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 transshipment
 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 consignment
 markets and trade emporia for the accumulation and redistribution
 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 protective
 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 investigations
 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 manutactures.

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 specified
 requirements are met. There is apparently no sound reason for
authorizing free ports so indiscriminately as these bills would permit.

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