440 



THE INDIA RUBBER WORLD 



lAUCUST 1, 1911. 



ABUSES IN THE RUBBER TRADE — A PLEA FOR 

 CONCERTED ACTION.* 



Tlll^ impropriity ol certain trade customs is bound to be large- 

 ly a matter of individual opinion, and such opinion is formed 

 in great measure by connnercial environment. The fact is generally 

 recognized that the commercial characteristics of the various sec- 

 tions of our country have all the local color of habit and asso- 

 ciation. In like manner, the opinions and consequent methods of 

 the individual manufacturer or dealer must ditTer by reason of 

 association, habit and policy. Certain customs, which may ap- 

 pear to some as unfair and unbusiness-like, will appeal to others 

 as being necessary and, therefore, legitimate. Such differences 

 of opinion e.xist only on matters of minor importance, and on all 

 vital questions of general p.ilicy the rubber trade at large are in 

 perfect accord. 



This article deals cinl\ with trade abuses that are serious in 

 their nature and general in their application. Nor is there 

 reference to the many difhculties with which the trade, as a whole, 

 is obliged to contend, except insofar as they may relate to the 

 manufacturer m his dealings with the various distributing fac- 

 tors. 



Further, there is no trade custom which works hardship to 

 the manufacturer but what will affect the general interests of the 

 dealer. 



First, as to existing price lists, many of these are utterly incon- 

 sistent. It is impossible for a manufacturer to so arrange his 

 discounts upon the basis of many of them as to remain fair with 

 himself, and at the same time fair with purchasers. It is impos- 

 sible to say how long certain of these lists have been in force, 

 and, perhaps, at the time of their adoption they were proper and 

 consistent. Today many of them have no legitimate excuse for 

 existence in their present form. Sucli revision of these lists 

 should be instituted as will bring them into conformity v\ith 

 modern conditions. 



There is little stability in the matter of terms upon which 

 goods are sold, and they are apt to vary essentially to suit the 

 demands of the individual buyer. I find in some instances, and 

 more especially in certain sections of the country, stocks of 

 goods are delivered to a prospective customer's warerooms, with 

 the understanding that he assumes no definite responsibility ex- 

 cept for their custody, and that they are not to be paid for ex- 

 cept as they may be sold. This is what is called "consigning" 

 goixls. While oftentimes many decline to put their goods out 

 upon these terms, yet, on the other hand, datings are given and 

 payments arranged which indicate a willingness on the part of 

 the manufacturer to assume the functions of a banker. The in- 

 terests of the rubber industry suffer from this attempt to com- 

 bine the manufacturing and banking features of commerce. In 

 the conduct of this cotnbination policy there is, however, this es- 

 sential difference between the methods of the manufacturer and 

 the methods of the banker, in that, in direct contradiction to 

 approved banking methods, the manufacturer is apt to extend the 

 largest and longest credit where the risk is greatest. Concerted 

 effort upon the part <if the manufacturers is the best method to 

 establish propriety and uniformity in the matter of terms. 



It is to be deplored that the guarantees placed upon the prod- 

 uct oftentimes put a premium upon misrepresentation. 



The matter of a time guarantee is essentially an evil. There 

 is no legitimate reason for it. Replacement should be made only 

 • when goods prove defective in material, construction or work- 

 manship, and not because they have given out through improper 

 use, carelessness or abuse, within a given period of time. 

 There is no propriety in a manufacturer replacing at the end of 



•This article was prepared by a successful rubber manufacturer, whose 

 study of the economic conditions of his trade has been most exhaustive. 

 At the present time, now plans for the winter campaign are bciuR formu- 

 lated, it is most timely. 



a season a piece of suction hose because some one has seen fit to 

 drive a wagon over it, a pair of boots that have failed through 

 abuse, a piece of thresher belt because some one has attempted to 

 keep it in line by running it against a stick driven in the ground, 

 a tire that has been maltreated in every possible way. There cer- 

 tainly appears to be great opportunity for proper regulation in 

 this matter of the terms of guarantees. 



It is also a fact that in many cases a manufacturer is not only 

 burdened with the detail and expense, but also suffers the loss 

 of his identity, through the insistence of the dealer in having 

 goods furnished under private brands. This is not only a nuis- 

 ance and an expense to the manufacturer, but it is bad for the 

 dealer, because of added expense and delay in shipment, and 

 because it is also an incentive to the lowering of standards. 

 Some concerted effort should be made to control this feature of 

 the industry. 



There seems to be a tendency among many people, who have 

 just sufficient knowledge of rubber goods to make it a danger- 

 ous thing, to supply iheir own specifications, and then expect the 

 manufacturer to guarantee the product made in accordance there- 

 with. This is something which should be discouraged by the in- 

 dustry as a w'hole. 



There is a tendency upon the part of some to insist upon mak- 

 ing contracts which are binding upon the manufacturer, but 

 which impose little or no obligation upon the buyer. The trade 

 suffers from what are known as "blanket'' orders, in which, upon 

 analysis, arc found none of the essentials of legitimate commer- 

 cial transactions. They are simply a call which the manufacturer 

 gives the dealer upon his verbal assurance of the purchase of an 

 indefinite quality of goods which the dealer may or may not elect 

 to take. 



There is no reason why the matters of quality, material, deliv- 

 ery, terms and prices should not be set forth in a contract. It 

 is essential for a manufacturer to know the condition of his 

 orders, and to protect himself by purchases applying on his con- 

 tracts, particularly at this time, owing to the most unfortunate 

 speculative character of the bulk of our purchases. This matter 

 of indefinite and uncertain sales is among the greatest of the 

 trade abuses, w-ith which rubber manufacturers are not obliged, 

 but choose to contend. The best way for the industry to pro- 

 tect itself from this evil is by unanimous action. 



.-\mong the greatest temptations which a manufacturer has to 

 withstand is that of making goods to meet a price w'hich has no 

 other reason for its establishment than may exist in the desire of 

 the buyer. The manufacturer is told that he may meet this 

 price or not as he chooses ; if he does not, there are others who 

 are anxious to, and that his sales representative is the particu- 

 lar one selected for the bestowal of this favor, because he is such 

 a good fellow. Over ninety per cent, of the just complaints on 

 rubber goods and the consequent damage to the reputation of the 

 industry, as a whole, are upon articles that lack the essential 

 qualities of service and durability, because the manufacturer could 

 not afford to put the right quality of material and workmanship 

 in them at the price which the buyer elected to establish. There 

 is nothing that will prove more disastrous to the interests of this 

 industry than the manufacture of inferior goods. The tempta- 

 tion is always there, and unless some organized and concerted 

 effort is made to control this feature, the whole industry is bound 

 to suffer from it in time to come. It will be well to remember 

 that it will not only suffer the direct loss of money wasted in 

 replacements, but what is of greater importance, will lose a large 

 voluine of business which will go to other lines to be used in 

 substitution for rubber goods. 



There arc many other improprieties, but the removal of the 

 above w-ould be a long step in advance. It is perfectly obvious 

 that inequalities in price lists are a handicap to the dealer and 

 the consumer, as well .-is to the manufacturer ; that iinproper 

 terms not only work injury to the manufacturer, but much harm 

 to those consumers and dealers who purchase their goods upon a 



