney 1. = No. No. wo. xo. No. Jo. ARE Length In meters 99.05 06.65 84,40 70.38 182, 57 | 167. 63 ET O07 32.30 55. 50 75.30 -84 50 00. 62 54.83 50.00 | 42.00 125, 00 5.90 33.40 33. 20 86.77 139. 20 149, 70 Breadth between side walls, meters Draft, | LAfting meters capacity, 10. 80 (8.45 7.10 2.82 36. 57 36.57 | 23. 00 49 | 5.49 7.62 8.53 0,14 9.14 4. 40 3,000 4, 700 17,500 17,000 38, 000 46, 000 ig 000 0.30 4.30 32. 00 5 00 5.34 7.7 11.12 ] EO 6,000 9, 500 25, 000 17. 500 9. 40 22. 50 24. 00 8. 00 4. 00 8.00 6. 80 B. 46 6.00 6. 00 5,000 11, 500 8, 500 7,200 4 800 7.10 4.88 3,500 7.10 5.88 2,100 8. 29 6.10 5,700 0. 11 6.70 3,800 {7.10 4.88 5,600 8. 30 6 10 9. 500 Influence of free port on the development of foreign trade.— Although Hamburg thus is blessed by its location at the terminus of the Elbe one of the world’s most important highways of commerce, and just off the Kiel Canal, connecting the North and Baltic Seas, where trade routes from all quarters of the globe converge, the part played bY Hambure’s free harbor in properly handling and encouraging its enor” | - 0 39 oT 1g 51 58 ry J S, 30 16 A ad. nm ie le ne b 2 300 00 300 x0 00 000 A 000 500 000 00 200 300 500 200 anf FREE PORT OF HAMBURG. LAUNCHING OF THE “CAP ARCONA" OF THE HAMBURG-AMERI. CAN LINE FROM THE SHIPYARD OF BLOHM & VOSS 194—1 300 100 700 800 600 200 an he, 18b «de by TT FREE. PORT OF HAMBURG. AERIAL VIEW OF THE BLOHM & VOSS SHIPYARD FREE PORT OF HAMBURG 195 mous overseas trade can not be overestimated. The free harbor, with its extensive storage accommodations, its low warehousing costs and handling charges, its facilities for repacking, refinishing, or actually manufacturing in the free port, constitutes the very center of Ham- burg’s commercial life, and Hamburg’s position as the leading port of northern Europe is inextricably bound up with the free port. It is impossible to disassociate Hamburg from the free port, even in one’s mind, as historically and commercially they are one. Should the free port be abolished, an unthinkable step, Hamburg would no longer be able to maintain its position as a world factor in the various com- modity markets, such as rice, jute, crude rubber, cocoa beans, hides and skins, and so forth. The port doubtless would continue to be used, but merely as a port of entry for goods being shipped into Germany. The paramount importance of the free port is indicated by the jealousy with which the free-port privileges were guarded when Hamburg became a part of the German Empire. Influence of the free port on the development of the merchant marine.— It is not believed that the existence of the free harbor at Hamburg has directly assisted in the development of Germany’s merchant marine, though its influence in increasing shipping has indirectly had an enormous effect in this direction. ale Port charges, tonnage dues, ete. Port charges: Marks Harbor dues, per net cubic meter... - .-- 0.10 Sailing and motor vessels up to 400 net cubic meters, sailing vessels of more than 400 net cubic meters, vessels of all kinds trading in the Baltic and North Seas (including Norway, United Kingdom, French ports as far as Le Havre), per net cubic meter ....-.—-_..--- Half of these charges are payble for vessels carrying goods of low commercial value, such as timber, stones, cement, sand, ore, herrings, ete., vessels not arriving from sea and leaving the port for sea; vessels arriving in ballast from sea but leaving the port loaded with cargo; vessels, cargo of which were exclusively taken on board in German ports; vessels entering the port for bunkering purposes, for repairs, on account of ice, bad weather, damage, etc., or arriving in ballast and leaving the port in ballast are free of any charge. Tonnage dues, payable per net cubic meter for each day vessels take up their berth alongside the quay for loading and/or discharging purposes: Forall vessels _ coor co comma = mmm - RO | | For vessels trading between Hamburg and Spain, Portugal, Morocco, and Mediterranean ports, after the fourth voyage... _. __. ._____ For vessels trading between Hamburg and west and north European continental ports, including United Kingdom ports, after the tenth VOYage omen -- [I No tonnage dues will be charged for vessels exclusively loading goods discharged from other vessels alongside the same quay. FOREIGN TRADE ZONES Night watching. —Charges usually made for night watching are as follows: Watching day and night time: Day watch (12 hours). _. Night watch (12 hours). Watching: First shift... _______._ cee 10.78 Second and third shifts __..__-. emo 11.28 For vessels berthed at Waltershof, Finkenwarder, Neuhof, and Rethe one hour overtime will be charged on account of the long time taken to carry the men on board. 196 Dock laborers’ wages.—The following schedule of wages is paid stevedores, lightermen, warehousemen, ship and boiler cleaners, and scrapers: First shift... __-- Second shift. Third shift _ Marks eee. 820 9. 43 9.84 Overtime from 1.28 to 1.97 marks. Overtime after Sunday shift, 2.05 to 2.30 marks. First shift counts from 7 a. m. to 3.30 p. m. Second shift counts from 3.30 p. m. to 11.30 p. m. Third shift counts from 11.30 p. m. to 7 a. m. Bunker- men, 7 a. m. to 3.30 p. m., 1.13 marks per hour, Bunkermen, 3.30 p. m. to 7 a. m., 1.59 marks per hour. Sundays and holidays, 2.11 marks per hour. Towage—The Hamburg towage companies have an agreement according to which they charge ship owners as follows: Hamburg Harbor between Tollerort and Elbe Bridge: Tons, gross registered (each tug)— Up to 1,000. 1,001 to 1,500_ 1,501 to 2,000 2,001 to 3,000 3,001 to 4,000 1,001 to 5,000. 5, 001 to 6,000 5,001 to 7,000. Over 7,000. En New harbors below the river at Griesenwarder or Hamburg: Tons, gross registery (each tug)— Up to 1,000. 2 10 1,001 to 1,500. + 00 1,501 to 2,000 10 2,001 to 3,000 10 3,001 to 4,000 10 4,001 to 5,000. 10 5,001 to 6,000 10 8,001 to 7,000 10 Over 7,000... 10 In addition to the above tariff rates 50 per cent extra will be charged in time? +f ice. 1.8 rks 87 a7 8 8 aid nd arks 20 43 4 1.30 01m er- ~ 7 nb 3 0 0 J J 1 \ 0 0 n 0 0 0 } 0 0 i; 0 0 "apd FREE PORT OF KIEL (97 Mooring and unmooring.—Tariff rates are as follows: Pa 1,000 tons, gross registery_. 10 1,000 to 2,500 tons, gross registery 15 2,500 to 4,000 tons, gross registery_. 00 1,000 and more two boats... 10 Steamers in coal trade 10 shillings. In times of ice 50 per cent extra will be *harged and also for services rendered in the new harbors below Tollerort. Pilotage—Pilotage is payable according to pilotage tariff for the Lower Elbe, which is as follows: i. From Brunsbuttel to Hamburg: Marks Per decimeter of the draft of the ship piloted. ___.__. _____________ 0.90 Per ton of net capacity of ship, up to and including 1,800 tons... . 02 Over 1,800 tons to 3,600 tons_ 1. 55 Over 3,600 tons_...___ _ ceeie . 95 2. From Hamburg to sea (light ship Elbe III), 140 per cent of above rates. 3. From Hamburg to Cuzhaven, 120 per cent of above rates. ' From Hamburg to Brunsbuttel, 90 per cent of above rates. From sea to Brunsbuttel, 165 per cent of above rates. From Cuxhaven to Brunsbuttel, 55 per cent of above rates and vice versa. From Brunsbuttel to sea (lightship Elbe IIT), 110 per cent of above rates. From sea to Cuxhaven, 110 per cent of above rates. From Cuxhaven to sea (lightship Elbe 111 ), 55 per cent of above rates. Winter tariff in foree from October 1 until March 31, both included, involves An increase of 25 per cent. Sailing vessels also pay 25 per cent extra. Minimum charge from Brumsbuttel to Hamburg, reichsmarks 45; 15 per cent surcharge for dilotage under 1 to 4. THE FREE PORT OF KIEL, GERMANY [From G. Bie Ravndal, American consul general in charge, Hamburg] Brief history of the port —Kiel has a population, according to the last census of June, 1925, of 213,881. The city itself is situated at the juncture of the Kiel Canal and Kiel Bay, which connects with the Baltic. The city and harbor are well protected from the winds, and are naturally easy to defend because of the narrow entrance to the harbor. Kiel claims to have the best harbor on the Baltic coast of Germany. The city was founded early in the thirteenth century by Count Adolf IV of Schauenburg-Holstein and joined the Hanseatic League in 1284. Its history is of little importance until it was incorporated with Prussia with the rest of Schleswig-Holstein in 1867. after the Austro-Prussian War. Before the World War Kiel was Germany's Baltic Sea naval base, ind was very heavily fortified. Its importance was, of course, 'nereased by the completion of the Kiel or Kaiser Wilhelm Canal, built, 1887-1895, and enlarged and deepened 1909-1915, at a cost of 50,000,000 marks, to a depth of 11 meters and a surface width of 102 Meterg * * * 198 FOREIGN TRADE ZONES The development of Kiel after its union with the German Empire is closely connected with the growth of the German Navy, and for the last few decades before the World War ordinary commerce and trade was of insignificant importance compared to the activities directly connected with Kiel’s naval development. The entire commercial and industrial activity of the city was confined to the navy and the town’s own requirements. During the war Kiel played a most important part as the chief German naval base, and it was a center of naval construction for smaller craft, such as submarines, torpedo boats, and other light vessels. The mutiny of the marines at Kiel on November 4, 1918, was the initial impulse toward the general revolution and armistice. Since the conclusion of hostilities Kiel’s extensive fortifications have been razed and, of course, it no longer enjoys its previous prestige. The limitation of the German Navy and the reduction of its per- sonnel was naturally a severe blow to Kiel, and since the war the city has turned to more pacific activities as a means of livelihood. The shipyards have been devoting their efforts to the construction of tankers and yachts, the industrial plants, which were formerly devoted to naval purposes, are now turning out Diesel motors, motor railway cars, gyrocompasses, automatic steering apparatus, sounding appa- ratus worked by echoes, underwater signaling apparatus, and other technical products. * * * The creation of Kiel’s free harbor was also the result of its efforts to supplant the opportunities lost through the diminished naval estab- lishment. New municipal harbors were erected partly by making use of former naval plants, and it was in this way that the free harbor originated. The location of Kiel is such that, by the Kiel Canal, it is the most castern North Sea port and at the same time the most western Baltic Sea port, and hence no other German port, so Kiel claims, is so favorably situated for carrying on a transshipment trade from trans. Atlantic vessels to Baltic and vice versa. x oe uk Location.—The free port at Kiel is located just south of the entrance of the Kiel Canal into Kiel Bay. Itisknown as Wik Harbor * * *. [t consists of two harbors separated by a wide pier. Another free harbor at Kiel, to be known as the Vossbrook Harbor, is partly under construction * * * When completed it will be larger than the present Wik free port * * * Dimensions and area of free zone.—The free harbor district has an area of 6.3 hectares (15.6 acres) which is just as large as its water basin, FREE PORT OF KIEL 199 Terminal, number, and berthing space—There are 1,050 meters of Quay, including a discharging jetty with a length of 300 meters, which Also offers berths for vessels. There are 11,000 square meters avail- able for industrial enterprises within the area of the free port. Warehouses, number and capacity. —There are five large warehouse sheds with an area of about 6,000 square meters, as well as an alcohol transfer station in the free-port zone. Rail and highway connections.—Kiel has excellent railway connec- tions, and the free harbor is served by the Kiel-Flensburg government "allway, and is linked up with the German railway system. Kiel itself is served by four Government railway lines, the Kiel-Eckern- fsrde-Flensburg-Jutland, Kiel-Rendsburg-Husum-West, Coast, Kiel- N eumunster-Hamburg, and the Kiel-Lubeck lines. Good roads also lead from the free port, and goods may be trans- borted either by motor truck, railway cars, or drays * * * In this connection, it is interesting to note that in 1925 regular air- plane traffic connecting Kiel with Hamburg and Berlin was instituted. How controlled and operated. — The free port is managed by the city of Kiel and, according to information from the magistrate of Kiel, on in average there are only four city employees or workmen required. Number of guards.—The harbor is policed by the personnel of the Reichs Wasserschutz, assisted by the customs officials. Annual cost of administration. —Information as to the actual cost *f maintaining this small free harbor was unobtainable. Operations permitted in the Jree zone—There are practically no festrictions on operations carried on in the free harbor. Establish- Ments engaged in reprocessing, that is, importing raw or unfinished 300ds and exporting them after they have been reprocessed or further Nanufactured, require a special permit from the customhouse. Operations prohibited in the Jree zone.—Retail establishments are 00t permitted in the free zone. In addition, of course, all activities Which are illegal within the customs area such as trade in certain larcotics, are illegal in the free zone. Dispatch secured in unloading vessels.—The loading and unloading of vessels in Kiel’s free port is done with the same expedition as in the customs area. No figures comparing the speed of loading and loading with that of other ports are available. Reconsignment and transshipment trade.—According to the magis- “Tate of Kiel, there is at present very little reconsignment and trans- Shipment, trade, the only commodities entering into such trade being Stones, shavings, and alcohol. . Manufacturing in the free zone.—There are a few commercial estab- lishment located in the free zone, but the largest is an industrial Aleoh] refilling station. 47068°—29——14 200 FOREIGN TRADE ZONES Shipbuilding and ship repair in the free zone.—There is no ship- building or ship repair carried on in the free zone. However, there are numerous excellent shipyards in Kiel’s harbor, though they are not in the free zone. Among them may be mentioned the Krupp Germania yards, with a capacity of 100,000 tons annually; * * * the Deutsche Werke A. G., part of which is still in possession of the German Navy, which occupies some 1,100,000 square meters, has 2 water front of 5,500 meters and employs some 9,000 officials and workmen. In addition to the above are the Work Friedrichsort, and the Howaldts Works. * * * Influence of free port on the development of foreign trade.—So far the free port of Kiel has had no effect whatsoever on Kiel’s foreign trade. Influence of the free port on the development of the merchant marine. Kiel’s free harbor has had no influence whatsoever in the develop ment of the merchant marine. Statistics.—During the year 1927, 220,538 cubic meters N. R. G. arrived at and 231,916 cubic meters N. R. G. departed from the free harbor. Details as to the value of the goods shipped from the free zone are not obtainable. THE PORT OF STETTIN, GERMANY, INCLUDING THE FREE-PORT DISTRICT THEREOF [From Vice Consul! Harry L. Franklin, Berlin, Germany] Brief history of the port—Until the Peace of Stockholm in 1720, the entrance of the River Oder into the Baltic Sea, on which river Stettin is located, was in possession of Sweden, and due to the heavy shipping toll levied, the development of Stettin’s shipping W8° greatly retarded. After Prussia regained possession of the entir® length of the River Oder and the city of Swinemiinde, which controlled the river's outlet into the Baltic Sea, continued efforts were made to improve the channel entrance which by the year 1840 had bee? increased from 6 to 8 meters of depth. Until about 1875, howeve incoming freights from oversea destined for Stettin had to be unloaded at Swinemiinde and transshipped into other boats to Stettin. BY 1880, however, the entire length of the Oder to Stettin had bee? improved so that vessels with 6 meters draft could reach that port: In 1873 through a Federal law the removal of the fortification walls which until that time had hampered the development of the city port, was decreed. In 1878 docks were constructed and equipP? with the best mechanical facilities available at that time. J The growing volume of traffic and the construction of the Lo Canal as well as the establishment of free ports at Hamburg an Bremen, caused the city of Stettin to draw up plans for a free port CER REE R ude LTE SDS Ydw = —- - > ® ® ® $Re Lar >eIB esis d eS = WAR DEPARTMENT LEGEND "RANSIT SHEDS STORAGE WAREHOUSES PROPOSED DEVELOPME! YREEPORT BOUNDAS ra ~ 0 Mao ITS Th EE pm RK] RE BEB 22 BV VE BRB «=3FIT 1.3. SHIPPING BOARD ee TE SITET TIN GERMANY .. a SCRE IN REET Loh aia a - RL Nor a ad conidia wv, RSE Nore THE “MEMBER BOARD OF ENGHS SERSTAND HARRORE RTO OF OP ~ Toh nfHEAL OF OPERA - a FREE PORT OF STETTIN 201 1894 and the free port was officially opened in the year 1898. In 1910 the second section of the free-port district, as contemplated in the original plan, was opened up. The port of Stettin is the largest Prussian port and the third port In importance in Germany. Its volume of traffic, however, has been considerably decreased through the cession of a considerable portion of the hinterland, which it formerly served, to other powers through the Versailles treaty. Considerable quantities of merchan- dise and raw material, which passed through Stettin en route to the ceded districts referred to, now pass through the port of Danzig and the recently established port of Gdingen. For the past two or three years the economic situation in farming has been unfavorable in the Province of Pommerania, of which Stettin is the capital, and this has also adversely affected the volume of shipping at this port. Port description.—The port of Stettin is located on the right bank of the Oder River west of Stettin, the principal parts of which are the so-called “‘Dunzig” docks and the free zone which together have an area of 61 hectares (1 hectare=2.470 acres) of which 22 hectares are water surface. The free zone has six sheds located on the quays with a total area of 43,680 square meters. - Each shed is 182 meters ong and 30 meters wide, and two sheds are equipped with cellars. These sheds serve for weighing, sorting, classifying, and the temporary storage of merchandise. For regular storage in bond there is a ware- house with six stories and a total of 3,640 square meters floor space. The free zone together with the Dunzig docks has 129 hydraulic and electric cranes, among which 75 have a capacity of 114 tons, 27 of 214 tons, 2 of 10 tons, and 1 of 40 tons. The port area is amply equipped with railway facilities and connections. Administration.~—The port administration originally exercised by the municipality of Stettin is now in the hands of two port companies called the ““Stettiner Hafen-Gemeinschaft” and the ¢“Stettiner Hafenbetriebs-Gesellschaft G.m.b.H.” The members of the Hafen- Gemeinschaft are the city of Stettin and the State of Prussia, who are charged with the maintenance and upkeep of the docks and buildings, harbor improvements, as well as additional building and extensions of all kinds. The Hafenbetriebsgesellschaft consisting of the State of Prussia, the city of Stettin and the Stettin Chamber of Commerce has leased the port equipment and property for the durpose of warehousing, storing, and transit traffic. In the free district there are three entrances at which customs Buards are stationed, with guards at other points in the free area and Patrols along the boundaries. The guards are furnished by the Prussian customs administrative. 202 FOREIGN TRADE ZONES Operations permitted and prohibited in the free zone.—Merchandise may be stamped with trade-marks in the customs area and no doubt minor repairs made in appropriate instances, but the improvement of half-fabricates or manufacturing of any kind is not permitted in the free port area. Dispatch secured in unloading vessels.—The port of Stettin, includ- ing the free zone, is equipped with unloading facilities of modern type and according to information furnished by the Prussian Ministry of Trade and Commerce the unloading of ships entering the free zone may be commenced as soon as the ships dock. Reconsignment and transshipment trade.—Definite figures in regard to the reconsignment and transit trade are not available, but the following official statistics will give an idea of the class of commodities and quantities thereof imported and exported from Stettin, consider- able quantities of which are transshipped or reconsigned to other destinations. em IMPORTS $300 i 10 (10: -+: SRE PREP EEE EE ESE SEE a Coal, coke, briquettes... sa rm ———————————— EA Lumber and timber. __...._...._.. mmm ARR [FON came ceamm mmm mmo mmm mmm ———— Stones and earths. oan mca Phosphate. .ocooomn oom emmeiean BOIS... seman mm ————— SSE ERE id "axseed.. ooooocooa cemenn A UOrealS. «oo eooccmmam mamma ip Salted herrings. oc ceomooucounn- RRR CINE. - cmc maccmcmcm mmm mmm meme cmon ER SRR Basic SIA -rvaeecccc amram mmm memos mm mr BUbEOr eo eo oocmmememcemcm mmm tmm mmm [ES [TR] PUREE SEER ERPEE IESE SESE ES PRgs. suicvonss i ———— Machines... ene EXPORTS Coal, coke, Briquettes. .....occecmocama cima umber and timber. oes 2 TAR EL T2: S een mmo i oJ Paper and eardboard.._. . oociiien cmeeeeemrnenmes ON ann oam JR OreAlS nomen mmm mmm mmm man = emma —— OINBIE o-oo mmmm meme —memmm memes momma - FOU oo oem cme ecm mmmm mmm emma meneame an Superphosphate_ oo ioe Starch and dextrine. oie INC. em ciameeeae meme Niemen J Machines... ccooocmanaaao. Jalted herrings. . occcemmmmemcmmanano- Dyes and dyestuffs. __...... Er BoidB...ouecoamnumnns Pig ijron__ 1927 Metric tons 902, 578 597, 086 235, 014 210, 026 197,331 | 114, 320 106, 294 27,426 12, 263 1,616 36, 161 12,685 24, 273 16, 569 10, 030 5.757 188, 648 154, 519 '50, 324 87, 096 72, 260 13, 599 38, 054 ~6, 352 1, 006 9, R74 =< £80 "a8 1928 | 1925 CL Metric ton: Metric tons 711,074 1, 205, 603 338, 870 631,820 200, 733 2 851 88, 340 197,323 140, 846 125,610 2 os 174,745 , 860 21, 382 } 101, 400 30, 605 | 38,742 35, 704 85, 903 31, 181 50, 772 33, 812 47,740 18, 586 16, 805 5,642 16, 670 4,754 2,965 4 294 6,403 2.489, 330 155, 749 254, 789 82, 333 70, 850 205, 558 35, 059 = 613 553 38% 89 N4 ol 61,411 35, 974 206, 7% 56, 807 46,211 150, 069 39, 700 48, 014 18, 152 33,002 18,94 11, 248 90, 713 12,18 7,018 5,25 1 425 The number of ships entering and clearing the port of Stettin during 1927 according to destination or origin is indicated by the following table: FREE PORT OF STETTIN 203 U [ncoming vessels | Outgoing vessels Countries 8 3 | 1: 8 sT ns 08 120 351 323 510 45 {0 2 03 72 0 » 0 65 02 Le 174 i av? ~ } 5] 18 53 125 in ne Number | Cubic 4 ' Cubic Number Pg El rrr emer osname Jenmark JIT i soreness fAnlang_ TITTY rrssnsseonany Tolland. 77721 ITTIITIITT LL onset ngland. _.__. En ION cviiis siimimmmnmmmmmen i. J “editorrancan countries. .......... Sm sigium____ TT wm we © wigs oo atyia.__ 17, orem ee I danzig TTT Trees Sstonfa "TT TTI Tre i S DOR rons s mmm sain SE omy dite... III PeLlCE meena ooo IRR Portugal |- 07 - 20land 842 502 217 179 225 212 53 103 (22 oe , 091, 689 404, 559 476, 099 432) 216 365, 689 237, 397 235, 324 192, 334 84,774 77,222 *8, 931 9, 972 85, 965 64, 543 23, 521 19, 542 12°84] 896 893 267 . 19, 12 0 1, 200, 242 537, 105 554, 959 234, 445 347,171 169,019 91, 246 83, 401 207. 287 31 z ; "777130, 636 523, 950 87, 344 25, 665 563 49,944 170, 583 710,176 4,513, 736 979, 968 5. 403. 704 16 7 Total ee L Tota) German ports.......... 2 Grand total __.. Simm: ! Cargo-carrying capacity. Manufacturing in the free zone.—Manufacturing is not permitted Nn the free zone of the port of Stettin and furthermore there is neither shipbuilding nor ship repair carried on in the free zone. Stettin Was once the center of a very considerable shipbuilding industry, the famous Vulcan Shipbuilding Co. having been established there bout 70 years ago. Since the concentration of shipbuilding on the Elbe during the past two or three years, Stettin is no longer active Nn this industry, especially since the scrapping of the Vulcan Co.'s Yards last year. Influence of frez port on the development of foreign trade.— With ‘espect to the influence of Stettin’s free zone on the development of foreign trade, in response to a request to comment on this subject, he Prussian Ministry of Trade and Commerce, under whose juris- diction free port matters fall, replied: “Since the opening of the Stettin free zone that city’s shipping has developed in a very high degree. Whether, however, this development may be ascribed to ‘he existence of a froe port or economic influences in general, can not %¢ determined.” The writer is of the opinion, however, that the *Stablishment of the free zone at Stettin has not played the réle in he development of that port as has been the case at Hamburg or Bremen, especially at Hamburg, where manufacturing within the free Port is permitted. The influence of the Stettin free zone on the German merchant Marine is likewise not believed to have been of considerable importance. Statistics covering commerce and shipping ia the free zone.—Separate tatistics for the free-zone area are not compiled by the Stettin port *thorities, but are combined for the entire port. for which statistics 204 FOREIGN TRADE ZONES for the principal commodities in volume have already been indicated. Figures for the total imports and exports during 1927 and the twO preceding years are indicated by the following table: pn. IMPOrE8 oem [ORe10) 4 1 REE EE Total ooevcmcccmcmnamanns 1027 Metric tons! 3,011, 000 I, 048, 000 ‘© 050 Per cent 1926 Metric tons 7,00 “8 ote Per cent [Metric tons| Per cent mE 85 Ik JR +53 CL 1925 During 1927 the total volume of shipping at Stettin reached only approximately 65 per cent of its volume for the year 1913. FREE PORT OF ALMERIA, SPAIN [From Austin C. Brady, American consul, Malaga, Spain] Brief history of port.—The port of Almeria is one of the oldest of the Mediterranean coast of Spain, having been used successively bY the Phoenicians, Carthaginians, Romans, and Moors. The Romans gave it the name of Portus Magnus because of its size. It was one of the most important Mediterranean ports during the Moorish occupation, and vessels were outfitted there to prey on the commerce of Cataluna and Italy, and to attack the ships of the crusaders: In 1147 it was taken from the Moors by Spanish and Italian troops under the Emperor Alfonso VII of Castile, but 10 years later it was recaptured and remained a Moorish port until 1489, when the city and port were definitely wrested from the Moors by the Catholic rulers, Ferdinand and Isabella. The name Almeria is derived from the Arabic words “Meria’ and ‘“Albahri,”” meaning “Mirror of the sea.” The city of Almeria is the capital of the Province of the same name, which was definitely established as a territorial division of Spain in 1833. Modern advancement has been confined to a period of less than 20 years; the city has now about 12,000 buildings and about 50,000 inhabitants. The port of Almeria is noted for iff export trade in table grapes produced in that Province, nearly 36,000,000 barrels, or approximately 750,000 metric tons of fru having been shipped in the last 22 years. Large quantities of ro? ore mined in the Province of Granada are exported through Almeri# two British mining concerns having loading piers at that port. The other principal exports are esparto grass, which goes to Britis! markets for paper making, and salt. Direct imports are smal consisting chiefly of coal, fertilizers, lumber, and sulphur. FREE PORT OF ALMERIA 205 acl. vO wnt +50 L45 33 ly Jn hy 1S nne ish sce Sct ops was ity lic rom the ne 1 of riod and its arly uit rob \rids [he ish ally Description of port—The port of Almeria occupies a central position on the Bay of Almeria, which is 22 miles wide and 8 miles deep. The port works consist of a long breakwater, or mole, known 8s the “Dique de Poniente,” or Western Mole, which extends from the beach in a southeasterly direction a distance of 6,300 feet, and a mole extending in a southwesterly direction a distance of 1,350 feet, known as the “Muelle de Levante,” or Eastern Mole. The entrance between the moles is about 1,050 feet wide, and the harbor is large and well sheltered, with depths of water ranging from 25 to 40 feet. Vessels can load and discharge alongside either mole, and within the harbor there are many mooring buoys. A general plan of the port of Almeria is being transmitted herewith. Description of free port.—The free port is situated on the Western Mole, beginning at a point about 1,000 feet distant from the shore and comprising an area of 196,443 square feet, of which a total of 56,511 is reserved for oil supplies and 73,464 for coal. There is a warehouse for general merchandise with 7,265 square feet of floor Space and there is berthing space of 1,230 feet for steamers alongside the free port. A railroad extends along the mole to a point beyond the free-port area, and the principal highway connecting Almeria with Malaga and other cities and towns passes close to the entrance of the mole. x Administration of free port—The concession for the free port at Almeria was granted by royal order under date of February 20, 1922, to the Compaiia de Depositos Comerciales del Puerto de Almeria (Commercial Deposits Co. of the Port of Almeria), a Spanish concern with a capital of 1,000,000 pesetas, which was formed in 1921. The royal order mentioned provided that the concession should not be exclusive; that warehouses destined for the storage of goods proceed- ing directly from foreign countries should be entirely separate from those receiving goods of domestic production, not only for reasons of Service convenience but also for the purpose of guarding the interests of the national treasury and of business; that all installations deemed Decessary by the customs authorities, and all customs services of intervention and vigilance, should be for the account of the con- Cessionaire; that the concessionaire must comply with all general ‘egulations in effect, or which might become effective in future, telative to administrative control of commercial deposits, including ‘hose concerning a maximum period of four years for the storage of {oreign goods deposited without payment of duties; that the installa- lion of warehouses should be completed within three years; and that ‘he Government assumed no responsibility of any kind resulting from the storage of merchandise or any other circumstance. 206 FOREIGN TRADE ZONES Customs control of the free port is exercised by an inspector who receives an annual salary of 8,000 pesetas (about $1,300 at present exchange), and three to four carabineers, or customs guards, at salaries of 220 pesetas (about $35) a month each. Regulations relative to free port—Regulations for the operation of the free port at Almeria provide that all goods, domestic or foreign, entering the free port shall be exempt from the payment of transport fees and port dues, as well as from all national, provincial, or munici- pal taxes, except such goods as may be introduced into the munici- pality of Almeria, which shall become subject to local taxes. Foreign goods reexported from the free zone also shall be exempt from all the charges mentioned, but domestic goods exported shall pay all dues and taxes to which they would have been subject had they been directly exported. The regulations further provide that merchandise entering Spain from the free port shall be subject to customs duties and all other usual charges, the same as if directly imported, and that containers of all kinds, domestic or foreign, taken into the free zone for packing purposes, shall not be subject to the usual charges if the goods they contain are destined for exportation. Operations in free zone.—The royal order granting the concession for the free port at Almeria gave the concessionaire the right to carry on the following operations: Repacking of merchandise in different containers. Division of goods for the preparation of commercial grades. Mixture of goods, with the same object. Hulling and toasting of coffee and cacao. Working of hides and skins. Grinding of wood. Washing of wool. Extraction of oil from copra and from oleaginous seeds. All operations which, without essentially changing the character of goods; increase their value. Importation of crude petroleum products and coal for supplying vessels, after making any necessary divisions and mixtures. } The concession also covered the handling of all kinds of merchandise the importation of which into Spain is not prohibited by existing laws, and of all kinds of domestic products the exportation of which is not prohibited. Tobacco in leaf or manufactured is prohibited importé- tion into Spain except for the tobacco monopoly, and it was provided in the regulations of the free port that packages of tobacco should be sealed on entering the deposit, and that removal should be author” ized only for the exclusive use of the monopoly, or for exportation No operations were specifically prohibited in the concession OF regulations. FREE PORT OF ALMERIA 207 > 3 T 1 ) N 08 3, wb 4 = d Ad id 3. 21 Dispatch in unloading vessels.—There is no information indicating that there has been greater dispatch in unloading vessels at the free Port of Almeria than in the customs zone. No mechanical equipment has been installed, and with the exception of the delivery of oil to the oil tanks in the free zone, which are the only oil tanks at Almeria, the system of handling cargo destined for the free port has been the same as followed in the customs zone. Beconsignment and transshipment trade.—The commercial impor- tance of the free port of Almeria up to the present time has been confined to the trade in petroleum products. It was particularly hoped that, because of its situation in the Mediterranean, an impor- tant transshipment trade in products destined for, and shipped from, Ports of northern Africa would develop, but these hopes have not yet been realized. As shown by statistics that follow covering the free-port movement in the calendar year 1927, only 33 metric tons merchandise, exclusive of petroleum products, entered the free port during the 12 months, and only 172 metric tons left it. The @erchandise on hand at the free port on January 1, 1927, exclusive of petroleum products, totaled 394 metric tons, and on January 1, 1928, 255 metric tons. Oil deposit in free zone.—The Compafia de Depositos Comerciales lel Puerto de Almeria built within the free zone a steel tank of 10,000 cubic meters capacity. for fuel oil, and two small tanks for Diesel oil, each with a capacity of 300 cubic meters. A tank ship *apable of carrying 3,500 metric tons of oil was acquired for delivery Purposes. An agreement was made with an American oil company for securing oil supplies on consignment, and the business of furnish- ing fuel and Diesel oil to vessels and to other consumers was com- Menced. Total imports of mineral oils in 1924 were 8,086 metric tons, according to customs statistics; in 1925, 13,033 metric tons; ind in 1926, 7,651 metric tons. In the latter year the agreement with the American company was canceled, and 2,704 metric tons of the Tineral oils imported in 1926 were from Russia. During the first dart of 1927 the oil deposit was without supplies, but later in the Year fuel oil was imported from Rumania. On January 1, 1928, the oil station at Almeria, along with every other mineral-oil establish- Ment in Spain, was taken over by the operating company of the Spanish Petroleum Monopoly, which has operated it since that time, “applies during the present year having been received from Russia. Coaling station contemplated. —A section of the free zone is reserved for coal storage, but up to the present time the concessionaire has Made no arrangements for handling coal, although the matter has %en discussed with coal concerns. Steamers now coal at Gibraltar r Oran, and it is reported that a coaling station at Almeria would aye difficulty in competing with the stations at the ports mentioned. 208 FOREIGN TRADE ZONES Manufacturing and shipbuilding.—There is no manufacturing in the free zone at Almeria, and no shipbuilding or ship-repair work. Influence of free port—Aside from giving Almeria a trade in oil fuels, principally for vessels, which it did not have before, the free port has had practically no influence on the development of foreign trade at that port. The import trade of the city and Province of Almeria is relatively unimportant, and Almeria is not a general distributing center. The free port at Almeria, up to this time, has had no influence on the development of the merchant marine. Commercial movement at free port.—The following table shows the movement of merchandise at the free port of Almeria during the calender year 1927: On han! Jan. 1, 1927 Into free port during vear Out of free port during wear rn aSOlNG cmc mmenne me 3 Diesel oil. oon © Sw —————, Lubricating ofl. Cocco cece a ome Fuel Oil... semceccccaeccmmmemmans mmmememe oo ww COOPErS’ WAIQ. occa cmmmm mmm mmm mmm RRR A Raw SKINS. oct cmmcmamar mem = mmm or RRA fron pipe. _coemeeoan .- mbm nm SEER Pipe fittings. cevecaeea-- mmm mm fron tanks. oo ooemmnonn mmm emm——— Metal GrUmMIS. oo emo camamac cam mmmmmmmeem me me—swememmmeo—mam== [ron and steel cable. coo mmeomemmacoamae SH ——— Tinplate manufactures. _ [ESTP A RRR Bronze pipe... cocaneo- — em mm RHR Copper trays. cccocececanoanann- J SEELEY Oil engines. moo oceemeccmmmmamna re Jpare parts (Or EINES. ._ceoeceociiioccan. = wmmesmeommmanos Miscellaneous machines. «ooo ccmeececemanmcanen wo ——— Machine accessories. ooo eroammoamace een ec nem——— DYYNBIMIOS. oo mccain smn wm mmmm no Cm wmmmm ammo moe emesis Ilectric switchboards..coceveeoeaoone pp J Asphalts, bItUINeNS, BC. nooo ememmmmcm amma PATIL, ow nwa gros om mm mem me hem mm Se ———— Tarred roofing cardboard. ..ccoc---- pr COLON TUES. «cv vuvummnm hmmm a —— Jute bagging. cee cme anmmme mmm monn mmr imma EEE 2 CloNAMON eee cece eecccmams —mcmamemas Peper eee camne amma varnished cloth... moamaann. Empty sacks... pekal. cee Kilogram 53, 87% 40, (92 4 353 Kilograms enn 1 12,571,880 743 eee 15 4, 464 Kilograms 53, 673 40,092 4,353 6, 524, 065 743 1.5 TURE |, he SE | 350 rms ners Wii] 20 — . 8 cmmmmmmamtmmmel arama Es wh nA, Tw TIIIIIIITTIITTTR ” 3 142.5 78.8 2, 149 9,149 2,721 2,721 525 1.125 12,604,508 | 6,704,610 CL 8.2° 975 103,27" 83, 500 x or ARE 16,3" I 1,69 2,27 417s 3 160, 156 152 9, 569 0 492, 371 The customs authorities at Almeria are unable to furnish the values of the merchandise shown in the table above, stating that as 90 per cent of all products were for exportation, few documents were required or presented. At prevailing retail prices, the fuel oil entering the free port in 1927 had a value of approximately $327,000, and the fuel oil disposed of, a value of about $170,000. The Diesel oil which left the deposit in 1927 had a value of approximately $1,640. Almeria trade statistics.—A statement of imports and exports af the port of Almeria in the calendar years 1924 to 1927, both inclusive follows: FREE PORT OF BARCELONA 209 Xi) i 0 TL ’ i al Voor We 2. IIIT v3R1 IIIT Imports (in metric tons) Total mports mports of coal, oke, bri- quets 4,916 £9, 817 34, 088 12. 510 30, 497 18, 903 13, 614 23 884 Total sxports 250, 302 20, 410 132, 450 146, 097 Exports (in metric tons) (ron-ore axports Salt axnorts Grape BXDOrts 135, 361 132, 112 88, 707 305, 004 47, 545 19, 695 2134 45,952 51, 105 22,092 30, 033 Esparto exports 12, 382 17,917 12, 050 13, 791 mn ne 16 "80 1ng 7s 3 2 9 2 3 LS uv 0 7 a 3 0 iL 5H 10 -he a8 Te mg -he oh ab 764 THE FREE PORT OF BARCELONA, SPAIN [From Frank Anderson Henry, American consul, Barcelona, Spain] Introductory.—Barcelona has at present in operation only a free deposit (deposito franco) but is planning the establishment in the hear future of a free port (puerto franco) in the fullest sense of the word. This will involve the expenditure of large sums of money and the construction of new port works at the mouth of the River Llobregat, a few miles southwest of the city. As, however, the final plans for the free port have not yet been accepted and their complete realization will probably be a matter of years, this report will of lecessity be limited chiefly to the existing régime of free deposits which S very similar to that of bonded warehouses in the United States. Brief history of the port.