It has already been said, in the findings of fact, that our wheat must be abroad at the market price there. If the foreign price is less than our market price plus the ordinary cost of transportation, either the price here or the price of transportation must be reduced. Witnesses of ex perience in this respect gave it as their opinion that market conditions abroad frequently require a low rate in order to dispose of our surplus product; that the price of our surplus wheat establishes the market price in this country; and that, therefore, at times a low rate was of distinct benefit to the farmer, and indeed was necessary to prevent the demoraliza tion of prices.
There are comparatively few special export rates in force. No special rates on classified tariffs are concerned as are quoted on shipments thru New York, Philadelphia and Baltimore.
In table prepared by Professor E. R. Johnson some examples of special rates applying to the commodity tariff are given: The most complete set of foreign tariffs is found via the Gulf ports. The Gulf Foreign Freight Com mittee publishes a large number of special export rates, and four distinct import tariffs.
In our trade with Canada and Mexico a limited number of special rates are found. A detailed study of the "differentials" between ports, a subject closely related to the one under discussion, will be found in the Text on "Transportation." The following comparison of the domestic and im port rates on various commodities is quoted by Pro fessor E. R. Johnson: 11. Competition between ports.—The question of domestic rates gnd of preferential treatment of im port and export shipments is of the utmost importance in determining the development of the ports. Ports compete with each other in service and rates. The Atlantic ports of the United States are also competi tors of the Canadian ports. Rotterdam and Amster
dam complete with Antwerp and Havre, and even with Hamburg in thru freight to Central and South ern Germany. London competes with Liverpool and with other ports of Great Britain.
This competition results in a certain amount of specialization. In England, London is especially an import port, while Liverpool is more of an export port. Cardiff is a coal export center.
In the United States, Baltimore figures higher in the exports of full grain cargoes than either New York or Philadelphia.
The conditions of inland transportation greatly affect ocean shipping. The tendency will be for freight and passengers to seek the shortest route and the elimination of trans-shipment.
Ports in England are always in peril of losing their trans-shipment trade with the Continent by the establishing of more direct connections with the Con tinental ports.
Cargo which formerly travelled to Liverpool and thence by train to the southern part of England now goes to Southampton from where the rail journey to London is cut short.
Havre and Cherbourg have developed into great passenger ports, and following this development there will undoubtedly be a flow of valuable cargo which will profit by the more direct connections.
12. Payment of is the universal under standing that ocean freights are payable in advance. The cases where freight is sent collect to a foreign destination are rare and are all subject to special agreements. Where goods have been sold f.o.b., the freight charges must nevertheless be paid at this end and must be added to the amount of the invoice.
In the case of a charter party, the arrangement is sometimes made by which freight is "to be paid two-thirds in cash ten days after the final sailing of the vessel from her last port in the United States, and the remainder in cash on delivery of the cargo.