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THE INDIA RUBBER WORLD 



[December 1, 1911. 



London and Liverpool Auctions and Contracts. 



JUST how rubber is auctioned in London or Liverpool is often 

 asked even by those who purchase largely in those markets. 

 When the writer visited the Liverpool auction rooms that 

 city was the greatest rubber market in the world. That, how- 

 ever, was before the day of plantation rubber, and since then 

 many other great markets have been created. 



The auctions occurred on Wednesdays in a public salesroom in 

 the Exchange. After advertising in the daily papers and sending 

 printed lists to rubber merchants, the firms having rubber to sell 

 are ready to show samples in the warehouses or to furnish de- 

 scriptions of the lots oflfered. Half a hundred perhaps gather at 

 the auction. The auctioneers for the various sellers read a de- 

 scription of the lot, then pause for bids. Sometimes there is 

 much interest and quick bidding; at others it is as quiet as a 

 Quaker meeting, with lots only partly sold and many bids re- 

 jected. The London auctions at Mincing Lane occurred, I be- 

 lieve, on Fridays and were similar to those at Liverpool. 



The London and Liverpool form of contract dates back to 

 April, 1901— that is, for Para, Peruvian and Bolivian rubber. 

 At that time it was adopted by all of the leading houses. The 

 terms are as follows : 



CONTR.XCTS. 



No. 1. — When a parcel is sold for a specified shipment, or for 

 shipment by a specified steamer, with a guarantee of quality — 

 other than Fine or Entrefine rubber— and found inferior, buyers 

 must accept same with an allowance, provided such allowance 

 in the opinion of the arbitrators be not more than 3 per cent, 

 of the contract price; but should the parcel be rejected, the 

 seller to have the option of substituting guaranteed quality on the 

 spot to fulfil his contract within three days, otherwise Clause 6 

 to apply; but in the case of contracts made for delivery during 

 a specified month, or months, should any portion tendered prove 

 inferior to guarantee, buyers shall have the option of rejection, 

 and the portion so rejected shall not constitute a delivery on the 

 contract. 



TENDERS. 



No. 2. — The first buyer must receive any tender not later than 



3 o'clock p. m. (Saturday, 12 o'clock noon), and subsequent 

 tenders must be received by the respective buyers not later than 



4 o'clock p. m. (Saturdays, 1 o'clock p. m.). 



Should a telegraphic tender be received by a buyer after the 

 times above named, provided there has been no undue delay in 

 despatch, tender shall date from the following day, but weighing 

 over shall take place as from the original tender date. All 

 tenders must be passed on with due despatch. 



No. 3.— For a tender to be good, the original seller must be in 

 a position to allow inspection the same day should buyer so 

 require; and seller must furnish, on application, delivery order 

 to buyer without undue delay, and not later than 12 o'clock noon 

 of the day following the date of tender, provided the latter duly 

 complies with the conditions of payment. 



A delivery order to be valid must be a clear title to the goods. 

 The onus of proving that it is not valid to rest with the buyer. 



No. 4.— When a parcel is tendered, an inspecting order with 

 original seller's name and reference number must accompany the 

 tender, and such particulars must be inserted in each successive 

 tender. 



No. 5. — On contracts of five tons and upwards, buyers have 

 the option of refusing tenders of less than one ton, except in 

 completion of contract. 



No. 6. — Whenever, it may be admitted by the seller, or decided 

 by arbitration, that the seller has failed to declare or tender 

 goods to fulfil any contract, the buyer may close the contract 



and at his option invoice back the produce to the seller at once, 

 at a price and weight to be fixed by arbitration (which price 

 shall not be less than yi per cent, nor more than 10 per cent, 

 over the estimated market value of the shipment or delivery 

 contracted for on the day upon which the default occurs), the 

 difference to be due in cash in fourteen days from such default. 

 Should any parcel tendered after the 24th day of the last month 

 of delivery be rejected, sellers may claim one week from date 

 of such rejection to replace same, but this concession shall not 

 apply to any parcel which, in the opinion of the arbitrators, is 

 not a bona fide tender within the terms of the contract. 



No. 7.— In the event of a tender of fine rubber being found on 

 inspection to contain an admixture of entrefine, the sellers shall 

 not be required to re-tender same after selection unless such 

 admixture he 5 per cent, or over. 



INSPECTION. 



No. 8.— Buyers may, in case of need, demand that sellers open 

 20 per cent, of the number of cases in a parcel sold or tendered, 

 and sellers shall guarantee the portion shown to be a fair aver- 

 age cf the bulk, but no claim as to quality or "condition" shall 

 be made after the goods have been weighed over to buyers, ex- 

 cept in the case of false packing. 



No. 8a.— The cases or packages shown to buyer at time of 

 inspection shall be marked and retained intact by the seller 

 until completion of delivery of the lot or lots of which they form 

 part. 



In the event of arbitration the seller must produce for the 

 arbitrators the actual cases shown to the buyers at the inspection. 



No. 9. — A seller shall at the request of a buyer grant a second 

 inspection, but shall have the right to tare and weigh over at 

 the same time the cases opened for such inspection. 



No. 10.— In all cases when an Order for Inspection is given, 

 seller must insert sufficient particulars to identify the parcel out 

 of which delivery is to be made. The signing of an order for 

 inspection shall entitle the buyer to eventual delivery of the 

 goods specified therein and, should any substitution be made, 

 buyer may claim a fresh tender and also arbitration to assess 

 the amount of damages, if any, to be paid by the seller. 



ARBITRATION. 



No. 11. — Sellers and buyers may select any member or rep- 

 resentative of any recognized firm in the Para trade, in London 

 or Liverpool, to act in the capacity of arbitrator. 



UNCUT RUBBER. 



No. 12. — No fine rubber which arrives in an uncut state shall 

 be tenderable on a contract for forward delivery — this rule not 

 to apply to any parcel shipped prior to August 1, 1901. Any 

 parcel shipped before .A.ugust 1, 1901, shall not be tenderable 

 until fourteen days after completion of cutting and selection. 



No. 13.— Island, Jary, Xingu, or Cameta, Fine, Entrefine and 

 Negroes due for weighing-over on the third working day after 

 date of contract or tender, unless othervi'ise stipulated. 



Customary allowances, actual tare, and V2 per cent, draft. 



Payment, cash (before delivery if required) in 14 days, less 

 2j'2 per cent, discount. 



AVIATION IN WAK. 



The first practical value of the aeroplane in war has been 

 demonstrated by the Italians in their present disagreement with 

 the Turks, where two aeroplane scouts were able to get valu- 

 able information regarding the movements of the Turks for the 

 Italian garrison. 



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