tion of inferior grade of teas; while, at the same time, the association spares no efforts in extending its market abroad.

What I have described above relates mainly to the methods of production of green tea. Japan produces black tea in the island of Formosa, which is known as Oolong tea. Ever since Japan's occupation of the island in 1895, the Government General has been bending its energy to foster the industry until to-day Oolong tea has become one of the principal products of the island. Thus, two-thirds of the total amount of tea exported from Japan to the United States is green tea while the remaining one-third is Formosa Oolong tea. In the fiscal year ended June 30, 1916, 52,359,526 pounds of tea were exported to the United States, of which 34,513,129 pounds consisted of green and 17,846,397 of Formosa Oolong tea.

Of all the tea producing districts of the Empire, Shizuoka Province ranks foremost. It produces nearly 70 per cent of the green teas exported. For many years the Provincial Government gave encouragement to the promotion of the tea industry by means of subsidies and conducting experimental stations. Formerly, tea was shipped by rail from Shizuoka Province either to Kobe or Yokohama where it was loaded in ocean liners for export. The tea growers of Shizuoka endeavored to make Shimizu the port from which cargoes of tea could be directly exported abroad. To this end, both the Provincial Government and the tea growers worked together. In 1897, the Toyo Tea Company induced the Nippon Yusen Kaisha to call at Shimizu in the tea season with a minimum guarantee of cargoes. Soon after the RussoJapanese War, direct lines were established from Shimizu to American and Canadian ports. Thus, in 1906, exports of tea from Shimizu amounted to 5,187,433 pounds or 16.3 per cent of the total export from

the country, while in 1915, it rose to 27,425,903, or 70 per cent of the total exports of tea. In the following table we see the rise of Shimizu in export tea trade in comparison and the decline of tea exports from Kobe and Yokohama:

1906 1915

Shimizu Yokohama Kobe Yokkaichi Total

5,187,433 17,434,706 8,324,181 942,055 31,796,947 lbs 27,425,903 6,237,883 3,307,968 2,339,305 39,311,059

Of 39,311,059 pounds of tea exported in 1915, 90 per cent came to the United States, and the remaining ten per cent was exported to Canada.

In this connection, it may interest the reader to know what percentage of tea exported from Japan is shipped in Japanese bottoms, and what percentage in foreign bottoms. According to the June number of the Tea Journal, the organ of the Shizuoka Growers' Association, the total tonnage of tea exported in 1916 reached 45,000 tons. Of this, 28,550 tons, or 63.5 per cent were shipped by three Japanese trans-Pacific steamship companies; namely the Nippon Yusen Kaisha, the Toyo Kisen Kaisha, and the Osaka Shosen Kaisha; and the remaining 16,540 tons, or 36.5 per cent, were carried by foreign steamers, chiefly the Canadian Pacific steamers. The average freight rate of tea from Oriental ports to San Francisco before the war was $10 per ton weight, or 2,000 pounds. But in April, 1916, it was raised to $18.75 per ton measurement, or forty cubic feet. As I have already explained elsewhere, one ton measurement of tea comprises about eleven "half-chests," each "half-chest" weighing about seventy pounds net. Hence, the net weight of tea to a ton will be about eight hundred pounds. Thus, we see that the raising of the freight rate from $10 per ton weight to $18.75 per ton measurement raised the freight from a half cent to 2.35 cents per pound. This sudden jump in the freight worked a great hardship on tea merchants in the Orient.

Thus while foreign steamship companies engaged in trans-Pacific trade raised their freight rates from three hundred to eight hundred per cent, the Japanese steamship companies, subsidized by the Japanese Government, coud not raise it of their own accord. For a long time they had to maintain the rate which they used to charge before the war. By their joint petitions to the Government, they have been able to raise twice since the war started, the first time 20 per cent, the second time 25 per cent, thus, making a total increase of 45 per cent. When foreign steamers were charging $18.75 in 1916, Japanese subsidized steamers charged $6.50 per ton. Viewed from the point of the subsidized steamship companies, therefore, it was unprofitable to carry a bulky article like tea at such a low freight rate, when there are over 400,000 tons of cargo awaiting in Kobe and Yokohama for shipment to the United States, and whose shippers are willing to pay almost any price for freight.

There came a great difficulty for tea exporters last spring. At the end of last May, when the first picking was almost over, the tea growers associations of Shizuoka received an overture from the Japanese steamship companies already mentioned. The steamship companies demanded that after due consideration they would apportion space on their subsidized steamers for 15,900 tons at $8 per ton, and would carry the remaining tea tonnage at $30 per ton in their non-subsidized vessels. This would mean a decrease of 12,650 tons on the subsidized vessels in comparison with that of 1916. But, on account of the dearth of foreign tonnage, the entire output of tea for export, amounting to 50,000 tons, should be carried on the Japanese liners. The steamship companies were firm in their contention and would not yield to the request of the tea growers. Thereupon, the Tea Growers' Association of

Shizuoka, with the aid of the Central Tea Association, appealed to the Department of Communications for adjustment. After the mediation by the Vice-Minister of Communications, the following agreement was reached between the steamship companies and the tea growers:

1. The three steamship companies will supply 20,000 tons on their subsidized vessels at $7.50 per 40 cubic feet, and 25,000 tons on their nonsubsidized vessels at $26.40 per 40 cubic feet, thus, making the average freight rate of $18 per 40 cubic feet.

2. The foregoing freight rate shall apply to about 50,000 tons of tea to be exported from Kobe and Kokkaichi.

3. The foregoing freight rate shall extend from May, 1917 to February, 1918.

Thus we see 214c freight is charged for a pound of tea, exported from Japan to the United States.

Let us now turn our attention to the present trans-Pacific shipping situation. Before the war, there were on the Pacific Ocean a gross tonnage of 372,513 tons of steamers, with a total cargo-carrying capacity of 407,631 tons. Of these, seven steamers were under the American flag with a gross tonnage of 80,972 tons; 20 steamers were under the British flag with an aggregate gross tonnage of 147,076 tons of which four vessels were owned by American firms, namely the "Persia" and "Nile" by the Pacific Mail Steamship Company with an aggregate tonnage of 10,244 tons; and "Bessie Dollar" and "Hazel Dollar" by the Robert Dollar Steamship Company with the aggregate tonnage of 8,633 tons; six Hamburg American steamers under the German flag, with an aggregate tonnage of approximately 35,000 tons; tonnage of approximately 35,000 tons; and sixteen Japanese steamers with an aggregate tonnage of 121,375 tons.

Soon after the declaration of the war in August, 1914, the Royal Mail and Glen Line withdrew from the Pacific its entire fleet