In the first instance laws were enacted prescribing schedules of maximum freight and passenger rates with stringent penalties against rebates and discriminations.
Conviction for granting rebates was by this law made easier and more effective.
To correct abuses in the life insurance business which were discovered in 1905 by a committee of the state legislature, laws were passed in the next year regulating the election of the directors of the insurance companies, and the investments of the companies and the distribution of dividends, limiting the amount of business of the larger companies and prohibiting rebates on insurance premiums. A state superintendent of insurance, (since 1860) appointed by the governor, holds office for three years.
Hence there was jealousy and competition between the Cape and Natal and a tendency to use the railways (which were state owned), by means of rebates, to counteract the effects of common customs dues.
The chief duty is to prevent discriminations in freight rates and secret rebates from the published list of charges.