% 



figure in the first middleman's account, as he buys ex- 

 store in Calcutta. 



Correspondingly when the first middleman sells the 

 shells in the natural condition to a second his profit 

 diminishes to the modest rate of 40 to 45 per cent, in 

 years when he buys from Government at about Rs. 100 

 per 1,000 as he can always count on selling wholesale in 

 Calcutta at from Rs. 140 to 150 per 1,000. With a 

 higher initial cost as in the case of the season 1909-10, 

 when the combine had to pay Rs. 12 1-9-9 per 1,000 

 under more stringent conditions as to payment for the 

 small sizes, it is possible the ring may not be able to 

 advance their wholesale rates for Tuticorin shells 

 sufficiently to obtain their usual 40 or 45 per cent, of 

 clear profit as this would entail a selling rate of not less 

 than Rs. 184 per 1,000, whereas the rate ruling when I 

 left Calcutta was only Rs. 160 per 1,000 ; there was how- 

 ever talk of an enhancement of price at an early date. 

 In this connection it should be clearly understood that 

 such rates are current only among the big dealers in 

 Calcutta, Dacca, Nadia and other sub-distributing 

 centres who usually have intimate relations with the 

 heads of the ring and may be said to work in conjunctioii 

 with them. To small dealers and to cutters in outside 

 places increased rates are charged. It seems also to be 

 one of the aims of the ring to prevent workers in outlying 

 centres from cutting shells — it pays them better to dis- 

 courage this and to supply only cut material from their 

 own factories at greatly increased rates, as they are thus 

 able to double their profit with ease. To retain their 

 grip on such lucrative trade it is no wonder the combine 

 are willing and able to spend money freely with the 

 object of breaking any rival who may dare to challenge 

 their trade oligarchy ; out of my personal knowledge 

 I can say they have independently evolved many of 

 the trade intrigues of which the American Trusts are 

 accused ; indeed I fancy that the working of a "com- 

 bine" was understood in India in days before American 

 Finance was born. 



Workshops where the labour employed is largely 

 devoted to the production of annular sections of shells — 

 bracelets in the rough — are located at a few only of the 

 larger centres. I know this branch of trade is carried on 