—The question of establishing some form of free zones at Barcelona in order to offset some of the disadvantages lo commerce of the strongly protectionist tariff policy of the Govern- nent, has been under discussion for many years. As early as 1901 ‘he Camara de Comercio y Navegacion (Chamber of Commerce and Navigation) of Barcelona made elaborate studies on free zones and reported thereon to the Government. The same organization issued Another report on the subject in 1915. The free deposit of Barcelona vas authorized by royal decree of October 24, 1916, and royal order f December 7, 1917, and was actually inaugurated in July, 1921. The concession for the free deposit was granted to a semiofficial body entitled the “Consorcio del Deposito Franco de Barcelona’ Since changed to Consorcio del Puerto Franco), representing various ®conomic interests of this region, and the actual operation was leased Oy it to Credito v Docks de Barcelona, Pasaje del Comercio 7, Barcelona, Spain, a banking and warehousing institution founded in 881. For the first years of its existence, the free deposit was compara- vely little used but during 1927 regulations governing it were liber- lized in a number of ways and it will probably enjoy steady progress 0 the future until such time as its functions are taken over by the Tee port. Description of the free deposit and its facilities. —No attempt will be Made to describe the proposed free port since even the plans for it 210 FOREIGN TRADE ZONES have not been approved. It may be mentioned in passing, however, that according to public announcements on the subject, it is proposed to convert a considerable isolated area into a zone completely exterri- torial for customs purposes in which every class of operations can be undertaken without customs control and subject to only ordinary police measures. The present free deposit consists of two covered warehouses of the Bosch y Alsina Wharf, having an area of some 269,100 square feet. The volume of storage space is approximately 2,825,120 cubic feet: (See attached plan of harbor.) These have railway connection with the Madrid-Zaragoza-Alicante Railroad by which merchandise can be distributed all over Spain. Also goods can be shipped directly from the warehouses by trucks and other vehicles. Vessels can come alongside the Bosch y Alsina Wharf and discharge directly into the warehouses. The equipment of the free deposit has been greatly improved during the last two years and there are now cranes, inclined runways for motor vehicles, and other modern equipment for the handling and manipulation of all classes of merchandise. In addition to the warehouses just mentioned, the administrator of customs can designate other buildings for similar purposes in case the space in the present free deposit should prove insufficient. The roy al order of March 5, 1927, designated the assembling plant of an Amer ican automobile concern as a free deposit, thus facilitating the opera- tion of assembling cars and entering them for sale in Spain or exports: tion to other countries. Similar steps could be taken in the case of other industries or enterprises. Admanistration.—The administration of the free deposit of Barce- fona is in the hands of the consorcio del puerto franco de Barcelona, Paseo Circunvalacion 1, Barcelona, but the actual operation of the warehouses and the dependent services is in the hands of the Credito y Docks de Barcelona, Pasaje del Comercio 7, Barcelona, which holds a lease from the consorcio. There are four private guards in additio? to the customs guards, port watchmen, and police, which patrol the water front. On account of the fact that the services are leased and that the consorcio del puerto franco is largely occupied with its plans for the free port, it is impossible to give any figures as to the costs of administration. It was stated in press articles some two or three years ago that receipts from the storage of merchandise in the free deposit amounted to only 70,000 pesetas annually. A decidedly increased use of the free deposit has, however, taken place during the last two years, and with the improved services now available this tendency should continue to be in evidence. Operations permitted in the free zone.—According to article 222 of the customs regulations, and the royal decree of October 2, 1927, the following operations are permitted in the free deposit: rer, ed Ti be Ary nn seb. set. ith xan oI me the ly sed ‘he » of she yal \er- ra “ta of Ce nay she ito lds oD she and ans 3 of ree ‘ree dly the ‘his of he FREE PORT OF BARCELONA Change of containers of merchandise. Division of merchandise to prepare commercial classes. . Mixture of different classes for the same purposes. . Shelling and toasting of coffee and cocoa. 3. Cutting of hides. 6. Grinding of wood. 7. Washing of wool. 3. Extraction of oil from copra and oleaginous seeds and its solidification and 1ydrogenization. 9. Rendering useless and cutting up of old iron so that duty may be levied ander item 257 of the existing tariff. 10. Rendering useless solid and pneumatic tires and inner tubes, imported or ot in bulk, and cutting them into pieces, so that duties may be assessed under ‘tems 1507 and 1508 of the tariff. 11. Mounting, painting, and upholstery of automobiles and completing of their *quipment. 12. Formation of postal packages and registered packages. 13. Labeling merchandise subject to this requirement when destined for con- sumption. 14. All operations which augment the value of the merchandise deposited ¥ithout varying essentially its nature. In spite of the fact that certain concrete cases are enunciated above as specially authorized, it can be stated that the operations permitted are as varied as the classes of merchandise stored. Case 14 is so gen- oral in its nature that it permits a wide variety of manipulations and Operations. Apparatus, machinery, tools, etc., which are Spanish, or which have deen imported into Spain, when introduced into the free deposit may remain there for an indefinite time and will not be required to pay duties on their re-importation into the country. Foreign apparatus and machinery for the purpose of carrying out these transformations are subject only to the same formalities on entrance as other mer- chandise, with the difference that they may remain in the free deposit more than four years if it is shown to be necessary to continue the transformations. Mention may be made of the fact that items 11, 12, and 13 of the list of operations permitted were only authorized during the past year. A number of the operations mentioned evi- dently require machinery and equipment and have not so far been ‘arried out. Probably they will not be to any great extent until the definite installation of the free port. Merchandise entered in the free deposit, whether it has been subject 0 manipulation or not, may be disposed of on leaving it in the follow- ng ways: By importation into the country through the customhouse at Barcelona. By importation into the country through another customhouse. By sending to another free deposit. By exportation abroad. For the supplying of vessels. (According to Royal Order No. 13 of the Minis- ry of Finance dated December 29. 1626.) 211 212 FOREIGN TRADE ZONES The following translation from a publication of the Credito ¥ Docks de Barcelona, emphasizes certain features of the operations permitted in the free deposit: In the free deposit merchandise enjoys absolute exemption not only from pustoms duties but also from all classes of taxes established or which may in future be established as long as it is not destined to national consumption. The greater part of foreign merchandise, tobacco in leaf or manufactured, and Spanish merchandise destined to mixture or exportation can be admitted to it. Merchandise can remain in the deposit up to four years without the satisfaction of customs duties, during which period it can be indiscriminately destined all or in part to national consumption or to reexportation abroad, paying duties only on that part destined to consumption. The tariffs both for storage and manipulation are low and perfectly support~ able by the merchandise affected. The company takes charge of insurance on advantageous conditions for its clients, as liquidations are made every 15 days on the stocks existing at the beginning of the period and policies are not charged with stamps, duties, ete. The operations permitted are enumerated in the royal orders of October 22, 1914, October 13, 1927, and December 13, 1927, the last two of which consider- ably extended the classes of operations possible. The consignees of merchandise which comes destined in the manifest to the tree’ deposit do not incur customs penalties included in Chapter II title 4 of the customs regulations. Further a royal order of December 13, 1927, authorized the free deposit of Barcelona to receive and export by railway proceeding from or destined to Portbou, merchandise which according to the customs regulations can be the object of transit commerce. The company alive to the importance of credit in modern commerce facilitates the mobilization of merchandise by the issuance of warrants representing it. These warrants are paid to the bearer and with them as a guarantee credits may be opened at daily interest to be liquidated on cancellation. Loans on these warrants are made at 5 per cent interest. Operations prohibited in the free zone—Merchandise which by its condition and character or on account of its packing is considered prejudicial or inconvenient or which may cause prejudice to other goods deposited, may be refused. The introduction into the free deposit of merchandise which can not be imported into Spain as enumerated in Disposition 11 of the tariff, is prohibited. These prohibitions while they include a con: siderable number of articles are not for the most part of general interest to commerce. Merchandise, the prohibition or importatioB of which is temporary or circumstantial, can, however, be admitted in the free deposit for four years enjoying all privileges of other merchandise except that of introduction into the country. Dispatch in unloading vessels.—As there is no free port proper bub only a free deposit, vessels with goods for the latter must enter and clear under the same conditions as those with merchandise for entry” Actually it is understood that only small portions of the cargo introduced so far have been destined for the free deposit. FREE PORT OF BARCELONA 213 ns Sm in ne <h on or iy - 18 he [1:8 22, AT he he of 0 he ces tf. ay PRE ta od or an he n- ral ont ed wer Reconsignment and transshipment trade. —No statistics of this trade have been kept and it can only be stated that its volume so far has been small. Barcelona is looked upon as a logical distributing “enter for the western Mediterranean and especially for north Africa ind the Canary Islands, and these classes of trade should increase substantially in the future. Manufacturing in the free deposit.—While in theory certain kinds of manufacturing are permitted in the free deposit, none has been so far carried out unless an exception be made of assembling of auto- mobiles which though permitted has not actually commenced as yet. Manufacturing proper will probably only commence with the *stablishment of the free port to which reference has already been made. Shipbuilding and ship repairing.—No shipbuilding or repairing is Possible in the free deposit with the present facilities nor does it seem likely that even when the free port is established more than possibly ome repairing will be done there, since Spanish shipyards work most exclusively for a highly protected market. Importance of free port on the development of Joreign trade and the merchant marine.—On account of the relatively small traffic which has been so far carried on it can not be said that the free deposit has had iny great effect on the development of Spain’s foreign trade or its Merchant marine. That upon the completion of the free port they will be favorably influenced can hardly be doubted but this is a matter f the future. Statistics covering operations of the free deposit.—As far as can be earned no statistics have been kept covering the merchandise entered ind dispatched from the free deposit. It is understood that there Was a very considerable increase in the use of its facilities in 1927 nd that among the articles passing through it were automobiles, *hemical products, cereals, hides, machinery, tires, jute, and scrap ubber. The Credito y Docks de Barcelona in 1927 issued credits "0 merchandise to the extent of 3,349,919 pesetas. While a largo bart of these undoubtedly covered merchandise in the free deposit, it ‘an hardly be accepted as an indication of the value of the goods since Nany of them may not have been the subject of loans and also loans Nay have been made by other institutions. As previously mentioned ceipts two or three years ago for sortage of merchandise only “Mounted to some 70,000 pesetas annually which indicates the relatively small amount of business done. yub ad ry . e8 214 FOREIGN TRADE ZONES THE FREE PORT OF BILBAO, SPAIN [From H, A. Doolittle, American consul, Bilbao, Spain) History. ~The creation of the free port of Bilbao was approved by a royal decree of July 30, 1918, the promulgation of which had been secured through the efforts of local entities occurring almost simul- taneously, with similar action by other ports around the Spanish coast. The royal decree in question provided for the organization of a consortium composed by the provincial diputacién or assembly, the chamber of commerce, industry and navigation. and the board of harbor works of the city of Bilbao. As a free port, however, that of Bilbao is such in name only. Coin- cidental with the agitation in favor of the establishment of free ports, the interior cities of Spain which felt or imagined that their interests might be damaged by the establishment of territories or districts not hampered by customs regulations, commenced a counterattack on the idea, and, as is usual in such cases, the resulting free ports granted were a compromise between the views of the interior and coastal cities, resulting in effect in nothing more than a system more or less corresponding with our own bonded warehouses in the United States. Under the terms of the decree mentioned the consortium was authorized to emit obligations up to the amount of 4,000,000 pesetas, for the purpose of setting apart a portion of land in the port at Santurce at the mouth of the outer harbor, building warehouses, and establishing services and tariffs in connection with the workings, and the port as such commenced functioning in 1920. Description.—The free port of Bilbao occupies an area of 15 hec- bares, or about 3714 acres, in the northwest corner of the harbor in the section known as Santurce, mostly on ground made by dredging and filling operations. It is divided into plots or sections between four longitudinal streets of 22 meters in width and six transversal streets of 30 meters width. The greater part of the extension is ab present unoccupied, the warehouses and existing buildings only covering 44,400 square meters. A temporary barrier at one end incloses the section at present occupied, and may be moved forward in a longitudinal direction as the growth of the deposit seems tO warrant. Berthing space.—The berthing space of the port is a longitudinal quay with a length of 641 meters and 15 meters width, having a depth of 10 meters of water at equinoctial low tides. Warehouses.—The total warehouse space at present is 12,000 squar® meters in four buildings. Warehouse No. 1, of reinforced concrete, occupies an area of 105 by 28 meters. It consists of a cellar and first floor, and is calculated d by seen mul- wnish of a the -d of Yoin~ orts, rests ricts tack yorts and nore ited FREE. PORT OF BILBAO, SPAIN, DISCHARGING CPERATIONS was 2ta8, +, ab and and ec rin zing yeen srsal is ab only end vard + {0 inal nth (are FREE PORT OF BILBAO, SPAIN. WAREHOUSE NO. 1 0H .ad FREE PORT OF BILBAO 215 to support the construction of three more floors. The basement has 2 height of 214 meters, and the first floor now existing 6 meters, “apable of supporting charges of 2,000 kilograms per square meter. Warehouse No. 2 has a single floor covering 105 by 22 meters, con- structed of iron and masonry, with a height at the peak of the roof of 13 meters and at the walls 8.50 meters. Warehouse No. 3 is a tile-covered brick building with a wooden ‘rame, covering 90 by 50 meters; maximum height 514 meters, and at the walls 3.80 meters. Special warehouse has the same construction as the previous ware- house but much smaller, covering only 31 by 6 meters. Warehouses Nos. 1 and 2 are situated along the wharf, and ware- houses Nos. 3 and 4 (special warehouse) are parallel with the back of l and 2. There are also a few other buildings, such as the transformer house, guards’ barracks, and dining hall for the workmen. Equipment.—The wharf is equipped with three electrical cranes of 3 tons capacity, manufactured by Babcock & Wilcox, which run on a track along the wharf, for facilitating direct discharge from the boat nto the warehouse or onto freight cars. The warehouses are further equipped with mechanical conveyers and loaders for high stacking and wheels for transporting large cases such as automobile boxes, ete. Petroleum products storage.~—The oil installation of the port which vas formerly part of the deposito franco, or free port, has now been separated from that jurisdiction, although the tanks occupy part of the area included in the original plan. Due to the establishment of the petroleum monopoly the administration of the petroleum products has been handed over to that corporation. The petroleum products storage station has pipe lines direct to the loading wharf of the free port, and storage capacity for all qualities of some 21,500,000 liters. Amounts generally on hand are 3,000 to 1,000 tons of fuel oil, which may be pumped into ships or out of ships it the rate of 200 tons an hour. Rail and highway *connections.—The free port is served by the Bilbao-Portugalete Railway, a branch of the Caminos de Hierro del Norte de Espana, which has a network of connections reaching to all Parts of Spain, particularly to Madrid and Barcelona, and is the berminal of the highway from Bilbao to Santurce in which the free Port is located. At the present time the charges for rail transportation from the ree port are unduly high, owing to the Bilbao-Portugalete Railway having been bought by the Norte at a greatly inflated value, necessi- "ating the maintenance of high charges for that particular stretch of ome 16 kilometers to Bilbao, so as to justify the price paid and 47068°—29—15 216 FOREIGN TRADE ZONES amortize the sum expended. Efforts are being made to have these charges reduced, but so far without much effect. Administration—The workings of the depésito franco are admin- istered by a consortium consisting as previously mentioned. The actual board consist of (¢) the president and four delegates elected from the members of the diputacién, renewed biannually; (5) the presidents of the chamber of commerce and board of harbor works, plus four delegates, renewed each three years. This board of managers or directors has power— (a) To intervene in judicial affairs or with the public authorities or private persons; (b) Name, suspend, or discharge employees and fix their salaries; (¢) Rent and acquire lands, buildings, machinery, and other furnishments Of real estate; (d) Execute and contract for all classes of construction, works, and supplies of materials; (e) Contract and accept subsidies, donations, legacies, and sign public or private documents; (f) Emit loans, warrants, and all classes of receipts for merchandise, and contract guaranties of emission and assurance; (9) Determine the operations to be realized in the deposit and the tariff ap- plicable, and rent to mercantile enterprises various or all the services of the zxploitation of the deposit; and . (Rh) Realize all other acts which will be necessary in conformity with the royal decree of July 30, 1918, complementary dispositions, Statutes and Regulations of the Consortium. * * * Guards —Owing to the restricted operation at present conducted by the free port, only three uniformed guards are in attendance. Annual cost of administration.—The cost of administration during the past year was 66,000 pesetas, including all salaries of directors and minor employees. Operations permitted in free zone.—The following operations are permitted in the free zone at present: (a) Repacking of merchandise in general; (0) Repacking of bulk articles into smaller units for commercial sale 7 (¢) Mixing; (d) Cleaning and toasting of coffee and cocoa; (e) Shearing or de-hairing of skins; f) Classification of lumber; (9) Washing of wool; (h) Extraction of oil from oilseeds; and (7) Any operation which augments the value of the merchandise deposited without changing essentially the nature of same. The Government can amplify the concessions referred to above to operations of transformation of merchandise whose entry into the depésito franco is permitted, upon publishing the petition therefo® in the Gaceta de Madrid and the Boletin Oficial de la Provincia d¢ Vizcaya. If such petition is not acted upon by the Governmen? within a period of 60 days, consent is taken as tacit. hese dmin- The tected 1) the vorks, rqoers yrivate snts oF lies of Iie OF a and iff ap- ~f the . royal ations 1eted ce. Jaring sand ys gre | ysited hove ) the refof a de nent FREE PORT OF BILBAO. SPAIN. 100.TOM Fl OATING CRANE. ed y FREE PORT OF BILBAO 217 Prohibited operations.—At the present time all operations except those specified in the preceding paragraph are prohibited. Dispatch in unloading or discharge of wvessels.—Under present *onditions, there is no difference in discharging rates between the ree port and the customs port of Bilbao. As a matter of fact, certain unloading operations are hampered rather than assisted. For instance vessels with entire cargoes destined for the free port, may land alongside and discharge directly nto the warehouses there, but a vessel with a mixed cargo part of which is intended to be placed in the depésito franco and part of which is to be entered directly, may not land at the free-port wharf but Must proceed to the customs port, from whence all that part of the targo destined for the free port has to be transported in barges, often ‘he lighterage charge necessary to place it in the port being sufficient “0 cover the customs duties. No comparison can be made with other customs ports in Spain, as the consulate has no data concerning the facilities for discharging at other places. Reconsignment trade.—Practically no reconsignment trade exists, “xcept on petroleum products which are now administered by the Petroleum monopoly which uses the installation at Bilbao as a staple deposit for various other districts along this coast. Inasmuch as both the income and outgo of the depésito franco are controlled or inder the supervision of the local customs inspection, operations ire still not as free as they might be. Transshipment trade—The same remarks apply to the transship- Tent trade as to the reconsignment trade mentioned above. At bresent practically none is carried on. Manufacturing in the free zone—As yet no factories have been *stablished in the free zone owing to the limitation of operations Permitted as covered by paragraph 4 above. Whether manufacturing #ill be permitted later on is doubtful, owing to the opposition previ- usly mentioned, developed by interior cities and by industrial Nterests in Bilbao itself. Shipbuilding and ship repair in free zone.—No facilities exist for Such operations. Influence of free port on development of foreign trade.—According lo the statements of a director of the free port, it has been practically il up to the present. Influence of free port on development of merchant marine.—See re- Narks under paragraph above. Statistics—The quantity and value of foreign goods received in he free zone for the year 1927 was 17,534 tons, which, as will be "alized, is not particularly great traffic. This consisted almost “tirely of bulk grains, dried codfish, or similar dried foodstuffs, and Aitomobiles. 218 FOREIGN TRADE ZONES The usage of the port for storage of automobiles has greatly decreased since the General Motors Co., which previously used this city as its import point, transferred their business to the city of Barcelona owing to more favorable rates and facilities granted by that city. The quantity of foreign goods exported from the zone was prac- tically the same as that entering, as nearly all the goods held therein were for consumption in Bilbao or in the neighboring districts. No data on values is available. Statement of movement of merchandise, working account, pay roll for personal service, and vouchers in force ear 1920, second half___. 921, first half ______ 1921, second half.___, 922, first half___.___ 122, second half____: 323, first half______. "92 second half... 24, first half ____.. 924, second half. _.° 095, first half ___.__ 725, second half ___ 96, first half...._.. 1926, second half ___ 1027, first half. ___._. 1927, second half... Merchandise | Entered Dispatched’ “ilograms ), 402, 801 001, 404 £006, 606 ! 564, 126 486, 780 | 518, 928 764, 517 019, 893 260, 051 737, 908 610, 311 791, 604 1%, 122, 254 XAG, 061 11, B71, 812 “ilograms ,817, 787 090, 918 746, 490 995, 555 44, 830 719, 876 /. 287, 845 t R53, 77¢ "32, 860 "54, 558 K76, 576 938, 540 , 447, T1¢ 137,72 J, 208. 608 Exploitation Income, operating Profits [.08ses 62,071. 6¢ 9,124, 74 17%, 349. 2; 2, 240,27 107,171, 17 ©q, 218, 9F "1, 730. 67 9, 742.1 118, 648, & °R, 979, 2 7, 965, 5 7, 769. & 115, 149, 2r 89, 804, 5C 133, 226. 00 Peselas 19,350.25 15,987. 4¢ 17, 613. 67 iN. 894. &° 8,733, 63 1. 084. 09 "10. 088.18 8. 9227.73 3 — S013. __. ue W425 12,472.00 1D TTL 11,357.36 |. 10 700 66. 805.51 Pay roll for personal service 33, 691. 48 11, 204. 00 >8, 399. 70 9, 996. 48 *R, 969. 8° 184. 7 549. 80 199, 8 49 8r a gr <8 "9, 8( “8 wy 209 O00 17. 283 2) Vouchers 23 49 G8 0 147 115 142 153 Nore.—In the installation of the Sociedad Petrolifera there were entered in the first half of the year 1626, 15,068,375 kilograms; in the second half, 21,658,271 kilograms. In the first half of 1027, 12,075,592 kilo grams; and in the second half, 20,263,867 kilograms, and were dispatched, respectively, 5,967,409 kilograms, 19,861,501 kilograms, 16,504,597 kilograms, and 20,559,141 kilograms. None of these figures was include n the above statement. THE FREE ZONE OF THE PORT OF CADIZ, SPAIN [From Richard Ford, American consul, Seville, Spain] Brief history of free zone.—The free zone of the port of Cadiz, Spain, was established by royal decree of October 22, 1914, published in the Government Gazette dated October 25, 1914. At that time Cadiz was the most important shipping center of southern Spain, and the free zone’s establishment had been discussed frequently prior to the date of its actually being placed in force. Little information is avail able as to the activities of the zone during the war years, but in #& royal order issued August 4, 1917, the present concessionares were named as operating managers, and since that time fairly compre” hensive statistics have been maintained as to the volume of incoming cargo handled in the zone. The gradual decline in shipping at Cadiz following the World War appears to have exerted a corresponding depression on the movemen® of cargo through the free zone, and from 1918 to 1921 the volume of merchandise handled declined steadily. Since that time there h88 been a steady increase, and particularly since 1924, although it should SE BR oo FoR oe pes BE — = . + CREE RII ere ERED — 0 ste jrotic Te WY aE E3 & \ 3 Ze ® SA = = BRE tt . J BESS \ BECREDsEessBeenr | & a, oR Q Bo BT FREE PORT OF CADIZ. GENERAL VIEW OF FREE PORT TREF PORT OF CATY?Z FREE PORT OF CADIZ 219 ) be noted that this consists almost entirely of coal of British origin the bulk of which is used for fueling ocean vessels calling at Cadiz, Thus, while the volume entered at the free zone increased from 815,000 kilograms in 1921 to 75,000,000 kilograms in 1927, the increase was due largely to a single commodity, it being reported that aside from coal there are comparatively few articles entered and stored in the free zone. Description of free zone.—The free zone of Cadiz is situated on the Alfonso XIII Quay within the port itself. Its total area is 84,000 Square meters, and it has its own quay, 450 meters long, where ocean vessels may come alongside. Two modern warehouses are located within the zone whose total area is 6,000 square meters. Located on the quay the zone has direct motor-vehicle connection with the busi- fess section of Cadiz, while a branch railway line connects it with the main line of the Andaluces Railway, which is now under completion. The entire zone on its shoreward side is surrounded by a double ile of iron fencing with enough space between the two to permit the patrolling of sentries. Administration —The free zone is controlled and operated by the Credito y Docks de Barcelona, the company which was granted the concession under royal order of August 4, 1917. The number of guards *mployed and the annual cost of administration are not available, ‘he operating company refusing to divulge these figures. Operations permitted in free zone.—In its publications the operating company gives the following as being the operations permitted within the free zone: Ll. Repacking of merchandise. 2. Assorting of merchandise to facilitate commercial classification. 3. Shelling and roasting of coffee and cacao. ‘. Shearing of skins and hides. 5. Wood crushing. 6. Washing and cleaning of wool. 7. Extraction of copra and other vegetable oils. 8. Any other operations that may increase the value of merchandise received ¥thout essentially changing its nature. Operations prohibited in free zone.— Aside from the prohibition noted inder No. 8 above, namely, any operation tending to change the lature of the merchandise placed in the free zone, no information has been received in this regard. However, it is reported that many ‘ormalities must be observed in connection with the use of this zone, nd the attendant expenses are such as virtually to prohibit any ‘Peration not specifically allowed. Dispatch secured in unloading vessels. —The operating company "eports that the unloading of vessels at the free-zone quay is done as "apidly as at any of the customs quays, and depends upon the nature *f the merchandise handled. The average rate of discharge is stated bo be from 300 to 400 metric tons per day of eight hours. 220 FOREIGN TRADE ZONES Reconsignment trade.—No statistics appear to be available covering the reconsignment trade at the free zone. The operating company reports that virtually all of the merchandise handled in the zone is destined for the provisioning of steamers, the decline in the volume of other merchandise received in recent vears making little available for reconsignment. Transshipment trade.—This trade is also reported as being negligible for the same reasons given in the foregoing paragraph. During the past four years a few American, Italian, and French motor vehicles have been received in the free zone for transshipment to other Mediter- ranean markets, but the value and volume of this trade has been but a minor factor in the activities of the zone as a whole. Manufacturing in free zone.—Aside from the manufacture of ice for sale to Cadiz fishing vessels there is stated to be no manufacturing industries established in the free zone. No information is available as to the value and amount of ice thus manufactured. A small portion of it'is sold to steamers calling at the zone, but the bulk goes to supply the fishing fleets of the port of Cadiz. Tt should be noted that efforts made from time to time to establish manufacturing enterprises in the free zone have not met with the ap- proval of the Spanish Government. Shipbuilding and ship repair in free zone.—Shipbuilding and ship repair are not undertaken in the free zone. Influence on development of foreign trade.—The declining importance of the port of Cadiz in the foreign trade of Spain is tending to make the free zone of little value in the foreign trade of this country. At the present time the zone serves chiefly as a deposit for nontaxed mer- chandise (principally coal) for use in supplying steamers calling at Cadiz. This narrowing scope of the zone’s activities combined with the consistently maintained attitude of the Government in frowning upon any effort to increase the use of the free zone has served to render the zone of little commercial importance in this territory with the re- sult that it has at the present time only a minor influence on the foreign trade of southern Spain. Influence on the merchant marine—The operating company states that the present activities of the free zone indicate that it is exerting little if any influence on the merchant marine of this country. It serve chiefly as a source of steamers’ provisions and supplies, and while the majority of the vessels calling thereat are of Spanish registry, it is of little relative importance in the development of the merchant marin? of this country. Statistics covering merchandise received in free zone.—The following figures give the volume of merchandise received at the free zone sinc? it was taken over by the present operators. Since 1924 the commod” ties received have been composed largely of coal from the British FREE PORT OF CADIZ 221 ng ny : 18 me ble’ ble the les er- +t a for ng hHle t all nes Isles, with smaller shipments of coffee and cacao from Central America, Automobiles and other motor vehicles from the United States, Italy, and France, and grains from South America. Year Tumber metric tons mntered Year Number metric tons entered Year Number metric tons entered LL. us RTT f. 000 “Mn Rr 1, 0568 4, 700 i7, 253 57, 000 1926 eee neem 02 ee eee 55, 160 75 000 R15 No figures are available covering the volume of goods exported from the free zone since its establishment. The operating company reports ‘hat the total volume in this regard has constituted the bulk of the merchandise received in the sense that it has been sold to vessels as provisions and supplies, but that the volume of merchandise exported commercially has been negligible, with a tendency to decline as a result of the decreasing variety of the merchandise entered at the zone. ale ish 1PD~ nip nce she she er at ith ng ler re- ion tes ing rve the of ne ng 100 dir «h Remarks.—A discussion of the free zone in Cadiz may not properly be passed without particular mention being made of the apparent attitude of the Spanish Government thereto as evidenced in several instances wherein official obstructions have been placed in the way of further development of the zone. Cadiz shippers report that customs regulations and rules are rigidly abided by in all matters pertaining “0 the use of the free zone, and that while expenses are stated by the Operating company to be below those obtaining in other free zones in Europe these expenses are such as to discount materially an extensive se being made of the facilities afforded thereat. The following instances have been particularly cited as indicative of the Government's attitude: Permission to establish a meat-packing plant within the free zone, using beef *attle from Spain and Morocco, was refused in October of 1927. _ Permission for certain wine makers of the Huelva district to establish bodegas Wine cellars) within the free zone where their wines could be strengthened with Alcohol imported from France and other countries. where it is cheaper than in Spain, was refused in December of 1927. It is also stated by one Cadiz authority that an Italian automobile Manufacturer who desired to establish a small assembling factory in the free zone was refused permission some months ago. The following is an extract from a recent statement by the operating ‘Ompany containing information regarding the free zone of Cadiz. This translation accompanied the report of Consul Ford: Warehouses—These are so constructed and planned that merchandise may be *eceived direct from the steamers, while carts and trucks used in loading and loading merchandise may enter the warehouses. 222 FOREIGN TRADE ZONES They are also fitted with the necessary tools and equipment to carry out all work rapidly and economically. Quay.—The quay is provided with a fresh-water supply installation for the use of steamers and also for fire-prevention purposes. It has coal depots from which vessels may be bunkered, cranes for the loading and unloading of merchandise, electric power for industrial purposes; in short, all the necessary equipment required in such an establishment. Furthermore, the operating company ie constantly making improvements to give the maximum facilities to traffic. The quay is also equipped with an ice plant from which fishing boats are supplied. A railway line connects the free zone with the main line of the Andaluces Railway: which is being finished. Installations.— For the establishment of factories, stores, sheds, or simply for the storage of merchandise in the open, there are 60,000 square meters of ground where space may be hired to persons or companies desiring it. The conditions under which it may be let may be had from the operating company. Warrants.—In addition to the ordinary nonnegotiable and nontransferable warrants of deposit, the operating company issues at the request of depositors warrants which are negotiable both by the issuing company and by most Spanish and foreign banks, this aspect of the free zone’s administration constituting one of the notable facilities offered by this kind of enterprise to commerce, since it permits the operating company to make use of a high percentage of the cash value represented by a majority of the merchandise. Insurance.—Depositors may insure their merchandise under policies which the operating company has established with certain insurance companies, the liquidation being made on the damage suffered item per item, and premiums being collected on the merchandise actually on deposit every fortnight. THE FREE PORT OF SANTANDER, SPAIN Prom Curtis CG. Jordan. American consul, Bilbao. Spain] Brief history of the port.—The right to construct and administer a free port in the city of Santander was conceded in 1918 to a con- sortium formed by representatives of the provincial chamber of deputies (diputacion), the municipality of Santander, the chamber of commerce, the board of harbor works, the Bank of Santander and the Mercantile Bank. The free port has been in operation since 1923. Description.—The free port of Santander is situated in the center of a splendid bay, the most sheltered port of the Cantanrian coast and the natural gateway to the region of Castile on account of the shorter distance to the interior of the peninsula. In the port of Santander all kinds of ships can enter, maneuver, and leave evel during violent northwest winds, without any danger. The approximate area is 42,000 square meters, and there is being added an area of 20,000 square meters more, reclaimed from the sea, upon which will be constructed a wharf 250 meters long, provid- ing 8 meters depth of water at extreme low tide. There is also another wharf being constructed 160 meters long, providing a depth of water of 5 meters at extremely low tide. Upon these wharves will be built large warehouses, elevators, tracks, cranes, etc. 4 FRESE q@ 0 ee’ T Pl ~al ol Oo a in S 2 LTE RETR OSES BRrRE2eRR - [1 1 oct ee J 4 Ry AE ae + 2. ® QQ 2a EE wn © =e = Eea [<) wo. @ 2 te ®? o » 288 BoRERE BEE CoE a383%%F RB h FREE PORT OF SANTANDER, SPAIN FREE PORT OF SANTANDER. SPAIN. STORAGE. TANKS FOR PETROLEUM PRODLICTS FREE PORT OF SANTANDER 223 Administration.—~The administration of the free port is conducted dy the consortium mentioned in paragraph 1. Operations permitted in the free zone.—In the free port the following perations are allowed under the supervision of the administration: (2) Changing packing of goods. (b) Division of same so as to prepare commercial classes. (¢) Mixing, for the same purpose as above. (d) Hulling and toasting of coffee and cacao. (e) Tanning of skins. (f) Trituration of woods. (g) Cleaning of wool. (h) Extraction of oil from copra and oily seeds. (7) Every change that increases the value of the goods without altering their nature. The above concessions may be extended at the discretion of the Government. Dispatch secured in unloading vessels.—The only information avail- able on this point is that when the construction of all the unloading facilities of the free port shall have been finished, about 1929 or 1930, the operations will be performed more rapidly than in the customs port due to the better elements available. Transshipment trade.—The principal goods that come through the free port are— Chemical fertilizers from Chili. Corn from Argentina. Cacao from Central America. Coffee from Central America and Brazil, Automobiles from United States. Machinery from United States, England, Gasoline from United States and Russia. Lubricants from United States and Russia. Petroleum from United States and Russia. Gas oil from United States and Russia. Fuel oil from United States and Russia. Manufacturing in free zone.—The principal installation in the free port consists of 42 steel tanks for petroleum derivatives (lubricants, gasoline, Diesel oil, etc.), with a capacity of more than 21,000,000 liters, capable of supplying the national market and furnishing with iquid combustible the ships which enter the port. The handling and exportation of books has also developed. Influence of the free port on the development of the merchant marine.— [t is too soon to determine exactly the influence exercised by the ree port for the volume of the market is somewhat reduced on account of the lack of good unloading facilities up to the present time, but When the wharfs are finished (1929 or 1930) a considerable increase is BXpectad 224 FOREIGN TRADE ZONES Statistics.—There are no available statistics concerning the free port, but it may be stated that the amount of business therein was approximately 25 times greater in 1927 than in 1923, the year of inaugurating the operations. THE FREE PORT OF VIGO, SPAIN {From Consul Walter H, McKinney, Vigo, Spain] The port of Vigo was made a free port by a royal decree dated October 22, 1918. The organization of the port, in the manner pre- scribed in the royal decree, was effected about five years later, and approved by the central government in the Gaceta de Madrid dated March 4, 1923. The corporation which controls and administers the free deposit of the port is known as the “consortium,” and is composed of the muni- cipality of Vigo, the chamber of commerce, the board of public works, and certain private interests. An executive committee is made up of representatives of each of these interests. Powers of the consortium.