December i, 1907.] 



THE INDIA RUBBER WORLD 



77 



Rubber Selling Conditions in England. 



UNTIL recently the India Rubber Manufacturers' Association 

 of Great Britain has not taken cognizance of questions aris- 

 ing from sales of crude rubber by importers and brokers 

 to manufacturers. But the matter of discrepancies in delivery 

 weights has now been brought before the association, and it is 

 understood that the members are making inquiries with the ob- 

 ject of eventually arriving at a situation more satisfactory to 

 buyers of rubber. There is no other association in England 

 whose object specifically is to govern the rules of sale between 

 rubber importers and manufacturers. Should any dispute arise, 

 it is a matter of direct negotiation between the seller and the 

 buyer. 



There are, however, certain points upon which there is uni- 

 formity of practice in the trade, based upon the "Conditions of 

 Sale" adopted by the Liverpool General Brokers' Association, 

 Limited, in addition to which the London and Liverpool rubber 

 merchants and brokers have, at various times, signed agree- 

 ments regarding terms of sale supplemental to the rules of the 

 Liverpool association. One such agreement, operative since 

 May I, 1901, relates to transactions in Para, Peruvian, and Ba- 

 tavian rubbers. Another, in force from July I, 1906, establishes 

 the allowance for draft, to compensate the manufacturer for any 

 loss in weight between the time of delivery of rubber from store 

 and its arrival at the factory. 



The situation in general is summed up thus, in a statement 

 made to The India Rubber World by a leading firm of Liver- 

 pool brokers : 



"The allowance of ^ per cent, for draft is made to compen- 

 sate the manufacturer for any loss in weight between time of 

 delivery from store to the time at which the manufacturer re- 

 ceives it at his works. Generally speaking, importers guarantee 

 weights as delivered at manufacturers' works, hut the Yi per cent, 

 draft allowance above mentioned is taken into account before 

 any claim is made. 



"As regards the question of quality, importers — in the case of 

 medium grades — sell on the basis of a sample, and guarantee 

 quality delivered to be fairly represented by sample forwarded ; 

 and, in our experience, manufacturers treat this question in a 

 very fair manner. 



"As regards the date of delivery, a parcel of rubber is sold for 

 a specified date, and the seller fails to deliver within the time 

 specified ; in the first instance it is a matter of arrangement be- 

 tween the respective parties, but failing an agreement (if sold 

 under Rubber Contract rules and the General Brokers' Associa- 

 tion rules) the manufacturer has recourse to the rules of this 

 association, in which case the method of procedure is for each 

 party to name an arbitrator, and the said arbitrators have power 

 — in case they do not agree — to appoint an umpire, the decision of 

 the majority of the arbitrators being binding on the respective 

 parties." 



The Liverpool form of contract follows : 



Liverpool 190. . 



M 



We have this day you the following Goods on the terras of the 



Liverpool General Brokers' Association, Ltd., conditions of sale: 



Payment Cash in 14 days Uss aJ^C^ (or before delivery if required). 



Customary allowances. Yours respectfully. 



Brokerage per cent. 



On the back the Liverpool conditions of sale are printed in 

 full. It is specified that all goods sold at public auction — as is 

 true of much of the rubber and many other commodities imported 

 into England — shall be considered as sold subject to these 

 conditions. 



Brokers buying or selling shall be responsible as principals 

 unless they name their principals before concluding the contract. 



Unless otherwise stated, the buyer shall have the option of 

 taking goods bought at landing weight or reweight. When 

 taken at landing weight draft is allowed; otherwise, it is not. 



When used in reference to quality, the term "about" shall mean 

 within 5 per cent, over or under the quality specified. When a 

 cargo or parcel or a remnant is sold as "more or less" in quan- 

 tity, the buyer shall accept the whole of such parcel or remainder. 



There are rules relating to responsibility of buyer and seller, 

 respectively, in case of accident, damage to goods, death of one 

 of the parties, failure to fill contracts, and so on. 



"Whenever it is admitted by the seller, or decided by arbitra- 

 tion, 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 goods 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 to the buyer 

 in cash in 14 days from such default." 



In case of any dispute arising, the matter shall be referred to 

 the arbitration of two members of the General Brokers' Associa- 

 tion, one to be chosen by each party in difference, such arbitrators 

 having power to call in another if they desire. In case these 

 arbitrators fail to make an award, the question shall be referred 

 to arbitrators, members of the association or not, to be ap- 

 pointed by the president of the association. For the purpose of 

 enforcing any award, under such arbitration, there are rules for 

 the reference of the matter to the courts of justice. In case 

 either party shall be dissatisfied with an award of arbitrators, a 

 right of appeal shall lie to the appeal committee of the association, 

 whose award shall be final and binding upon both parties. 



Rubber Contracts. 



Under the agreement of May, 1901, when a parcel of rubber 

 is sold for a specified shipment, with a guarantee of quality — 

 other than fine or entrefine Para — and found inferior, buyers 

 must accept the 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. 



"On contracts of 5 tons and upwards, buyers have the option 

 of refusing tenders of less than one ton, except in completion of 

 contract." 



"In the event of a tender of fine rubber being found on in- 

 spection to contain an admixture of entrefine, the sellers shall not 

 be required to retender same after selection, unless such admix- 

 ture be s per cent, or over." 



"Sellers and buyers may select any member or representative 

 of any recognized firm in the Para trade, in London or Liverpool, 

 to act in the capacity of arbitrator." 



Dr.mt on Rubber. 



The agreement below was signed by 65 London houses and 28 

 in Liverpool, including rubber importers, merchants, and brokers, 

 and representatives of rubber plantation companies : 



"We, the undersigned, hereby agree that in all contracts made 

 by us or on our behalf, on or after July i, 1906, the draft upon all 

 classes of rubber (excluding balata and allied gums) shall be V2 

 per cent, taken upon the total gross sterling amount, the lYz per 

 cent, discount to be allowed on the sterling amount left after 

 deduction of such draft. For instance: 



