COMPETITIVE CONDITIONS IN INTERNATIONAL TRADE. 33

conferences and agreements; that the purpose of these agreements is
to stifle competition, determine sailings, fix rates, divide territory,
allot business, grant rebates, pool earnings, and fight competitors;
that many of their agreements and activities are secret; and that they
completely dominate the shippers with whom they deal.
Some American companies, such as the Standard Oil Co. and the
United States Steel Corporation, have aided their export business
by providing themselves with ocean transportation under their own
control. This contributes to their success as exporters. In numerous
 cases, however, their ships were registered under foreign flags.
Many of these ships have now been requisitioned by foreign Governments
 and in some instances are being used to carry the goods of
foreign companies into the markets formerly served by the American
companies through these vessels.
Under the conditions created by the war other countries having
ships have protected the foreign business of their exporters, sometimes
 to the detriment of American shippers. Thus, American exporters
 have been informed by British lines running from Canadian
ports that Canadian cargoes would be given preference in all demands
 for space, and that American shipments would only be taken
after the requirements of Canadian shippers had been satisfied.
Similarly, the Japanese Government has required Japanese steamship
 interests to give preference to Japanese demands for cargo
space and has kept the freight charges to Japanese on a reasonable
basis. By these requirements Japanese firms have been saved much
interruption of business and have been able greatly to extend their
over-seas trade. In the meantime American houses have been unable
to obtain cargo space across the Pacific, and thousands of tons of
freight have been piled upon the docks awaiting shipment. The
American consul at Hongkong, commenting on this condition in the
fall of 1915, said:
Many lines of American trade in this part of the world which
have been built up after years of effort and careful nursing depend
 very largely upon prompt communication and regular steamship
 service. Other lines of trade which the United States has
commenced to enter with notable success are hampered and American
 interests restricted in their business by the lack of freight
facilities and the high price of freights due to inadequate tonnage.
What, therefore, was a serious shortage of available ships before,
now becomes a direct and positive menace to all American trade in
the Pacific.
American exporters are liable to such difficulties as these under
conditions of peace as well as under war conditions. Speaking of

1 Investigation of Shipping Combinations, House Committee on Merchant Marine and
Fisheries, 63d Cong., vol. 4, pp. 281-314.
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