—The consortium has full powers to issue ponds up to a total of 2,000,000 pesetas, buy or rent property, con struct buildings, control the operations of the deposit, and prescribe the tariffs charged for handling merchandise therein, etc. Under the charter granted by the Government, merchandise enter- ing the free port is not subject to customs duties, and the following operations are permitted within the depot when they are performed according to the regulations of the consortium and under the vigilance of those in charge. The changing of containers; the division or repacking of goods; mixing of different kinds; the decorticating and roasting of coffee and cocoa; the stretching of hides; the crushing of woods; the washing of wool; and in general all operations which will increase the value of the deposited merchandise without essentially varying its nature. Present status of the free-port activities.—Since the publication of the decree approving the organization of the port, however, nothing has been done, as far as the writer can ascertain, toward putting inte effect the provisions of the charter. No land has been acquired, 2° piers or building constructed, no guards or overseers employed, nor any goods, with the exception of a few small shipments of Americal raw cotton in transit to Portugal, warehoused. A member of the consortium states that some construction will be started in the near future, but as far as the free port is actually co? cerned, it may be said not to be operative. ITALIAN LEGISLATIVE DECREE 225 INSTITUTION OF FREE PORTS ‘ee ‘a8 ~ ed re- ad ad of ai- is, of 1118 m= ibe 3 ng ed 1Ce «ds; nd of of of mg ato no 1OT an NO LI” [Transmitted by Franklin C. Gowan, American vice consul, Rome, Italy] Translation of Royal Italian Legislative Decree No. 2395, of December 22, 1927, entitled Institution of Free Ports, published in the Official Gazette of the Kingdom of Italy No. 300, Rome, Italy, dated December 28, 1927. Number of publication 2677: Victor EmManueL III, by the grace of God and the will of the Nation King of [taly. Having seen article 3, No. 2, of the law of January 31, 1926, No. 100; Considering the urgent and absolute necessity for provisions which with respect bo customs franchise will facilitate the traffic in certain ports; Having heard the Council of Ministers; Upon the proposal of our Ministers for Finances and for Communications, in accord with the Ministers for Public Works and for National Economy; We have decreed and hereby decree: ARTICLE I 10 As from January 1, 1928, the ports of Savona, Genoa, Leghorn, Naples, Brindisi, Bari, Ancona, Venice, Trieste, Fiume, Palermo, Messina, Catania, and Cagliari, may be declared entirely or partly free ports. The declaration (proclamation) and delimitation of the free ports are to be fixed by royal decree upon the proposal of the Ministers of Finances and Communications, in accord with the Ministers of Public Works and National Economy. The foregoing declaration (proclama- tion) will have a duration of 30 years. Artic II The ports to be delimited under the provisions of the foregoing article are sonsidered as existing outside of the customs boundary, in accordance with Article I of the single text of the Customs Law, approved by Roval Decree No. 0 of January 16, 1896, In the said ports there may be carried on, free of any customs obligations, all operations relating to the shipment, landing, and transshipment of materials or goods, to their warehousing and to their contracts, manipulation and trans- formation, except for the limitations to be established for certain goods or opera~ tions coming under the provisions of Article 4 hereof and which may become hecessary to safeguard fiscal interest or for the observance of special laws. Bub in all cases in which the transformation is of industrial character it will be neces- sary to follow the procedure outlined in article 3 of the decree. For statistical Qurposes, ships’ captains will have to submit a copy of the manifest of goods 'anded and a copy of the clearance manifest indicating the quantity, nature, and lestination of the goods shipped. The said captains are obliged to inform the customs of the volume and nature of the cargo, this being for the observance of prohibitive and binding provisions based upon special laws. ArtmicLe III The institution of industrial establishments within the area of the ports can ot be granted by the competent maritime authorities without the previous bermission of the Ministers of Finance and National Economy, and concession will have to be made in accordance with the conditions which these ministers i No definite action has yet been taken under this decree to enlarge existing free-port areas or to establish © ports. 226 FOREIGN TRADE ZONES may deem proper to establish in the interest of the national industry. The pro- visions of the present decree may be applied to naval construction establishments situated within the area of the free ports, provided they comply with the condi- tions which are to be established by royal decree upon the proposal of the minister of Communications, in accord with the Ministers of Finance and National Economy. ArTicLE IV National goods belonging to the coastwise trade and landed in the free ports or which are brought there to be shipped coastwise, may not retain their nation- ality if they are not placed under customs surveillance, and the customs author- ities may also direct that the goods be deposited in special warehouses. Ships’ captains are obliged to present to the customs a list of the national goods to be landed. - ARTICLE V With regard to the expropriation of buildings or other private property which may be necessary for the establishing of the free ports, there will be applied the provisions of articles 13 to 16 of the law of January 15, 1885, No. 2892, reducing to § years the period of 10 years established by article 13 of the same law, and in the case of rents which are fixed or controlled there will be adopted the rule stated in the penultimate section of the same article. ArTicLE VI In so far as they do not contrast with the provisions of the present decree, all other customs laws and regulations remain unchanged, including laws and regu- lations concerning sanctions of a penal character and the present degree of which may be doubled. By royal decree upon the proposal of the Ministers of Finance and Communi» cations, in accord with those for Public Works and National Economy, there will be fixed the provisions for the institution of the necessary delimitation works (structures) of the free ports and there will be established the regulations intended to ensure customs surveillance, and the further regulations necessary for the execution of the present decree will likewise be issued. ArTicLE VII The present decree will be presented to parliament to be converted into law. The proposing ministers are authorized to submit the pertinent draft of the law. We order that the present decree, bearing the seal of the State be inserted in the official collection of the laws and decrees of the Kingdom of Italy, and be made binding upon all persons who must comply therewith or inforce its com- pliance. Rome, December 22, 1927, the sixth vear. Victor EMANUEL. MUSSOLINI. Vovrpr. Ciano. GIURATI. BeLLuzzo. Seen, the Guardian of the Seals: Rocco. } Registered at the Court of Accounts, the 28th day of December, 1927, the sixth year. i Acts of the Government. Register No. 267, folio 323. S1ROVICH ro~ 1t8 i= er val rts mn- n= a8’ ne ch ‘he ag in ed 1 sus =h ais All ‘ks ed he We we in \e T= 16 FREE PORT OF FIUME THE FREE PORT OF FIUME, ITALY "From Vice Consul Howard A. Bowman, Trieste, Italy] 227 Brief history.—Fiume has been an active commercial center since the remotest time and for centuries shared with Trieste the traffic with the Provinces of the old Austrian Empire. The opening up of a road across the Liburnian Corso in 1771 connected Fiume direct with the middle and lower basins of the Danube River through which passes the export traffic of Hungary. The port was officially declared a free port in 1719 and an artificial port was built in 1841 by means of a breakwater running parallel to the shore. In 1871 to 1883 work was continued, but it was soon found neces- sary to add new piers and quays, and in 1913, owing to the continued crease of the traffic, further measures for the enlargement of the port were under consideration. These plans were of necessity sus- pended by the outbreak of the World War. The port is sufficiently well equipped for its present requirements, but the erection of a lumber wharf is considered advisable. Location.—The port of Fiume is situated in the Gulf of Quarnaro at 45° 19” latitude N. and 14° 17" longitude E. of Greenwich. The Gulf of Quarnaro has an extension of about 150 square sea miles and a depth of 30 to 50 meters near Fiume. The port of Fiume s divided into six docks. Dimensions.—The principal basins have the following areas: Bquare meters cmem--- 102, 300 een. 104, 800 100, 400 154, 600 19. 000 All piers, or moles, start from the shore end and are perpendicular bo the quays in a north and south direction. They have the fol- lowing areas: Molo Palermo. Molo Napoli.. Molo Genova_._... Molo Ancona__.. _. Molo Adamich._ =... Molo San Marco_______. Molo Stocco... ______._.. Breakwater Amm. Cagni__ - Development of Quays.—The wharves have a length of about 6,000 Meters, of which 3,000 meters are provided with rails. Fifty steamers “an be moored alongside in addition to numerous small trading ves- els, Measurements are given below: Square meters een 7,680 9, 600 15, 200 12, 300 4, 000 1, 540 675 21, 048 228 FOREIGN TRADE ZONES Total square meters 360 360 250 147 '19 86 189 530 210 318 460 380 210 155 90 « 754 240 Quay Rizzo... Quay Thaon de Ravel. _. Quay Abbruzzi__--_..___ Quay Dalmazia______.._._ Quay Emanuele Filiberto______.._. Quay XXIV Maggio... —oceoeo.. Quay Colombo. .. Quay west of canal _______._. ; — Quays on Molo Palermo, 160 and 50 square meters__._._.. Quays on Molo Napoli, 118, 120, and 80 square meters_..__ Quays on Molo Genova, 170, 210, and 80 square meters_____ Quays on Molo Ancona, 150, 150, and 80 square meters____.. Quays on Molo Adamich, 80, 80, and 50 square meters_..__ Quays on Molo San Marco, 77.5, and 77.5 square meters... Quays on Molo Stocco, 45, 45. square meters-.-...--—-__. Cagni Breakwater......___. Accessible quays in oil port. Warehouses, areas of depots and lumber wharf.— There are 29 ware: houses built of stone in the free-zone territory with cellars, ground Aoor and four stories, covering a total area of 176,200 square meters and two depots built of wood, covering an ares of 2,646 square meters: Outside of the free zone there are two depots of stone and concrete; and on the breakwater Cagni there is a coal depot of a capacity of 5,000 tons. The areas along the quays capable of being utilized for the storing of goods cover about 10,000 square meters. The lumber wharf has 33,000 square meters of space. Capacity of the Magazzini General (bonded warehouses) National depot Foreig? depots Square meters 75,120 5, 600 61,958 | 0, 16 {3 35, 053 0 2 wo L005 | 45, 921 5, 665 0,88 21, 240 |" 3156 | 547 TOial APA... oo iin smn npp ER Space occupied by stairs, cargo lifts, ete. Area lot to railroad and private cORCErNS. «uo oeocuowenun.. Area for use of bonded warehouses. __....... Less 20 per cent space for manipulations... ATER fOr SLOTBEO. - ooo ooo immmmmime ocean occ ncenm nn] Capacity of the bonded warehouses (1,500 kilos average to the square meter)... ..... Railroad trucks of 20 tons each. Reservoirs.—For lubricating oils, petrol, kerosene, and crude oilé there are five tanks at the oil port, property of the oil refinery. Thes® occupy an area of 1,526 square meters and have a capacity of 14,394 cubic meters. FREE PORT OF FIUME 229 wre” ind Lers ars. ate, of ng 0S nignt nts are ers 5,129 5, 666 0, 463 3, 544 5,9 ), 836 Lo 6, 083 Td 12 SE 250 204 The railroads in the port of Fiume have a length of 65,000 meters, of which 10,169 meters are laid out along the quays, with 37 turn- tables and 11 shunting platforms, enabling a circulation of 600 trucks per day. Administration—The administration of the free port is under the control of the railroad, the harbor master, and the customs, all under the immediate direction of a Government commissioner. The port is protected by guards employed by concerns having private depots, as well as by royal carabinieri, customs guards, the Fascist railroad militia, and police agents. A new organization for the management of the bonded warehouses has been instituted by royal decree, dated September 29, 1927, and will shortly operate. There are no details available as to the annual cost of administration of this port. Operations permitted in the free zone.~—~The regulations of the free port permit of the following operations: The deposit, transport, packing, and manipulation of goods, their delivery and reconsignment is allowed; letting of warehouse space to private trading concerns; unloading and loading into trucks or vessels; space for the customs for the release and payment of custom duties on goods; insurance of goods against fire; payment of freights, cus- toms duty, octroi duties, rates, taxes, and subsidies; advances on other charges on goods; sales of goods by public auction; subsidizing of 2oods- shipped in the care of the bonded warehouses and lying in depots. Operations forbidden in the free zone.—All operations in competition with the bonded warehouses and contrary to the customs laws and the harbor sanitary rules are forbidden. Despatch secured in unloading vessels —Loading and unloading dperations are effected by means of 23 cranes distributed as follows: Tons capacity L5 3 1.5 Quay Rizzo (8 electric cranes). ___ Quay Rizzo (4 electric cranes) . Pier Napoli (6 electric cranes Pier Napoli (2 electric cranes)... _. Breakwater Cagni (1 electric crane)... _. Pier Ancona (1 hand crane). _. Quay Rainer (1 hand crane) _ 3} On the railroad station platform there are two cranes, one of 5 tons And the other of 10 tons capacity. ~The lifts in the warehouses are partly electric and partly hydraulic. These are: 5 electrie lifts. __ ____________ 54 electric lifts. ___._________ 8 hydraulic lifts... 8 hvdraulic lifts. Tons capacity - 15 2 1 3 230 FOREIGN TRADE ZONES A grain depot with a capacity of 6,000 tons is situated on the Quay Duca degli Abbruzzi. It is equipped with four elevators. A floating crane of 40 tons capacity is owned by the harbor office. There are no official figures to indicate the dispatch in the unload- ing of vessels at Fiume, but private figures indicate that vessels are discharged at the average rate of 500 tons per day. Loading of Jumber can be secured up to 80 tons per hatch per day for hard timber and 150 cubic meters per hatch per day for deals, boards, battens, and sawn pine. Reconsignment trade—The following statistics reveal the nature, extent, and the principal commodities, as well as their source and distribution, which constitute the bulk of the reconsignment trade of the port of Fiume. Unfortunately, the figures for 1927 have not yet been published, therefore it is only possible to give these statistics for 1926. Movement by rail Country of original arriv- als and destination 37:13. AOR AUStrIA. oe eremme amma Czechoslovakia ooo - PRIMI immo se mm mmm spe FOTMANY eee mcememe Yugoslavia ooo comeeee Country of original arriv- als and destination aly micas Algeria and Tunis_......- Jelgium oo ememaas 3razil. een SAATIR sm mmm mmm THIN ccm mmm mmm sm PANO. sem mmwmmmsiress we Jormany.. cc cuwenwsn ma JAPAN. ons Great Britain._._..._.~-—- ATOBCLn nme cam cam mmm mms British West Indies.....-. RA TEC ER MA, comms vmmmmsmmmii mse MOrOCCO- oc vc emm mmm mmems MIOEI00.. ccc vimana Arrivals 702, 118 183, 022 72,324 637 600 5 581. 218 Arrivals 512, 456 162,191 6, 219 902 8, 576 657 11, 904 nN. 329 3, 637 162,799 353, 208 154, 756 179 59, 941 1092 255 Departures Country of original arriv- als and destination 770,078 268, 344 1,081, 882 1, 089 928 5925. 859 2oland. comers Aumania. ooo oocaeeaoao- JUNZArY - oc cecmmce mann Other countries... Total. ocr eee Movement by sea Departures Country of original arriv- als and destination 1,358, 327 39, 800 57,195 3,635 33, 818 10, 914 2,344 263, 486 173, 207 110, 365 53,513 32, 699 7,104 1. 602 Netherlands. _cocoercaunn. UMANIA. omen ASSIA omc TOPTEY ms rem me mmemm mins Ortugalic em cumecmanaan TRAD gummi am m—— IM cpap rench Somaliland. _..... Inited States. o_o... inglo-Egyptian Sudan. . dweden. o.oveemmoaas PUrkey cocci ae Jruguay- ceca Other countrieS..eamun--- Tota) enna Arrivals Departures 2, 42 3, 108 714, 617 1,03: LL Aa 5.187.014 | 8,401, 553 I — Arrivals | Departures 274, 660 6, 647 |. OR3. 219 9, 531 6,627 6, 206 9, 637 14, 272 47, 204 535, 718 44,311 965 210 31, 242 2,387 3 606, 02 If 104, 070 3,006 95, 790 "T2870 3, 786, 500 Transshipment trade.—The transshipment trade of the port of Fium® 's restricted to destinations on the Dalmatian coast, and may be considered negligible. The principal articles which arrived by sed and were transshipped, at Fiume, are the following: FREE PORT OF FIUME 231 Ly 1 d= 110 of jer 18, re, nd of ad, Tires +29 198 617 633 558 red ), 537 5,621 y, 206 v 537 272 204 rR 1926 1925 1013 Joa). __..... RIOD eee enim mR ——— Metallic minerals... __________ i4, 166 4,284 5, 009 Tons 6, 646 15, 218 27 4,031 21, 981 Total. ean 13, 450 Manufacturing in the free zone—Shipbuilding.—All shipyards and manufacturing industries are situated outside of the free zone. Influence of free port on the development of foreign trade and the merchant marine.—The geographical position of Fiume as the natural outlet to the Hungarian and Croatian hinterland has necessitated since the early seventeenth century the enfranchisement of this port. A closed customs barrier would have impeded any trade advance- ment owing to the competition of Trieste, the Danube River, and the Black Sea ports. The agricultural and industrial progress of Hun- cary and its mercantile development, especially after the grant of home rule by the Austro-Hungarian Emperor, gave an unprecedented impulse to the traffic of Fiume, which was politically Hungarian. The influence of the free zone in this port was enormous, and can be proved by the increase of the total imports and exports by sea in the years 1911 to 1913 and 1922 to 1926. Since the war the Italian Government has been constantly occupied in its attempts to regain Fiume’s erstwhile position of predominance in the eastern Adriatic coast by a series of treaties with the chief countries in the Balkans. The only impediment lies in political divergencies with Yugoslavia and the totally altered economic condition of Hungary, which was bereft by the peace treaty of over 30 per cent of its best agricultural and mining territory. There are no statistics available for the years before 1911, but the sable given below clearly reveals the traffic conditions of the port. Imports and exports by sea and rail 311 ¥5 210 U2 3, 387 iY il + 024 me 0 ~nf ANY Bysea | By rail 91 Tons Tons ,654,350 | |, 592,890 , 971, 282 *.846, 938 . 258,501 |, 838,400 { 90, 160 (7 | 146, 740 122.126 178,734 ~ a 1 Including Porto Baross, now Yugoslavian, ! No figures available, 47068°~29——16 V any i A — Ao FoI ea 97 LTT By sea Tons 209, 060 102, 438 716, 869 744, 802 795, 724 By rail Tons 218, 922 693, 012 653, 750 806, 628 811, 509 232 Bar 313 1 GIP, venunsanes MBL Vessels sntered 103 239 536 FOREIGN TRADE ZONES Ships entered and cleared Tons Vessels cleared Yaar .112,722 , 196, 469 2, 892, 538 816, 005 598 355 D, 060 D, 246 "515 DO ees TB naman inne E. | ar Vessels entered 1, 977 2,354 2, 841 108 Tons 755, 343 1, 252, 389 1, 581, 937 i 720. 005 Vessels cleared 1, 969 2, 357 2, 888 2 904 1 Including Porto Baross now Yugoslavian, 2 No figures available, Although the port of Fiume is still far from attaining maximum prosperity, it has made marked progress in the last few years in the reconsignment traffic, fostered by many steamship companies con- necting the port with regular services to all ports of Italy, northern Europe, Tripoli, Morocco, Spain, the Levant, Egypt, and the Far East. Commodities are carried with through bills of lading to any destination. The Fiume mercantile marine received good support in the steady growth of Fiume before the war. The following companies were established: The Adria, with a capital of 10,000,000 crowns and 32 vessels of 71,747 gross register tons; the Atlantica, with 6,000,000 crowns and 11 vessels of 43,784 gross register tons; the Levante, with 6,000,000 crowns and 12 vessels of 42,169 tons; the Oriente, with 3,500,000 crowns and 5 vessels of 10,625 tons, and the Ungaro-Croata, with 2,000,000 crowns and 46 vessels of 16,453 tons. The total of the merchant fleet registered at Fiume amounted to 106 vessels of 184,778 gross register tons on a capital investment of 27,500,000 Hungarian crowns, or $5,236,000 pre-war values. Since the war there have necessarily been many changes, but the large interest which the countries of the hinterland have in the port of Fiume is again revealed in the increasing number of Italian and foreign navigation companies calling regularly there. The Adria Co., which alone has a capital of 30,000,000 lire and & total tonnage of 36,368 gross register tons, is increasing its fleet with two 2,900-ton motor vessels and the construction of additional motor-driven tonnage is contemplated. A new Hungarian steam navigation company has recently been established with four steamers, which will fly the Hungarian flag and shall have Fiume as their port of registry. Statistics on the growth of commerce and shipping in the free zone.— Reference is made to the chapter relative to the influences of the [ree zone in the development of foreign trade and the merchant marine- It is regretted that the above-mentioned figures, issued by the Fiume Chamber of Commerce and Industry in a pamphlet on the port of Fiume, which is inclosed herewith, do not correspond with the TREE PORT OF GENOA 233 git] od 169 157 186 204 figures published by the same authority in the statistics for the year 1926, in which comparisons are made with the years 1925, 1924, 1923 and 1913. These statistics are given below. It is to be presumed that discrepancies have been caused by the inclusion of Port Baross in some items and by the exclusion of the same port which under the treaty of Rapollo was separated from Fiume and was placed under Yugoslavian administration. The traffic of Fiume m he 11 rm ar 1y 1y Te of ad 30 no :h ne 78 an ve hé 2d ag a .h al m 8 y rf he 18. 1e ne a By rail By sea AAT Arrivals ' Departures! Total Arrivals Departures] Total Tons | 518, 701 335, 748 | 180, 912 121, 752 314, 781 Tons 340, 155 304,417 80, 463 58, 272 825. 877 Tons 858, 857 640, 165 261,375 180, 024 1.940. 857 Tons 378, 650 373, 442 222, 230 128, 671 022 959 Tons 360, 602 306, 548 166, 609 84,162 1.178, 883 Tons 739, 252 679, 990 388, 839 212, 833 2 (006. R42 THE FREE PORT OF GENOA, ITALY [From H. P. Starrett, American consul general, Genoa, Italy] The instruction under reply calls for a report on the free ports of Genoa and Savona. Provisions for a free port at Savona have received legislative authority but thus far the free zone has not been sstablished. This report, therefore, deals only with the port of Genoa. History of the free zone.—The history of the free port of Genoa goes back to very ancient times and the exact date of its establishment is uncertain. A constantly increasing sea trade between Genoa and the old colonies of the eastern Mediterranean resulted in the building of certain warehouses for the storage of goods awaiting transshipment to other ports and thus facilitated the development of a trade which enabled the old Republic of Genoa to compete successfully with its chief rival, the Republic of Venice. In 1595 the Bank of San Giorgio (Saint George), the oldest bank in the world, and, incidentally, the one which had financially assisted King Richard I of England in his crusade to the Holy Land, and paid his ransom when he was captured by the Saracens, built several ware- houses, and the Government of the Republic permitted storage in the free port for grain subject to duty (when imported by vessels above a certain tonnage). In 1623 this privilege was extended to all classes of goods, and it is perhaps fair to say that Genoa as a real free port began its experience in that year. The area of the free zone was extended from time to time, and it is now proposed that sometime during the present year it is to be extended to include most of the ares, of the whole port. 234 FOREIGN TRADE ZONES About the time of the formation of the Republic of Liguria, of which Genoa formed a part, in the year 1797, the bank’s affairs became involved and on December 29, 1799, a bill was passed author- izing the sale of the warehouses in the free zone, and portions of these buildings, or their successors, continue to this day to be held by private firms, In 1805 the Senate passed a resolution approving the incorporation of the Republic with the Kingdom of France, but it was stipulated, among other things, that the free zone of Genoa should be permitted to retain all its rights, privileges, and customs. After the arrange- ments had been completed Napoleon issued a decree discontinuing the Bank of Saint George and forcing it into liquidation, and this was followed by further decrees regulating the affairs and operations of the free zone, many of which rules have survived to the present time. Location of the free zone.—The zone is located in the southeast corner of the inner harbor, about 400 yards east of the foot of the Molo Vecchio (Old Dock). Dimensions and area.—The zone has an area of 21,430 square meters, and includes 12 warehouses, a customs section, 2 sheds, the streets between the warehouses, and a special warehouse used for the storage of edible oils and hides. The warehouses are mostly 3 and 4 stories in height, and the largest has a floor area of 1,960 square meters and is equipped with 4 elevators of 114 tons capacity each, as well as 4 chutes. Allowing for streets, alleys, and customs section. the total storage floor area is 17,154 square meters. Berthing and rail connections.—Due to the limited water front of the zone there are only two berthing spaces for moderate-sized ocean- going vessels, most of the goods reaching the zone by means of lighters. This condition will, of course, be corrected when the enlarged plan for the zone becomes effective. Two railway lines connect the zone with the general railway system of the country, and the area lies immediately alongside of a main highway of the city. Administration.—The local Italian chamber of commerce (now incorporated with the Consiglio dell’Economia Provinciale controlled by the central Government) manages the zone, and the charges are €0 adjusted that every effort is made to strike an even balance between income and operating expenses, it being considered that in this way trade is encouraged. The total operating expenses for the year 1926 amounted to only 1,202,000 lire (about $60,000 United States cur- rency). Every two years a managing board of five members is elected fron among the members of the chamber of commerce and anyone may be reelected upon the expiration of his term of office. It is understood that they serve without salary. It is the duty of this board, acting FREE PORT OF GENOA 235 of ATS ar- 330 YY on d, ed se- ng ‘a8 of 10. er Jo rs, ts re n <q al 10 I~ 'S. wr 113 mn WwW +d 30 n y a )e d 0 4 through a salaried director, to enforce the observance of all the regu- lations and to insure the proper working of the zone; to supervise the work and conduct of the employees; and to punish offenders against the regulations. Their decisions may be appealed to the chamber of commerce. The actual work of moving the goods within the zone is done exclusively by the Compagnia dei Caravana, a company of custom- house laborers founded in: 1340. There are 21 guards in all, as well as a fire watch kept by the vorters of the Compagnia dei Caravana. Privately owned storerooms.—In the oldest warehouses in the zone there are 368 storage rooms, which were sold to private firms in 1797 and which are entirely operated by them under the control of the board and in accordance with the laws and regulations. The rest of the area, plant, and equipment are owned by the chamber of commerce. Operations in the zone.—The traffic in the zone is largely made up of the storage or treatment of coffee, sugar, oils, hides, cocoa, pepper, drugs, ete. Due to the development of the beet-sugar industry in ltaly, the importations of that product have decreased materially, but in other items there has been a steady increase. The operations consist of the grading and preparation of such products as coffee, cocoa, etc., bottling and canning food products of various kinds, and the refining of edible oils. {n 1901 an independent section of the zone was established for the nandling of grain. This business is under the management of the Societd Anonima Silos and under the control of the customs authori- Hes, _ In 1907 another independent section of the zone was established, an area of 2,000 square meters, at the Paleocapa Wharf, for the purpose of storing lubricating and other oils. It is operated by a *ompany called the “Unione Importatori Lubrificanti.” The equip- ment includes a 2-story warehouse with an area of 1,400 square meters on each floor, and the tank yards cover an area of 1,100 square meters. The total capacity of the tanks is 8,000 cubic meters. There are 4 steam and 2 electric pumps, an air compressor, and a Juadruple piping system with a total capacity of 120 tons per hour. Dispatch in operations.—Dispatch in unloading vessels is always lightly longer than when unloading for customs docks, due to the formalities which have to be gone through, but this delay has not seen found to be serious or to interfere with the business of the zone. Reconsignment trade—There is very little reconsignment trade, ind what there is consists largely of edible oils imported for refining ind blending purposes and later reexported to the colonies and to loreign countries. A few products from the colonies, such as hides ind skins, are also reexported to foreign countries. However, there 236 FOREIGN TRADE ZONES are no separate statistics available regarding this trade. A very large part of the import trade of Genoa may be described as a *‘trans- shipment’ trade, for only a small proportion of the total remains in the city or district, most of it going to the various cities of northern [taly and through to Switzerland and central Europe. Statistics of this kind of movement through the free zone have not been com- piled and consequently are not available. Only the figures for the total traffic are kept. Manufacturing in the zone—Due to lack of space, and perhaps for other reasons, the only manufacturing which takes place in the free zone is in the grading of goods and the bottling and canning of various kinds of foodstuffs, as well as the refining and blending of edible oils, mentioned above. It is entirely probable that, when the proposed extension of the zone has taken place, manufacturing activities in a small way may be taken up, but at the moment there do not appear to be any definite plans in this direction. Shipbuilding.—No shipbuilding or ship repair work of any kind is carried out in the zone, and the plan for the extended zone does not mention these activities. Influence of the zome.—In its broader aspects it is very doubtful whether the free zone has influenced in any visible degree the develop- ment of the Italian merchant marine, but it is entirely probable that it has had its effect on certain items entering into the trade of the port as a whole. Heretofore it has been far too small in area, and one of the principal reasons why it is to be so greatly enlarged is in the hope that it will attract a large reexport and transshipment trade to this port, and there is no reason to doubt that it will, providing the facilities are adequate and the charges remain reasonable. REGULATIONE FOR THE FREE ZoNml FREE ZONE AND SECTIONS OF THE FREE ZONE AnrricLe 1. By decree of the Ministry of Finance, dated January 22, 1877, the administration of the free zone of the port of Genoa is intrusted to the Chamber of Commerce and Industry of Genoa. The chamber of commerce operates its own warehouses, and those the conces” sion of which is subject to special permit from the Government, and those rented to private concerns; it also supervises the remaining privately owned warehouse in accordance with the terms and stipulations of the regulations. ART. 2. For the carrying out of the foregoing functions the chamber of co merce appoints a special board with diseretional powers for guaranteeing the good order and the proper working of the free zone. The personnel of the chamber of commerce must enforce the rules set forth bY the board. 1 Translated and forwarded with the report of Consul General H, P. Starrett, preceding. FREE PORT OF GENOA 237 ory as- in ern of m- ‘he ‘or ree of of ‘he ng aro is not ful op- nat the ne <he to “he the nel Art. 8. The Chamber of Commerce of Genoa will carry on in the free zones already established and in those that may be established hereafter, the duties prescribed by the law on free ports No. 3261 of August 6, 1876, and its regula- tions approved by royal warrant No. 3440, dated October 31, 1876, either di- "ectly or by special employees of the chamber of commerce more especially appointed to supervise such sections. The members of the chamber and its employees working in connection with the Institute of the Free Zone have free access to said sections for the performance of their duties. They will also have free access to the places where the company of the ““Cara- vana” is working in connection with the supervision by the chamber of commerce of the administration and the working of said company. WORKING HOURS OF THE FREE ZONE Art. 4. The free zone is open every working day during the hours fixed by the *hamber of commerce and in consideration of the customhouse rules. Arr. 5. The working hours may be anticipated or extended, with the permis- sion of the customhouse authorities, in exceptional cases and within the limits fixed by Article 12 of the General Regulations on Free Ports, and also the opening of the free zone may be permitted during Sundays and holidays. ArT. 6. The compensation due to employees of the chamber of commerce and customhouse agents for overtime work shall be paid by the merchants making the application for such work. ART. 7. At least fifteen minutes before closing time everybody must leave the free zone except those who must remain therein for service. INTRODUCTION AND TRANSPORTATION OF MERCHANDISE Arr. 8. The introduction and the transportation -of merchandise within the free zone pertains exclusively to the customhouse and free zone porters (Com- pagnia Caravana) who are jointly and severally responsible for the damages and shortages that may occur during the time between the acceptance of the mer- chandise and consignment to the storekeepers of the chamber of commerce or to the owners of the merchandise or their deputies. In the performance of their duties the porters of the Caravana Co. must con- form to the instructions of the employees of the chamber of commerce attached to the free zone. ArT. 9. The order of precedence is established according to the order in which the customs documents are presented to the office of the inspector; merchandise Is carried into the free zone according to the order with which the requests are made except, in both cases, when for special reasons, the administration of the ree zone issues orders to the contrary. WEIGHING OF GOODS nes” ced qed +~ -h€ Arr. 10. The weighing of goods contained in the free zone or laying on the piers before their transportation into the free zone is made in accordance with the Ipecial regulation issued by the chamber of commerce. PERSONS WHO ARE NOT ADMITTED INTO THE FREE ZONE Arr. 11. Women, priests, and soldiers in uniform are not admitted in the ree zone unless exhibiting a special permit issued by the chamber of commerce and visaed by the director of customs; except, as regards the soldiers, when they are on duty. Minors (under 18 years of age) can not be admitted into the free zone except the clerks and workmen who are assisting, when a special application is made to the chamber of commerce under the guaranty of their employers. 238 FOREIGN TRADE ZONES The entrance into the free zone is also forbidden to beggars, peddlers, unre deemed bankrupts, to those who have been sentenced for smuggling, stealing, oT for fraud, and to those who are unable to prove satisfactorily their personal identity. CUSTODY OF MERCHANDISE Art. 12. The following goods are not accepted for storage in the free zone: (a) Salt and tobacco, now under the monopoly of the State. ‘h) Powders and explosives. ") Matches, kerosene, sulphur, turpentine, tar, and alcohol. 