The harbor board that has full charge of the docks is a corporation which borrowed the necessary capital from the Government for the erection of said docks, and which has complete control for all time. That it will work for the interests of all concerned, as soon as the extensive improvements under construction are completed, is not doubted. FREIGHT RATES. I think that shippers from the United States to this country have no reason to complain of the freight rates, as compared with those from other countries, although some of the vessels that transport American goods to the ports of South Africa are owned in those very countries. The New York rate is now about $2 per ton of 40 cubic feet less than from Hull, England. At one time the difference was greater in favor of the United States, but complaints by other countries brought about a reduction in their favor. With better docking facilities and cheaper coal for homeward voyages, freights must be, in time, materially reduced. Recently a new German line of steamers, known as the GermanAustralian Steamship Company (the Deutsch Australische Dampfschiffs Gesellschaft), has entered the field and will cause keen competition, as a reduction of 25s. ($5.85) per ton is offered to Port Elizabeth, on the African coast. The service will be every four weeks from Hamburg and Antwerp; but goods are also taken from other ports in Europe and for other ports in South Africa. From June, 1898, the service will be doubled and made fortnightly. The company is an old established one, and is not dependent upon this trade alone; being thus free from the consideration of return cargo from South Africa, which plays such a part in the high rates of existing lines. LANDING CERTIFICATES. Complaints have been made that both the captain and mate of ships arriving at South American ports are "compelled to visit the consular office," in order to take oath that the goods or merchandise enumerated in the certificate were actually delivered, and this visit is demanded by the consul in order that he may obtain the fee. It should be stated that the fee does not belong to the consul, but to the Government, and the certificate of the revenue officer or consignee is sufficient when the affidavit of the master is not procurable. EXPORT COMMISSION HOUSES. Some of the most important merchants in this country are desirous of purchasing direct from the manufacturers of the United States, without the intervention of what is known as "export com mission houses," or middlemen, and while this is a subject I approach with some hesitation, yet I offer my views, with the desire to benefit our manufacturers and producers. That in time this direct purchasing will be advantageous I admit, but at present the legitimate export commission houses are the opposite of detrimental to the extension of our foreign trade. I refer to the class of houses that act as agents, buying such goods only as their clients may order, contracting the freight and insurance, and paying the manufacturer cash on receipt of the goods. Being large buyers, they are enabled to purchase at low prices, and being large shippers, they are enabled to contract lower rates of freight. They are able to sell more goods at less expense than would the manufacturers. Representing as they do varied lines, they are sure to sell some line meeting the need of the customer, and it is for their interest, as they work on commission, to use every energy to sell all the goods. There is some complaint against so-called "export jobbers," who buy of the manufacturers at the lowest possible cost and sell to the foreign buyers at the highest price they can secure; and who often resort to substitution of goods of lower quality or bought of a different manufacturer than the one the foreign buyer may have specified, thus damaging the interests of both foreign buyer and manufacturer. There are also, it is alleged, those who publish so-called "prices current," on which are advertised goods of various manufacturers. They often quote prices that they can not meet when order is received. The legitimate export commission houses pay all expenses, and take fair compensation for service and credit granted; in short, they act as the banker for a foreign buyer and are the bridge between the American maker and the foreign buyer. The manufacturer is saved the expense of introduction and all risk. ADVANTAGE OF AN AMERICAN BANK. The following is an illustration of the conditions when an ex porting house ships goods and draws drafts to cover value: If the draft is drawn on New York through British bankers or their agents, the charges for, say, a ninety days' draft are: The second charge is to cover time of transit of draft and the ninety days from acceptance to payment. The banker here in South Africa remits to the New York banker a ninety days' draft on London, so that by the time this gets to New York it has two months No. 214- 3. yet to run, and for this the last charge of 1 per cent for interest is made. This is not the only loss. When the original draft is made, sterling is worth, say, $4.85 to the pound, but during the five months covered by the draft before it gets back to New York exchange may go down, so that the shipper may get $4.78, or perhaps only $4.75; so that the additional loss is the difference of, say, 9 cents on every pound sterling. American manufacturers are dependent on competitors in foreign countries to ship their goods and collect their drafts. An American bank (international) would help to increase the export trade. Two months' interest might be saved, as well as all exchange, for then draft could be made for dollars and dollars received. In addition, American manufacturers, producers, and