236 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
This firm has no plants in South Africa, but it holds large stocks
here and is thus able to keep out other brands. If such foreign exporter
 persists in his effort, Nestlé refuses to sell to firms handling
the rival commodity and in this way other kinds of milk are kept out
of the market, except to an extent permitted by Nestlé, whose terms
are cash at office with order, and the order has to be made on the
firm’s order form, the buyer himself taking the wares away from
the bonded warehouse if his place of business is in the same town.
Ooze the goods are deliveréd at the railway station or ship’s
side.
Chain stores are another form of combination. The agricultural
implement business here is handled largely by firms which own such
chains of stores. Nominally the country store, and sometimes the
town store, is owned by the man whose name appears on its signboard,
 but frequently the ownership or control is held by the coast
merchant. One of the benefits of this system is that when a foreign
exporter can get a large local firm to take up his goods, there is an
assured market by reason of such chain of stores. One of the disadvantages
 is that other firms will usually not handle the same brand
of goods unless it is one which is indispensable. For instance, take
the case of Cadbury’s Cocoa. All firms keep it in stock, yet Cadbury
 must stimulate the demand by canvassing throughout the
country. The coast firms would not take the trouble. Cadbury’s
travelers obtain orders from shopkeepers, and these orders are either
handed to the firms with which the shops do business or the wholesale
 firm with which the shop is linked is credited with the sale. Th's
tends to regulate Prices
These chains of stores enable the coast firms to allow credit to
farmers, who settle with maize or wool for shipment to the seaport
firm.
The fertilizer trust, otherwise the Chemical Union, has a strong
foothold in this country, but it is considerably influenced by the fact
that the Union Government sells guano from certain islands belonging
 to the Union. By this means farmers are assured of a supply of
fertilizer apart from the trust. Special rates are quoted for Gove
ernment guano.
“ Dumping ” is controlled through the customs, the sale of goods
below prices ruling in the country of origin being forbidden.

Special report of Consul E. A, Wakefield, Port Elizabeth, South Africa,
November 9, 1915.
So far as the local commercial situation is concerned, there are no
syndicates or combinations for controlling or restricting trade in
any way. This refers to Port Elizabeth and the other municipalities
with the exception of East London.
East London merchants’ combine—There is said to be a combination
 of importing merchants at East London for the purpose of regulating
 the prices on many of the staples imported. Naturally, this
would, to a greater or less extent, include the up-country products sent
to the East ar commission merchants.
One of the principal manifestations of the existence of this combine
 was noticed some months ago when most of the importers refused
 to handle the products of the United Tobacco Co. As a result
the United Tobacco Co., instead of dealing as formerly with the