7) Sausages, cheese, and similar goods. ‘) Concealed weapons. {f) Playing cards, pocket articles, precious articles. (9) Garments, linen manufactured in any way for ready wear, hats, neckties, handkerchiefs not in bulk, gloves, and shoes. (kh) Foreign wines. Unhealthful goods or those emitting offensive odors if admitted in the free zone are to be stored in separate, remote, storage rooms, or can be entirely excluded from the free zone according to circumstances. The inspector of the free zone must enforce the above rules. ArT. 13. Normally goods can not be stored in the free port for more than six months; the chamber of commerce, upon application, may extend such limit and eventually add additional charges to the standard rates. If the application for extension is not made, or if the extension should not be granted, the chamber may have the merchandise sold by auction and may sue the eoncern for the total payment of dues or for the refund of expenses. The amount left after the refund is made will be deposited with the cashier of the chamber of commerce and left at the disposal of the proper parties until the expiration of the legal term for the withdrawal of the sum. . ArT. 14. Deteriorated goods or merchandise in process of deterioration will not be admitted unless accompanied by a certificate discharging the chamber of commerce from any responsibility concerning the goods. Even a simple notation on the certificate of storage of the following articles will be considered ‘as the equivalent of legal evidence. Very heavy or very bulky merchandise or goods that can be piled up only with difficulty, liquids, or materials subject to sweating are admitted, according to circumstances, only to the passages, stairs, corridors, or to the ground floor of the “quartieri” and always subject to the free space available and in considera- tion of the exigencies of other merchandise more in consonance with the nature of the free zone. ArT. 15. The chamber of commerce: does not arrange for the insurance of merchandise against fire or other risks. RATES FOR TRANSFER AND DISINFECTION OF GOODS Art. 16. The expenditures for the import, movement, and export of mer- chandise are charged against the merchandise. Against the goods are also charged the expenditures for disinfections ordered by the competent authority, and for transferring merchandise on account of disinfection, fire, storms, or accidents of any kind, and also all other expenses ordered by the chamber of commerce, without appeal, for the purpose of the proper keeping of the merchandise and in the general interest of all goods stored in the free zone. : The storage dues are listed in the appendix to this regulation together with the special rules concerning it. nFé« , Or ynal ies, ‘ree aly an nif he me + of he will . of leg ith to of re Te AT. od of se9 ne ad FREE PORT OF GENOA 239 INTRODUCTION AND DELIVERY OF MERCHANDISE Arr. 17. The introduction of merchandise in the warehouses operated by the chamber of commerce is controlled by the inspéctor of the free zone, to whom the applications must be addressed. It is the duty of the inspector of the free zone to establish the place for the storing of the merchandise and to issue to the proper storekeeper the order of introduction. The storekeeper, after the introduction of the merchandise, delivers a non- negotiable certificate of deposit or warehouse receipt countersigned by the inspector. The depositor that does not withdraw immediately such certificate loses his right to any claim to the stored goods. The withdrawal of the merchandise, or only part of it, must be approved by the inspector and to him onlv must be addressed the applications for withdrawing goods. Deliveries are made upon a written order of the inspector to the storekeeper. Upon the delivery the storekeeper makes the proper notation on the certificate of deposit exhibited by the depositor or his deputy, who withdraws the mer- chandise for his account; such notation is made in lieu of a receint and has the same value as a receipt. After the consignment of the whole lot of merchandise the certificate of deposit is withdrawn by the inspector. Arr. 18. On the certificate of deposit or warehouse receipt the indications concerning the weight, the quality, and the conditions of the deposited mer- *handise are specified only at the request of the interested party and after the weighing and the survey have been made by proper persons appointed by the chamber of commerce. All charges for the above are against the party requesting such indications on the certificate. Arr. 19. The chamber of commerce reserves to itself the right to transfer the deposited merchandise from one place to another upon a simple notice to the ‘nterested party and without compensation or indemnity to the same. Art. 20. Even when the merchandise is accepted for storage without reser- vations the chamber of commerce does not accept any responsibility for shrinkage, and, with the exception of evident guilt on the part of the personnel, is not liable for damages arising from leakages, breakages of fragile articles, bad or insufficient packing, defects or inherent weakness, unavoidable accidents, fire, disinfections, or damages caused by rodents, moths, or otherwise. The chamber of commerce also does not accept any responsibility for changes which have occurred in the number of packages on account of tampering. Sweepings are collected and kept in the best possible way at the expense of She depositor, but without any responsibility of the chamber of commerce. When the chamber of commerce believes that some stored merchandise is deteriorating or that it may be in any way detrimental to other goods, notice is given to the depositor or his representative requesting that such merchandise be withdrawn within a certain time, failing which, the chamber of commerce may sell the goods, following the procedure stated in the foregoing paragraph 13. ArT. 21. The chamber of commerce declines all responsibility for damages or Shortages arising in any manner whatsoever when the merchandise is deposited in passages, stairs, corridors, sheds, or in the open, either at the request of the depositors or when no better space to store the merchandise is available. ArT. 22. A special rate is granted for the storing of colonial produce and its mount is determined by the board of the free zone dccording to the needs of aid zone, h 240 FOREIGN TRADE ZONES ART. 23. The responsibility of the chamber of commerce begins from the moment in which the merchandise is deposited in the warehouses directly operated by it and ends when the merchandise is withdrawn by the owner or his representative. INSPECTION OF MERCHANDISE ART. 24. Nobody except the depositors or their representatives are admitted to inspect the merchandise, to open or alter the packages, to make surveys, to take samples, or in any way to manipulate it. Those who in performing the above operations need the assistance of third parties must make a special written appli- cation to the inspector of the zone. All communications, however, made 0 persons known to be employed by the depositors or their shippers shall be con- gidered as made directly to the despositor himself. ART. 25. In case of transfer of the ownership of the stored merchandise the certificate of deposit shall have to be returned, and the accumulated storage dues shall have to be paid. A new certificate of deposit will then be issued under the name of the new owner. However, as regards the beginning of the running of the storage dues and the application of extra charges, the original date of intro- duction of the goods shall always be considered as original date for all dues. ART. 26. In case of loss of the certificate of deposit no withdrawal of goods will be permitted until a new certificate be issued and the payment of storage dues affected. The counterfoil of the lost certificate will be canceled by the inspector and the notation made on it will have to be signed also by the despoitor. ART. 27. All goods stored in the name of the same depositor are a guaranty with priority over anybody else or anything else for payment of the storage and demurrage dues, and other eventual expenditures mentioned in article 27 will have been paid. However, if the merchandise is withdrawn in portions at several times the total dues will have to be paid when the last part is withdrawn, provided the value of the last portion of the merchandise be sufficient, according to the sole judgment of the chamber of commerce, to cover the whole amount due. The receipt for the payment will always be made in the name of the depositor and only one receipt will be issued even if the withdrawal of the merchandise was made at separate times. ART. 29. At the end of every year all matured dues for the stored goods must be paid even if they continue to remain stored in the same warehouse. No merchandise whatever will be delivered to the depositor who does nob comply with the above and without prejudice of legal proceedings in order t0 anforce payment of the matured dues. The certificate of deposit existing at the date of December 31 must be presented for renewal to the inspector’s office before the 15th of January. No delivery will be made after the latter date to those who do not comply with this rule. ART. 80. Goods stored in private warehouses or in warehouses sublet by the chamber of commerce are stored for account and risk of the despositors. PRIVATELY OPERATED WAREHOUSES ArT. 31. Anyone intending to operate a privately owned warehouse musb make an application, eventually signed also by the owner of the warehouse or by his legal representative, to the chamber of commerce. . The lessee must inform the chamber of commerce of all changes in the ownershiP of the premises which may occur during the lease. When the lessee wishes to give up the operating of the warehouse he mus? return the permit to the chamber of commerce, making on it a special notatio? to that effect. -he iy ar ved ke ve i- to Je he ie8 he of Pe vill 188 he ns nd tal he he SOT qe 1st ot tO -ad ATV he 180 TT (dp 180 an FREE PORT OF GENOA 241 The chamber of commerce has the right to inspect the privately owned warehouse at any time. The operators of such warehouses must issue a receipt to the Caravana Co. for all goods delivered by the latter. ART. 32. The operation of warehouses in the free zone is allowed only to those who belong to the Chamber of Commerce and Industry of Genoa, and is never granted to unredeemed bankrupts, to persons sentenced for or suspected of smuggling, or to those who were sentenced for fraud or stealing. Art. 33. The chamber of commerce has the privilege of canceling at any time the concessions made, without the reasons for doing so, such cancellation may even be made effective immediately. ART. 34. The warehouses must not be excessively loaded. If this caution is not observed the chamber of commerce will remove the excessive load to the premises indicated by the lessee or, failing any indication, to its own warehouses at the expense of the lessee and applying the usual charges for storage. Arr. 35. All warehouse doors must open inwards. Art. 36. The private-owned warehouses must be locked with two different keys, one kept by the operator and the other by the chamber of commerce. The expense for the second key and successive repairs are charged to the Operator of the warehouse. - ArT. 37. No repair work of any kind can be undertaken in the warehouse of the free zone without permission of the chamber of commerce, and no appeal can be made against its decisions about these matters. Art. 38. The warehouse owners must bear the expenses of watching, lighting, and cleaning the premises and also for the repairs and constructions ordered by the chamber of commerce through which said owners may accrue some benefit. Those who refuse to pay the assessment due from them may be forbidden by the chamber of commerce to open their warehouses without prejudice of legal proceedings that may be instituted against them, in order to obtain payment of the amount due. ArT. 39. The chamber of commerce is authorized to carry on all work consid- ered necessary for public safety or for protection of the stored merchandise and also for insuring payment of the customhouse dues. OCCUPATION OF FLOOR SPACE Arr. 40. The temporary use of the free space before the warehouses can be granted only upon permission, always subject to cancellation, given by the inspector of the free zone and against payment of 0.15 lire per square meter and per day. However, any concession liable to obstruct the traffic is strictly forbidden. USE OF MACHINERY FOR THE PREPARATION OF GOODS ArT. 41, The operators of machinery for the preparation of goods, within the limits set forth by the customs authority, are subject to the existing regulations And to those that may be. issued by the chamber of commerce. ART. 42. The above permission is only temporary and subject to cancellation Py the chamber of commerce even before expiration date, without any compensa-~ tion, and will be effective immediately in the case of duly ascertained abuses. All machinery must be installed only on the ground floor of every building. The charges for such concessions must be paid in advance to the chanber of tommerece. The operators are responsible for all accidents to the personnel and for all damages caused by the machinery or by electric wiring, 242 FOREIGN TRADE ZONES FIRE PREVENTION Arr. 43. Smoking and lighting of fires within the premises of the free zone and the adjoining wharves is strictly forbidden, consequently it is absolutely forbidden fo carry into the free zone, even for personal use, matches, candles, kerosene rlcohol, or automatic cigar lighters. - POWER PLANTS A permit of the chamber of commerce is required for installing light or power plants; the chamber of commerce has the right to have all works relative to such installation submitted to the inspection of an expert or experts at the expense of the party who is building the plant. No lights of any kind whatever can be used. The chamber of ecommerce may authorize the use of lights that, according to its own indisputable judgment, give an absolute guaranty of safety, and in these cases it will set the time and the use of such lights and will establish a strict watch at the expense of the applicant. The firms which, on account of the nature of their work, must light fires, must first obtain the necessary authority, and are obliged to keep the matches in well closed tin boxes having a thickness of at least 1 millimeter. The transgressors of the above rules shall be punished as follows: (a) Whoever arbitrarily introduces into the free zone matches, kerosene, alcohol, gasoline, turpentine, etc., even for personal use only, will be subject to a fine of not less than 100 lire and not more than 1,000 lire. In the case of a second offense the penalty will be expulsion from the free zone. (b) Whoever smokes or lights fires in the free zone will be immediately expelled and eventually submitted to judicial proceedings. As regards the carrying of matches in one’s pockets, the penalties for the per- sonnel of the chamber of commerce will be set by the director of the free zone and for the personnel of the customhouse by the superior director of customs, in accordance with rules to be established by the chamber of commerce. DISCIPLINARY RULES ART. 44. The transgressors of these regulations and of the instructions of the chamber of commerce and its employees for the improvement of the service in the free zone will be fined not less than 5 lire nor more than 100 lire, and, in the more serious cages, they will be expelled from the zone for not less than three days and not more than six months. Disturbers of the peace inside the zone will be forbidden admission from 3 0 L5 days and be severely punished in case of a second offense. Whoever offends, threatens, or strikes the members of the board of the free zone or the chamber of commerce or customhouse agents working in the free zone shall be immediately expelled, without prejudice of further action by the chamber of commerce, and, as regards the employees and customhouse agents without prejudice of further action by the chamber of commerce, in accordance with the superior customhouse authority. to be followed in any case bv legal prosecution in court. Whoever arbitrarily removes or causes to be removed merchandise belonging to others and in custody of the chamber of commerce shall be fined not less tha? 25 lire and not more than 100 lire and shall have to refund the eventual expense that may have been so caused. Without due notice to the chamber of commerce it is forbidden to remove lock® and door latches. The penalty for failing to comply with this rule is a fine fro® 10 lire to 100 lire, besides the refund for the damage and legal procedure in ca%¢ of willful fraud. FREE PORT OF GENOA 248 and {en ne, wer uch . af TOO ni, and -he usb all= ol, > of nase ted PT ad in The proceeds of the fines is devolved to the pension fund of the chamber of ‘ommerce employees. ART. 45. The warehouses and storerooms of the zone must be kept clean. If garbage is found in those premises the responsible parties shall be fined from 5 lire to 25 lire and will have to pay for the removal of the garbage and, if requested oy the customhouse, will also have to pay customs duty for sweepings and wasted goods that may have been thrown away. ART. 46. Whoever causes damages of any nature whatsoever will be held responsible for it. When the damage is caused to property of the chamber of commerce or any- thing in custody of said chamber of commerce the valuation of the damages so caused will be that appraised bv an expert chosen bv the chamber of commerce. CLAIMS ART. 47. Petitions and claims of any nature and for whatsoever reason must be addressed in writing to the inspector of the free zone, who will directly take sare of them or refer them to the board, according to the importance of the case. Appeal can be made against the inspector's decisions to the board of the free zone within eight days, and appeal can also be made to the board of the chamber of commerce against the decision of the board of the free zone; no further appeal can be made relative to any controversies regarding discipline and better efficiency of the free zone. GENERAL ORDER ART. 48. For everything that is not included in these regulations the chamber of commerce reserves the right to dispose by special resolutions. in accordance with the legislature and regulations of the free zones. Approved by the Chamber of Commerce of Genoa at the meetings of December 23. 1915. and March 21. 1994 Zaccaria OBERTI, President. CC. MARINT. he in ‘he roe to we ae he ra, re al ng an 1} Ics yi a Secretary. PROVISIONS CONCERNING WAREHOUSE Receipts, FrEr ZoNE oF THE Port oF GENOA [Resolution of the chamber of commerce, dated October 24, 1894] Upon application, made on the proper forms distributed by the Chamber of Commerce and Industry of Genoa, the latter will issue to merchants, in accord- nce with these regulations and the law of August 6, 1893, No. 457, warehouse ‘eceipts with warrants for the merchandise consigned to said chamber of com- lerce for custody. The premises established for the storing of goods on which warehouse receipts re issued are those operated by the chamber of commerce in the free zone. The depositors in whose names the warehouse receipts are issued are presumed, 3y their applications for said warehouse receipts, to have elected their domicile it the chamber of commerce, office of the inspector of the free zone, for all acts “rising by the effected deposit toward the chamber of commerce and toward hird parties. The quality and the weight of the goods mentioned by the depositor will be Verified by public brokers and weighers, both duly authorized by the chamber of Commerce. 244 FOREIGN TRADE ZONES All goods on which a receipt was issued will be covered by fire insurance taken py the chamber of commerce without its responsibility and for account of de- positors with companies chosen by the chamber of commerce to whom the depositors shall have to pay a premium of ——— for every thousand lire. The credit of the chamber of commerce for storage and for all other expenditure that the chamber of commerce is obliged to make for any reason whatsoever and relative to each lot of merchandise, will have priority on the value of the goods against any other creditor even if he should be recognized as lawful owner of the warehouse receipt relative to such merchandise. The warehouse receipts in as far as their payment is concerned shall be exclu- sively retained at the clearing room of the Banca d'Italia for account of the chamber of commerce. In consequence of the previous article, merchants shall have to deposit with the Banca d'Italia also the amounts required for the payment of the warrants not yet matured, and that shall have to be complied with in case they should wish to release the merchandise before the date of maturity of the relative warrants. On the amounts deposited as stated above the Banca d’Italia will pay no interest. In order to withdraw the merchandise the merchants will have to exhibit the warehouse receipt with attached warrants duly signed by the original depositor with a declaration to the effect that the goods have been withdrawn. The merchants who wish to take advantage of the authority given by the first paragraph of article 470, Title XVI, of the Commercial Code will have to deposit the required amount with the Banca d’Italia and then exhibit the relative receipt showing that payment in advance has been made for principal and interest as per warrant. Sales by auction of merchandise on which there is a lien, when the relative warrants should have been protested for nonpayment, will be held in the prem- ises set by the chamber of commerce, after due presentation of the documents of protest. The inspector of the free zone is appointed as deputy of the chamber of eom- merce in all administrative deeds regarding warehouse receipts and warrants. The regulations on the free zones approved by royal decree of October 31, 1876, and the special regulations for the Genoa free zone, dated February 8, 1877, are to be considered also applicable to the custody of merchandise on which ware house receipts and warrants have been issued inasmuch as said regulations are not contrary to the present special regulations. GENOA, August 8, 1895 P. Sovari, Approved: President of the Chamber of Commerce. N. 13727. RowME, August 13, 18965. MIRAGLIA, For the Minister of Agriculture, Industry, and Commerce. 3rorAGE DUES FOR GOODS STORED IN THE FREE ZONE OR IN THE MANDRACCI Section oF THE FREE ZoNE (SHED) GENERAL REGULATIONS . ArmicLe 1. The present rate list is to be applied to merchandise stored 1B warehouses, corridors, stairs, and streets of the free zone. Art. 2. The dues are charged by the month and for unit of weight or measur’ (volume) and are to be paid in full even when the merchandise is left in storag? for only one day. sen de- “he ure and ods ‘he FREE PORT OF GENOA 245 ArT. 3. After the first month the dues are figured every 15 days. The chamber of commerce and, in its name, the board of administrators of the free zone, have authority to increase the storage dues after the first month by simply posting regular notice of the new rate at the entrance of the free zone. ART. 4. Goods not listed herein pay the same dues established for like products, in accordance with the corresponding items of the customs index. The board of the free zone decide on the controversies that may arise on this subject. NoTE.~—Article 5 contains a list of storage charges, lu- the Reaurations AND Rates oN Lrcar Wrigar vith nts wuld ve no -he tor irst osit ~ipt - a8 Jve me nts NM" 31, 77, 1re” are ATO in 8 al INSTITUTION OF LEGAL WEIGHT ArticLe 1. In accordance with the bill of December 17, 1854, the official weighing of the goods in the free zone and adjoining wharves is reserved to the chamber of commerce and is carried on by a number of weighers and an office issuing the relative certificates. WEIGHING OF GOODS ArT. 2. Upon request of the chamber of commerce the porterage regarding the weighing of merchandise is made by the porters belonging to the Company of Caravana. ART. 3. The order with which weighing is made is regulated according to the Bling of the requests that are entered in the proper book kept in the weighing office. Arr. 4. In ascertaining the weights the weighers must operate with the greatest accuracy and objectivity, and the corresponding data must immediately be entered in the proper register. Art. 5. Public weighers must ascertain the proper working conditions of the Weighing machines before starting their work, and whenever they are requested bo do so by the owners of the merchandise or their deputy. Art. 6. Every weigher is supplied by the chamber of commerce with a booklet with two foils and counterfoil duly numbered and stamped by the inspector of the free zone so that by use of carbon paper three copies can be made at one and the same time. , The weigher must insert with indelible pencil on his booklet the name and Surname of the applicant; nature, quality, marks, and numbers of the merchan- dise; weights properly made up in groups of 10, duly added and totaled at the end of the weighing operation; the place where the weighing was effected; the the date; his signature; and in the case of merchandise being landed also the dame of the vessel. Once ascertained, copies containing all the above-mentioned data will be sent bo the weighing office issuing the certificates; a copy will be at the disposal of the applicant and will be delivered to him against payment of the weighing charges, _ Arr. 7. The original remains attached to the booklet and when this is exhausted 't will be deposited in the archives of the chamber of commerce and kept for 10 Years. ISSUE OF WEIGHING CERTIFICATES Art. 8. The office of the weighing certificates, after due checking and upon ‘quest, makes up the certificate, keeping copy of it in the proper register. 246 FOREIGN TRADE ZONES CLAIMS ArT. 0. All claims concerning weighing operations must be addressed to the inspector of the free zone. RATES Art. 10. In a separate sheet are given the weighing rates as approved at the meeting of December 23, 1915, altered at the meeting of April 30, 1920, and com- piled in accordance with the rates of the Caravana as result of the alteration made to the latter at the meeting of the chamber of commerce of June 28, 1923. APPENDIX LEGALIZATION OF SIGNATURES ON WEIGHING CERTIFICATES MADE BY WEIGHBRS NOT DEBIGNATED BY THE CHAMBER OF COMMERCE 1. In consequence of the establishment made by the chamber of commerce of the official public weight, the signatures of weighers on the following certificates are not admitted to legalization: (a) When they refer to weighing operations made in the free zone and its surroundings—namely, the Mandracecio, Cattanei, and Ponte Reale Wharves. (b) When they bear no indication of the place where the weighing took place. (¢) When they are not written in a clear and correct form entirely in accordance with the commercial customs which they must satisfy. 2. Besides the legalization of the signatures of the weighers, the chamber of commerce applies a stamp declaring that the chamber of commerce had no in- Auence or control over the operation to which the certificate is related. Approved by the Chamber of Commerce and Industry of Genoa at the meeting of December 23, 1915. Zaccaria OBERTI, President. C. Marin, Secretary. Rares ror TEE LEGAL WEIGHING [Art 10 of the regulations] The following are the charges for public weighing besides the standard charge of 4 lire per hour or fraction thereof for each weighing. Lire 0.40 for each gross quintal (220.4 pounds) or fraction thereof, for any kind of merchandise with & minimum of 0.40 lire for each weighing with the exceptio? of leather in bulk for which the rate is 1 lire per quintal, or for the weighing of ab ieast 10 pieces not weighing over a quintal. For each weighing of any goods under 50 kilos the rate is 0.60 lire per quintal: Tare for all goods, for every tare 0.50 lire. The above rates include the amounts due to the Caravana. Upon request the weighers can be detailed to weighing merchandise even outside the free zone and the adjoining wharves (Mandraccio, Cattanei, and Ponte Reale): In these cases the following additional daily rates and the refund for eventud! expenditures for transportation, etc., are due to the chamber of commerce: pe From the Giano Mole to the dock... .... I 20 From the dock (exeluded) to the Chiappella_ ooo From the Chiappella (excluded) to the Paleocapa Pier... ___._._._. ._-- Outside the port limits and within the city of Genoa... _____.-- In other towns in the district of the chamber of commerce, a fixed charge of. besides an extra charge of 2.50 lire for every kilometer from Genoa. 14 10 FREE PORT OF LEGHORN 247 ho ‘he ym ade mre a of ates ita ace. nee r of ine tingZ FR arge ind rio® fat tal. «ide ale) . nal ire 2» 3 A The issue of the weighing certificate is subject to a charge of 3 lire besides stamp expenses. Duplicates are charged 6 lire, triplicates 9 lire, etc. Approved at the meeting of April 30, 1920, of the Chamber of Commerce and Industry of Genoa; successively proportioned to the rates of the Caravana on nccount of the alterations applied to the latter rates as per resolution passed at bhe meeting of the board of the chamber of commerce of June 28, 1923. Merchandise entering the free warehouses of Genoa from 1903 to 1926 (expressed in quintals) Year ive nil Cotton- | seed oil Toffee i Sugar Cacao Pepper Drugs | Skins All other | Total A 00... 0. cee Looe Tr WE. 35, 088 38, 372 74,304 39, 464 114, 584 70, 483 09, 183 92, 01% 31,726 17,444 190 5, C87 31, 273 7, 37% IF 7 E £ 4 or 206, + .. 015. 078 22, 550 19, 620 18,341 36, 605 23, 746 26, 460 15,739 9,666 1,466 2 ae 158, 138 197, 462 155, 321 173, 163 187, 413 197, 123 193, 371 130, 939 372, 648 139, 666 78, 869 57,202 74, 674 18,253 38 151 “arg 7,054 19, 210 10, 603 16, 272 3, 397 1, 548 1,835 2 440 3,054 32, 935 31, 242 7, 632 4, 147 34, 027 TL 13, 402 14, 472 2,040 0, 177 3, 433 9, 277 201 ©, 897 8, 416 3, 052 7 75° 75° 19, 708 8,980 7, 760 16, 731 16, 095 11, 969 13, 135 0, 802 2 043 ", 575 2,736 v 269 22, 037 478 3 +21 7172 ~ , 476 {, 078 1, 407 >’ 334 7 676 486 717 t 719 , 804 068 081 280 929 “48 ‘9 15, 164 12, 573 53, 841 47, 275 52, 597 40, 904 “7,818 2, 574 w' 747 02 295 aris Cry 2 71 1 89, 961 17, 266 .10, 867 23, 007 122, 034 62,413 36, 969 76, 121 38, 671 59, 672 28, 395 72,226 16, 761 90, 289 ne. 141 218 ag” 20. GAN 126, 448 532, 033 158, 474 476, 118 547, 863 552, 853 545, 737 310, 258 318, 290 198, 042 131, 483 325, 474 542, 438 389, 537 588, 043 701, 073 375, 067 726, 896 750 O15 1,465 » 862 300 260 Ca¥ 357 °y on wisi singh 6. AA ACR cil 4. 180 “1G 3. 547 2 ong od 7. 710 Merchandise leaving the free warehouses of Genoa from 1903 fo 1926 (expressed in guintals) Year Olive oil Cotton- seed oil Coffee Sugar Cacan | 1 Pepper Dries fring AIL | Total "03... 23,222 M_____... 9,543 Wooo] 35,038 Weooonnn] 9,170 Vo eaoo| 16,802 ne Clos, nr Boo. 72,202 Yoo] 74,956 leoouo...| 16,360 “T2008, 583 memnea| 70,020 eomod| 11,902 eeeo| 99,252 teen 07,300 eeeeed| 19,240 ro 847 maaan] A 20 DR 14 een 202 col) moe fee] 138,482 A... _._._| 167,628 25. ....| 217,984 Wa | 219.047 2, 380 22, 456 18, 636 22,720 8, 565 22,224 19, 039 .9, 021 30, 574 4, 140 25,972 5,912 7,917 1,935 £19 i, 754 201 282 127, 133 124, 738 129, 783 147, 442 127, 541 175, 402 106, 607 179, 878 36, 630 72,642 95, 415 300, 056 139, 539 138, 097 29, 002 58, 911 49, 703 27,420 3.627 95, 533 98, 895 20, 005 259, 580 27. 120 0, 548 5,399 16, 527 50, 606 36, 116 7,401 18, 108 8, 947 15, 702 12,759 | 11,821 L, 371 1923 ras = 77 02 31 ze 75 01 6,700 16, 521 B 9/R 3,074 3,357 10, 367 3, 998 0,201 | 2, 160 ,383 , 062 ., 860 °, 346 4,677 2, 866 5, 701 5, 737 1,272 2 691 L420 0 04 15, 466 7,489 :4, 900 11, 351 17,888 iB, 784 9,034 i8, 962 15, 893 «5, 459 12, 146 10, 779 8,772 0 348 = a17 “40 0 ” 2,757 2,834 L140, 1, 302 2757 + 559 | 936 + 541 5,736 1.062 % 575 632 7 300 +708 | 216 286 us 083 ~09 “21 , 890 1004 | 1,921 9 ARG 96, 246 101, 895 76, 038 89, 235 33, 169 31,388 19, 584 56, 502 16, 092 0,046 29,707 29, 265 23, 237 26, 133 7,594 3,711 £176 15,579 13, 508 4,320 1% 610 10,011 | 38, 519 oF 600 84,438 121, 030 109, 795 122,156 131, 420 84, 934 114, 815 114, 606 117, 253 18, 459 59, 305 127,079 151, 167 33, 456 53,797 48,200 41,653 "02, 676 50, 352 92, 280 92, 248 77, 934 126, 645 138’ 0pa 101, 162 433, 741 115, 233 150, 980 135, 049 126, 569 540, 888 191, 475 151, 209 317, 496 141,647 343, 953 783, 108 789, 358 154, 340 183, 511 322,614 464, 236 400, 179 636, 492 689, 501 6186, 480 722, 600 TOR GARB Ad 25 057 wu, 963 RB. 872 hy 9% x5 ,143 5,468 6 497 FREE PORT AT LEGHORN, ITALY [From Consul K. de G. MacVitty, Leghorn, Italy] } The free-port portion of the Leghorn Harbor was established in 1883, and in 1924 silos for the storage of wheat were added to the free zone. In addition to the free-port section, local manufacturers, In accordance with special regulations, are permitted to import raw ATORKRC—90— 17 248 FOREIGN TRADE ZONES materials for export manufacture without payment of duty. Upon application to the collector of customs, an import permit is issued to such manufacturers and the territory covered by their industries is considered in a sense a part of the free port. The present status of Leghorn as a free port is of little importance as compared to that achieved by it during the reign of the Medicis in the eighteenth century. After that period the commerce of the port steadily decreased at the expense of the commerce of the harbor proper and it was not until 1883 that an endeavor was made to revive the activities of Leghorn as a free port. Description.—The free port is located near the entrance of the harbor between the Medician port and the Coppellini Basin. (See hydrographic chart of the port of Leghorn, published by the U. S. Hydrographic Office on April 8, 1925, No. 4027.) The area of the free port is 108,114 square feet, of which 65,542 square feet is devoted to warehouses. There are two wharfs attached to the port with a berthing space of 1,048 linear feet. The warehouses are three in number with a floor space of 65,542 square feet and a capacity of 1,134,815 cubic feet. The silos above alluded to which were in- stalled in May, 1924, are equipped with 53 cells and have a capacity of 546,343 cubic feet. They may accommodate approximately 12,000 tons of grain. They are utilized in the course of public com- merce, administration of them being given over to officials of the free port. Administration.—The free port is operated and controlled by the Leghorn commune under the supervision of an officer appointed by the mayor. About 20 guards are maintained and it is stated that the annual cost of administration amounts to 100,000 lire. Operations permitted in free zone.—All ordinary operations of com- merce are permitted in the free zone, with the exception that inflam- mable materials and Government monopoly goods are not admissible, and also that medicinal products are only admissible upon presenta- lion of a permit issued by the customs authorities. Dispatch secured in unloading vessels —It is stated that the unload- ing of vessels in the free zone is carried out as expeditiously as iB the customs zone of the port of Leghorn, or in any other customs zoné of Italy as far as is known. Reconsignment trade—The principal commodities of reconsig?” ment consist of colonial goods, such as coffee, tea, sugar, spice tamarind, etc., and oils (olive oil and mineral oil). It is estimated that the turnover of reconsignment goods amounts to approximately 25 per cent of the total trade handled. The bulk of colonial goods are transshipped from other ports of Italy, although comparativels small amounts are received by direct import from the Italian colonie® South America, and the East Indies. FREE PORT OF LEGHORN 249 fpon sued oa 18 ance Yicis the bor vive the (See s» UT. ares et is port hree iy of in- weity tely COI the by 1ted ated om- ‘am- ible, nta~ nad- gq in 20Ne agn- 1cess ated ely Hods vely 168s No manufacturing in free zone.—With the exception of the blending of olive oil no manufacturing is carried on in the free port. This is due to the fact, as previously stated, that industries in the city are permitted to import raw materials for the use of export manufactures. No ship repairing in free zone.—No repairing or building of ships is carried on in the free zone, although the local shipbuilding plant, Cantiere Navale Fratelli Orlando, is permitted to import raw materials free of duty, which are made use of for the building or repairing of ships for foreign countries. Influence of free port on development of foreign trade.—The actual free port at Leghorn has been of but slight importance in so far as the development of foreign trade in general is concerned, with the excep- tion of the olive-oil industry, in that it has facilitated the mixing of foreign imported oils with the local Tuscan olive oil for the purpose of exportation. Because of the weight of the local oil and tastes of foreign consumers, it has been the practice to mix Lucca oil with oils imported from Spain and Tunis in order to satisfy the demand. The free harbor has obviated the payment of duty on such foreign oils imported which are destined for ultimate foreign consumption. Although the free port as it is at present constituted has not been of particular significance with respect to a development of the mer- chant marine, it is believed that the privilege of importing raw materials free of duty which is accorded local manufacturers for the production of goods destined for foreign markets, has to a quite considerable extent facilitated and enhanced the foreign trade from this district. Statistics. —The following figures show the movement of goods in the free zone for the years 1925 and 1926. No statistics covering similar movements for 1927 are as yet available. At the end of the year 1925, 1,558 tons of goods were in storage at the free zone, 290 tons of which were national and 1,268 tons of foreign goods. During 1926, 19,107 tons were entered, 10,277 tons of which were for foreign and 7,272 tons for national consumption. Goods stored in the warehouses of the free port at the end of 1926, amounted to 1,658 tons, of which 1,301 tons were for foreign and 257 tons for national consumption. The total movement for the year 1926 was less by 2,542 tons than for the year of 1925. There was also a decrease in entrance during 1926 of 877 tons over that for 1925, as well as a decrease in outward movement of goods amounting to 1,665 tons. During 1926, 109,724 tons of grain were handled in the silos located within the free zone, 52,971 tons of which were incoming and 56,753 tons outgoing goods. In total movement there was a decrease of 41,362 tons over that for 1925, of which 21,728 tons were incoming and 19,634 tons outgoing goods. 250 FOREIGN TRADE ZONES Harsor IMPROVEMENTS AT LEGHORN Improvements in the Leghorn Harbor, with increased dockage facilities, railway connections, and improvements in canals connecting with the surrounding country, have been in progress for the past few years. It is the intention of the authorities to make Leghorn one of the most important ports of Italy; it now ranks fifth in importance as an export port and fourth as an import port. The improvements projected include the building of an additional free-port zone with ample land to be available for the establishment of industries. The first group of improvements is expected to be finished in 1930 and will include the construction of a canal through the Vittorio Emanuele III Basin; a special dock for the landing of petroleum products; a basin having a diameter of 1,049 feet, and the building of a wharf 5,905 feet in length with a depth of 29.5 feet, and a wharf 4,265 feet in length with a depth of 13 feet, the latter to be used for coasting vessels. It isnow anticipated that the total cost will amount to 85,000,000 lire. Projected free port.—The Societa Italiana Construtzione A. M., which is constructing the groups of harbor improvements outlined above, has agreed to build at its own expense the section of the port to be used as a free zone, including roadways and railway connec- tions. The land is to be sold to industrial concerns who desire t0 build factories within the free-port zone. It is understood that the free-port section will be completed at the same date as the first group of harbor improvements. Improvements in canals planned.—In connection with the improve: ments of the harbor it is proposed to shorten the canal to Pisa and snlarge it so that it will accommodate barges of 600 tons capacity: At the present time this traffic is limited to barges of 60 tons capacity The canal connects at Pisa with the Arno River and with canals reaching Viareggio and Lucca. Improvements in the present canal system will be of great value in reducing costs of transportation? to the above-mentioned points and to a number of small interiof communities. Railway improvements.—The Leghorn Harbor is the natural outlet for the products of central Italy, but it is lacking in railway connec tions with the interior. It is now planned to build connections to the existing railways which will place Leghorn in direct connection with the main line of the central railway of Italy. When these connection? are built, the rail distance from Leghorn to Florence will be reduced from 102 kilometers to 90 kilometers; the distance between Legho™® and Bologna from 185 kilometers to 175 kilometers, and from Leghor? to Verona from 307 kilometers to 289 kilometers. The connectio®® FREE PORT OF NAPLES 251 Ze ng aw ne no al nt 130 rio 1m - of arf for nt vi, red ort 40~ to he in ve~ nd ty. i als nal ion or Jet ec” -he ith ms sed ap sr ns planned will permit through freight service from the districts surround- ing Bologna and Modena to Leghorn, greatly increasing the territory served by the port. (See attached map showing present railways, those under construction, and those projected.) Outline of the history of the port of Leghorn.—Although there are evidences that Leghorn was used as a port during the period of the Roman Empire, the actual history of the port begins with its estab- lishment by the Pisans at the beginning of the fourteenth century. In 1571 elaborate harbor works were commenced, these works being completed in 1618. During the next hundred years Leghorn flour- ished as a free city and became a haven for the oppressed peoples of dsther countries. The present harbor includes portions of construction mentioned above, further improvements being made in 1858 and 1866. New moles were built during the period from 1870 to 1878 and enlarged docking facilities were built in 1905 and 1909. Until the present Project was commenced, no harbor improvements of importance have been made since 1909 with the exception of the construction of new warehouses. THE FREE PORT OF NAPLES, ITALY [From Sydney B. Redecker, American consul, Naples, Italy] Leading port of southern Italy.—Naples is the most important port of southern Italy and of all Italian ports is only exceeded in general maritime traffic by Genoa and Trieste, the two latter serving the densely populated and highly industralized sections of northern Ttaly. The following table shows the traffic of the port of Naples during the Vear 1927: 17, 183 18, 154, 053 1,975, 134 383, 810 583, 744 592, 276 Free port at present confined to bonded warehouses. —At present the So-called ‘‘free-port’ facilities of Naples are confined to merely a free space or zone covering about 2,000 square meters, called the “Punto Franco.” However, this is a free zone only in the sense that Ww this section are situated the bonded or government-controlled Warehouses, or ‘“‘magazini generali,” for the storing of foreign mer- thandise without the payment of the import duty. Merchandise to de stored in the magazini generali must be accompanied by a special Permit issued by the customhouse and the transfer of goods into and but of the warehouses is supervised by customs agents. Number of vessels calling_ Tonnage of vessels calling (gross) _ _. Cargo loaded (metric tons) _. Cargo unloaded (metric tons)_________._ Passengers embarked. ___ Passengers disembarked _ . 252 FOREIGN TRADE ZONES Purpose of warehouse.—The merchandise usually stored in the magazini generali consists mainly of such products as sugar, coffee, mineral oil, machinery, etc. The purpose of the storage is usually for purposes of mixing various substances imported from abroad pre- paratory to subsequent exportation, these facilities saving the trouble of making payment upon imports which are destined for reexporta- tion. Naples is not an important transshipment port and only a small quantity of the goods in the magazini generali are reexported in iden- tically the same condition as imported. A certain amount of goods are also placed in the bonded warehouse to be delivered locally upon instructions of the owners of the goods. As under this system the import duty is paid only when and as the goods are delivered out of the custody of the magazini generali, this system saves the owners the expense of paying the import duty before the time the goods are actually sold or delivered into Italy. The manufacture or trans- formation of goods in the magazini generali is forbidden. Warehouse of limited importance.