170 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

and rebate system was in operation at least as late as December 15,
1915, as 1s evidenced by a joint circular letter issued by the Houston,
Lamport &amp; Holt, and Barber Lines. This letter gives in detail the
Conference rates and the conditions under which the rebate was to
be paid.
An example of the difference between the rates of the Conference
lines and those charged by independent carriers is shown by the recent
experience of a prominent shipper in Buenos Aires who had a shipment
 to make to the United States. He was offered a rate of $25
per ton on an independent steamer. The lowest rate he could get
for this shipment on a Conference line boat was $40. He sent
his goods by the Conference line, as the amount he would lose by
forfeiting his accumulated rebate was much greater than the saving
in freight on this particular shipment. Because of the nature of his
business he had to be sure of getting regular service at frequent
intervals. This made it imperative to make most of his shipments
on Conference lines. He stated, however, that the service on the
Conference lines, due to the war, was getting so irregular and the
difference between their rates and those on independent boats getbing
 so large that he might decide in the near future to forfeit the
rebate and ship on any steamer available.
Many American informants criticized the action which the Conference
 lines took at the time preferential duties on certain American
products were put into effect by Brazil. It was cited as an example
of the way foreign control of the shipping facilities between the
United States and Brazil has been used to hamper the development
of American trade. The annual Brazilian budget law authorizes the
government to reduce customs duties a maximum of 20 per cent on
one or more products (and up to 30 per cent on wheat flour) which
originate in countries that make compensating concessions to products
 of Brazilian origin. Under this provision of law, a reduction in
duty is extended annually by executive decree to certain American
products, amounting to 30 per cent on wheat flour, and to 20 per
cent on condensed milk, certain manufacturers of rubber, time
pieces, specific inks and colors, except writing ink, varnishes, typewriters,
 refrigeraters, pianos, scales, windmills, cement, corsets, dried
fruits, school furniture and desks. This preferential treatment is
accorded the American products enumerated in return for the admission
 duty free of Brazilian coffee and other products to this
country.
The American informants stated that about the time this preferential
 duty went into effect the Conference lines raised their rates on
some of the commodities carried from the United States to Brazil
by an amount sufficient to absorb the advantage intended to be con-