exporters would be able to receive reliable information as to the financial standing of foreign merchants, which can not be done through British banks or their agencies. HOW TO SELL GOODS IN SOUTH AFRICA. The development of South Africa will be speedy as soon as certain questions are settled and irrigation introduced, and it is for this time that our manufacturers should prepare. Men of experience. should be sent to canvass and ascertain the needs of the market, the competitors, the prices paid, etc. Our manufacturers object to carrying out the wishes of foreign customers when such views conflict with their own; they dislike to change methods, and consequently do not cater to foreign wants as do the manufacturers of other countries, particularly England and Germany. If the foreign trade desires nails packed in kegs of 112 pounds, instead of the American keg of 100 pounds; if it desires certain cheap cloths dyed in the yarn, instead of the piece; if it wants vehicles with seats 6 inches wider, and with no wider “track;" if it desires the boxes in which goods are shipped dovetailed at the corners, or strapped with iron; if it wants goods sent in bags of a certain quality, when barrels have previously been used; if it desires a change of style of package-all these wishes should be complied with. The Germans particularly are willing to do anything to get the business, and with their ships reducing freight rates (as detailed in another part of this report), they naturally obtain their share of the trade. They also gladly sell on ninety days' time. At present, business is dull, the drought, rinderpest, and fly, and the state of affairs in the South African Republic, causing hindrance to trade; but these conditions can not last. When orders are given, they must be large, for the reason that good stocks must be carried, as communication with foreign countries is slow. The stores (and I have visited all of them) carry stocks of which many of our jobbers in the United States would be proud. It must be borne in mind that Cape Colony demands £25 ($121.50) per year for license to sell, and the South African Republic £20 ($97.20). A duty on samples is also asked. OPENINGS FOR TRADE. To the question "What business might be profitably introduced in South Africa?" I would say that an American like myself misses many conveniences, and even what we call in America necessities; but residents here look upon them as luxuries, and very easily get along without them. That there are opportunities, I admit, but it would be unwise, to say the least, to venture to advise or to state positively that any business would be profitable. There are a num ber of Americans in trade in this country, and, while many have made money, others have lost. This answer may not appear very satisfactory, but a consul would be condemned if he raised hopes that might not be fulfilled. EXPOSITION OF UNITED STATES PRODUCTS. Such an exposition would be of advantage if it were open to all, and not to houses handling only certain lines. To be successful, it should be general and should be properly advertised, so that all who desire to exhibit could do so, with expenses shared " pro rata." It would not be necessary for each manufacturer or export house to have a representative present; the exhibits could be placed in charge of a few, who would be employed by all. Arrangements should be made, if possible, for the free introduction through the custom-house of Cape Colony of all samples for exhibition; and, in the event any samples were sold, duty could be paid on the same. Samples of not only machinery, but tinned. goods, pease, beans, apples, dried fruits, furniture, stamped goods, etc., should be sent. An exposition will solve the difficulty that now presents itself in the introduction of some American products. In dealing with the buyers of this country, samples are absolutely essential. LABOR. I append a tabulated statement of wages, but it must be borne in mind that the cost of living is very much higher than in America. A ride on the street car costs 12 cents; a pair of shoe strings 6 cents, and board $10 per week. Situations for clerks, bookkeepers, salesmen, etc., are scarce. There are, in fact none, all having been filled by men who came here Many have re- years ago, more particularly from Great Britain. turned to their old homes, and many are here stranded. is besieged by hundreds of Americans in want and asking for help. Some have come and succeeded, but they brought sufficient funds to carry them over. There are always, in good times, openings for skilled mechanics. The great bulk of Americans have gone to the mines, but the situation there is deplorable. The wages given are those paid in Cape Town; in the country they are increased, but the cost of living is proportionally higher. The amounts given are TRANSPORTATION IN NICARAGUA: DECISION OF ARBITRATOR (CORRECTION). The Department is in receipt of a letter from Gen. E. P. Alexander, dated San Juan del Norte, April 12, 1898, in regard to a report transmitted by Mr. William B. Sorsby, United States consul at that place, and published in CONSULAR REPORTS No. 212 (May, 1898). General Alexander was the arbitrator in the transportation question referred to in the report, and he wishes to say that the statement in the report, to the effect that the decision had interrupted traffic, was misleading. He continues: The adverse decision was not given until February 18. The suspension of all traffic and the formal taking possession of the boats took place on or before the 7th. The occasion of this action was the breaking out of the recent revolution, and its actual occurrence is referred to in the decision as justifying the Government in |