—It should be stated that the magazini generali in the port of Naples are not of particular impor- tance. There would not seem to be any great demand in Naples for a free port such as exists in other ports and there would appear to be little enthusiasm locally for the establishment of a complete free port Owing to the fact that the free port is at present confined merely to the magazini generali, as stated above, there are no special regula- tions governing the administration of the zone. It is believed that several years at least will probably pass before the establishment of complete free port in Naples and it is as yet too early to hazard even a guess as to just what will be accomplished in this port in the direction of extending the free zone. THE FREE PORT OF TRIESTE. ITALY [From Vice Consul Howard A. Bowman, Trieste, Italy) History —The organization of the traffic movement of the port of Trieste was ceded by the Austrian Government to the municipality and the chamber of commerce of Trieste on April 10, 1880. At that time the whole town was embodied in the free port and the Magazzin? Generali, a warehousing company founded by the above-mentioned institutions, was a prosperous undertaking. In 1886 the Vienn® Government suppressed the free port and instituted a free zone which began to operate on July 1, 1891. Three years later, on April Ll, the Magazzini Generali became a State concern with a wide autonomy but maintaining its commercial character. The loss A traffic caused by the suppression of the free port was compensate by an increase in the work at the shipyards promoted by the intro” duction of premiums on shipbuilding, with a 10-years’ exemptio? WAR DEPARTMENT U. S. SHIPPING BOARD ~1 bls : oan Ser Lr aGD. Or WY. NG ps hE ri 17067°—29. (Face n FREE PORT OF TRIESTE 253 from rates and taxes. The Magazzini Generali instituted the ware- house receipts-loan service, reduced tariffs, and granted preferential custom duties on goods imported by sea and destined to the hinter- land, procured competitive railroad freight rates to northern ports, and accorded free warehousing to some of the export goods allowing various minor facilities. The effects on the Trieste traffic were felt immediately, and the whole port became congested. A new free zone was erected in the southeastern limits of the city and huge construction works were carried out until the whole plant grew to its present size, under the single control of the Magazzini Generali, covering to-day an area of 350,000 square meters of floor space. Description.—The free zones are located on either side of the town, extending along the northwestern and southeastern limits of the town along the water front. Both zones have a railroad terminal linked by a rail line {or the interchanging of transit cargo. The area of the free zone covers 954,000 square meters and on completion of the Mole VI now under construction will be increased to 1,155,330 square meters. It has also over 9,000 meters of mooring space along wharves and jetties, which are provided with sheds where goods are placed temporarily before delivery or reshipment. In the free zones are situated the warehouses proper, which are several-storied buildings, partly owned by the Magazzini Generali, or Bonded Warehouses, and partly by private concerns. The Mag- azzini Generali, dispose of 92,953 square meters of sites on wharves and jetties and 256,483 square meters in the depots, which have cel- lars, ground floor, and two to five stories. The total covered area of the Magazzini Generali is 350,000 square meters, with a capacity of 501,000 tons, and is composed of 161 buildings, 27 wharves, and 44 depots, as well as numerous buildings for the customs and offices. For the requirements of loading and unloading, a system of railway lines of a length of 10,976 meters permits operations on the wharves and jetties and alongside the warehouses with an additional 48,800 meters for shunting operations. Railway terminals connect the free zone via Mestre-Venice with Italy and southern Germany through the Brenner Pass, via Milan and Domodossola with France, via Postumia with Yugoslavia, Austria, and Czechoslovakia, via San Pietro del Carso with Hungary, Rumania, and the Balkans. The port of Trieste is divided. into four areas: 1. The free zone Porto Vittorio Emanuele III, northwest of the town or the old port. 2. The free zone Porto E. F. Duca d’Aosta, southeast of the town or the new port, 254 FOREIGN TRADE ZONES 3. Porto Doganale, customs port in the center of the town along the quay front, used for national goods and wines. 4, The depots at the Arsenal of the Lloyd which, since 1910, wers turned over to the port authority. The following tables give particulars as to the areas, dimensions, warehousing capacity and railway terminal service with indications as to the mechanical equipment. Ep Vittorio Emanuele Porto 4" Aosta... Porto Doganale. cc... Ex-Arsenale Lloyd. ...._. Potal. oo rcsnusnimive Areas utilized in sheds and depots Square meters 48, 019 11,022 2,595 Sguare meters 203, 540 26, 543 5,012 02 {NA 90,536 | 258,000 240, 436 Capacity of sheds and depots Tons 333, 535 ‘15, 560 13,693 nq TAR 501, 531 Uncov- ered areas for “ommer- cial use Square meters 15, 200 a 900 12, 370 a5 470 133 030 Railroad lines Along wharves Shunt- ing lines Meters 3,39 3,200 4,380 Meters 30, 340 12, 180 4, 380 1,920 48,800 | 10.976 i Plat- forms Turn- tabies 138 108 18 46 13 14 7 189 175 MECHANICAL EQUIPMENT Porto Vittorio Emanuele III. Porto d’Aosta__ no coeenenn-. Arsenale Lloyd... ........... Total. eccrine Weighing platforms’ Cranes on wharves For rdinary vehicles For railroad trucks Fixed ranes in depots 1.6 bons” ! lift 3 tons’ tft 6 2 192 rt 18 83 20 6 8 | 1081 103 Swing- ing cranes, 120 tons’ lift Floating cranes 40 25 tons’ | tons’ ft lift ] A 1! 1 . i Hydraulic. } Electric. Grain-discharging apparatus, 17. Number of buildings Name of zone Porto Vittorio Emanuele TIY (free zone). -——--.- Porto E. F. Duca d’Acsta (free zone). ___...__.... Porto Doganale (customs 10] 1) J SR Ex-Arsenale del Lloyd (free BOTY jo mimics, sss somes Other sites __..__.__... Petroleum port... __.. Total ooo Grand total. __.____.. increase after construction of Mole VIL... Total ares Ares of piers Square meters 46. 280 430, 330 Square meters 95, 198 147, 826 32, 762 77, 600 954, 210 265, 786 201. 120 | 201, 120 Area of basins Lesgte o wharves Square meters | 195, 818 134, 800 290. 979 | Meters 3, 666 3,153 4.629 1,204 2 800 551.300 | 16,341 TT Area occupied by build- ings Sheds Depots Other build- ines 62 19 1 em 8 Tw ul ow = 0 Square meters 143, 228 51,791 9,154 a1, 517 248 032 org Dv owed 0s T Hli1 FB © = NRE BE<4Sd elite 2 od ged > BY WRAL LT Gn by =" | QieorEE El ae | wo rial <i ~ | 88 g£ 2 @ = mn» © [41] 8 1 FREE PORT OF TRIESTE, ITALY. FORDSON TRACTORS IN PORTO VITTORRIO EMANUELE II FREE. PORT OF TRIFSTE. ITALY. VIEW OF WARFHOUSES. PORTO VITTORRIO FMANIUFI FE 111 FREE PORT OF TRIESTE 255 Administration.—The commercial organization of the port is exercised by the Magazzini Generali under whose independent adminis- tration all loading, unloading, and warehousing operations are effected. The concern begins its functions from the moment the goods are lifted out of the vessel’s hold or the railroad truck until delivery or forwarding by rail or sea respectively, including insurance of the goods stored awaiting disposal. The maritime control is exercised by the harbor master’s office, and the railroad movements are con- trolled jointly by the Magazzini Generali and the State railroads. Operations in Trieste consist entirely of direct loading and unloading alongside the quays and piers to the exclusion of lighterage excepting & few transshipment parcels and coal lighterage for bunkering pur- poses. The bonded warehouses are managed by a board representing the Government, the municipality, the chambers of commerce of Trieste, Udine, and Pola, the railroads, the office of public works, the Shipowners’ Federation, the committee of Trieste forwarding agents, and the Harbor Workers’ Association. They are controlled and operated by various departments dealing with the import and export sections of the traffic, and with the rail and sea communication respectively. The main section deals with the technical management, construction and repair work, the latter being carried out by the office of public works under surveillance of the Magazzini Generali, the harbor office, and the railroad administration. The guarding of the vast plant is carried out by 500 private guards, and by a large number of customs officers and police executives. Customs and police guards are paid by the Government but a special tariff comprised in the han- dling charges provides for the cost of such surveillance.’ The administrative staff comprises’ 142 persons, 905 laborers and foremen, 357 of which are employed by the construction and mechani- cal section. The annual cost of the administration amounts to approximately 31,000.000 lire ($1.550.000), which is covered as follows: Government grant. o.oo... ooo... Rn mm ——————————————— Railroad contribution. ~..._._.__._.____._..." mmm m——————— Jovernment Works Department... o.oo. remeemnca——— Rents of warehouses to private concerns_...____.. _. ee emma Iicome from overations cr Ota) cee eee eee _ Lire 5.000 000 “0, 000 J, , Loin, 00 0 BY). ONC 21. 000. 000 Equivalent in United States AIITeney $250, 000 25, 000 25, 000 295, 000 1, 025. 000 1, 660, 000 256 FOREIGN TRADE ZONES EXPENSES, IN ITALIAN LIRE General expenses and interest on capital. ._._ Operating expenses: L. Personnel’s wages, eben 2. Materials and supplies... _. ——— 3. Commercial operations... ..._. ————- 4. Various charges, cost of maintenance ...._... 5. 600, 000 9, 900, 000 3, 000, 000 0, 500, 000 2. 000, 000 25, 400, 000 Total... 31, 000, 000 Operations permitted in free zone—In the free zones are permitted all operations of traffic, manipulation of goods and industry in which no alteration of the substance of the original article is involved. The most important are the manipulation of tobacco, requiring sorting out, packing and forwarding; coffee cleaning; and motor-car assembling. In addition there are special facilities for the warehousing under bond prior to the importation of the goods within the national customs barriers. This operation enables traders with foreign coun- tries to store goods until they are sold either at home or abroad. A lumber mill has been built in the free zone. The building was erected by the company on ground which is given free of rent for 10 years, but at the end of that period the property of the building reverts to the free port. Operations prohibited in free zone.—No industry, which in course of manufacture alters the substance of the goods involved, is per- mitted. It may be stated, however, that a scheme is in course of consideration to modify this rule for the purpose of increasing trade in this port, which is becoming rather precarious owing to the com- petition of the North German ports. Dispatch in unloading.—The Porto Vittorio Emanuele III is the more extensive and technically better equipped with cranes and lifts worked by hydraulic pressure from a pumping station equipped with accumulators. There are 87 cranes, of which 4 are of 3 tons’ capacity and the others of 1.5 tons. The latter aro in process of being strength- ened to lift 2.5 tons, in view of the increasing arrivals of American automobiles exceeding 1.5 tons in weight. Some 43 of these cranes are already in operation. There are 88 cargo lifts and 4 fixed hy- draulic cranes fitted to the upper floors of the depots. The hydraulic cranes are of the Bremen type No. 1885 and the derricks can be turned over an angle of 320°. The Porto Emanuele Filiberto Duca d’Aosta is, on the other hand, equipped exclusively with 24 electrically driven cranes, 4 of which are of 3 tons’ capacity and 20 of 1.5 tons. There are also 16 electric lifts fitted on depots. The electric cranes turn over an angle of 360°. . Cargo is lifted by means of slings attached to a conical chal? acting as counterweight on a hook fixed to an iron chain of 10 meters ct ~~ en Hot = © AUR 0 oo Q os PTS @ og SS 2 EES ME. - S ETB EBS ees Ee 2 "R 5 $ EoaBcdEg 2g . wn ’ © + or a oo Bf 2 Ted ToEgEEBaERE Bagfi oR BEEmEESE 88 = FREE PORT OF TRIESTE, ITALY. VIEW OF HYDRAULIC CRANES IN PORTO VITTORRIO EMANUELE. HI FREE PORT OF TRIESTE 25% in length. The latter serves to prevent the wearing out of the slings and the former to lessen the oscillations of the hook. The following table indicates the average daily discharge within the free zone: Articles from ship’s hold Ore pyrites, bauxite, coal, etc., in bulk into open rail- way trucks. Ore in bulk into closed trucks, phosphates, sulphur, ete. Grain in bulk into closed railway trucks _._.._.._...__.. ge in bags into sheds (man lifting) coffee, rice, seeds, ete. Valo goods into sheds (man lifting), figs, quebracho, etc. DP ODACCO- oo oo cence emma Various goods into warehouses with hand trucks. ___... Grain in bulk from automatic weighing machines into railway trucks or sheds, including bagging. Ou ___ oo Number of oper- ations ner hour 25 25 22 18-21 18-20 18-20 18-20 18-20 1 18-20 Weight of each lift Quintals 8-10 5-6 8 10-13 12-14 7-8 mR £9 5-8 Average weight per hatch ner day Tons 160-200 100-120 140 180-200 200-220 100-120 100-120 140-150 00-100 Means utilized in the discharge Wooden buckets. Do. Bucketsand bins, Rope slings. Chain nets. Do. Rope slings, chains. Buckets or bins. Baskets. LOADING AND UNLOADING WITHIN CUSTOM PORT Nature of cargo Corals, oilseeds, excepting ground nuts and oats in ulk. Cement. .ocueeevvanc-. [OF:7:) Coffee...._.. Coke... Cotton: American and Indian... .. pr Bgyptian. oo eee Ground BUS. oon from, old, broken up, light packed, or loose_._......_.. ron: [0] 1 Blo mamas Dats, in bulk __. Petroleum ®._____.___...... . Phosphates...co.o_... Lumber: a a ee Sawn logs. -. # Poles. comma. wh BRR Hard timber... EE SN RRR DAVOS. gs wae we ws RS RAH mr Soft timber, full Jogs. «o.oo ooo. Hard timber, full logs. «oon. 0B. oc eee meen Sugar... emma m———— Sulphur. o.oo... mm ——— Sulphur... ____ Packing Unit of quantity Baskets. ___....... Tons... ..__....._. PUES. ecsnn wasnt Frwmmsas sons BARS onsen wwe Doyen ang Dcimmwmommps (sewn Iemmnamih aes alk CLIT 3AES.... 4 tre tm er me 3ulk_.. 5 —_. Bales... ....._.. cme. BABS emcees Bales... _........ woe n@O LL. BONE. cos crisis do... __..___. Heavy packed. _. Jaskets_.._..___. 30S. coca. | :: TR 2088S. eeamcaone- IR ee ies si mms sas l10e emt mm mmm mn pmen=Oe ceflOn adr BIR sarin Ton. —— Cubic meters... ean lO. — TONY. ii sd iiiimbiimn ee e000 Jubic meters... cen O POT ecm vee” Vem mer wor Wm I « _ Bags. vores aii gO ser ss srs Bulk. cen nn 38S eee, Daily quantity per hatch 1 30 130 150 100 125 160 75 B50 300 70 30 70 125 60 80 100 2, 500 110 30 70 : 160 160 100 i154. 1 General cargo and asphalt, tar and other resinous substances in bulk, as fast as ship can deliver. Ores and minerals, vessels with 4 hatches: 140, maximum 700 tons; more than 4 hatches, 150, maximum 700 tons. ? At San Sabbas oil port. Reconsignment trade.—The inclosed statistics give the figures of the recomsignment trade in the principal commodities for the year 1927, indicating the sources and countries of destination. AR FOREIGN TRADE ZONES Pyrites BY RAIL [In quintals] EXPORTR Austria. ______._._._.. Czechoslovakia_ oo ______._._ Yugoslavia_ ___ Total 340, 006 49, 144 1, 169 _____ 300 319 BY SEA [In quintals] IMPORTS [taly.. ..._. Cyprus._____. Greece_ _ _ _____. Total 39, 090 207, 460 180, 960 49% B10 Automobiles, tractors and parts BY RAIL [In quintals] [aly meee oo Austri. oo... en Belgium ._________.._..____. Czechoslovakia .____________ France. ooo. Germany... _____._._ Yugoslavia... _..._._._._.__.____ Switzerland... _____ Hungary. ... eee. Other Countries... ..___._._. TMPORTS 3, 29¢ 701 & 96 1, 047 1, 10¢ o ‘ 51 23 8, 495 EXPORTS Tally ecco .____ 30, 903 Austria. _... eee 2,920 Sulgaria_______. J 77 Jzechoslovakia. cee 11,183 JETIANY «mee 197 Jugoslavia._________________ 11, 537 Jumania__.___..________..__ 8, 457 Switzerland. _.... .___._____ 63 Hungary... . 27,789 Belgium. 8 ee. 88 224 1 BY SEA [In guintalsl aly mee eee Belgium__.____.______._..__ ED ccm sm TNE i it 55 eo ermany - «eee ‘reat Britain. _ _____________ ITORCO eee Vugoslavia._________________ Netherlands... ance PE NTIY i, gs oe He He mm ¢ Jnited States. ..____________ 82, 987 Turkey oe oe 10 Other countries. oom 63 55 2, 510 1, 360 21 te7 Q/ Total cove _... 87,430 Grand total of imports... 95, 925 Ttaly__... mm Albania, . J Arabia o.oo. Argentina__.. _..__________. Bulgaria... __________ Nodecanese. -_...__..__.__._ 7 mee Eritrea____. men LT@BCO - «ooo English East India. __._____ “ugoslavia._..______________ malta oe __ Tesopotamia. ______.._______ oumania_ _____.. _______. Qussia «oe Syria... _.__ Tripoli_ _ ......__ Turkey... __.... Other countries. _ 1, 803 1 415 5 16 158 117 3, 447 178 1, 162 204 I. 616 216 20 796 690 338 203 2, 571 275 Total... ..... Is, 230 oe Grand total of exports. _ 106, 454 FREE PORT OF TRIESTE 259 Cereals BY RAIL [In quintals] 06 144 RD 219 190 160 3IA0 510 903 320 77 83 97 337 1657 63 789 R 294 303 115 3 0 58 17 147 78 162 204 316 216 20 796 590 338 203 571 78 130 Maly oo _____ Austria____.___ emma Czechoslovakia. _._________. PPANCE o_o. XErMANY _ oo Yugoslavia __________._.__.. Hungary____ Rumania, IMPORTS 13, 194 3, 557 186, 281 2 640 3, 064 4, 488 150 aly... ci imi sim m mmm Austria... _____. ________._ Czechoslovakia___________ Franee_ ______________ Germany. .._._._. Yugoslavia_.___ Switzerland _ _ Hungary. EXPORTS 407, 619 508, 948 216, 462 407 5, 223 1, 522 2 518 20 oo. 1,142 719 Total _ 211, 376 1 "Total BY SEA {In quintals} [aly ee oo Albania ________________ Argentina._.._________..___ Bulgaria__._. __.._._______ Germany... .___._._______ Netherlands... .__________ Rumania._ _ meme Russia. _____________.__.__ United States... _____ Other countries___ ___o____ 3, 009 4, 841 199, 128 5, 428 2,713 913 364, 293 176, 224 71, 600 7 110 ses iim te wi Ent Albania_ ________________ Central America... __.___._.__ Argentina... ._________ Brazil __ ema China... _.. Egypt... - France__.______. Greece... Yugoslavia _.________ Portugal... Tripoli... ______._ Other countries... 55, 245 89 6, 584 6, 865 159 2, 503 11, 391 980 7, 843 45 2, 260 1, 534 860 Total. - 96, 308 Grand total of ex- ports. .-. 1,239 027 Total. .- 1,135, 259 Grand total of im- ports__ _. 1, 346, 635 | Coal BY RAIL [In quintals] ITMPORTH TXPORTR [taly. _____ mee Austria. ______ EE Czechoslovakia___.._______ Germany - -ccceeo nooo Yugoslavia____ Poland___... Hungarv. . 102, 550 83, 098 618, 665 8, 695 8, 239 1, 130, 528 11, 629 oe __ 1.963. 404 aly oo. Austria. _________.________ Yugoslavia. ________._____ Sther countries _ 661, 042 5, 903 50, 055 41 Total. . | Total... 717, 041 BY SEA [In quintals] [taly_ ._.__._ SH ot Great Britain. ___.____._ Yugoslavia___ Netherlands... ____ United States___. . Capetown. 245, 527 2, 910, 251 26, 590 860, 237 236, 729 2 990 Italy. enpunms 1ST J22 Albania... _____._. 399 Great Britain. ___.__.. __ __ 745 Yugoslavia_______.____.__ 66, 551 Tripoli occ 5, 402 Other countries... ... .. 19 .-- 210, 238 mem Grand total exports. 927, 279 Total. _ 4,282,324 Grand total \iporis. 8. 245. 798 54 260 FOREIGN TRADE ZONES Coffee BY. RAIL [In quintals] TMPOHRTS [taly. oo. Austria ooo. o_o __ Hungary. _ oo ______ Rumania_ _._ oo. Yugoslavia em 707 47 Maly. _____________. Austria__.____. eee Czechoslovakia___._________ Yugoslavia___________.__.___ OLTINNY iim 500m cin iim mii Switzerland _______ _____ __ Jungary._.._ J STANCE ooo Poland__.__ Rumania EXPORTS 54, 363 56, 733 42, 386 12, 367 1,325 663 19, 462 15 2, 544 2, 684 192. 542 ‘ ar IRE Total___ __ 772 BY SEA [In quintals] Total [taly.---. emma Aden____.___. mm Central America... _._______ Belgium____ Brazile nom moms mmm ii woe BD 0 me er om st im 0 mi Beypt. coe France_ ooo ___ Germany... ._..._.__ me Great Britain__. _ ___________ British West Indies. ________ Dutch West Indies. ____.___. Yugoslavia_ ____ em Netherlands. _______.__..___ United States. _ ooo oeonoo Other countries. 309 036 311 178 388 755 364 316 2, 458 L, 215 1, 067 1, 728 46 3, 950 7, 407 234 Italy. _-. mn Albania_. mn Arabia___. men 3elgium._ _ i fulgaria.___ A hina ooo. YPTUS. Coe Yodecanese. .__-___________ EYP eee JORG <i mnaminsiosin wi iion ugoslavia_ RE UBIEEL ee iin mets, im i Sim 0 Netherlands. .. ee Jumania. ooo o_o. soris MM. eo Tripoli. .____.._ mm Tonle mes comms sms Turkey_________. ie Other countries 34, 604 6, 578 30 146 1, 655 20 1, 214 2, 148 7, 737 10 67, 366 615 127 5, 294 1, 803 404 808 9, 219 —- 45 Total _ eeeeee--_ 160, 051 Grand total exports... 352, 593 JOR Total. _ ____._...___ 340, 262 Grand total imports___ 341. 034 | Magnesite BY RAIL In quintals] IMPORTS 7:1 Austria... _______ Czechoslovakia... ____. Hungary. cocoon Other countries. 7 554, 666 101, 858 4 826 [taly.._.._.. Austria Total .__.. .. .. ...._ 657,861 Total. 11 The Soria designates the Mediterranean seacoast of Asia Minor. EXPORTH 786 15 201 FREE PORT OF TRIESTE Magnesite—Continaed BY SEA [In quintals] 261 EXPORTS 363 733 386 367 325 363 162 15 44 184 342 Italy o_o Portuguese East Africa......_ Argentina_____. as BT le tosses smn mien Great Britain____.____.____ English East India. ..._____ Spain. __.___._. United States. 106 841 1, 733 1, 605 126, 468 3, 162 12, 383 476, 267 . 623, 840 Grand total of exports. 624, 641 Raw hides and skins BY RAIL [In quintals] 304 578 30 146 55 20 :14 48 787 10 366 315 27 204 303 104 308 219 45 151 93 "86 fH OL IMPORTS 9, 287 126 112 4 201 4, 10¢ 2 1. 603 EXPORTS Ttaly._ _____ Austria__.__ Ballin. osasminn imines wish Czechoslovakia. _______ Franee_ _ _ eo. __ Yugoslavia. ___..__________ Hungary. - ooo Other countries _ Ttaly.._. Austria_______ mae Czechoslovakia __________ France_ ___.___. a Germany _____.__..___.__._ Yugoslavia_...___________ Switzerland ___ Hungary. _____. Other countries 7,181 4, 668 23, 752 1,775 11, 692 21, 609 3, 686 16, 104 3 666 Total -- 15,624 BY SEA [In quintals] 5, 928 146 2, 750 742 399 L, 002 322 827 675 83 1, 446 1, 661 1,473 32 16, 771 14, 962 2, 953 2, 257 7,399 208 5, 294 1, 199 3, 969 110 B56 Total 94 133 aly. .cuu. Aden..__ Albania. _ _ Argentine. _ Belgium___. Brazil __. Bulgaria _.___.__ China___. Cyprus._..__ Eritrea. _ .- Egypt. oo ___. France___ mee ao Germany. o_o... Great Britain. .. meee rO000 oe sai igi imo asin British West Indies_._______ Dutch West Indies... ._.__ Yugoslavia. ______________ Netherlands... . - POrgiil c.. coo sss BOT osm iin United States_ ____. Turkey. ooo. Uruguay... ____ Other countries Ttaly__.. Albania._. Bulgaria_. France. __. Germany. .________.__._._. Great Britain _ ee Greece. o_o. _._ Yugoslavia... ___ os Netherlands________________ Rumania. _.____ a United States... ___.__ Turkey. coe Other countries. i 1, 508 22 447 274 396 425 460 4, 313 182 728 8, 431 30 164 Total _ _ _ _. A : ¥ 176 Grand total imports. 88. 800 er ee—--_ 15,380 Grand total exports. 100. 518 a o- on a WN FOREIGN TRADE ZONES Glass and crystal BY RAIL [In quintals] TMPORTH Italy. __.. v———— Austria... ______________... Czechoslovakia ___________. Franee_ . __________________ Germany _ coe Yugoslavia. ________.____. Poland. _ iia... Other countries... _._ Total. 21, 540 12 104 39, 279 136 17, 658 18 717 <3 "192. 535 EXPORTS Ttaly.__. ——- \ustria._____. mmm el Zzechoslovakia_. ___________ TTI cst om 530, ree Yermany . o_o. ___.__ Yugoslavia_________________ Switzerland_ __ _____________ Hungary _____.. __.._____ Other countries. Total 7, 467 75 304 4 21 89 26 44 17 _ 8 047 BY SEA [In gquintals] [taly._ coo... Albania_. _. Belgium. ..c.nvnnn sommmmmes Egypt ool. Germany _ —..___________.___ Great Britain. __._______. _ Greece. _ io British West Indies________. Yugoslavia... .._._____._.._. United States. _._._._______ Other countries... enw { £454 814 698 21 12? 4% a 1t 107 5 112 Total... 6,414 Grand total imports... 198, 9490 [taly.__. Aden... Albania. _.. Algeria__. Sulgaria__________ China_._.___ [0574 0) 1 TS HOB. ou vn mimi is, Dodecanese. ___._________._ dgypto______. IR France_.____. mm Japan. _ —— POD rt tm Rm HER BERR British West Indies___._____ Vugoslavia_____.. ___.__.__ Falta, ooo. Oroeeo. een. Mesopotamia___________.___ BOTIR cris 5 i wis wis wi, ET United States. __.___._..____ Tripoli. oo... Tunis. .___.___._.__ _.___._. Turkey Uruguay. coos com cummins Other countries... ________ _ 138, 14] 146, 188 6, 127 723 2. 830 378 43 1, 016 2, 143 292 673 31, 479 85 54 12, 977 39, 895 1,732 968 300 1, 430 13, 668 260 1, 863 1, 336 16, 517 9 1, 343 Flour BY RAIL iIn quintals} IMPORTS [taly._ __.___ f———- Austria... ___ Czechoslovakia. ________ Germany - «oo vcceveeeeean Yugoslavia_.. Hungaryv.__ Total 273, 857 137 59% 1 - 3, JT€ 978 099 EXPORTS (taly..... Austria. ______________. Czechoslovakia __._.____. Germany _ o_o. Yugoslavia__ a Tota, 40, 008 61, 607 +n, 090 1, 661 4 024 117.390 FREE PORT OF TRIESTE Flour—Continued 263 BY SEA [In quintals} 37 75 M4 4 21 39 ’6 4 17 47 IMPORTS FRBAY cm ii ie mii 0 me em Bulgaria.__.____ _____.____ Canada._______.____________ France ________________ United States. _.__..____ Other countries__ _ 95, 951 4, 807 2, 861 473 99, 006 130 Total _ ____._________ 203,228 Grand total imports... 482, 220 EXPORTS Ttaly _________ ——— BYP im Greece. ________. Yugoslavia... ___ __ Soria_.___________ Other countries. _________ 15, 970 2, 479 225 1, 368 279 1 61 Total ____.__________ 23,383 Grand total exports_.. 140, 773 Raw cotton BY RAIL {In quintals] 27 23 30 R 4 42 73 79 35 54 77 95 32 98 no 30 38 60 63 36 17 9 1 1 08 07 90 61 24 Jl) IMPORTS EXPORTS Italy _..__. Austria__________ eee = Czechoslovakia ____._________ Germany... cocoon. Other countries. __ 8,174 454 188 8 55 Ttaly._____. 78, 979 Austria... _____ 74, 024 Czechoslovakia. _. 241, 000 France__..____ eee 60 Germany... _..____________ 116,679 Yugoslavia.._______. 54, 036 Poland. _________. _. 46, 910 Switzerland. __. 733 Hungary. . 3, 292 Total. oe... 610,713 Total. _ 8, 873 | BY SEA In quintals] [taly__._ ee i a eee BT Phos wn esi sim se rs Great Britain_ _____________ Greece. moo ooo British West Indies. _______ Soria. ____._.__ ee Spain... .________________ United States_____. Turkey _____.______. ___._ Other countries. Co 14, 226 237 268, 783 21, 422 1, 177 282, €N9 2, 930 NA4 71 JS, 4 1, .10 Ttaly__. 140 Albania _ 216 Egypt_.___.. 102 France__.__________.___. 19 Great Britain. 167 3TeECe._ ool 2, 562 Yugoslavia... - 294 Portugal __._______. - 222 Soria_______._._ - 45 Spain. ___.___. ee 41 Turkey. ________. mm 20 Other countries. .____.__.__. 156 Tota), ooo cnn sim memm 3, B54 Grand total exports... 614, 697 Total. ______ 635, 704 Grand total imports___ 644. 577 Frozen meat BY RAIL {In quintals] TMPORTR Ltaly. oo .___ Austria__ Co 3, 802 169 EXPORTS Ttaly oo. _._.__ 31,309 Argentina_.___._ cemmmmmn 206,902 Geran «man ss vmmmmn mms 652 BR. R863 Total... .... -... 3. 971 47TORRC—20—___1IR 264 FOREIGN TRADE ZONES Frozen meat—Continued BY SEA [In quintals] IMPORTS [taly Argentina. _._. Australia. ____.____ ______ Brazil. ________________. United States_ __________. Capetown _____________ Uruguay.___ i 56, 314 2, 838 1. 831 700 , 227 s3, 830 Total _______________ 106,741 Grand total imports... 110, 712 EXPORTS [taly_ ——- 1,351 Total... _._ 1,851 Grand total exports... 60, 214 Oranges and lemons BY RAIL [In quintals] IMPORTS Italy. ooo 225,991 Other countries____. .. . _ 32 EXPORTS tally... \ustria.___. Czechoslovakia_ _ _ OTANCE _ _oommil mmo Germany... ____________ Yugoslavia_ ____.____.____. _ Poland... _____.... Hungary... __________. Other countries_ _ __ _ _______ 11, 231 24, 400 197, 929 448 42, 161 43, 404 59, 845 31 752 3, 579 414, 749 Total _ . 226, 023 | Total BY SEA [In quintals] 232, 440 Ttaly oo... oooh cmmeeaae 1,511 ' Greece. ___._______________.. 6 Yugoslavia... _..___________ 2,280 Turkey.... usesumssmmmmsm 41 Other countries. _____._. . 882 237, 169 463. 192 [taly_ oe. Dodecanese. ....___ _____ Baypl..conmommmmmmmmmmn se (reece _ _ imeem S10) u 1: SS Other countries. _ __ ___.____ 1,421 42 4, 906 195 24 Total . _ _ _________._ Grand total imports__._ Total _________._._.. 6, 588 Grand total exports... 421, 337 Phosphates BY RAIL [In quintalsl IMPORTS aly. conus Germany. _. 1, 833 1 Italy... .____. mm 152 Czechoslovakia. ___________ 101, 370 Yugoslavia ABE ig 101 101. 623 1.834 - Total. BY SEA [In quintals] 5,160 12, 800 36, 510 29 350 ftaly_ eee Algiers. _..____. Morocco _ __ .._______. Tnited States oo Total 108. 820 Grand total of imports. 108, 454 FREE PORT OF TRIESTE 265 Rice BY RAIL [In quintals] 351 351 514 Italy. __._.__ IMPORTS .. 248, 812 EXPORTS ltaly. ___ FE, Austria. _____. ___________._ Czechoslovakia. __.._______ Germany... ___________.___. Yugoslavia. _____._________ Poland... ______________._ Rumania. ______ Hungary _ _ France Total 21, 334 24, 332 108, 120 1, 601 17, 952 443, 291 4, 997 4,723 _ 626, 351 BY SEA [In quintals] 231 100 329 148 161 104 345 752 R70 240 421 42 306 195 24 388 327 152 370 101 [taly. __.___. — Eaypl consms seh Germany... ____________ British West Indies_________ Netherlands. . mee Siam... _.. United States_ ____________._ Other countries... _______ 1, 058 33, 452 272 390, 200 660 20, 000 1, 535 30 ltaly__. Albania. _. Argentina. _ Cyprus._._. Dodecanese ._ Greece. _____ Yugoslavia... Malta____.________. Rumania_ __ Soria. _________ Tripoli. ______. Turkey... _______ Other countries 8, 354 19, 372 2, 100 1, 038 1,014 42) 214 59, 835 585 6, 282 1,426 38 5, 323 792 o-.. 148,373 Grand total exports.__. 774, 724 __ 447,207 Grand total imports___ 694, 019 Total Sugar BY RAIL {In quintals] IMPORTS EXPORTS [taly______. Austria__________. Czechoslovakia_ ..__ _. Yugoslavia.._. Hungcarv._ 7, 244 1, 065 129, 935 300 =x, 520 .--- 1, 183, 064 Italy... ___. ceeee- 134,269 Czechoslovakia .._.__._.__ 1 Yugoslavia___ _ 1. 812 Tats? Total 135.882 103 +e J FOREIGN TRADE ZONES Sugar—Continued BY SEA (In quintals} IMPORTS [baly. ool England __.__._____. _.___ Turkey. ooo ____ Albania. . ___.__.__.____.. Boyt. npmnmmmmmmmeenmns Netherlands. oo coocco cee 31, 590 7 14 80 801 100 EXPORTS. taly. oo. Aden.__ \Ubania.. ..___.________ \lgeria____.. _ .- \rabia_ ____________.__._. 3ulgaria__.._.___ China________ SYPIUS. ome. . Sritrea ooo .._ Dodecanese... _.__.__ YP ee STANCE. _ ooo reat Britain... _________ ITEC. «moomoo 'ritish West Indies_______ Canary Islands. _..__.___ ‘ugoslavia..___________._ Talta_____ meen OTOCCO mo ooo viesopotamia__.___._____ tumania___.__________ RAVICIT: NE Soria. o.oo. __ I'ripoli.._._.._ Punis. o.oo... __ FMurkey_.__.... Truguay.__. 101, 185 8, 787 39, 727 14, 490 17, 350 399 1, 470 15, 869 32, 441 10, 558 67, 149 1, 633 7, 255 329, 709 53, 646 3, 100 24, 585 12, 660 2, 069 6, 108 1,703 9, 600 88, 512 18, 892 803 231, 105 1, 515 - 1,087, 031 Grand total exports. 1, 222. 713 62,502 Grand total imports. 1, 245, 656 | Sawn timber BY RAIL [In quintals] TMPORTS {taly._ __.o___ man Ausra... «une ewesosmmmen Czechoslovakia__ _._.____ Germany _ _ ooo... Yugoslavia. _____________. Poland... ___________ Other countries_._._.___ 148, 358 3562, 513 19, 929 215 660, 035 1,134 223 Total_ --- 1,182, 407 EXPORTS Ttaly_ __ ._... Austria_...__.________. . Czechoslovakia. _________ Germany. o_o ..___.__._ Dther eountries 36, 243 1, 991 3, 571 160 ~86 Total _ 42.731 FREE PORT OF TRIESTE Sawn timber—Continued 267 BY SEA [In quintals] 35 37 27 20 50 99 70 69 41 58 49 33 55 Ng 46 10 85 50 59 8 J3 00 12 92 03 05 15 a1 1a IMPORTS [taly. ooo French West, Africa_.____. Albania. .__._ wR wi CA BIIBIOI0.. im icici viiion i wii Trance. coeeee ccc meee (ETTNANY «oi coemeeeeme ms CAPAN om eieeeon Great Britain... me reece. _ ome 3ritish Bast India. _______ Dutch East India... _____ Yugoslavia... ____.. Netherlands__.____...__._ Russia_.__- ..______.__ Norvegia_ ..___.______._ United States. -o-_____.._ Turkey... meno. 3, 198 10 1, 38 40. 1, ae’ 17 2, 01: 9¢ 1, B5( 1, 902 131} 628 1, 601 2 32, 235 116 Total. _.. 46,819 Grand total of im- DOrtS een. 1,229, 226 | EXPORTS Italy. --- mmmmcmea West Africa... ______ Albania_ oo ____. Ira. ws i ii sain ei Argentina. _______.___. Colony Eritrea..._._.___. Jodecanese. ._. .___._.___. weypt.-- o_o. __- ¥rance. .___.___________ Great Britain. ___._.__.__. ATEECO - oo emma Jritish Bast India________ Canary Islands. __._____ Jugoslavia oo. .____ Aalta. oo. Morocco oo Mesopotamia... .._.__ Syrif cee Sadi. sum n — United States... Tripoli. --—___ Tunis. __-. Turkey... Other countries 407, 957 700 5, 521 7, 732 39, 191 7, 303 13, 110 7, 948 365 517 275, 105 2, 606 2, 625 2, 929 1,216 12, 764 7. 351 24, 622 21, 392 1, 785 3, 367 718 377 753 880. 936 Total Grand total of ex- ports. _____ 923, 667 Tobacco BY RAIL [In quintals] 13 91 71 30 36 21 IMPORTS Italy __._ em Austria... ___.._ _______ Czechoslovakia... _______ CLONTIVINYY 1. we 0 tim Yugoslavia__. ono Hungary. ceo. Other countries. 59, 319 3, 314 230 5, 560 42 512 135 Total. __ oe... 69,121 BTXPORTS Italy .__.... J Austria_____. __ eee Czechoslovakia. ___________ France. ... Germany _ ______. Yugoslavia. . Netherlands Poland. _____ Switzerland_ _ Hungary. .. Rumania _. 16, 343 100, 548 114, 428 277 160, 891 434 17 21, 892 939 14, 112 2 mm no. 420 883 Total 0X FOREIGN TRADE ZONES Tobacco—Continued BY SEA In quintals] IMPORTS EXPORTS ftaly. oo... 39,812 Algeria_________ ceeew~ LD, 623 Belgium_____...___________. 4,209 Bulgaria... oo... 36,420 Dodecanese_____.____._____ 6, 292 Bgypt eee. 1,096 Philippine Yslands____.___.__ 30, 883 Germany _ ooo... 2, 004 Great Britain_ _____._______ 31k Greece._ _ _ ooo ___.. 201,470 Notherlands... .comecm sms 962 Russia _______._..____._.. 5 740 United States _...oooo_____ 800 Turkey eee ——_-_. 185, 388 Other countries... .__._.__ 2,583 tally mina 765 \lgeria______. mmm 282 Argentina. o.oo... 381 Jelgium_________________.. L, 742 OIE ii si i i 86 BYPboe eee o_____ 6,276 Jermany... co. .cccceee.. 6,179 jreat Britain_ . ___.____.__. 467 Jetherlands_. Cemmmeeee 8,449 Jumania_ _._ een 679 Jnited States. ..... ceuuo-. 74,5875 Turkey. — 1, 509 Total. _. 528,603 Total. . - 101, 830 Grand total exports... 531, 713 Grand total imports... 597. 724 Wine BY RAIL "In quintals] IMPORTS EXPORTS [baly. ooo Austria_.___..o._________.. Czechoslovakia. ._...______. Germany. __________. Yugoslavia___________.___ France. o_o. Other countries. 127, 814 776 195 324 , 932 . 043 154 {taly_______ ER \ustria__.__.. rmm—— Czechoslovakia_.___..._.___ Yugoslavia_____ ._________ SEIMANY - —ceoom mooie Switzerland ______ Hungary__._.. i 0 EDL OUNNID re nd Sm BR Poland. oe meeeee Other countries _ _ _ _ oo __ . 18, 147 86, 527 114, 357 215 107, 331 20, 029 653 3, 027 1,732 407 Total. _. .. 134, 238 BY SEA [In quintals] Total _ ____ 452. 425 [taly. .__.. Algeria____ mmm France. .._ ooo Cea Greece. _ ..... Yugoslavia..__. SOT vee. Spain. oo. Tunis... Dither countries 899 992 49 368, 942 2,125 , 389 59, 560 0, 220 287 Ttaly.__ .. comm 8,425 Albania__.._ m—— 45 Argentina. ___ ______caunn 135 Jrazil___. rmm— 111 China___._._ —— 120 Jgyph... 172 TANCE. . oo. . 1, 000 Jermany . . 428 Netherlands... ___. J 162 SOT eee mmm 1 Other countries... . . . 421 Total. _ eee. 11,020 Grand total exports. __ 463, 445 Total _ ocean... 553,457 Srand total imports... 687, 695 269 Principal articles of transshipment in the years 1918, 1925, and 1927 [In metric tons] 1) 2) [6 ‘0 7 C G 75 YO 20 ‘g 17 37 37 3 31 29 33 27 32 IJ7 Arrivals by sea Quantities transshipped 1913 1926 1927 1913 . 1925 | 1927 08]. «ero m rm eo mmm Bn ww Automobiles, tractors, ete.....____. Cereals. onan. ——- Zoffee___- J lour_ oo. _ mmm ruit, dried... aoa linerals, metallic... o_o... Als, animal and vegetable. _._._.... Mls, aineral. coves enmmam awn LE ————— stone, building. «vc evnmomoaoaeeaa SODA... «ox ioe sam mewn aR a Vegelables, fresh. vo cco cecceee 887, 120 582, 586 27,212 133, 966 40, 285 24, 102 37, 551 771, 978 13,376 153, 12% 39, 47% “4,748 = 76% «1 R1° 428, 232 8, 743 113, 52¢ 34, 026 20, 321 47, 909 170, 655 12, 259 160, 057 44,79, 92.19% 5g, 23 39, 120 85, 881 06, 623 90, 151 17,118 68, 512 281, 809 15, 452 49, 329 5’, 915 2 994 22, 524 34. 840 42, 642 25, 357 15, 041 1, 260 364 8.091 86 18, 959 11, 865 11,775 16, 054 8 812 4, 201 0, 270 i498 562 475 “50 08 BEY 21,024 1,823 9, 631 16, 005 2, 338 3, 045 24, 805 8, 325 10, 461 14, 837 5, 882 9, 990 9 401 130, 567 Total imports by sed... —..... I, 608, «77 2 314 018 , 403, 1, 018, ns» lA, 1, B56, 450 200. do 157, 975 Proportion of transshipment traffic: 9.69 per cent, 8.23 per cent, 7.87 per cent. Transshipments occupy a very small proportion of the total traffic and are limited to goods from the United States and Argentine to Yugoslavia and the Levant and vice versa, in addition to some limited lighterage operations of coal and oil for bunkering purposes. Manufacturing in the free zones—There are no manufacturing plants in the free zones. Steps are being taken to secure the agree- ment of the Government for the industrialization of the free zones. At present there is only the Ford plant in which are assembled Ford cars, tractors, and Lincolns for reexport to Italy and the countries of the hinterland, tobacco manipulating plants and a lumber mill now in process of erection. a ge on IR 25 t5 35 :1 20 72 30 28 32 1 21 20 n Coffee is sorted and cleaned in special depots let to private traders. In 1927, 34,103 tons were imported and 35,259 tons were reexported which amount included some quantities left over in stock from the preceding year. No figures are available as to local consumption, as the quantities distributed in the district outside the town limits figure under the export section of the statistics. In 1913 the total coffee movement amounted to 157.356 tons as compared with 69.363 tons in 1927. Wine was imported in the amount of 68,770 tons and reexported in 46,345 tons. Filling operations into casks are carried out in the free zone by dealers having trade connections with the hinterland. About 22,425 tons, or about 224 hectoliters, of Dalmatian and Greek wines were consumed locally. Shipbuilding and ship repair in free zone.—No shipbuilding or repair- ing is operated in the free zones, all shipyards being within the custom barrier. 270 FOREIGN TRADE ZONES Influence of free port on the development of foreign trade.—The sup- pression of the free port in 1886 caused a temporary shrinkage of the traffic with the hinterland, owing to the high tariffs prevailing for the manipulation of goods in the free zone, and on account of a general diffidence on the part of private traders to utilize the bonded ware- houses instead of the town depots, which were previously under their direct control. These difficulties were soon overcome, and traffic picked up greatly when it was found that the bonded warehouses offered every guarantee, security, and manipulation facilities. This traffic increased so rapidly that it resulted in the congestion of the free zone in November, 1896. Owing to the competition of Hamburg, Trieste is undergoing at present a severe crisis, and it is believed locally that this port can exist only with the continued support of the Government in its endeavors to arrive at an understanding with Hamburg and the German railways for a system of rail tariffs less unfavorable to this port and a division of the hinterland in a satisfactory manner between these two ports. A conference with this end in view is to be held in June, 1928, and it is hoped that a final agreement will be reached settling the points of interest between the two ports. Comparative figures of the trafic of Trieste in the free zones and the total traffic in- cluding the customs port TRAFFIC MOVEMENT IN FREE ZONE WITHIN THE JURISDICTION OF BONDED WAREHOUSES 7aar 027 ec ec ccneec commana COR ccm mmm By sea Imports ' Exports Tons . 104, 492 954, 347 , 206, 068 , 469, 719 151, 209 71,620 “68 Tons 395, 758 301, 327 721, 441 792, 356 586, 78¢ 294, 488 21,27 76, 52¢ 55, £14 R28, 471 L258. cal By rail Imports Exports Tons 729, 792 820, 532 789, 304 300, 330 360, 368 348, 618 291, 17% 345, 547 141, £31 740, 511 ‘Tons 842, 034 740, 828 1, 054, 344 1,497, 100 038, 452 584, 446 764,212 832, 352 875, 522 RAO. 8R3 Total fraflic Tons 3,372,076 >, 318, 034: 3,771, 157 +, 689, 505 325,815 . 929, 169 206, 236 ?,376, 190 2, 225, 717 3. 648, 602 Per cent (1913, 100 per cent) 92.4 90.9 103.4 128.6 91.2 52.8 80. ¢ 66,1 61.0 100. 0 TOTAL TRAFFIC MOVEMENT OF TRIESTE mm 30 = . 856, 938 , 491, 580 , 916, 883 . 870, 919 2K, RIC 52, 856 32 SON £65 314. O17 313, 500 034, 482 338, B5¢ 186, 024 ed. 127 270 aang 4 145 715 , 325, 362 , 387, 595 , 393, 243 405, 958 266, 17¢ 121, 867 68070 15° FQ7 WL, 1 188 210 [.097, 360 061, 418 ,219, 192 , 578, 520 . 054, 28. 697, 42¢ 737, 03¢ 399, 718 961, 14 ang C2 393, 162 765, 076 465, 978 ¢41, 430 071, 414 925, 42: 303, 08¢ 106, 82 £57, 43; s 147, 274 79.0 77.4 88.0 96. 1 36.2 47.6 47.1 50.6 46.4 100.0 No statistics are available covering the valus of foreign commodities imported or exported from the port } reste. FREE PORT OF TRIESTE 271 J- 18 1 al B= ir ic a8 is a AT 11 Influence of free port on the development of the merchant marine.— The institution of free zones at the ports of Trieste and Fiume has encouraged the establishment of regular steamship lines to Greece, Turkey, the Danube, Russian Black Sea ports, and, after the opening of the Suez Canal, in 1869, to India and the Far East. The organiza- tion of such lines was started and fostered by the ex-Austrian Lloyd, now the Lloyd Triestino, founded in 1836, which operates a fleet of 218,000 gross registered tons. The traffic development table of this company given below reveals a large increase in the number of vessels, the mileage covered, and cargo carried after the opening of the Suez Canal. BAT Number of steamers Nomina, horse- Dower Cross register tonnage Number of vovages Miles Weight of goods carried Passen- gers §5] 7s n 3 it f ND) it 00 -y 1836-37 _._.. wh wi LOA ccm emma 2% 6 i) 3 630 1,777 2,110 6,310 10,460 25,400 13,840 45,513 15,260 70,018 22,630 124, 341 114,33¢ 48 38 143,42 194, 95¢ 192,380 234,678 45,08 190, 532 150,78 35,973 149,786 J, 257 186,256 9, 672 160,250 206, 492 TITTY Tas aan 87 717 2, 114 1,422 1,318 1, 526 {, 238 051 188 43, 652 334, 495 928, 833 976, 171 1, 257, 695 1, 802, 756 1, 979, 812 2, 245, 43¢ 2 432, 72 973, 621 1, 089, 957 1, 166, 716 144, 504 556, 53: "57, 51¢ , 647, 216 1. 443 350 Tons 528 13,377 125, 3" 150, 211 440, 74” 592, 03 770, 7¢ , 335, 78( . 573, 164 347, 645 “4, 002 613, 652 ~00, 119 105, 680 J04, 605 +, 098, 136 1. 090, 895 [mmm mmm 275, 322 120, 063 106, 300 102, 486 85,270 100, 529 92, 786 60, 298 £6. 696 % 9 4 313 The Cosulich Lines, founded in 1903 with a capital of 2,000,000 crowns, now controls a fleet of 500,000 tons, its own capital being now of 500,000,000 lire. This concern in February of this year took control of the Lloyd Triestino, which, owing to extremely bad manage- ment, had suffered severe financial reverses. The Navigazione Libera Triestina, starting with one steamer of 4,760 tons in 1906 and a capital of 768,000 crowns, now operates 200,000 tons of shipping with a capital of 150,000,000 lire and runs regular lines to Pacific coast ports of North America, around Africa, and to American North Atlantic ports. The Tripcovich Line, also of Trieste, capitalized at 25,000,000 lire, operates 62,000 tons of shipping. The Adria Co. of Fiume, founded in 1881 with 5,000,000 crowns, grew in 1924 to 15 steamers of 36,000 tons gross register and a capital of 30,000,000 lire. The Navigazione Gerolimich operates 55,000 tons of shipping. The Lloyd Triestino and the Cosulich Lines are the two premier companies influenced by the reconsignment trade of Trieste. In 1913 the Lloyd carried 970,000 tons, or 30 per cent of the total import and export traffic of Trieste, while the Cosulich Lines shared 380.000 272 FOREIGN TRADE ZONES tons, or 15 per cent, with North and South American cargoes. In 1927 the proportion of these two companies was 38.5 per cent and 15.3 per cent, respectively. Government subsidies to the Lloyd Triestino enabled this company to predominate in the Adriatic homeward and outward trade to the Levant, India, and the Far East, and undoubtedly the existence of the free zone is vital to these shipping concerns, as they could not thrive without a regular flow of traffic sufficient to maintain the lines in operation. Merchant shipping in tramp trading can not be said to have been influenced by the free zone directly, because Trieste and Fiume them- selves offered comparatively little support with outward cargoes. Before the war the growth of the harbor organizations and traffic volume was responsible for an increasing demand of coal from the United ‘Kingdom, and tramp owners were encouraged to employ vessels with coals from that country to Trieste and Fiume, thence proceeded in ballast to the Black Sea and the Danube to load cereals for the Continent, and thence to the United Kingdom for coal again. The situation has changed considerably since the war and tramp steamers apparently no longer have a regular part in the develop- ment of the port of Trieste. THE FREE PORT OF VENICE, ITALY [From Consul James B. Young, Venice, Italy] Free-port facilities not yet effective.—Venice, Italy, was declared a free port by royal decree of December 22, 1927, No. 2395 (published in the Gazzetta Ufficiale, Rome, December 28, 1927, No. 300) to be effective January 1, 1928, the date set by the royal decree, but so far this decree has not become effective and its date of becoming effective has been indefinitely postponed. Free-port regulations under negotiation.— The entire question of free ports and the carrying into effect of the royal decree of December 22, 1927, and especially of* the regulations governing free ports in Italy are all the subject of present negotiations. These questions are being discussed by the national commissione dei porti franchi (free-port committee) in Rome. This committee met recently (Feb- ruary 23, 1928) in Rome at the Ministry of Communications, In addition to officials of the respective ministries interested (finance, communications, national economy, etc.), there were also represen- tatives of the various Italian ports which have been decreed free ports. The object of this conference was to discuss and formulate provisions for carrying into effect a definite national plan and of defining the free-port zones and regulations in the case of each port. The results of this conference are still incomplete. FREE PORT OF VENICE 273 In nd ny he nf of | (ES on T1~ a8. fic he oy ce als in. ap Dw } ad 08 ar TO a0 er in ns hi b= In :e, 2p ee te of of, It has been estimated by local port experts that the Italian free- port question may probably be protracted for months yet and that in Venice a solution of the entire question by the committee is not expected before the end of 1928. Venice as a free port.—The creation of Venice as a free port has not raised any great interest or expectations locally, as it is a matter of less importance to this port than to some other Italian ports, such as Trieste, for instance. This explains in part the more or less indiffer- ence prevailing among Venetians in the matter of free-port privileges. New port of Venice already privileged. —Venice’s new port on the mainland at Marghera already enjoys certain special privileges, which would serve to minimize the importance of free-port facilities there. The Porto Industriale (new port) of Venice enjoys privileges for industrial plants within its limits which are in accordance with what is known as the legge di Napoli, the Naples law, that is, the act of July 8, 1904 (No. 351), and the act of March 12, 1911 (No. 258), con- cerning provisions for the city of Naples. Among the privileges en- joyed by industrial plants in the new port of Venice are the following: Exemption from customs duty for all construction materials used in the construction of such plants in the new port; exemption from cus- toms duty for all machinery destined to such plants and this includes also similar apparatuses, etc., not only for the initial plant but also for later improvements, enlargements, or alterations, provided they are completed before the year 1934, Plants in the new port of Venice also can obtain on request, free- port facilities, that is, they may be considered outside the customs zone. Naturally the National Government holds the decision of such matters. } Moreover, plants in the new port of Venice are exempt for a period of 15 years from the expenses of national customs control in the interior of the respective plants and for temporary importations. Then there are certain taxes from which plants in the new port of Venice are exempt, including exemption from the ‘‘ricchezza mobile imposta”’ (tax on industrial profits) up until the year 1934 for profits made before 1925 and until 1937 for profits made after 1924. ‘Other taxation from which plants in the new port of Venice are exempt are taxes on property, such as buildings and real estate, including also supertaxes thereon, for land which forms an integral part of the respective industrial plants. This exemption has vigor for the same period of time as specified above for the ‘‘ricchezza mobile imposta’’ exemption, that is until 1934 for some and until 1937 for others. Free port advantageous to plants producing for export.—Free-port facilities are advantageous to those industrial plants which produce 274 FOREIGN TRADE ZONES for export, that is, for reexportation of materials which have been imported in the raw state and which, after being manipulated and worked, are exported in the finished or semifinished state. The industrial plants in the new port of Venice at present do not reexport their output, that is, to any considerable extent. They produce almost wholly for domestic consumption, which reduces the impor- tance of free-port facilities to them. Free port advantageous to ports having transit traffic.—Venice has little port traffic which might be considered truly in transit, and this is another reason why free-port facilities are not regarded as being so vital to the interests of the port. As compared with Venice, the port of Trieste has more transit traffic and this has a direct bearing on the question of free-port facilities. Several years ago Trieste was to have been declared a free port and plans were made for the granting of that privilege to that port, but Venice protested and maintained that in case that Trieste be made a free port, Venice insisted that it be also granted like privileges, as the interests of the two ports were too close to permit of any possible advantage to one which might affect the traffic of the other. Soon thereafter the matter was dropped and neither port received free-port privileges at that time. The export traffic of Venice is very small, having been about 220,400 metric tons in the calendar year 1927, and of this, little would have been affected by the existence of the free port, had there been one in existence, but with a rearrangement of the industry of the port of Venice and a delineation of the free-port zone, with its rigid customs barrier to separate it from the port proper, the export traffic might assume another aspect, that is, it might grow somewhat provided that the burden of customs duties be not replaced by taxes or other charges which would vitiate the profits or advantages from the privi- leges granted by the free port. Free-port zone as tentatively outlined. —The representatives of Venice at the national free-port conferences at Rome have already drafted a tentative plan of delimitation of the free-port zone for the port of Venice, and it is roughly made to include all the “stazione marittima’ (old port of Venice) in Venice proper east of the dock known as the Scomenzera, which would include most of the present port of Venice, as well as part of the Giudecca, which would include part of the large flour mill there (Molino Stucky). This would embrace the cotton mill in the port of Venice and the cold storage plant (Societd Importa- zione Carni), as well as the grain elevator of the Societa Sylos. Before the plan could be adopted and executed, extensive customs barriers would have to be put up to outline the limits of the free-port zone. This would require some months, even after the adoption of the planned zone and the regulations in regard thereto. been and The port luce DOT= has this 2 80 Jort © on port ort, ade the ible 00n ort 400 AVe ain t of ms ght Jed er [V1 11ce ‘ted 5 of 1a” the ice, rge On ta are Ors 116. ‘he “REE, PORT OF SALONIKI, PRIVATE WAREHOUSES, GREEK FREE ZONE FREE PORT OF SALONIKI 275 Until the present negotiations are completed and the various plans fully considered and discussed and adopted, nothing definitive may be said in regard to the free port of Venice. Venice has in its past history already been a free port, in most of its history after 1661, up until the time of the Risorgimento and the founding of the Kingdom of Italy. By the present royal decree, of December 22, 1927, known as the Decree for the Institution of Free Ports, the free-port franchise is to run for a period of 30 years. The exercising of free-port privileges is defined somewhat in the royal decree of January 16, 1896 (No. 20), and also to a certain extent in the royal decree of December 22, 1927 {No. 2395). THE FREE ZONES AT THE PORT OF SALONIKI, GREECE [From Consul Charles T'. Pisar, Saloniki, Greece] HISTORY OTF THE CITY The city of Saloniki and its port date from ancient times. It was originally known as Thessalonica, and since the days of Philip of Macedonia and his son, Alexander the Great, it has been occupied in turn by the Illyrians, Romans, Byzantines, Slavs, Venetians, and Turks. The latter controlled the city for nearly 500 years prior to 1912. During the Middle Ages Saloniki became a great and pros- porous trading center. . It has long been a “coveted city’ and in modern times many of the Balkan States as well as some central European States have endeavored to obtain control of it. It was the chief prize in the Balkan Wars of 1912-13 when Serbia, Bulgaria, and Greece allied themselves against Turkey. After the defeat of Turkey in the first Balkan War all three allies made an attempt to be first in the city. It fell, however, into the hands of the Greeks who have since held it together with the immediate hinterland now known as the Provinces of Greek Macedonia and Thrace. The city was partly destroyed by fire in 1890 and again in 1917. Since then it has been rebuilt on modern lines. . In 1922 the population of Saloniki was 170,000. In the autumn of that year there was a large influx of Greek refugees into the city from Asia Minor, and since then the population has been estimated to be as high as 450,000. The latest census, however, gives the number of inhabitants as 251.000. * THE FREE ZONES OF THE PORT OF SALONIKI There are at the present time two free zones in the port of Saloniki, namely, a Greek free zone and Yugoslav free zone. In order that 276 FOREIGN TRADE ZONES these two zones and their functions may be clearly understood the steps which have led up to their establishment and the present atti- tude of the Greek and Yugoslav Governments on the subject are described in the following paragraphs. Apart from purely economic motives, political considerations between Greece and Yugoslavia have had much to do with the establishment and the subsequent delay in the operation of the Yugoslav free zone, and the establishment of the Greek free zone. The Yugoslav free zone was originally the subject of a convention between Greece and Serbia signed on May 19, 1914. On account of the outbreak of the European War nothing was done toward its establishment until the latter part of 1922. The zone area was for- mally ceded to Yugoslavia on March 6, 1925. The Greek free zone, which surrounds the Yugoslav zone, was inaugurated on October 18, 1925. YUGOSLAV FREE ZONE DRIGIN OF, AND NEGOTIATIONS LEADING UP TO ITS ORGANIZATION Before the World War Saloniki was the natural maritime port for Serbia which at that time had no outlet on the Adriatic Sea. In the spring of 1914 an agreement was signed between Greece and Serbia assigning a free zone to Serbian commerce at Saloniki, but owing to the outbreak of the war it was not ratified. In spite of the expansion of Serbia into the State of Yugoslavia with a seaboard on the Adri- atic, the need for an outlet on the Aegean remained, and the question of a free zone at Saloniki was reopened in November, 1922. The same month Greece ratified the 1914 agreement but Yugoslavia refused to do so on the grounds that its terms were not adequate to her requirements. Negotiations on the subject were resumed and on May 10, 1923, a new agreement was signed in Belgrade. By the terms of this agreement Greece ceded to Yugoslavia for a period of 50 years an ares in the port of Saloniki to be placed under the Yugoslav customs administration. The zone was to remain an integral part of Greek territory and under Greek sovereignty, but was to be admin- istered by Yugoslav customs authorities. State and municipal land in the area was to be ceded without charge, but land under private ownership was to be expropriated by the Greek Government and paid for by Yugoslavia. Officials in the zone were to be Yugo- slavs, and the chief executive authority was to be vested in a Yugoslav official under the control of the Greek captain of the port of Saloniki. Goods in transit between the zone and Yugoslavia, and goods imported for use or consumption in the zone were to be free from all Greek State or municipal taxation. Yugoslavia was to enjoy most-favored- nation treatment in the port of Saloniki as well as any advantages arising from the establishment of a Greek free zone. The contracting FREE PORT OF SALONIKI : 277 the tie are nie ive in ‘he [On of its Vm as for he ia Lo on ri- 01 he 1a to ad he 50 av of a= al er nb 0- wv d. od sk 1- eS 12 parties pledged themselves mutually not to hinder the transit of goods and not to discriminate in their treatment of goods passing respectively through the Yugoslav zone and through an eventual Greek free zone. Supplementary protocols regulating such matters as posts, telegraphs and telephones, veterinary service, and customs procedure were signed at Athens on October 6, 1923. Following the ratification of the convention of May 10, 1923, between Greece and Yugoslavia in regard to the establishment of the Yugoslav free zone at Saloniki, the area allotted for the zone was formally handed over to a Yugoslav commission composed of high Government officials on March 6, 1925. This commission remained in Saloniki for a short time after taking over the zone for the purpose of elaborating the plans of work to be undertaken for its operation, such as the construction of docks, new railway lines, warehouses, etc. Although this free zone area was formally taken over by the Yugo- slav authorities in accordance with the provisions of the convention of May 10, 1923, and its accompanying protocols, Yugoslav interests immediately from the beginning did not agree with many of the clauses of the convention. In the first place it was contended that the area of the zone was too limited to take care of the anticipated traf- fc; secondly, the Yugoslav free zone, being surrounded by the Greek {ree zone, it has no direct communication with the city itself; and thirdly, there remained the question of the ownership of the Saloniki- Guevgueli railway line into Yugoslavia, a line of prime political and economic importance. These are the main points on which the Yugoslav Government has been endeavoring to obtain modifications. In the fall of 1926, during the government of the dictator, General Pangalos, a defensive treaty of friendship and conciliation and several conventions were signed at Athens between Greece and Yugoslavia. The treaty itself was to remain in force for a period of three years and was subject to renewal. It was drawn up within the terms of the covenant of the League of Nations on the basis of the maintenance of the territorial arrangement in the Balkans as defined by the existing peace treaties. The treaty was purely of a defensive nature. Under the conventions which were signed at the same time the railway between Saloniki and Guevgueli was to become Greek, Yugo- slavia agreeing to cede to Greece its rights in this railway in return for a payment of 20,000,000 French francs. The line was to be controlled by the Greek director of the Macedonian railways, with whom a representative of the Yugoslav railways would collaborate for facili- tating Yugoslav transit trade. All disputes would be subject to the arbitration of a French umpire to be appointed by the League of Nations. The conventions provided that the frontier station at Guevgueli would be common to both parties, the duties of their respective officials 278 " FOREIGN TRADE ZONES in this station to be defined by a special convention. The Saloniki station would be Greek under a Greek station master. The trains entering and leaving the Yugoslav free zone at Saloniki would be made up or divided in that station with the assistance of a Yugoslav representative, The extension of the area of the Yugoslav free zone was accepted in principle, and provision was made for the delimitation of the new boundaries. This extension was to be westward away from the city of Saloniki. Other clauses provided that the free zone would accom- modate Yugoslav customs and health officers, who would consult with the Greek harbor master of Saloniki when necessary. The free zone would also contain Yugoslav warehouses and a complete system of sidings. The contracting parties likewise agreed to an equality of traffic in their respective free zones, as well as railway tariffs, while Yugoslavia undertook to apply equal tariffs to Greek goods in transit over Yugoslav railways. Under the conventions Yugoslavia was given the right to transport cargo from its free zone to Greek ports by Yugoslav steamers. It was explained at the time that this concession was not tantamount to the right of cabotage (coastal trading) which Greece refuses to foreign vessels, because the free zone, although essentially Greek territory, would be under the Yugoslav customs. There would be, in conse- quence, no case of cabotage and no precedent which would justify other States in claiming that privilege under a most-favored-nation clause. Immediately after the signing of the agreements of August, 1926, under which the Yugoslavs were conceded all their demands, the Pangalos government of Greece was overthrown by General Condylis. The new government at once rejected the conventions. Its action was later confirmed by the Greek legislature in refusing to ratify them on the grounds that they infringed upon the sovereign rights of Greece in the port of Saloniki. Since the signing of the conventions, the Yugoslav Government has been pressing the Greek Government to give its approval to them. It has refused to put the free zone which was allotted to it ander the agreement of May, 1923, into operation on the grounds of its total inadequacy for handling its trade. In a subsequent paragraph on the traffic of the Greek free zone it will be seen that the actual transit traffic to and from Yugoslavia is not of a very large volume. Greece claims that the provisions of the conventions signed by the Pangalos government with Yugoslavia are detrimental to the best interests of Greece and affect her sovereignty in the port of Saloniki which she can not tolerate under any circumstances. FREE PORT OF SALONIKI 279 niki Ins be lav {in new ity - vith one of of ile Asif ort vas he ign TY, 1Se- ify 10h 26, she lis. on ify hts nt ‘0 it ds nt ab ere y 16 nf The Yugoslav free zone still continues to be officially inoperative and probably will remain in this state until a new understanding is reached between Greece and Yugoslavia. LOCATION, AREA, ETC. The Yugoslav free zone is located within the limits of the Greek free zone. | The ares which was ceded to the Yugoslav Government for its ires zone was 94,000 square meters (1,011,440 square feet), of which 40,000 square meters {430,000 feet) was under water. A portion of this area has been filled in. Terminals.—There is one quay, 588 feet long. It can accommo- date two steamers of 3,000 tons each, or one steamer of 8,000 tons. Warehouses.—The warehouses consist of two 1-story buildings situated on the quay which have a floor space of 2,000 square meters {21,520 square feet) each. There are several stables for housing livestock with a capacity of 400 head of cattle and 18,000 head of small stock (sheep). There is also a grain elevator with a capacity of 4,000 tons. This elevator, however, is not in use since there is not sufficient grain passing through Saloniki from Yugoslavia to keep it in constant speration. Administration.—Although the Yugoslav free zone is not in official operation, an administrative staff is maintained. This staff consists of 1 director, 1 engineer, 2 clerical men, 1 customs officer, 1 railway officer, 1 port captain, and 5 customs guards, or 12 in all. During the year 1927 the total cost of administration was 2,476,720 dinars ($43,450). Proposed extensions and funds required.—The Yugoslav free zone was granted a credit of 11,000,000 dinars ($193,000) by the Yugoslav Government for carrying out certain improvements, such as partially filling in some of the area under water and for keeping the buildings in repair. Only a fraction of this credit. however. has heen utilized thus far. It has been estimated by the free-zone authorities that an ex- penditure of 32,000,000 dinars ($561,400) will be required to put the zone into effective operation, and that a staff of at least 50 men will have to be maintained. This expenditure will cover the build- ing of an additional story on the existing warehouses, which would double their capacity, and the construction of another warehouse between the two present buildings, with a capacity of 1,500 square meters (16,140 square feet). Traffic of the Yugoslav free zone.—Under the present rules of the Greek free zone all foreign traffic entering Saloniki must be entered in the Greek free zone, irrespective of its ultimate destination. 47068°—20-———-19 280 FOREIGN TRADE ZONES However, the Greek free-zone authorities have given the Yugoslav zone permission to handle directly within its area certain commodi- ties destined for Yugoslav State Monopolies, and other bulky ma- terial which the Greek free zone can not for the time being handle adequately. within its own limits. Complete details regarding the Yugoslav traffic through the Yugo- slav and Greek free zones are contained in subsequent sections of this report. (See sections on traffic in the Greek free zone.) Comments on the effective handling of the Yugoslav trade through the Greek zone will be found in the section of this report entitled “Progress of the Greek free zone during the first two years of its speration.”’ ORIGIN AND HISTORY OF GREEK FREE ZONE The idea of a Greek free zone originated with the Venizelos Ministry which, after the annexation of Saloniki and its hinterland to Greece, brought about the passage of the necessary legislation (Law.No. 390, of December 17, 1914) authorizing the creation of such a zone. A subsequent decree fixing the limits. of the free zone was issued on September 28, 1915. During the period of the European War the organization of the zone was held in abeyance. However, in June, 1920, the Ministry of Finance instructed the Government General of Macedonia to coop- erate with the Chamber of Commerce and the Commercial Association of Saloniki for the purpose of designating the part of the port to be set aside for the free zone, and to present an estimate of costs. In February, 1923, the Chamber of Commerce of Saloniki submitted to the ministry the opinions of the commercial world in regard to the free zone and on February 15, 1923, a decree was signed bringing into effect article 14 of legislative decree concerning the amendment of Law 390 of December 17, 1914, creating the free zone of Saloniki. Under this decree a legal entity, the “Commissariat of the Free Zone of Saloniki,” was created for the purpose of organizing and operating the free zone of Saloniki. The commissariat lost no time in organizing the free zone and preparing the regulations governing its administration. The original regulations have been partly modi- fied by decrees dated March 21, 1925, and October 5, 1925. On the other hand, the limits of the free zone have been fixed by a decree of June 30, 1923, and modified subsequently by a decree of February 5, 1924. The inauguration of the free zone took place on October 18, 1925. The next day the free zone opened its doors to the transit trade. LOCATION OF THE GREEK FREE ZONE The Greek free zone includes practically the whole of the developed portion of the port of Saloniki, as well as an unimproved portion > 3 = a. © Lo EE BER SEs moodle ©.,.8875 > so EERE Rg OS ESETRET LE Emosd ede 0 aul RE =o 0Q 2 gap 29 os ® Ty FREE. PORT OF SALONIKI. NEW STABLES FOR HOUSING LIVESTOCK, GREEK FREE ZONE FREE PORT OF SALONIKI 281 lying to the westward of the port. It is contiguous to the business section of the city of Saloniki. The Yugoslav zone is surrounded on all sides bv the Greek free zone. DIMENSIONS AND AREA OF THE GREEK FREE ZONE The present area of the Greek free zone is 172,000 square meters (1,849,000 square feet). This area is regarded as totally inadequate for the growing commerce of the port of Saloniki and an extensive anlargement of the free zone is contemplated for the immediate future. The plans include an extension of the Greek free zone westward from the present area. It can not be said what the exact area of the new extension will be until the final plans of the projected works can be drawn up. These plans, which the free zone administration hopes to have completed during the current year, will include the progressive construction of three new basins, and two new break- waters. The first part of these works, the construction of which is considered to be immediately necessary, include a quay of 300 to 350 meters (984 to 1,184 feet) in length, and a breakwater of 300 meters {984 feet) in length and 150 meters (492 feet) in width. Along this quay and on the breakwater two series of warehouses with a floor space of 15,000 square meters (161,250 square feet) and all modern »argo handling appliances, will be erected. The cost of the first part of the proposed works will be approxi- mately 300,000,000 drachmas ($4,000,000), which will be obtained through the medium of a loan. Service for this loan will be provided for by a port fund. The proceeds for this fund will be obtained from a port dues of 2 to 10 per cent of the customs duties on merchandise imported into Saloniki. Legislation providing for the creation of such a fund is already in effect. Terminals and berthing space—The berthing space in the Greek free zone is limited. The length of the only quay available to the free zone at the present time is 390 meters (1,279 feet). One other quay, which lies at right angles at the eastern end of this quay, is ased for vessels engaged in the coastwise trade; the other quay, which ies at right angles at the western end of the main quay, is in the Yugoslav free zone. On account of the shortage of quays vessels are not permitted to moor alongside. They are usually moored with stern to quay, and all loading and discharging operations are effected by means of lighters. The mooring space in the free zone inside of the breakwater will permit from 12 to 15 vessels to be loaded or discharged at the same time. The inconveniences occasioned by the present limited space will disappear with the completion of the improvements mentioned above 282 FOREIGN TRADE ZONES WAREHOUSES There are in the Greek free zone three kinds of warehouses with an aggregate serviceable floor space of 72,383 square meters (778,117 square feet). These warehouses are classified as follows: Nine provisional warehouses (hangars), 13,142 square meters (114,276 square feet). Seven common warehouses, 17,504 square meters (188,168 square feet). Thirty private warehouses leased by the free-zone administration to banks and to individuals, 28,237 square meters (303,547 square feet). Two other large warehouses were recently constructed by the Compagnie Générale d’Entrepots in accordance with a special arrange- ment with the free-zone administration, with a total floor space of 13,500 square meters (145,125 square feet). These buildings are four stories in height and are equipped with modern appliances for handling merchandise. In addition to the warehouses for storing general merchandise, there are several stables with a serviceable area of 2,200 square meters (24,617 square feet), which can accommodate 230 head of large stock and 1,600 head of small stock (sheep, goats, etc.). Proposed warehouse construction.—~During the current year the Greek free zone planned to erect three new warehouses with an aggregate floor space of 10,000 square meters (107,500 square feet). However, as in the meantime the free zone purchased the land and buildings in the port area which formerly belonged to the Compagnie Immobiliére du Port, including two buildings of five stories each with a total floor space of 12,500 square meters (134,375 square feet), which will eventually be included in the free zone, only one new ware- house will be built. Other plans of the free zone for the current year include the erection of two 3-story stables. These stables will provide accommodation for 250 head of cattle and 5.000 head of small stock (sheep, goats, etc.). RAIL AND HIGHWAY CONNECTIONS The total length of the railway lines in the Greek free zone is 5 kilometers. The free zone has direct connections with the Saloniki railway station and yards near by, at which four distinct lines con- verge, giving Saloniki an adequate system of communications with Greece, Yugoslavia, and Turkey. ADMINISTRATION OF THE GREEK FREE ZONE an 17 BTS are oN are ‘he Jo of ur ng are ars ek he an 1). nd 1e ch 9); on ID }. CD ki - th The administration of the Greek free zone is in the hands of a commission which was established under legislative decrees dated February 15 and March 27, 1923. This commission is composed of (1) a representative of the munici- pality of Saloniki, (2) two delegates of the chamber of commerce of Saloniki, (3) one delegate of the commercial syllogue of Saloniki, (4) one delegate of the Association of Industrials of Saloniki, (5) the inspector of the public works of Saloniki, (6) the director of the customhouse at Saloniki, (7) the captain of the port of Saloniki, (8) the Government commissioner of railways and tramways, (9) a high functionary named by the Government general of Macedonia, (10) a representative of the minister of finance of the National Govern- ment of Greece, and (11) the director of the Saloniki branch of the national bank of Greece. Number of guards.—The Greek free zone has in its service 65 guards in addition to the customs officers who belong to the customhouse service within the free zone. Cost of administration—The annual cost of the administration of the Greek free zone under its present organization is 12,000,000 drachmas ($160,000). OPERATIONS PERMITTED IN THE GREEK FREE ZONE For the time being the Greek free zone administration permits all operations within the free zone which may be properly classified as commercial, such as the purchase and sale of merchandise, transfer of property, weighing and sorting of merchandise, sample taking, repacking, etc., and all manipulations which do not substantially change the nature of the merchandise. In the private warehouses, the goods are placed on shelves and the merchants have full freedom, without any interference from the customs authorities, to effect sales either for neighboring countries or for local (Greek) consumption. When sales are made for local con- sumption, the merchandise is transferred to the Greek customhouse (located within the limits of the free zone) for the usual customs examination and clearance. The manipulation of merchandise at the present time consists chiefly of the shelling of nuts and the sorting of fruits and dried vegetables from Yugoslavia, and the sorting and repacking of cocoons and opium of Serbian and Turkish origin for reexport. From 200 to 300 persons are employed for this work according to requirements, 284 FOREIGN TRADE ZONES Manufacturing in the Greek free zone.—The statutes of the Greek free zone provide for the operation of industrial enterprises within the zone. However, as the area occupied by the free zone at the present time is not of sufficient dimensions to permit the installation of factories, no manufacturing is allowed. The question of permitting manufacturing in the Greek free zone will be examined by the administration in the near future in con- junction with its plans for the extension of the zone. Proposed tobacco manipulation.—The plans also include the con- struction of warehouses for the purpose of manipulating and handling of tobacco as it is anticipated that an important trade in tobaccos from near-by countries will be concentrated at Saloniki. The free- zone administration is of the opinion that besides the technical facilities available at the port of Saloniki for manipulating tobacco, it presents, on account of its geographical position, all the advantages for a transit trade in this commodity. DISPATCH SECURED IN UNLOADING VESSELS ’ The dispatch secured in unloading vessels in the Greek free zone at Saloniki is relatively fast when the present limited accommodation and methods employed at this port are taken into consideration. For lack of space no vessels carrying foreign cargo are allowed to moor alongside the only quay available at the present time. Vessels are moored in the free zone with stern to quay and are unloaded into lighters, the ship’s tackle being employed for all operations. Fifteen vessels can be unloaded simultaneously. Lighters and labor are available in abundance and no unnecessary delay need be occasioned through a lack of these factors. However, the port lacks modern dock devices for handling merchandise. The entire crane equipment of the port of Saloniki (Greek free zone) consists of one 15-ton crane; two 5-ton cranes; and five 2-ton cranes operated by steam. Shipbuilding and ship repairs—There are no shipbuilding or ship- repairing facilities in the Greek free zone. The limited area available does not permit of such operations. TRAFFIC OF THE GREEK FREE ZONE Under the regulations of the Greek free zone all vessels arriving in the port of Saloniki are required to deposit their manifest with the Greek free zone and to land their cargoes in this zone, irrespective of the ultimate destination of the merchandise. Under this regulation all the merchandise imported into Saloniki the bulk of which is des- tined for consumption in Saloniki and other parts of Greece is entered in the Greek free zone. FREE PORT OF SALONIKI 285 ek he nt Af ne Na n= 12 0s a= al 0, piel 18 1 vO ls 0 TN re d 1 10 1} J a Ji} e if n Exception is made in the case of the salt destined for the Yugoslav State Salt Monopoly, which, under a special ruling made by the Greek free zone administration, has been authorized to be unloaded in the Yugoslav free zone in order to facilitate its loading on railway trucks and avoid a congestion of the Greek free zone. For the same reason the Greek free zone has provisionally exempted the unloading and storing in its area of certain other bulky commodities, such as fuel wood, certain minerals, lumber, livestock, etc., belonging to the Yugoslav trade. In speaking of the traffic of the Greek free zone, it must be borne in mind that all the imports into the port of Saloniki, whether destined for consumption in Greece or whether for transit to other countries, are entered in the Greek free zone, with the few exceptions cited above. The statistics of the imports into the Greek free zone are sometimes misleading and are taken as representing transit traffic whose ultimate destination may be the Balkan and other Central European countries. However, 84 per cent of the imports into the Greek free zone in 1927 and 85 per cent in 1926 were destined for consumption in Greece, chiefly Greek Macedonia, and only 14 and 15 per cent, respectively, sonsisted of transit and reconsignment trade. While the total imports into the Greek free zone increased from 445,597 tons in 1926 to 457,928 tons in 1927, the exports from the free zone to foreign destinations declined from 59,769 tons in 1926 to 44,437 tons in 1927. This decrease was primarily due to a decrease in the cereal crops in southern Yugoslavia and a consequent decline in the exports of this commodity through the Greek free zone. The efforts of the Yugoslav Government to encourage Yugoslav merchants to use its Adriatic ports also contributed to this decline, The entire movement of the Greek free zone for the year 1927 was as follows: Imports of— General merchandise (tons). Livestock (head)... _. Birds (head) _______.. Lumber (cubic meters) These imports were disposed of as follows: Entered in customhouse at Saloniki for Greek consumption: General merchandise (fons)... Livestock (head) .__ Birds (head) ___.__ Lumber (cubic meters) oo _.-. Reshipped to other Greek ports (tons). . [n transit to other countries (tons). voce. em mmmm————— Remaining in the Greek free zone at the end of the year (tons). _._... m---. 363,624 270 2, 336 56, 735 34, 460 44, 437 15. 407 286 FOREIGN TRADE ZONES (Nore.—The Greek free zone has no statistics showing separately the transit and the reconsignment trade. Reconsignment trade is included in the transit trade. No separate record is kept of the packing operations involving mer- chandise destined to Yugoslavia or other countries. The free-zone authorities state, however, that for the year 1928 there were recorded 1,649 packing opera- tions in the month of January, 2,780 in February, 2,718 in March, and 1,970 in April. No record is kept of the various kinds of merchandise involved in these operations.) Trade by countries.—The following statement shows the volume of the imports into and the exports from the Greek free zone during the years 1926 and 1927, with the countries of origin and destination. The exports represent foreign merchandise other than Greek shipped in transit to the countries named: 1926 1927 Countries Great Britain. o.oo eee crm EDI en AiR ter EE mm ———— ——————— i Belgium_________.....__.. SE Jnited States... _..__..___._. RRR Rumania. ....... ... _ ry A Ae TONY ceri de AAA meee BEAD coccinea 1 . SBT. cin pains es Jungary... mii france....... J [EN Tolland .._ _._..__. mmm Argentina _________ TTT ermany........... ome EYP cummins: 4 — JE, 3ulgaria.. _____. meena ss BIR sian re Australia. __._...._. _. JE Turkey In EOrope. ooo oon Turkey in Asia____.:..___. ~~ SYTIB ce oer Portugal oll. Dist mmm DIDI. imum si mma io wSR HERS AH Hm mmm moe BWRAMN . own wanna mR a "ry mm, - ABBR cvs crc na smi ma rE mm ee —————] BPM, nn cony ais wa Z Palestine. _.___. mmm mmm mma on Dodecanese. ooo. TTT Czechoslovakia... TTTTTTTTTITTTTTITT Mgeria_ oo. LTT British India... _____. ll LIIIITITTTTTTNTT Aran. eee. we i Polani.cueqisucnnmiinmisn -- rmmm——— Baltic countries... ....o.cocouueomeooooo IT SOLLIONIEB coi HR HSB ir cm mr mmm wen un NOTWAY cri ih em wim Ami ir BARRA 010 mm mm mmm mre so Brazil... oceans stim semi = Denmark... we wa Abyssinia. ..... A Imports | Exports Tons 31,519! '14, 192 30, 900 47, 423 34, 817 56, 376 25, 051 10, 584 17,394 20, 441 28. 037 Tons 2,233 16, 143 10,780 294 30 1,061 3 147 16, 752 2,447 Ls, 74¢ 1, 260 1,642 1,602 4,609 52 78 — 27 209 sent eer 22 Ca 51 2,007 5,2 LL “Ey Imports Exports Tons 83, 758 79,610 66, 402 49, 215 “0, 061 +5, 789 ©5629 380 . 918 12.295 ' 403 ws 084 8,481 7,280 520 3,834 3,060 2,206 822 1,802 1, 09¢ 854 478 411 Tong 1,919 -4, 155 4, 408 416 34 47? 3 39 8,487 1,104 8,277 1,294 68 18 261 22 105 59 30 11 J: 107 3,044 1 2 (¥ 4 5 TTT TTS J] € 3 COUNTRIES SERVED BY THE SALONIKI FREE ZONE The countries chiefly served by the free zone at Saloniki are Yugo- slavia, Albania, Bulgaria, and Rumania. Over 90 per cent of the transit traffic, however, is for the account of Yugoslavia. Albania comes next in importance. The traffic for the account of Albania cousists chiefly in imports of manufactured goods from abroad which nsit 18it er- sies Ta~ 970 in of he FREE PORT OF SALONIKI 287 are destined for such parts of southern Albania that are not easily accessible from the Adriatic seaboard. The use of the free zone by Bulgaria and Rumania for transit trade is practically nil at the present time. In the case of Bulgaria this is due to the lack of direct railway connection between Bulgaria and Saloniki, while in the case of Rumania the latter finds it more economical to use its Black Sea ports. The volume of the traffic between the four countries named and Saloniki will be seen from the following table: mn. ad rts '$ ng 155 108 16 34 73 kr] 39 187 t04 77 94 88 IR 81 22 Fo :4 39 30 1 107 a4 3 4 3 )- oe a a 1026 1927 1926 | 1827 (mports into the Greek free zone: From Yugoslavia.___..___.. From Rumania... ..._.__. From Bulgaria... _........_. From Albani@.. oo coe oo ___ Tons 14,192 34,817 1,642 37 Tons 76, 610 10, 061 £220 155 Exports from the Greek free zone: To Yugoslavia... ..___..____. To Rumania___......______. To Bulgaria... ___....... To Albania_. . Tons | Tons 16,143 | 14,155 30 34 52 | 68 2,285 3, 044 YUGOSLAV TRAFFIC THROUGH SALONIKI At the present time Yugoslavia, of all the Balkan States, is the most directly interested in the free zone facilities at the port of Salon- iki. However, the part of Yugoslavia that can be economically served through this port is only a small portion of southern Serbia extending from the Greek border north to a line parallel with Nish. Heretofore a small amount of transit traffic found its destination as far north as Belgrade. In recent years, however, while Yugoslavia’s exports to Greece by way of Saloniki have been increasing, its transit trade through Saloniki has been diminishing. This has been due in a measure to the policy of the Yugoslav Government in influencing the flow of its foreign trade through its Adriatic ports. It is with the in- tention of favoring Adriatic ports that the Yugoslav Government grants a 10 per cent rebate in customs duties and a 10 per cent rebate in railway freight rates on merchandise shipped through these ports. As was pointed out in a preceding paragraph, all merchandise im- ported into Saloniki must be entered in the Greek free zone, irrespec- tive of its ultimate destination. On account of its limited space, the Greek free zone authorities have permitted the Yugoslav free zone to handle directly certain bulky commodities and such as are intended for Yugoslav Government monopolies. In 1927 these in- cluded salt destined for the Yugoslav State salt monopoly. Cattle, sheep, hay, barrel staves, fuel wood, coal, and certain minerals were also permitted to be brought into the Yugoslav free zone directly by rail from Yugoslavia without the necessity of having to be entered in the Greek free zone. With the exception of 120 tons of minerals, these commodities were for Greek consumption and did not enter into the export trade to other countries. 288 FOREIGN TRADE ZONES: In 1926 the Yugoslav free zone handled in the case of imports from abroad, i. e., imports from countries other than Greece, 10,149 tons of salt for the Yugoslav salt monopoly, 107 tons of tobacco for the Yugoslav tobacco monopoly, and small amounts of nickel-silver, cement, and machinery destined for the Yugoslav State. In the ex- ports from Yugoslavia, the nature of the trade was more or less the same as in 1927. The foreign traffic of Yugoslavia, i. e., imports from countries other than Greece and exports to countries other than Greece, which passes through Saloniki, either through the Greek or the Yugoslav free zone, is not at the present time of a very large volume. In 1926 this traffic represented 12 per cent and in 1927 10 per cent of the total traffic which passed through the Greek free zone, including certain commodi- ties that were permitted to go directly through the Yugoslav free zone, In 1927, 79,610 tons of cargo entered the Greek free zone from Yugoslavia, of which 73,414 tons came by rail and the remainder by sea. Of the imports by rail, 44,389 tons were for Greek consumption, 23,640 tons were destined for export, and 5,385 tons remained in the free zone at the close of the year. In addition, there were imported into the Yugoslav free zone from Yugoslavia certain items such as cattle, sheep, fuel wood, coal, hay, barrel staves, and minerals, all of which, with the exception of 120 tons of minerals, were for con- sumption in Greece. The 120 tons of minerals, with the 23,640 tons of export cargo mentioned above, makes a total of 23,760 tons of Yugoslav cargo destined for abroad which passed through the free zone. General merchandise exported from the Greek free zone into Yugoslavia amounted to 14,155 tons in 1927. In addition to this there were 18,153 tons of salt, destined to the Yugoslav salt mon- opoly, which was permitted to go directly through the Yugoslav free zone and does not appear in the Greek free zone statistics, This makes a total of 32,308 tons and, together with the exports, namely, 23,760 tons, a total traffic of 56,068 tons. In 1926 the total traffic amounted to 65,223 tons. The following table shows in more graphic form the foreign trade of Yugoslavia which passed through the free zones at Saloniki in 1927, together with comparative figures for 1926: m 1S 18 I, A= oe aT iS e, Ho ie ‘. 16 mn y 0, e Jd AS i Yo 18 of 30 0 18 Y= 3e is Ys ‘c ie nn FREE PORT OF BALONIKI 280 1926 + 1927 [Imports from Yugoslavia into Greek free zone by rail and sea _.................. By rail only. ocoooomoooceon. a Disposition of imports by rail: For Greek consumption. __.._._........ For export to other countries... ____._......... Remaining in Greek free zone at close of vear.... Tons Tons 114, 192 79, 610 103, 683 783,414 56, 508 35, 907 11,178 44, 380 23) 640 5, 385 73, 414 14, 155 18, 153 32, 308 103, 683 Exports from Greek free zone to Yugoslavia... Exports from Yugoslav {ree zone to Yugoslavia_... 16, 143 1.119 27, 262 Yugoslav products exported abroad— Through Greek free zone._.... Through Yugoslav free zone._. 35,007 | 23,840 2,054 120 37,061 | 23,760 Total tonnage of Yugoslav commerce through Greek and Yugoslav free zones -| 65, 223 56, 068 Percentage of all trafic handled in Greek and Yugoslav free zones (per cent) __. 12 10 RUMANIA Although the imports into the Greek free zone from Rumania amounted to 34,877 tons in 1926 and 40,061 tons in 1927, only 30 and 34 tons, respectively, were exports from the free zone to Ru- mania. All the imports from Rumania come into Saloniki by sea from Black Sea ports. In 1927 these imports consisted of 25,340 tons of mineral oil, 8,256 tons of wheat, 1,373 tons of other cereals, 2,853 tons of dried vegetables, and 1,703 tons of chemicals. Practi- cally all of these imports were cleared through the Greek customhouse for Greek consumption. The exports to Rumania from the free zone in 1927 consisted of pharmaceutical and chemical products and other manufactures. BULGARIA For lack of a direct railway connection between Bulgaria and Saloniki the free zone at Saloniki does not materially benefit Bulgaria at the present time. Of the imports into the Greek free zone in 1927— namely, 5,220 tons—3,123 tons consisted of wheat, 527 tons of other cereals, 324 tons of cotton, and 478 tons of sugar. All of these imports came to Saloniki by sea from Bulgarian Black Sea ports and were destined for consumption in Greece. The exports from the free zone into Bulgaria consisted chiefly of manufactured goods. Uy, , FOREIGN TRADE ZONES ALBANIA Although Albania shipped into the Greek free zone only 37 tons and 135 tons of freight in 1926 and 1927, respectively, the traffic movement from the free zone into Albania in these two years amounted to 2,285 tons and 3,044 tons, respectively. Hides and skins constituted the bulk of the Albanian exports to the free zone. However, the exports from the free zone of foreign products into Albania consisted chiefly of manufactured or other processed goods. In 1927 this trade included rice, 170 tons; animal products, 116 tons; flour, 29 tons; sugar, 125 tons; textiles, 200 tons; pottery and glassware, 110 tons; wrought metals, 366 tons; paper, 107 tons; cement, 385 tons, etc. Practically all of these products were shipped by rail to Florina, on the Saloniki-Monastir Line, and from there transported by wagons or automobile trucks to southern and eastern Albania, which can not be readily served by the Adriatic seaboard. The building of railways in Albania, however, would undoubtedly Jirect this trade to its Adriatic ports. Albania is, therefore, not recarded as a potential factor in the free zone of Saloniki. [INFLUENCE OF THE FREE PORT ON THE DEVELOPMENT OF FOREIGN TRADE AND MERCHANT MARINE What influence the free zones at Saloniki will have on the develop- ment of foreign trade and the merchant marine depends on numerous factors. As has been shown In previous chapters to this report, the sransit trade of Saloniki during the first two years of the operation of the Greek free zone did not reach a very large volume and was chiefly for the account of Yugoslavia. An increase in this transit traffic depends primarily on the establishment of adequate railway connections between Greece and her neighboring states, especially Bulgaria, Rumania, and Albania, as well as the establishment of amicable relations and confidence between the Balkan people. Bulgaria is probably the most important potential factor in the development of the transit trade at Saloniki. At the same time, with the establishment of adequate railway connections between Saloniki and Bulgaria, & new geld in southern Bulgaria, which is now without railways, will be opened to international trade. The free sone should benefit materially from the distribution of this trade. With the expansion of the transit trade through the free zones of Saloniki, there will undoubtedly be an increase in the number of vessels using this port. At the present time the trade of this port is served by the vessels of many nations, some of which operate in regular services and others in tramp services. Approximately two- thirds of the vessels which called at Saloniki during the year 1927 were under Greek registry. Greek vessels brought 30 per cent of FREE PORT OF SALONIKI 291 the total foreign cargo into this port, as well as all the coastwise cargo. Vessels flying the flags of Great Britain, Italy, Yugoslavia, Germany, and Holland are also prominent in the trade of this port. During the same year 31 American vessels, with an aggregate net tonnage of 90,029 tons, called at Saloniki, as compared with 29 vessels, with a net tonnage of 91,728 tons, in 1926. The cargo landed by American steamers in 1927 amounted to 24,848 tons and, In 1926, 22,237 tons. Very little outward cargo was taken, namely, 1,385 tons in 1927 and 1,598 tons in 1926. The nature of the shipping at the port of Saloniki will be seen in the following table, which shows the number of vessels which called at Saloniki in 1927, together with their nationality, aggregate net tonnage, the tonnage of foreign cargo landed, and the cargo loaded for foreien destinations: Ay INIHEN, conn esnn sn sr RRR Irian. cs cna ime re a TRAE be 17 SOR A 28 DHAD. ann cram ms - Jrench.._.. mma OTMAN coe acme. mmm mm——— IER ie ae eco eee——— TOHANA eee oon ee eee I0HBt ee veins n mmr seemed] SADIE cus oman sie Be WERE mmm NOrWeRIAD orion Pantlifl. ovis emit mmm mms mn - 2olish ooo. ooo... J Portuguese. ocoeoe... p. wenn R0UMARIAN oven EeRRaes SOVIRE nee mee mmm ———— ee men 2) 03:0 111-1 o NARS Rm IWIN ccc msnmmmiitiny - Papkish coc umnmmsgemss ppm «eee Jnited States......_..... 3) TRARY HARE Wminemmne sin CRBOBIAVIBIL. « cuunnmnn nnn mms sens wnat ese smo me ee mm— Total. _ Number 2f ships 1 Ft) 46 ¥65 36 re =40 Net tonnage 286, 211 7,905 1, 856 306 44, 740 75, 850 167. 58: “3 578 "x &G ay 200, Tonnage of cargo Landed Shipped 98,128 1,321 248 930 7,610 19, 409 125, 844 15.842 1 8,161 47 Tas 5,766 5,155 8 144 8.427 ry: TTT 282 Tie “1,388 3746 46, 169 The Greek vessels, to which the coastwise trade is reserved, landed at Saloniki in 1927, 77,258 tons, and loaded 74.072 tons. from and destined to other Greek ports. PROGRESS OF THE GREEK FREE ZONE DURING THE FIRST TWO YEARS OF ITS OPERATION The Greek authorities are entirely satisfied with the progress made by the Greek free zone since its inauguration in October, 1925. In ts annual report for the second year of the free zone’s operation, the commissariat of the Greek free zone states that the work accomplished thus far has entirely fulfilled the purpose for which the Zone was created. Volume of cargo imported into Greek free zone at Saloniki in 1927 Jor Greek consumption and transit to other countries [Inclosure to report on the free zones of Saloniki, from Consul Charles J. Pisar, Saloniki, dated May 21, 1928] So] oO ND Great | Yugo- Iritain! slavia Bel- rium Jnited States Ru- | mania Italy Russia [Canada Hun- gary France Hol- land Argen- | tina Ger- many Egypt Bul- Zaria Java | Aus tralia Turkey in Europe Animal and fishery products___ NBO ccs ouput nas ar NBT ici mime me mee re ‘ther cereals... _____________ Jour o_o. Vice. LITT egetables._____.__.__.._______ Potatoes... ________ Jruits..____________. wo Cotton, ete....._____._..._..___ Coffee and colonial products... jugar and sugar products... .___ LAQUOTS. oe ooking oft. ___.__.__________ Pes Pharmaceutical and chemical Prodoete... . cove nmmmmn mer mom Leather _.___.__ Textile ______ oo Articles de duxe_.______________ “arns and millinery....________ ‘arthenware and glassware____ Mrought metals_...._...___..__ Ol8e cineca a Tusical instruments. __________ *aper and books ____..._____.. “nit and fancy goods. _________ automobiles, eyeles, ete.._._.__} arniture_____.._._.._______.__ Nood manufactures... ___.____ Arms and ammunitions____.___ Mineral ofls_.__..____...________ FO es iis iii tm meer m— Cement. __.____.__.._._________ Lumber, tons____.____________ Living animals, tons. .._.______ 2,714 10, 600 21, 864 15,331 306 reese CL mr RT 01 LeoL 60 oo. 162 ph 6 7 80 353, 2379 287% 1821 8 14 109 249 173 13 i, 687 | ga 28 53; 31 naman 21,2731 8,256 DTT. Lan I mas 1 — MB pins} Bl 5a 81 ana] i TERT TTI 40 eo oll 103 55 IIIT 6,539 | 2,116 "III 1,701 | —— TT 557 1 2 Lenses 2” TTT 36 a 49,215 | 40,061 998 42 0 186 2,453 29 ia ie] PE eg] 48 8 7,056 | 18, 389 i] 110 gl near | ee ws wo ho Fo "0 an I TT TT 57 TT om TT men TRET] 2,668 A IT me 2D a7 TT 13% A —— aT IIIT TRE 47837 ies ITO eam BIT Te TI aa 21 Tam ee TT a ITTY a ¢ CIT lp 430 1,428 | 1 oo Tee 2 TITTY Ta I am LTT os Ti — ed we 18,380 | 14,018 eee. 808 came 3,060 1m Fern rears 2 se TTR CT 4 Th 53 Cg — 2 of BT BE 50 eee 8 ide 138 PR 4 Ti meena] 513 | 2 EEE 29 ——— “R03 Ten IIIT J CTE TTT IITA meee sms I2 vos omens ——— md TE me } wnt) a TT SA I I pi 3) 1 eran] 5 15 — een] 16 Yen] VIII TTR a - HTH ss 4s 12,295 1 9,403 | 8,064 | 8 481 | 7, 289 0 3,84 | 3,060 | 2,208 rm rm mm 3,614 471 781 9,103 9 1 176 3 J | 1 4 ) 1 V he—y 26¢ 29 2,007 7 I Lr J | all 4 H Ie #3 [4 4 150 2 2 1,§ 24 83,758 | 79,610 | 56,402 7 23. 529 25, 789 Animal and fishery products... _; Wheat... ______ Barley. eee Jther cereals. ._._.._..___. : leur. oo. va Mee ooo... ~ Jegetables. ...o._.______.. DOLALIOS. wins im ria R a Frotiteccoy cumenmuins, v—- Cotton, ete... ___.________._____ Coffee and colonial products... ___ Sugar and sugar products____._.. LAQUOTrS. _.coooaca Cooking oil___. Ores. oem. Ems Pharmaceutical and chemical produets. ooo __.____ Leather... .____..___________ Textile... __ ooo. oceeo_s Articles deluxe _____.___.. o_- Yarns and millinery______._____. Earthenware and glassware______ Wronght metals. ___.... _______ ig ST Musical instruments... _._______ Paper and books_.__.___....___. Knit and fancy goods. _.________. Automobiles, cycles, ete... Furniture... ooceeeoao___ Wood manufactures. ___.........} Arms and ammunitions..___.___ Mineral oils. ___..___..... ._.._. Soal o_o. 3 a Lumber, tons... _._.._._.._.__. Living animals, tons....... . Jyria Portu- gal Cy- prus Turkey in Asia Swe- den Aus- tria Pales- tine Dode- canese [slands Al- bania Czech- oslo- |Algeria| India vakis Po- and Swit- zer- land Nor- way | Brazi} Den- mark Abys-| Total sinia in tons 1,098 1 Benen rr Bel Be 8 ee eft me cman ccf ce cence mmm ee eee i ps mbm mh CL LIL ITT Tm em— . TRI TTT own rn emer oT I ma TTT Tee TI Ln Sy SN Ss J = 619 | a 15 CTL TILL TI Tk TT Cas uss UID dee IIIT TTR | Teh III II TT teem meee fee femme meena er] ® — id 3 = ¥ enced umunas RRR cmd. ama. p— 1 Rotimi Em mrt pose escerm mmol mmm wavmeedeacesze yammnl amen Ral 58 ¢ ITD AIR TTTTeY I LT — — 2] 543 171.0 8] LHe = ph my ln ee es T0209 Ile ii eld fee eee somone nm RE Re vw wem——— si eRe i sues] commenter ro Amb] Te EI TIE Te TI mm TI 1 BLL III qo i) § ITT I ITT oe] 2 [TH TT TTR LI Why Dg ewerlesmsaemeenliemne Se il es] 1m i 6 i 9 III) Eee NE wr = i 11 sion cemen mmmne miee? ema TL — III ny Tw IIL... IT =| @ [roeeo ST oo or oe hee a pee LIT III ee mn re m———. ——— TTR wma anne, L riminn Hove] Lose LTD Ter meee] ii foo seems meno J CIR I me hd gs a on Cnn - nT TI = or L802 | L098 | 852] sl 48 ®| 78' 5d 13, 754 79, 856 21, 966 16,723 24, 307 5,517 17,173 14,973 6,177 11, 397 1,793 17,273 325 7,832 57.709 7,220 285 5,014 140 3,201 3,005 10, 484 309 98 2,970 121 1,527 366 2,821 44 29,323 "3, 376 i, 379 1,443 7 457,928 | ba I<! = d 2 & = Q = @ 5 = > Z = A DJ O * Volume of cargo (foreign) exported from Greek free zone at Saloniki in 1927 [Inclosure to report on the free zones of Saloniki, from Consul Charles J. Pisar, Saloniki, dated May 21, 1928] Yugo- slavia France | Ger- many Bele | 5 ibanis) ut | Egypt "Holiand| Italy United States Turkey’ in Europe! Pales- tine Syria Dode- eanese fslands Bul- paris Cyprus Animal and fishery produets_._..__________| 2,010 Wheat. ._____________ CITT TT 38r16Y «oe I. four... TTT 7 Other cereals... ____ "7", I THB, ion RR EET mmo 15 ‘egetables._.___.____... RR 96 Sotatoes. Lo _._____..___ J EP viii iit mmm a] Cotton, ete_________.________ TTT Coffee and colonial commodities... .. Sugar and sugar products_.__._______.__._. Liquors. ___.._..__.______.__. sen sprmrmms, Cooking ofl___.__..___. mans BIPO8, icici vio sutton a mm =e wm ecm “harmaceutical and chemical products... _.. leather ____________________ TTC Textile... .______ TTT Yarns and millinery... _____ TTC Articles deluxe... ____________ "T°" Earthenware and i ——— Wrought metals... _________ "77" TD008 ecco cm m—————————— Musical instruments... ______ 2 "TC Paper and books... _____ T7777 Knit and faney goods... _______ Automobiles, cycles, ete... _ Furniture... .___________. aE Seek Wood manufactures______..... ...._.___. Aros and ammunitions._______,.__________ Mineral oils___.__...___________ TTT TTC DOR). oiinanin mmm amm————— Cement ________.__..______ TTT Lumber, tons__.______._._______ TTC Living animals, tons... J 10. 32 5) 16 86M.) ABI om 10 21 me fT T| R ®X8 10 1,838 | 5,088", 2,783 | IIIS 70 Looe 2 et eee aera] BE pro Bl ewe den 2 6 LI 281271 2417] ame senegal UTS TTI nnn eee DTT 0 {comme ooo ee TTT LI CETTE =" SITE TIT) 35 9 — La PRT NI — Al i een 30 1 i 8 cide L mremart— 6 32 5 2 ag! 3 omer. een | 4 27 2 eee] BY 957 aes TTT 8 18 5 15 10 5 | 1 —— mre mre ee ec mics eee eee ho dea mcrae —eeas wo SEES FIUAAT Fasimnmnimmm mene eweenileapiniey steam ann wmf A a sf i. BB AAA RAG mir, ow mee emcee —— Re errr meme LITTTTR 2 CI TT —— — g IIIT sd] Lee| 20 — 200 LZ TTT cn vm compel, menm—— IT 9 1 cre 2 1 17 % LIT TE S— 251 F 2 me—— Comma le eo mmmm— wrt xo] 1 $B gai] rm m——— mo ———" 1 ri 1 rm formant? i i 2 feces 1 3 IID 7 9 127277000 3 [msm eemmefenmeenn 2 19 1 Trammmn CrmE——,— rem r.-—— erm ma ———— TS A meme em ra mre meen ee —————— S—— Y Yomnenes ern ee meng i fren OI isofeci, S 1 2 “rian —————— 1 mr 1 ¢ 1 B functions mihmmmmn bmp smn Rata. Hime CEE Fema in he Sere mpm ¥ "wandoug WS scorn ER cg ¥ CITT, mm TTI ITI LIT CUTTY IIIT nh ey RE MR Lames Semmes memes me me ee eens meee ee 10 2 [oo 1 III II mm I rs rn ln ene enn CITI IT TUE Tf BS cian em mmr, cur [TT mate nntb ree er mp ER ay TL wr on cna ink WE a — Ee EO a 8,487 | Fry 4,408 | 3,0 | Low | Lot | Taal am] aw] mn | wri ws] wl” wm! 5 14.155 BO oO ng > J 3 9 4 2) 4 - V A = 0 Volume of cargo (foreign) exported from Greek free zone at Saloniki in 1927 {Inclosure to report on the free zones of Saloniki, from Consul Charles J. Pisar, Saloniki, dated May 21, 1928] Hun- gary Ru- 1 Turkey mania Sweden; ; ei Java | AustriaSTitzer Den- mark Greece : : [Czecho-| Se Algeria | Russia |g sock] (Saloniki | Total cargo inimal and fishery products. o.oo... _._..__ reef SR SREY REED, emmmman rem————enm— Nheat. a rh — oY ees per meen emt mmmemmt memes meme darley. oo eT ve bo rn an SRE eee FREER REE SRE dour. ait an, il Hohe] mma mates, sin mown s— foiiregs a sm Nhercereals_. o.oo... .._ ____" meree omnia fee meme aan maae emeeean wm mm SAA, ai A mmemafpor ne SE Wh mmm meme] Vegetables__.____.__...____________ 7°" comme enema NRE SERRE commen mmm mmm —————— Potatoes. aeoooo____ oe mn ae mab LTT me mmmeobieecis sme meee PRBS. cocci munitions ——— 38... .. PRS 1s I iil ciel ict meee ean)! Cotton, ete... ____...__.___..___l.. LT 30 or 1 Jrommmmmn mmm roan ele Coffee and colonial commodities. ...______. _._270 070 TT meen emt mm; omm——————— S— fn ————— ————— Sugar and sugar products... _._____ een mn ee ee mens casinos’ cmann esmmme cen ceennn Liquors... _. ._..__... mmm mmmeems rs imme mean ammemmes ceemee em mmmmmmet cemree ammo eemeeelee eee eee Cooking oil..... SHY hme or mmm; we seme a Cr tm, IRR eee oA DIEE. ro wwiegoiie CAEREERRHTIRER nm oes vl B rvenin Cea EE RR mm, me mene eens Pharmaceutical and chemical products_. _ J R22 mmm ww wee pag) 4 — emer mmmemaiececenes Ly SE Srmmmmmmmees imme ems eee ean seems el) Am ——— en — DORI wp sisi wivininmiammy munmmmne eben —— Fond 8 ccecnts name mmm. o—— Blt caren Yarns and millinery 1-1 1. 1... . A T caeanen -— memen ccccmmar meme ier emma Artielesdeluxe.. 0 0 ITT Ll LTT TT mmm merits sw— emg Earthenware and glassware... _....__.. . a RRR Cen emlieemmmmn ccmcmce a meee emma ome oem 198 Wrought metals..__. wo wr: Rk 2 mnie 3 IIIIIL ITI —————— : Q—r 1 sesewws 1,266 Musical instruments... _..___..... . _. woe? x gmm mem— mmf n meee ww pReR, AESESE mnt rmmm——— 4 Paper and books_______ ovine... come aman I Dna BRR FRRRIEEE Gmommmmm mmm 2 fees 40 Knit and fancy g00GS... o.oo ooreeeenn. ——— -- rewsee|ecspenis comms mmmemer mm rams i mmeee memmmmwlemm—m—e amma Automobiles, cycles, ete... o_o... ._ meme] re i mn SHEL, mmmme amm— m—————— S——r—— 37 Furniture____....._.__. rmmmreeeseus cwmmen|ee———— we a meme) nen — i. or ————— 13 Wood manufactures... ooveeee oem ses Lm msl mn mm — - am 84 Arms and ammunitions. «ooo oiiinn lei od - —- ww [r— Mineral oils. ___.________._. RE ol) RR mp ws wey Se GEESE Coal... _._.... = 4S mmm m——— _ w mmm DOI cu puninnummnnn cans nnn msn SERS aia mmmmmmndom orm a I. Ltn her, $Om8. cc cn vimm rans st nmies Gs norm mm mmo eee oe - ot Living animals, tons... ooo. oooooeo to |IITTT0 [ 3 91 34 3 10 34,460 | 78.897 %, 22 6, 709 17,775 3, 096 11, 113 597 5,716 1,189 1,004 2,473 372 4,796 14 2, 580 5, 904 1,015 205 1,414 1.199 5 781 2,337 18 10 503 5 176 20 | 173 1 200 364 1,678 167 a erchan dise cleared from customs «, 958 66, 598 5,110 18, 254 8, 314 5, 060 10,018 12, 409 5, 269 7,491 1,439 13.522 345 4,868 49, 738 5, 538 169 4,479 1,703 101 2,149 11,036 206 79 2,684 96 1, 21 390 2,877 41 25, 882 70, 780 16, 696 1, 060 4 363. 624 Total cargo exported 12,183 73, 307 22, 885 21, 350 19, 427 5, 657 15,734 13, 598 6,363 9, 964 1,811 18, 318 359 7, 448 55, 642 7,453 374 5,803 2,902 106 2,930 13,373 254 89 3,187 101 1,437 420 3,050 42 26, 082 71, 144 18,374 1, 257 7 449. 521 = = = = la! S = O | wm P to oO 2 = A ed IN C *¥3 206 FOREIGN TRADE ZONES THE FREE PORT OF SULINA, RUMANIA [From Ely E. Palmer, American consul general, Bucharest, Rumania] Brief history of the port.—*‘Sulina,” or “Soulina,” has followed the destinies of the delta; before 1812 it belonged to the principalities, but by the treaty of Bucharest dated May 28, 1854, it reverted to the Turkish ‘““sandjak” of Tulcea. In 1826 (treaty of Akerman) the Russian frontier was extended to the left bank of the Sulina Channel and a Russian customhouse was established there. In 1829 (treaty of Adrianople) Russia got down as far as the St. George’s mouth, but retired altogether from the delta in 1856, and Sulina reverted once more to the Turkish Government, after having been temporarily occupied by Austrian troops (1854-1856). During the Russo- Turkish War (1877) it was occupied by the Russians in accordance with the stipulations of the San Stefano treaty, but by the treaty of Berlin, Sulina came under Rumanian sway. In 1856, by virtue of the treaty of Paris, a commission was consti- tuted, which was styled ‘The European commission of the Danube.” it consisted of the following delegates from each of the seven con- tracting powers: Austria, the Chevalier de Becke; England, Major Stokes, R. E.; France, Monsieur Engelhardt; Prussia, Herr Bitter; Russia, Baron D’Offenburg; Sardinia, Marquis D’Aste; Turkey, Omar Fetzi Pasha (president). It was charged “to design, and to cause to be executed, the works necessary, below Isaktcha, to clear the mouths of the Danube and the neighboring parts of the sea, from the sands and other impediments which obstructed them, so as to put that part of the river, and the said parts of the sea, in the best possible state for navigation’; and in order to cover the expenses of the necessary works, the commission was authorized to fix and to levy duties, of a suitable rate, on the express condition that in this respect, as in every other, the flags of all nations should be treated on a footing of perfect equality. The commission commenced its labors in 1858, the depth of water on the Sulina bar then being 10 feet. To improve this bar depth, two piers were built seaward, the length of the north pier being 4,631 feet; that of the south pier 3,000 feet; these piers were completed in 1861, the depth of water rising from 10 to 17 feet. By 1878 the bar depth had been gradually improved to 2014 feet, which was maintained by natural causes for a period of 22 years. In 1895 a depth of 24 feet was obtained, with the assistance of a dredger, and maintained, with rare occasional fluctuations, until 1914. When the late European War broke out in 1914, dredging operations had to be entirely suspended for a period of three years, and owing to the vast deposits formed by four consecutive years of flood conditions, the depths around the entrance were greatly reduced e Yy 8 e sl v "REE PORT OF SULINA. SHOWING UPPER END OF PORT FROM FIRST TO THIRD MILEPOSTS 06} FREE PORT OF SULINA. SHOWING LOWER END PORT AND SOUTH BANK RIVER ENTRANCE 206—" FREE PORT OF SULINA 297 The Danube commission, to remedy this obstruction, have been and are making further extensions of the piers seaward, and it is expected that a permanent bar depth of 24 or 25 feet will be obtained, when the present works are completed, in three years’ time. Ten cuttings have also been made in the river between Tulcea and Sulina, which have shortened the distance by about 12 nautical miles and removed 27 bends dangerous to navigation, and while, in 1856, the size of vessels navigating the Danube were sailing brigs and barks of 150 to 300 tons, to-day steamers of a tonnage of even 9,000 tons can proceed up the river as far as Braila with comparative ease. The commission has, therefore, fully carried out the mandate given it to guarantee the freedom of navigation. It terminated piracy, which was practiced at the mouths of the river when it origi- nally took office. Description.—Sulina is a small seaport town at the Sulina mouth of the Danube, being situated on the edge of a swampy flat, of about 1,000 square miles in extent, forming the delta of the Danube. The port comprises the Sulina branch for a distance of 3 nautical miles upstream, commencing from the point zero on the milestone scale and that part of the Sulina branch forming the outer port between the said point and the pierheads at the mouth. The Sulina road- stead comprises the waters of the sea with a radius of 2 nautical miles round the head of the north pier. Sulina hes no industrial or commercial importance apart from shipping, upon which its entire existence depends, being the port of transshipment for the large bulk of grain finding its way down the Danube. Quays have been built on both sides of the river the whole length of the port, which provide berthing spaces for about 40 steamers, the depth of water alongside being 24 feet. The population is about 2,500 souls, to which must be added one or two thousand men of various nationalities, who form a floating population and who come and go according to the demand for hand labor in grain-loading operations. It is a free port, this privilege having been granted by the Sultan of Turkey on account of its peculiar position as regards the Danube commission, and not abolished by Rumania when the latter was accorded a seat on the Danube commission after the war of 1877. The free zone extends for a distance of 3 miles round Sulina; sea-borne goods entering the port not being subject to customs duties except in the case of the Government monopolies, which are tobacco, spirits, beer, salt, gunpowder, matches, and playing cards. Goods arriving by the overland route are subject to the full duties imposable at other Rumanian ports. 208 FOREIGN TRADE ZONES Owing to the absence of all agricultural and industrial enterprise, there are no warehouses, grain arriving here in lighters carrying up to 2,500 tons for transshipment and being loaded directly on board pcean-going craft. There are no rail and highway connections, communication with the outer world being entirely by water. Local ferryboats ply with the upriver ports in the summer time, while during the winter months, i. e., December to March, when the river is frozen, the mails are brought overland by carts from Tulcea and Galatz. The harbor is seldom closed to navigation by ice, and loading operations continue all the winter, as the grain intended for winter shipments, from 100,000 to 300,000 tons, finds its way down the river in lighters before the ice sets in. Administration.—While the policing of the river is under the juris- diction of the European commission of the Danube, possessing sov- ereign rights, the territorial authority, Rumania, polices the town and controls the customhouse. Vessels entering are subject to customs control and the guard consists of a detachment of 130 frontier guards. The administration of the port costs the Government only the upkeep of the officers above mentioned. The European commission pays for the expenditure incurred on all works carried out on the river, taxes being charged to steamers to cover these latter outlays, which normally amount to £100,000 per annum. Operations permitted in free zone.—Operations in connection with the loading and discharging of steamers and shipping in general are permitted in the free zone, while the manipulation of petroleum and oil residues is carried out in a special zone at the lower end of the port. Operations prohibited in free zome.— There are no operations which are prohibited in the free zone. Dispatch secured in unloading vessels.—The loading of steamers is carried out by floating elevators capable of discharging up to 120 tons per hour, and work can be continued night and day. When these operations are affected by hand labor a discharging rate of 500 tons per day can be relied upon. Dispatch in other Rumanian ports is similar to that obtained in the free port of Sulina. Reconsignment trade, nature, exteni—There is no reconsignment trade, Sulina being but a port of call for ocean-going steamers on their way to the terminals of Galatz and Braila. Transshipment trade, nature, extent.—The transshipment trade is entirely confined to grain, timber, and oil cake brought here from upriver ports in lighters and loaded direct on ocean-going steamers. J 1 $l FREE PORT OF SULINA 299 Shipbuilding and ship repair in free zone.—There are no ship- building yards in Sulina. The European commission of the Danube have their own workshops and are able to effect repairs to their dredgers and other floating craft belonging to them. They also assist local workshops in carrying. out repairs to steamers. Influence of free port on the development of foreign trade, merchant marine.—The free port of Sulina is entirely a local privilege and has no influence whatsoever on the development of foreign trade and merchant marine. 8. SELECTED LIST OF REPORTS, BOOKS, AND ARTICLES RELATING TO FREE PORTS CC — — i! § Bers — oom Sind - — —r— i Name of article Author Published by Date Volume | Page ee Em —————ee ii, _ Abolition of free tariff zones between France and Switzerland.._._._.__.____. Philip Adams._______ idvantages of a free Ls — mmm mmm mace ccemmemeeeeman igitation for a free port at Montreal... I _TTTTTTTTTTTTTTLGT MeKay_ ooo... -nother fres port movement. ....._.._________._____ ITT rm AR tenefits of a free Ce H.R. Towne. _______. 3onded warehouses and the free BOD. eet ema Jruges—Zesbrugge as a free DOT co gi se iii im SHH rrr eer ‘ SER RRG me Hw merry Joming of the mechanically perfect free port____.__..______ CC erm pm Jopenhagen free POF eee Julius Martizen__.___. Danzig in WRIT Tr M. F. Liddell__._____ Decree establishing free ports in Mexico _________._ TTT SR Demand for a free zone at Sushak (Yugo-Slav).. ..__ ________ ~"TTttttt AG ER Digest of a report to the foreign trade of the Merchants Association of New Philip C. Kennedy__.. York on a comparative study of the economic, industrial, and commereial conditions in the free ports of Europe and the port of New York, JIstablishment of a free port at box HRSA nr mmm —— Final declaration of the Twelfth National Foreign Trade Convention, Seattle temo mm ———— Foreign trade zomes________..______ taf teens Foreign trade zones in ports of the United States... i Foreign trading zones in our seaports... TVR Clapp... Free eC rr £ . eer eee meena eee oo] CalViD Tompkins. __. port agitation Io Argentina: =o mmm eens enn] emma enc me maaan Free port agitation in Argentina. ____._________ TT TTTTTTTTTTTTTTTTC Wm, F. Read._______ Free ports and American commerce Sem cme ceeeeaa] AL HL Ritter____.____. Free ports and free BIH ccm em HH mer erm ere meee ee] a a Hr em Free ports and the development of the commerce of the United States.._.._| F. G. Howe.___._____ Free port at Konigsburg (Germany)... Bim memm mmm Frog port at Stockholm... Cl ITI mmm ————— 0 eee mae tcc mm—ae €ree port development in Uruguay [IT IIITTTTTTTTTmC O. Gaylord____.______. Jree port established at Kiel oe TTT menses on mmm mo SG To TI. rss m8 High gr rpm reer mm ew eee em rv wemecee--| Theodore Jaeckel. .._. Free port for Buenos Aires me ee mec mee Free ports for the United States... LIIITTTTYYT Chambers... __ Dias RRR el ere nmorar egg esses a. rms sm memes se oD i SS Ermer Free ports in Japan. eee rm sy Free ports in Spain ee eee mnme cane] OC. Li Tomes Free ports in the United BERS eee | E. J. Gorman... #ree ports mean dumping DOS eee meme 004 346-347 19" 3 AAA | 54 32-34 489 4-10 9 122 766-7: 112 632-635 12 517 pr 4] Board of Frade Journal .__.._..____.__| Sept. 21, 1922..__| 109 ; 321 National Foreign Trade err — nT 6 U. 8. Congress (Houses Committee on = Oct. 10-11, 1919__ —— 1-164 Ways and Means). J. 8. Senate Committee on Commerce 1-33 umerican Economic Review. ____.__ 262-271 an Francisco Chamber of Commercr 1-54 american Association of Port Authori 164-172 ties, fourth annual convention. ‘merican Economist. ___.._______..__ 73-74 Jommerce Reports_..______________" 601 i ‘merican Industries. .___.___________ 19, 20-24 a BUG ccs bi mi oer ere remmm— 809-811 Economic World-_..____..._.._..._._. 549-550 » World Ports_.____.._______.._____.._ 82 American Review of Reviews ______.._ 659-660 iwedish Arnerican Trade Journal ___. 116-119 >ommerce Reports. ____________._____.. 352-353 TOMO POPE, ee crisis tom > Jommerce Reports._.____.__ “ American Economist... ____._____ 187-1 2acific Marine Review.._.____.______ a —79 World Ports. ooo. 90-96 Japan Chronicle (weekly)._...._.____ 163 Daily Consular and Trade Reports. .. ww : ’ 1-23 Pacific Ports__._.._..._______..._.___._.. . 55 010 . i 261 American Economist__._____________. 267-079 free ports of Mexico... ioeiuimmmmm—aee eee emeunrmmoemee een Pan American Magazine... ccacaaeens Free ports on Panama Cabal Zone __.__... .... oR we. W.Neilson.___....... American INGUSEHIOR. ooo ooo Free Ports OPPOSed. oo oven ceca oes emmmmcueemmeomemmeene| W. F, Wakeman __.__. American Economist —ccom canna free port system spreads in EUrope. ooo oceromcmco mcm mmma cn eeeececee-we—- lournal of Commerce. _.... ecemeroun Free port system is urged for the British Empire_ © icmemmee - mmemrmeecuammeeeemene areater New Lork_ ove eeeee, Free port theory eriticized oor ooovmooeciceee emo William Burgess. .... American Economist _____....... Free trade POTS. morocco coco ceamcccacsmmom rem e——m—emm—esmmeemeseor Cosme mmm meen men oe + per DD pcm me pen Be AH ER Free zones, what they are and how they will benefit American trade... .—eccmrovooccrom-nawannn, Chamber of Commerce of the Urited States. I Calvin Tompkins_.... American Association of Port Authori ties, fourth annual convention. ro emeeewweemameee U.S. Senate debate, Congressional Record, Sixty-sixth Congress. T. 3 Tarriff Commission. -..cocuenua- rrr mops mr om EHR BER ERE Iwedish American Trade Journal. ._. Commerce Reports _ _ceemmanan ‘Vialmo Frihamsaktiebolag. _. -o-cuae Hango Free Port Co. (Litd.) convene American Economist. comerooaaos VU. 8. Tariff Commission. —-oecarmamaee LA WEY ASO cums wissimisam msmais New York Times _ ___._coroooeouo_-. ‘apan Chronicle (weekly commercial supplement). Tiphijasde D. Casanovas . cceeoceee-. Malmo Free Port Comme ace Swedish American Trade Journal. __.. Commerce Reports ..ocemeommeunran. American Economist _______oaoo-o Mexican Chamber of Commerce of the United States. Ports and Waterways... cococcnicocuen Zommerce Reports. oa coianecaan World Ports. __ ieee Marine News... _.. SE ‘Wall Street Journal. ooo. american Bankers Association Journa! Jreater New YorK_.oocooooomocaaaon. \merican Industries. ______. oo... an American Union Bulletin. _._..... Yreater New YOrK. oo oceooocoovvann. ournal of Commerce. _....ococacana-. “merican Economist ____comaooo. acific Ports. o.oo emcees Jeonomie Review. o.oo. nigntific ANErican cee - - —wea ‘uly, 1924. cn..- 37 373-379 september, 1916. 17 29-30 Jov, 28, 1919. __. 64 | 211-212 det. 27,1925 Lf eames 1¢ an. 13, 1919_._.. 8 8-13 Feb. 28, 1919. __ 63 133 3ept. 8, 1922__._. 70 97 1 A 1-23 1915 ieee emmenee 164-172 Oct. 13, 1019. | ooocceee| 1-164 IR cm m mmo me re re 1-92 022 eoccccmc|emmeenee 1-120 Jovember, 1921. 15 | 384-887 Lug. 10, 1925. ___ 32 | 352-353 AE, AMS Prog fone in ports of the United States. oo oeeoocmomameees remem —————————————— . Demers eee ecim— mee Goteborg, principal port in the north, establishes free POrt_..ceceeeoemmoono-| Sten Isberg. «o-oo. Greok free zone at SAlOMIKE oo ooooooeeoeoommecmmoasmemmm oe momo===u-nun] Robert C. Fernald _.. Gutachten zu den Entwurfen und Vorschlagen fur den Freihafen in Malmo, |. _cvomacaaccmcccces die baulichen Emrichtungen und die Zollbebundlung der Schiffs und ‘Warenbewegung daselbst. dango Free Port Co. (Ltd.) ceocoommauacmcanee. o- m———— [mporters favor free trade ZONES. «oo ionic ainiannen m——— Information concerning free zones in ports of the United States . cco foommcamcmmrcncaaean [s the supply field interested in free bl C. 8. SWase¥eaumenn-- Kil BOW 6 108 DOrL...ccasemennanammamm mina = wan Ce. | SRR FEOD0 B90 L100 TOT ow cin mio wim i ia i i i a tm em. orm sem mnie ERR Las zones Neutrales, su importancia para Barcelona. ..cvcocccercecaemeen. Marceline Graell ____ MAIO fre POI cee emcee cacecmcemcrmmcee—mmmemmmesmmemmeen receememememsmee—esses Malmo free port nears completion. . -.oeeeecceroomveooocmcmcmeroceocsmeoce Bror Ronngren _...... Malmo, Sweden, free harbor... oo oeooueoococceercmccnecommmerasanenes Be. C. Harter... Merchants Association of New York favors free ports. _uoaeoee coceeeoo RRA EH Mexican free Ports. cuoavecrccmcoc ccc ccmecmcasammamneer mame mameamm me nmmnoe RRs Mexican free ports, Salina Cruz, Rincon, Antonio, Guaymas. ...co.eee-... Modesta C. Rolland... Mexican free POTLS. . uoeeceeccemearoaommmracooceanns <omacamesommaee—nnemna| Wo R. LODE oo... lean [10 POTS. —--mmromoms mens e en een] Gel Mexico opens three free ports and announces subsidy program for assisting rem——————— development of shipping. Mexico opens up two free ports_..ocooeeeunn .-. i —— Movement for free zones in ports... cco... ma --. Wm. F. Collins. ....- Mr. Hulbert drew free port bill.__.._......._ _.. mmm m—ma——— a New free harbor at Cadiz, SPAIN. wove ccacccoiaer ccevmemmsessnemmeee crcecoeeemm mem eeme New Mexican free ports Service o.oo ooooeoeoouwomeccmommmememmmeea] Ho L820 New York City: Why a free port should be established here. com oeooale meinem New York wants free trade zones_.__ cas nusmensunspaapimananiwnins) No B. BIOL. vo unnw No manufacturing in free ports. . o.oo... RE 1 i ar i ws pening of the free port at Malmo, Sweden. on uoenr oom meme eae nee pening of the free port at Kiel eon emeemmomememmee neem fee : J Our merchant fleet and free ports. - ie momen pT yp 920. eee] mmm 1-11 sept. 8, 1922... 70 99 BIT, ammonia] mmmm——— 1-115 Apr. 5, 1018____. 64 |{ 202-905 Yan. 22, 1924 __..|eaceao.... 11,5e0.2 ‘apt. 28, 1922 ___ 1082 125-128 * BH, crim: -—— 1-78 1» 7 SR. 127k Jctober, 1921___. 15 352-355 8 Apr. 25, 1918_.._ 97 346-350 Jee. 25, 1925. 76 204 VY oe ris 1-75 september, 1924 1 110-111 uly 21, 1924 ___ 29 181 September, 1924. 12 71-80 August, 1924... 11 77 uly 31, 1024 ___ Lo... 12 August, 1919__._ 1° 79-80 Tan. 27, 1919... ] 15 April, 1916... ___ 16 28 August, 1924___. 58 1 783-794 Dec. 24, 1917____ ¢ 1 ug. 23,1922. aeeeeo.n an, 23, 1925__.__ 75 n anuary, 1923.__ 9 41 day 9, 1924... 9 400 JAar. 19, 1921__.. 124 222 hed ha tT oo & — Cx wl i = - 8. Selected list-of reports, books, and articles relating to free poris—Continued Published by Name of article Port and city Planning. ___________________ . Port and free harbor of Gothenburg, 1922. ____________ Ports francs et zones franches...___. Port of Copenhagen ___. Roy 8. MacElwee..._.1 World Ports, Society of Terminal Engineers (proceedings of). Swedish Chamber of Commerce of the United States, LaNature...__.____________ Danish Foreign Office Journal and Danish Commercial Review, Greater New York... _oooooo__.i__. Commercial and Financial Chronicle. American Economist... _______" Jreater New York. _____ ~~ "7"7"7C Railway and Engineering Review... .. New York THOS. «vc simisiitio momma ms Trans-Pacifie...________ 77777 Seattle Chamber of Commerce........ Trans-Pacifie...____._._____ ~~ Proceedings of National Rivers and Harbors Congress. [Independent ________.___________ National Maxim____..____ 227 Copenhagen Free Port CO Jeographieal Review. _____._____" ~ Foreign Affairs _____ American Economist..____________" Gulf Port Magazine. __...______ 7 Michigan Manufacturers and Finan. cial Record. World's Markets....__._...__________. Swedish American Trade Journal ___. Advocate to Peace... ._____________._. Merchants Association of New York. World Ports (from Scandinavian Shipping Gazette). Gothenburg Harbor Board. mmenii Annals de Geographie..._._.____ "7" Yale University FIOM comnts oman Shipbuilding and Shipping Record... Japan Chronicle (weekly edition). ___ Japan Financial and Econom { c Monthly. Greater New York. See issue for... Japan Weekly Chronicle........._... Jreater New FOTB uc iicnnsiamtommr Railway Age.._____ A A wr wt mr mm Probable effects of establishment of a free DOV cm gir oot rm BH mms 1 emerson Proposed abolishment of Franco-Swiss free zone district of Bavoy._.___.___. Protection menaced by free ports and free ZONES wo emt eee Public sentiment for free ports isgrowing_.._.______._ 7" ow Question of a free port at New York City..____.. Saloniki’s free Ones... __.. Scheme to abolish Dairen’s free port... Eg Seattle____..______________ 7" res ntirmis R Hrc Shippers ask free port in Japan... .________ _ TTTTTTTTTTTTTTmmmemew Should free zones be established in ports of the United States? (Debate)... W.A Mears... .__. Frank 8. Davis and A. R. Smith, F. Rosenberg. ..._.__. Eleanor Kerr... Charles Bierman._____. "ouis Schulthess ____. #. I. Whitehead _.____ Perry Young ......_. Tdwin Donovan_____ Something new in American 40 my Strategie location of free POUR cinco ge pe i ES nm ——————— The Copenhagen free port; the key to the Baltie.ooe oon TTT The Franco-Swiss free zones... i LIT ————— LE —— RE te 58 rg rm The free port delusion. ____...____.__.___.__ A rem The free port of New Orleans in 1795 oo... Hm mem The free ports of Mexico____.___. em emma Them portsof Sweden_..._. ____________. mem rmemecvom—————e 0 sits 3 fe mer se mtr ern me sone A ———— ES A The free zone of Salomiki__.....___ _JTIITTD | TTTTTTRmmmmeemeeee- The function and utility of free POTLS oe The future of Swedish free ports. o_o... wh - The port and free harbor of Gothenburg............._. FRR wh errr rims The port of Dantzig. TTT meme enamm——— The port of Hamburg... [7TITITTTTTmmmmeeeee The port of Hamburg in BD cones a Amma ————— The proposed free port_____..__._.._ me amen The question of free ports. .......... mer mem ome United States Tariff Commission for free ports... o. Arber. (IIIT E.J. Clapp... ______. I Popor.._____..__... C8. Bwasey.. 0 Vladivostok free port regulations... What a free port te do World competition requires free Ports... LITT Date Volume | August, 1924. ____ 12 November, 1923. ._________ O22 nc aiciins ommmm—— Jan. 13, 1917____. September, 1922_ Feb. 18, 1018_.__ Teb. 10, 1923____ Dec. 19, 1924. __ Apr. 1, 1018. ..._ May 31, 1913____ ay 31, 1925. ___| une 13, 1925___. OS ene Jctober, 1922__.. 7 116 74 - Sec. 2, 12 reer May 7,1921_.__.) September, 1918. 1028 i nnnusitammn mss + fuly, 1923. I Dec. 15,1925_____ $ Dec. 19, 1924. ____ 7 September, 1921. - Nov. 1,1924.___. March, 1923_.___ 13 October, 1922. __ 18 June, 1925_______ 87 April, 1018. Tuly, 1923_______| 11 1923 oi ee September, 1923. 32 ‘une, 1912... __ Viay 10, 1923____ 21 May 17, 1928. ___.____. October, 1922___. 17 fan. 16,1919____. fan. 20,1919. ____ fan. 15,1925_____ feb. 4,1018_ ____. Apr, 5, 1918_____ 8 8 1433 8 64, sec. 1 Page 57-19 TTI 93-97 11-13 568 204-207 1-5 Hoseey 12-30 1-32 97 42-52 = o e] = . : 498-499 44-46 1-40 368-376 331-334 207-208 2,%7,45 o = 0 2 4 = wn 47-49 309-312 374 1-29 84-89 1-31 476-478 1-220 618 679-680 35 710 13-1 e 2 o0-nr’ co oo by INDEX Administration of free ports...___ Almeria, Spain, free port of __ ._. Administration... ATEN. .nvnmnn Berthing space... Coaling station contemplated. .... Commercial movement in free port_._.. Customs port, description of __. Description of free port. . Dispatch secured in unloading vessels_. Guards. - cco. Highway connections... History of port... _._.__. Influence of free port on development of— Foreign trade... __....____ Merchant marine_ Location___ Manufacturing and shipbuilding. Oil deposit in free zone. Operations in free zone_._ Rail connections... Reconsignment trade. __. Regulations relative to free port... Shipbuilding, ship repair, and manufacturing. _.. Statistics— Export... Import___.____.. Transshipment trade_ __.______ Warehouses, description of Page 31 - 204 36, 205 205 205 207 208 205 ies ON 74, 207 38, 206 205 204 56, 208 78, 208 205 se---. 65,208 le. 207 --.. 28,206 eee 205 eee. 50,207 eee. 206 __ 43, 65, 208 209 - 209 ___ 50,207 205 R Barcelona, Spain, free port of ___._. Administration... Annual cost of .____. Guards, number of ._._..._ Operating body... .__.___ Description of free deposit - BIRR son . mel -- Assembling plant for American automobiles. - - o_o _____ Storage space__. _. Dispatch secured in unloading vessels__. Equipment of free deposit... Highway connections- History of port ...___. pe Influence of free port on development of— Foreign trade... ___. Merchant marine. eee. 209 ooo... 36,210 210 210 36, 210 210 210 210 . 210 73, 213 210 210 200 55, 213 78, 213 2()F 304 INDEX Barcelona, Spain, free port of—Continued. Manufacturing _______________.__ Operations permitted.._____. Operations prohibited_____ Rail connections. _ _.____..___ Reconsignment trade__..____. Shipbuilding and ship repair__._. Statistics covering operations. Status of free port at present Transshipment trade. Storage space_..._. Warehouses. _ __.._.__. Bilbao, Spain, free port of __. Administration... _._._____ Annual cost of ._____..__ Board of managers_... Description._..__ Area... .._____. Berthing space..__.. Equipment_._.._. Location. _..__.._ Dispatch in unloading vessels. Guards, number of _._ .. Highway connections. _. History of port. _._____ Influence on development— Foreign trade... Merchant marine _ Manufacturing. ...__.____ Operations permitted_.. Operations prohibited _ __. ______ Petroleum products storage of _ Powers of board of managers ._ Rail connections... ___ Reconsignment trade. __.___. Shipbuilding and ship repairs. ____. Statistics— Export. _.___.. Import... ___. Storage, petroleum products. Transshipment trade... ____________ Warehouses, area and number of ._ Bremen, Germany, free port of . Administration... . Annual cost of... _. Authorities having control of . __ Dock administration. Description of free port. Area____._... Dimensions... Equipment... __._______ Location. _... QUAVE_ ___ Page 65, 213 29, 211 29, 212 -- 210 mms 30, TUB 43, 213 ieee 213 PE 209 eemo- 850,213 comme 210 eee 210 J, 214 fe_-_ 36,216 isnt NOD eee. 36,216 214 214 214 216 214 217 .__ 38,216 ~-- 215 mem 214 -. 56,217 _ 78,217 65, 217 29, 216 29, 216 _. 215 oe. 36,216 eeee- 215 ee. 50,217 43. 217 ceo. 217,218 217, 218 eee. 215 . 50,217 ... 214,215 eee 155 oo. 34 eee 160 eee-. 34,159, 160 eee. 34,158,159 meee 156 eeee 156 I 1. : omen. 156,157 eee. 156 156. 157 INDEX 305 Bremen, Germ.ny, free port of—Continued. ’ Dispatch secured in unloading vessels_.__.____. Grain facilities. ________ Rail dispatch, facilities for. _ Elevators, grain. ___________________ _. Exports, quantity and value of foreign goods__. Guards, number of __________ Highway connections. History of port_______. [nfluence on development of— Foreign trade.____ emma D5, 163 Merchant marine. _ eo 77,163 Manufacturing. ._____ 64, 162 Operations permitted. _ wegen Sty 160 Operations prohibited. __ --~- 27,28, 160 Rail connections... 157 Railway tracks______. JE 156 Reconsignment trade__________ ---_ 49,162 Shipbuilding and ship repair.__________ o-- 48,162 Statisties__.____ % 163 Transshipment trade. nt mmm me $8, 162 Warehouses, area, description and equipment of. _______ 156, 157, 161, 162 Bremerhaven, Germany, free port of ceme—- 165 Administration. _ _______ eee. 34,166 Annual cost of __. 166 Area_________. 166 Berthing space__.____________ 166 Description of free port___ 166 Loeation__. 166 Terminals... ___.___________ 166 Dispatch secured in unloading vessels_ _ 73, 166 Guards, number of _ __ 38, 166 Highway connections__ mee 166 History of port___________ .._ 165, 166 Influence of free port on— Foreign trade___.__ Merchant marine_. Manufacturing. _____._ Operations permitted._____ Operations prohibited. __ ___ Rail connections. ____. Reconsignment trade. ___ _. Shipbuilding and ship repair. Statistics, tonnage. . Terminals_______. , Transshipment trade. Bunkering_ .______.___ - a SE, Customs regulations as regards vessels entering United States ports for fuel... _.__. Duties at United States ports on— Coal... ________ Fuel oil. __ 39 39 306 INDEX Bunkering—Continued. Facilities for bunkering at— Cadiz__ Copenhagen. _ Fiume.______ Genoa______________ Santander. _____ Sulina.___. .. Frieste. __________ Use of barges and pipe lines. __ Page 39 38 39 39 39 39 39 39 rn Cadiz, Spain, free port of ______ Administration: Annual eost of Deseription__ _____ Area. __._._________. Berthing space. _ _ Loeation_____.___ Dispatch secured in unloading vessels. Establishment of industrial enterprises. Guards, number of ______. Highway connections __. History of port______ Industrial enterprises, establishment of ____ mm Influence of free port on development of— Foreign trade___.__________ eee... 85,220 Merchant marine. _______ e---. 78,220 Insurance of merchandise. -. 222 Manufacturing__________ _ _ ___ ceeee-._ 65,220 Obstructions to development of zone. _ _ rmeeeee. 221 Operations permitted. ___ eeoo-l.. 30,219 Operations prohibited. _. mmr wn 9 19 Rail connections_ _____ 219 Reconsignment trade________ commen 50,220 Shipbuilding and ship repairs. ___________ 43, 220 Statistics showing merchandise received. meme. 220 Transshipment trade _ imeem. 50, 220 Warehouses_ __ _____. 219, 220 Conclusions regarding free ports. ______.__. __. __ 81 Development of commerce and merchant marine. ___. 81 Merchant marine act of June 5, 1920, section 8. _ _ . 82 Operations to be allowed ____ 81 Plan for determining locality of free port: ---. 82,83 Copenhagen, Denmark, free port of , 84 Administration.__________________________ ieee... 81,86 Charter of the Copenhagen Free Port Joint Steck Co. _______ 99 Customs authorities________.__________. feeeee-. 32,86 Regulations, law of March 31. 1891 95 Rules of administration_____ 106 Deseription_________. 84 Area______.______. 85 Basins_______. __ 85 Location __. x4 218 219 219 219 219 219 73, 219 222 219 219 218 999 INDEX Copenhagen, Denmark, free port of—Continued. Dispatch secured in unloading vessels_.__ Comparisons with customs port.._ Electric power_-_.__. Equipment, mechanical. __ Ferry connections... Grain statisties. _......__. Guards, number of _. History of port... _._____.__.. [nfluence of free port on— Foreign trade._.. Merchant marine_ _ Location______. Manufacturing _.___.. Operations permitted _.________ Operations prohibited. Piers. — coon. Postal facilities... ___ Railway lines_.___._.___ Reconsignment trade..._._ Regulations, laws of March 81, 1891______ __ Rules of administration.......... Shipbuilding... Ship repairs. Statistics of the free zone. _ Exports_.._.. . Grain... [mports____._.. Telegraph facilities______.___ Transshipment trade. _ Warehouses _ _ _ Wharves ._____ Customs formalities at American ports of entry _. Cuxhaven, Germany, free port of .__ Administration. . Control... Cost of administration, annual... Operation. _ Area. __. Berthing space. Dimensions... _. Dispatch secured in unloading vessels. General remarks. . Guards. wooo... Highway connections._... History of port... ......_ _. Influence of free port on development of— Foreign trade__..._... Merchant marine... ...._ Manufacturing... ..... Operations permitted... Operations prohibited. Rail connections. .__. Reconsignment trade 307 Page 72-87 87 86 85 86 87 38, 86 84 53, 88 76, 89 84 62, 88 25, 86 25, 86 85 86 86 47, 87 95 106 43, 88 43, 88 48, 90 90 87 90 86 47, 87 87, 93 95 67 167 .. 33,168 168 168 168 168 168 168 168 169 38, 168 168 167 48 85 55, 168 eeo-.- 77,168 emcee 27,65, 168 27, 168 27, 168 cemeeeeo- 168 mmew- 49, 168 308 INDEX Cuzhaven, Germany, free port of—Continued. Shipbuilding. ______. Terminals... ______. Transshipment trade___ Warehouses Page om wm Gy LOB RR 168 ceooo-- 49,168 ee 168 Danzig, free city, free port of ____. Administration. _ _ Cost of __. Customs officers. __ . Danzig harbor board. Description_ __.__ Area___. Basins___________. Berthing space_ Location. _________. Dispatch secured in unloading vessels. . Guards... ____. History of port__._. [nfluence of free port on— Foreign trade..... Merchant marine. Manufacturing. _ _ _ Merchandise. _ _. Railways__.._____. Reconsignment trade. ___.____. Regulations of the free district..__ Shipbuilding. _____ . Statistics for goods handled. Tides. __.____.___. Transshipment trade. _____ Utility of free harbor__. Warehouses. ____ Development of the free-port principles. _._ Antwerp as a center for trade. _.__________ Bruges as great market of northern Europe... . Dutch merchants. ______ English customs duties. ._. German Customs Union. _ Hanseatic League__._______ Protective tariff of Italian States__ _ Spain as a great power__.__._____ Tariff laws of Germany eee 145 ceo_. 33,148 eee. 146 I PT eee. 33,146 146 146 146 146 146 147 146 145 eo 54,147 eee. 147 ee. 27,683,147 ooo. 27,147 eee. 148 eee 48 eee 147 ello. 27,147 eo 147 I PY eeeen 48 oo. 27,147 146 3 4 = Effects of free ports or foreign trade zones on commerce and manufae- buring_ Effect on exporter._... . Benefits of free port______.________._ Diversified shipping serviee___..._____ Lossof orders_.._ ________._______________ Effect on the importer... ______ + me mm rm Delay and expense to importer 44 46 47 46 46 44 46 INDEX 309 Effects of free ports or foreign trade zones on commerce and manufac- turing—Continued. Elimination of customs formalities in free port_.. Free ports found desirable in Sweden_.__.___. Free-trade countries have no need for free ports_....____. Manipulation in bonded warehouses __..__..-_. New opportunities for importer and exporter. Sorting, classifying, and dividing of goods. Emden, Germany, free port of... Administration. _ _ Authorities_... Cost of - Area. ._... Basing -—-__ Dimensions_..__-_. Dispatch secured in unloading vessels. . Guards. —voeeoo- Highway connections. History of port_____.___ .. Influence on development of— Foreign trade_____.... 55, 177 Merchant marine. . 77,177 Location... __..__ eee 171 Manufacturing __...--- 64, 177 Operations permitted. ______ 28,176 Operations prohibited. 28, 176 Port charges_____.__. . 179 Execution of shipping matters, including clearing of vessels_._... 181 Harbor fees. _.__. 180 Mooring of vessels. - 181 Pilotage.....__.__ 79 Tugboat___. 180 Rail connections. _. ~- 174 Reconsignment trade. ___. -- 49,177 Shipbuilding and ship repairs__ --- 43,177 Statistics .owww-- .. 178,182 Terminals ______._._. _. . 172 Transshipment trade... ceeee- 49,177 WArEhOUSES - — ooo oem mmm mere mmmm mma 172 Establishment and purpose of United States Shipping Board. vc cceecnae 79 Factors affecting value of free ports in the United States. __- Federal requirements at American ports of entry. a Fiume, Italy, free port of. Administration_ _..___. Dimensions. «oc cocoon - Basins... Moles or piers. _ Dispatch secured in unloading vessels_ Equipment, mechanical- Guards... oo--- History of port... 11 12 omen 297 eee. 87,229 I eee 227 een 227 o_ T4,229 e——ee 229 eee. 38,229 297 INDEX Fiume, Italy, free port of-—Continted. Influence on development of— Exports.___._.______ Foreign trade.______. imports... ____________ Merchant marine_. _ Location_.__..___ Lumber wharf, area of. Manufacturing. ______ Oil reservoirs. _.._____._ Operations forbidden. .. Operations permitted. __ __ Quays, development of Railroads_._..________. Reconsignment trade._._____ Shipbuilding. ____. Statistics_ _.__.__. Commerce growth of _______ Shipping growth of ._._______ Traffic of Fiume__________. Transshipment trade. . Warehouses. _____.. __. - Flensburg, Germany, the free port of __. Administration. __ Control. __._.___ Cost of _.__._.___ Operation... Area. __._____ Berthing space_________ Dispatch secured in unloading vessels. Guards... _____________ Highway connections. __ History of port. _._._______________ [nfluence on development of— Foreign trade__.__.__._.___.________._ Merchant marine. Location___._._____ Manufacturing. ______ Operations permitted_.____. Operations prohibited __ Rail connections_____.. Reconsignment trade____________. Shipbuilding and ship repairs Statistics. _____. Terminals______ _ ___ Transshipment trade. __ Warehouses_ _ _ Foreign trade, development of, in free ports____ Free port or foreign trade zone___ Authorization for— Ancona. ._._____._.__. Brindisi____.______ Cagliari 310 Page 4 mn no 231 -- 56,231 231 232 227 mmm 228 emeceoe_-. 686, 231 N——— 228 eeeeeo. 31,229 seemea- 31,229 227 man OD 51, 230 43, 231 232 232 232 wim. 333 meet mmo... 51,231 mmmmmmecea- 2928 -——-- 183 - 35,184 184 184 184 184 + 184 aeme-e- 73,184 cemeee._. 88,184 Hor mmm 184 meee 183 cece. 55,185 eee 7,185 ST | meee. 28,64, 185 eceece_.. 28,184 28, 184 cene-- 183 eeee.. 49,184 cee 43,185 meee. 49,185 cee 184 .- 49, 185 eee 184 NR | eee. 1.84 8 8 R INDEX Free port or foreign trade zone—Continued. Authorization for—Continued. Catania,.___ Fiume_ Hango_._____________ Latvian ports__ Messina____ Naples._.__ Palermo. ______ Pari_.._.__ Savona. __. Venice. __ I Vigo_.___ — Definition of __ Ca I Development of foreign trade________ oe re Effects of eliminating customs formalities in free zones. _.__.______ Effects of free ports on merchant marine and shipping. _.___ .__ Encouragement of international trade. __._____ Establishment of free ports at— Almeria____. Altona___. Barcelona____ Bilbao. o_o ______ Brake. _.___._ Bremen______ Bremerhaven. __. Budapest. _ Cadiz______. Copenhagen _. Cueta___.__. Cuxhaven.____. Danzig. ______. Emden. ______. Flensburg_____ Geestemunde___. __ Genoa ___.__. Gothenburg____ Hamburg_ . Kiel .____. Koenigsburg_._. Leghorn____ Malmo. __________ Nordenham. ________ Saloniki_________ Santander_...__.______ Spanish Moroceo_..________ Stettin_ ooo. Stockholm _ _ ooo. ___ Sulina... __..._ I'rieste._______ Hamburg, world’s greatest free POT ei era Excerpt from ‘Port of Hamburg,” by Dr. Edwin J. Clapp... ... German Customs Union, une 47068°—20—— 921 311 Page S ~y oy 53 67 67 11 » B 7 312 INDEX Free port or foreign trade zone—Continued. List of reports, books, and articles relating to free ports... ....____ London as great transshipment and consignment market. ____._____ Excerpt from “Port of London,” by Dr. D. J. Owen. _.___ Need of properly located and properly designed free ports in United States. __. Ss Proposed free ports for— Czechoslovakia. _ _ Ireland________ Norway_________ Panama __________ Portugal __________. Free trade ports... Aden. ___ Dairen_________. Early Italian ports._____ Gibraltar__. Hong Kong Kowloon _____. Malacea__... Singapore____. Weihaiwei Page 300 10 10 70 3 8 Q a 3 rn Genoa, Italy, free port of. Administration _ Area_________. Berthing space.. Dimensions. ...__._._. Dispatch in unloading operations. Dues, storage__._.___ Guards... __. History of port_.._. influence on the development of— Merchant marine _. Trade of the port: Location... _.__. Manufacturing. ______.___. Operations in the zone... __ Rail connections. ..____.. Rates for legal weighing ______. _ Receipts, warehouse provisions concerning_____ Reconsignment trade___ Regulations on legal weight. __.. __ Claims concerning weighing operations. Issue of weighing certificates..___. __. ______ __ Legalization of signatures on weighing certificates Dfficial weighing of goods... Weighing rates._.._. Regulations for the free zone_ ___. __. on En a or en ER Administrative body and its funetions. ____._____ __ E Admittance of persons to zone restricted ____________. ______ Claims. ____.__. me meee ee mmm Disciplinary rules and penalties for violation of regulations. ____ _. 233 _ 37,234 234 234 234 235 244 38, 235 239 78, 236 236 234 223 30, 235 234 246 ~~ 243 51,235 245 246 245 246 245 246 236 236 237 243 249 INDEX Genoa, Italy, free port of—Continued. Regulations for the free zone—Continued. Expenditures charged against goods_ Export____. Disinfection. __. Import .___.____. Transfer____._.______ Fire prevention. ._____ Floor space, occupation of ._____. Items not covered by regulations__ Machinery, use of ___ Merchandise, storage of ..___. Certificate of deposit, loss of ..____ Deteriorated goods_.._____.. ____ Entry of goods to warehouse_______. Goods not accepted __ _ Inspection of _ _. Insurance ._ _. [ntroduction and transportation of. Ownership, transfer of ___ Payment of storage and demurrage dues on... Rates on colonial produce___ Receipts or certificates___. Responsibility of chamber of commerce. _ Time mit... _____._._ Transfer of merchandise. ___.__. Withdrawal of goods from warehouse___. ___ Power plants_.__. Transfer of goods_. Weighing of goods_. Working hours___ Shipbuilding _______ Storerooms, privately owned. _. Transshipment trade___.. Warehouses _ __________ Entries of merchandise__ __. Receipts, provisions concerning._ _ Withdrawals of merchandise. _ Gothenburg, Sweden, free pert of. Administration. _ _..._.. Annual cost of ___ Area_..___. ____.__._____ Berthing space and terminals. _ Description_ o_o _______ Dispatch secured in unloading vessels. Guards, number of __________ Highway and rail connections History of port. ._..__. — [nfluence of free port on the development of— Foreign trade. ....___. Merchant Marine__. Location__.____._..__. Manufacturing ___.__..______________ Operations permitted. . 313 Page 238 238 238 238 238 242 241 243 241 237 240 238 239 238 240 238 237 240 240 239 239 239 238 239 239 242 238 237 237 236 235 235 240 247 243 244 .—- 109 ___ 33,113 113 111 111 eee 110 en 72,115 ._. 38,113 i 112 e109 eee 54,115 enn T7115 mee 111 eee 63,115 _ 926. 114 INDEX Gothenburg, Sweden, free port of—Continued. Operations prohibited _______________ Rail and highway connections. Railway tracks__.____. Reconsignment and transshipment trade. Shipbuilding and ship revair..____ Statistics o_o. _.___ Commerce... .... Shipping. _______ Terminals and berthing space. __ ______. Transshipment and reconsignment trade_. Warehouses. . _....____.. Guarding the free port.__. 314 Page memmao- 26,114 mmm mm 112 ws 111 ogy w $8 215 ~~ 43,115 -— 116 emma 117 [RN 116 [ET 111 - 48,115 111 37 -¥ Hamburg, Germany, free port of ___ Administration ._ Area. ____.__.. Berthing space__._- DIT OOBIOINS co sii sisi wi ii mt 5 Dispatch secured in unloading vessels. Equipment oon... Highway connections... History of port... Influence on the develovment of — Foreign trade.._. Merchant marine. Location_______. Manufacturing... .. Operations permitted. _. Operations prohibited_ Port charges_...____._ Dock laborers. Harbor QU, cu wm memos mires » Mooring and unmooring of vessels. _ Night watchmen. Pilotage..__... Port charges... Tonnage dues_ Towage..---_ Rail connections______.. Shipbuilding and ship repairs_ Terminals_. _..__________. Transshipment trade... ___ Warehouses. «o.oo... Hango, Finland, free port of... Agitation due to future Russian trade. _ Definition of free port. Director of free port. Establishment _.___._._..... Government assistance for__ Laws of ooo... Plorg. oommommmm vn Prospects_____ oo... 33,185 _ 33,188 eee. 187 _ 187 . 187 72,190 191 188 185 ceeme- 54,194 eee TT,105 eee 187 . 193 27, 189 27, 189 195 196 195 197 196 197 195 195 196 188 43, 194 187 49.192 188 144 144 144 145 144 145 144 145 145 INDEX Hango, Finland, free port of —Continued. Regulations _ Results_ _ Status of free port____ Warehouses _ [talian free ports, decree instituting... Customs laws, retention of. _ _ Expropriation of property_. Industrial establishments... . Manifests, submission of _ Nationality of goods.___ Operations permissible. Ports declared free. ee__ 65 315 Page 144 145 144 145 225 226 226 225 225 226 225 295 K Kiel, Germany, free port of .______ Administration___.___. Berthing space__ Control _______________ Cost of administration__. Dimensions... ..-._. Dispatch secured in unloading vessels. Guards... -o-.___ - Highway and rail connections. History of port... ______ Influence on development of— Foreign trade... ___._ Merchant marine. _. Location__._..._.. Manufacturing .__._.. Operations permitted... Operations prohibited. ._..___. Rail and highway connections... Reconsignment trade___.__ __ Shipbuilding and ship repairs... Statistics. Terminals. _.._.... Transshipment trade... .. Warehouses Landing and delivery of cargo at customs port... Leghorn, Italy, free port of. Administration. Description... Area... ..____... Facilities_:...-- Location_______ Dispatch secured in unloading vessels. Guards. « coeoeeee History of porte oo. 197 199 199 199 199 _ 198 73,199 _ 38,199 . 199 197 55, 200 77, 200 .. 198 —-_ 64,199 28, 199 28, 199 199 199 199 200 199 199 199 49, 43, 49 69 eee 247 ___-- 37,248 248 248 248 248 -- 248 --- 38,248 247 316 INDEX Leghorn, Italy, free port of~—Continued. [mprovements: Harbor______.________ Canals planned.__. Railways. oe... Influence of free port on development of— Foreign trade. ____ Merchant marine: Manufacturing_________. Dperations permitted in free zone. Projected free port. ____._. Reconsignment trade. __________ Shipbuilding and ship repair Statistics _.__.______. Grain movement. _________ Storage of goods._. . . Tonnage movement_ ________ I Load factor at ports of the United States_____._ _. meee Commerce of principal ports of the United States during 1927______ Lack of equilibrium in inbound and outbound cargoes _ ——————- Transshipment as a remedy Page 250 250 250 56, 249 _... 78,249 249 30, 248 250 50, 248 13, 249 249 249 249 249 74 74 74 75 AT Malmo, Sweden, free port of .___ Administration... Annual cost of __._. Administration building Area. oo __.. Berthing space and terminals_ Commerce, growth of .____. Customs clearance. .... Description... oo... Loeation...___.._... _.__._ Dispatch secured in unloading vessels____ Equipment, mechanical. ___._ Goods, kind and quantity Discharged oo. _____ _ Forwarded over the land houndarv _ Loaded. .__..___ Guards, number of __._____. Highway and rail connections. History. ooo Inclosure, type of «oc {nfluence on development of— Foreign trade___.. Merchant marine_.. .... _.. _ Manufacturing, shipbuilding, and ship repair . Operations permitted... Operations prohibited. _____._____. Rail and highway connections___ Railway tracks... __. Reconsignment and transshipment trade_ ___ eee. 117 .. 33,120 121 119 118 118 123 119 118 118 122 (22 123 124 125 124 _ 38,121 . 120 117 118 54,123 76, 123 63, 122 26, 121 26, 121 ceeee 120 eee 119 48 1922 INDEX Malmo, Sweden, free port of—Continued. Regulations governing free port. Aid and assistance rendered General provisions_ ..__._ Leasing of buildings and open spaces. Movement of freight__. Penal provisions_.___..__ Responsibility for goods... - Retail trade_____. Storage on premises of free port__..__. Shipbuilding, ship répair, and manufacturing. __ .. Shipping, growth of. _.___ Terminals and berthing space... Transshipment and reconsignment trade_ .__ Warehouses... _. For customs clearance. Free port. __. .___. ee Manufacturing in proposed free ports of United States... ._. Merchant marine act of June 5, 1920, section 8... Naples, Italy, free port of .___.._. Administration... -. Consignment trade__ Description. _- -. Area____. . __. Facilities. .__.______ {mportance of the port_._._ Manufacturing ___ __ Operations permitted... Operations prohibited...__ .__.__ Traffic of the port._ Warehouses: Bonded, present free-port facilities. -. Limited importance of free port... Purpose of. _ Navigation facilities_. Channels......._. Economic study of value. Harbors 317 Page 128 129 135 132 128 137 135 133 130 122 123 118 48 119 119 119 66 {2 .._. 43 251 251 50 251 251 251 251 ... 31,252 21, 252 31, 252 251 251 252 252 42 42 42 49 Operations allowed in proposed free zones of the United States. ____.__ 66, 81 Operations forbidden in proposed free zones of the United States...__.._ 66 Plans for determining location of free zones in the United States________ Port charges at ports of entry in United States. i. Procedure at American ports of entry... Customs Serviee_ __.-_-. Arrival and entry of vessels. ..______ _. . meee Documents delivered to boarding officer for inspection... _. Duties of boarding officer_.________._.. Report of arrival of vessels by master. 82, 83 71 12 a 22 12 13 183 318 INDEX Procedure at American ports of entry— Continued. Customs Service—Continued. Bonded warehouses _._________ Classes of bonded warehouses. _____ Bond for undischarged cargo. _ Cartage and lighterage__ __ Cartmen’s receipts. _________. Customs supervision of outbound eargo___ Delivery of cargo.__.______ Delivery of permit._ ________ Goods entered for warehouses_. ________. Packages entered for consumption_____. ._ — Disposition of unclaimed cargo... _____________. 3 rem i Elimination or curtailment of customs control ________ me Entry of cargo___________ Foreign clearance__.._.__.__. Outward manifest ________ Pro forma declarations. _______ Shippers export declarations. _ Landing and delivery of cargo. . Time allowed for unloading Working days_ ._.__.____ Record of disposition of cargo__ Federal requirements____.______ Immigration service__._____. Treasury Department.___.____ Public Health Service regulations. ______. _____. _. Elimination or curtailment of customs control_ ____ Procedure with respect to imports and reexports_ _ Customs broker_._.__ “mpm Customs warehouses_..._____. EU Authorization of bonded manufacturing warehouses. = Merchandise for bonded warehouses. ______________ TLS Withdrawal of goods from warehouses for exportation. ____ ——— Drawback. _____._ Claims for drawback____._____ Drawback entry and certificate of manufacture_ __ Duty refunded on withdrawal of goods_ _ _ Goods on which drawback is allowed. import cargo. __.______ meme Consular invoice of imported merchandise. Entry from. __.______. Informal entry_ _____. Manufacturing warehouses_..____. Cigars manufactured in bond . Furnishing of bond__.___._______ Purposes for which used... _______. Professional advice and service. _ The drawback. _____. © ie meme Drawback on goods of foreign origin from 1922-1925______..___ Drawback paid by the United States from 1922-1926. ______ Exporters waive right to drawback... ___. Simplification of drawback. _____._ United States customs regulations. Page 16 16 18 17 7 2 15 15 16 ‘6 18 ‘2 ‘tp Co (© 2 2 2 2 12 18 18 19 20 19 19 21 22 22 21 *1 9 9 9 9 20 20 20 20 18 22 23 22 24 25 1R INDEX Reexport trade ________ Belgium ._ ______.____ wom Comparison of United States reexports with those of United Kingdom. Germany, France, and the Netherlands. _ . Effect of Panama Canal’s construction on reexport trade of United States_..___ France______ Glasgow. __.. Hamburg-__.____._.. Liverpool __. London____.. . —- Percentage of selected imports of the United States which come from countries other than the country of origin___ ___________________ Percentage of selected indirect imports from the United Kingdom, Germany, France, and Netherlands to total imports from all countries. _._ _- Selected imports of the United States from United Kingdom, Ger- many, France, and Netherlands to total imports from all countries. United Kingdom.__.__. [Tnited States 319 Page 56 57 680 60 57 57 57 57 57 61 80 59 57 57 a Saloniki, Greece, free zones at port of..._ Free zones of the port of Saloniki (Greek free zone___._. Administration. _ Cost of _ Area._____. Berthing space._.._-__ Dimensions... .-___ Dispatch secured in unloading vessels... Equipment, mechanical. Guards, number of _... History. ..__._ Highway connections. [nfluence of free port on development— Foreign trade..._ Merchant marine. Location ________ Manufacturing... Operations permitted... _... Manipulation proposed tobacco_.. Progress of free zone.____. Rail connections_.___..______ Shipbuilding and ship repair. _______ Statistics: Export... Import_._. Terminals_______ Traffic through free zone__ Albanian. __ Bulgarian. o.oo. o_o. Countries served by Saloniki free zone... 275 275 280 283 283 281 281 .. 281 T4284 oo. 284 .. 38,283 oo. 280 ____ 9289 ____ 86 56, 290 78, 201 280 e.. 66,284 eee 81,283 284 . 291 282 Co ___ 43 984 294 292 281 284 290 289 286 __ B2, 320 INDEX Saloniki, Greece, free zones at port of—Continued. Traffic through free zone—Continued. Rumanian______ Trade by countries. _. Yugoslav____________ Warehouses_ _._.__._____. Area of floor space. _ Classification of _________ _ Proposed construction____ History of the city. __________ Yugoslav free zone. _._______ Administration_ __ Area. ______ _ Extensions, proposed. . Guards__ ___._____________. ._. mem History of origin and negotiations leading to organization... ___ Location _____ . Proposed extensions and funds required _____ Terminals_______.____. Fraffic.__________. Warehouses_. ___________ Santander, Spain, free port of .____. Administration. Description. Area. ____ Location. _______. ..___.___.__ Dispatch secured in unloading vessels. Facilities... _____ History of port_._______._.___. ___ [fluence on the merchant marine. Manufacturing... __________________. Operations permitted in the free zone. _.. Shipbuilding and ship repair____ Statistics. _.______ Transshipment trade. _ ______. Shipbuilding and ship repairing _..______ Stettin, Germany, port and free-bort district. Administration. __ _ Deseription__ Area_____. Location. __________._____. Dispatch secured in unloading vessels. __ Equipment____. Guards. ___.____ History of port. ._________ nfluence of free port on— Foreign trade_____. Merchant marine Manufacturing ______ Operations, permitted. _. Operations, prohibited Reconsignment trade. _ Statistics, commerce Shipping. __.__. Transshipment trade Page 289 286 287 282 282 282 282 275 276 279 279 279 38 276 279 279 279 279 279 222 223 222 222 we 222 -e___. 73,223 222 meeeo. 222 ome. 78,9223 _.__ 65,223 wis ws Oy 2S a 43 5 rm wr 224 meeee-- 080, 223 mee 43 meme 200 Ceo. 35,201 mm S01 femme. 201 fememme- 201 armen Ty SOD RH ee 201 fee. 38,201 200 55, 203 78, 204 65, 203 28, 202 28, 202 49, 202 204 eee. 204 40 900 INDEX Stockholm, Sweden, free port of... Administration. .. Charges.--.--—. Port dues.- Storage__.____. Description... ooo --- ATOR nici wisi oe Location... Dispatch secured in unloading vessels_ Equipment, mechanical Guards-c---o-- Highway connections. History of port. —<oceeeownv Influence of free port on— Foreign trade..-- Merchant marine. Manufacturing... ____. Operations in the free zone. Rail eonnections_ ooo Shipbuilding and ship repair... ---- Statistics. cceom-- Commerce. . Shipping. ---eoow-- Transshipment trade of the free port. Warehouses_ ____-- Water connections. .--. Sulina, Rumania, free port of .- Administration. . Description. __.._.- Dispateh secured in unloading vessels___. Guards. ecco ocooma Highway connections-.._. History of the port. —.-----. influence on development of— Foreign trade_._._._ Merchant marine. Location___.__ Manufacturing. come. Operations permitted in free zone. Operations prohibited in free zone. Reconsignment trade. __. Shipbuilding and ship repair..__ Transshipment trade__ Terminal facilities... -~-- Congressional poliey. .-. Functions at each port. coo Tonnage taxes in ports of entry of the United States. Transshipment and consignment trade. Reconsignment, defined... __. Transshipment defined 321 Page . 138 32, 139 33, 141 141 141 138 138 138 139 —e 138 .--- 38,139 Cae 139 138 el 72, 54, 140 77, 140 63, 140 26, 139 eee. 139 ee. 43,140 eee. 140 .14 eo. 140 e__ 48,140 eee. 138 eee. 139 eee 296 -.. 37,298 207 74, 298 .-.. 38,208 208 206 56, 299 299 297 66 31, 208 31, 298 52, 208 43, 299 52. 208 40 ag 42 68 47 47 47 322 INDEX Page Trieste, Italy, free port of ._______ vmmmmeee. 252 Administration ___.__________ —een- 37,255 Administrative staff. ___ 37, 255 Annual cost of ._..._______.__ . 255 Operating organizations___. 37, 255 Description... ______ enmmm—w 53 Areas_..___... ceemw 253 Dimensions__.._ cmeeeee 254 Dispatch in unloading vessels____.. me ccee-. 74,256 Average daily discharge in free zone and in customs port_______ 257 Equipment, mechanical__ aeooo- 254 Guards__.._______ _. mmm ——n-- 38,255 [fluence of free port on development of foreign trade. cmmeee-- 56,270 Comparative traffic figures. ...._______..___ _ ___________ 970 [nfluence of free port on development of merchant marine. ______ 78,271 Regular steamship lines. __.________ sisi EL Tramp vessels. ______._______ meen 272 Manufacturing in the free zone... __. cmeeeen-- 66,269 Operations permitted___. cmmecccmeee_.._ 81,256 Operations prohibited 31, 256 Railway service_..___ -- 253 Reconsignment trade___._______..______ . x pm Shy IBY Statistics showing origin and destination of principal commodi- ties _.._______. oo ik 8 —eoo- 258 Shipbuilding and ship repair in the free zone: eee-- 43, 269 Transshipment..__._________________ eeo--- 51,269 |Principal articles of .____ 269 Warehouses... 253 United States Shipping Board. _ _ A 8 Venice, Italy, free port of. __ Facilities. ______. Free port, creation of _._ } Free ports advantageous to ports having transit traffic. .________ Free port advantageous to plants producing for export____________ Free-port zone, tentatively outlined_____ Privileges granted new port of Venice__. Regulations, under negotiation Transit trade________._ Vigo, Spain, free port of _______ Administration. -. _ History of port. _.__ Operations permitted. ___. _ .__. Status of free-port activities. 79 272 272 272 274 273 274 273 272 50 224 224 224 224 294 9) 3 i 0 g 3 5 1g 5 : § ~~ ave nba not i listrd engt ine ing i. e of 4 2 a 3% 0 AY om Na I> N) walt om nN ion’! 1 onl > © ; NJ ~ ; Of J 1g at 200% wd 0 =x n af rp? sht or ¥ adil ing ndé wht +0 if dit? nah b po? ait Leth tos ng U igh CS 2 OO 2 wy ori] j=] MY oS hard 0) ~3 ne 1157 3 wl mL > NN 4 0 Qo x — > n jos] [+3] i FREE PORT OF DANZIG 153 ArT. 21 ‘ther dispatch of the goods from the free district, either in railway s or in ordinary wagons ot by ships, is accomplished as much as possible tomhouse in the free district. Arm, 22 iving of the permit for the dispatch of the goods is to be transferred -omhouse at the canal of the harbor in Neufahrwasser or to the main se in Danzig and its customhouse branch at the railway station, ‘© according to articles 23 to 25 by means of a special transfer note he inclosed samples A or B. 18portation is accomplished by locking up of the goods or by official ing of them. How far these rules can be changed depends on the the customhouse authorities. ArT. 23 ansportation is to be made by water or in a land carriage in a locked ‘those carriages the locking space of which is examined and approved In customhouse in Danzig according to a drawing and description can be used. ter of such a carriage receives a certificate which is to be presented to ‘house in the free district at its request. The administration has the Ue general regulations for the arrangement of these carriages so that a 8 prevented as well as to order the necessarv measures for the control f them. 3 Into consideration the regulations, the permit for transportation in pace, except in special cases, can not be given. the goods must be :d by an official. er of the goods must present to the customhouse two similar copies ration filled up according to the form prescribed as well as all the ills of lading; he must, besides, deposit a security in the amount of mate value of the taxes for the goods to be shipped according to the Issued by the administration. If there are no objections to be raised * declaration or the security, the customhouse prepares the bill of Fer a general examination of the load has been made if a special reason mination exists. One copy of the declaration, together with the bills Dust be sealed, and the envelope is given to the person in charge of nt or to the accompanving clerk for delivery of it at the receiving cate of the bill of consignment remains in the place of clearance. :gned load must be delivered to the receiving office without stopping ‘rary place, the receiving office examines the locking, if the latter was the goods in the care of the customshouse, clears up, if there are no the bill of consignment, and sends the bill of clearance to the place of ArT, 24 may be given more easily to persons engaged in transportation (boat Owners, carriage owners) for the transportation in closed carriages Mowing revocable conditions. hs engaged in transportation must deposit a suitable security fixed ‘nistration and in case of improper use of the privilege granted to *ase of illegal action of their personnel, in addition to the punishment > 00 ~, de