AiT.usT 1. 1919.] 



THE INDIA RUBBER WORLD 



62: 



HOW NEW YORK AND LONDON CRUDE RUBBER 

 IMPORTS ARE HANDLED. 



NEW YORK METHOD. 



THE MtTHUD employed in handling crude rubber imports in 

 New York differs from the London method in that the 

 rubber, if unsold, is handled by the owner or consignee instead 

 of the broker. 



When the rubber is discharged from the vessel or cars the 

 owner's dock man samples 10 per cent of each mark. These 

 samples are used to represent the lot as a whole, or the individual 

 marks when sales are being effected, the rubber being stored 

 at one of the numerous warehouses in or near New York. 



When the rubber has been sold before arrival to manufacturers, 

 the same process of e.xamination and sampling takes place, the 

 rubber being forwarded to the factory direct from the dock. 



When sold between importers or dealers it is the usual custom 

 for the buyer's representative to meet the representative of the 

 seller and together make the examination of 10 per cent of each 

 mark. If the buyer is not satisfied with the examination, he can 

 demand a more thorough or full examination, the expense of 

 which beyond the 10 per cent is borne by the buyer. This joint 

 examination and passing the weigher's scales conslilutes a good 

 delivery from which there is no appeal. 



When rubber is sold "to arrive," but more particularly in the 

 case of the grades other than the standard, it is customary to 

 deposit with the broker, if the sale is made by a broker, all or 

 part of the sample, which the broker seals and holds against 

 possible dispute as to quality. 



Should dispute arise an arbitration is held under the rules of 

 the Rubber Trade Association, of New York, the result of which 

 is final, but with right of appeal to be heard by the full Arbitra- 

 tion Committee, from whose decision there is no appeal. 



Terms upon which ruliber is sold to manufacuircrs are based 



their London secretary, just as it was produced, all the grades 

 being mixed together. The secretary turned it over to his 

 special broker who had it assorted, classified, and the samples 

 of the different grades displayed in his salesroom where intend- 

 ing buyers could examine them, take the catalog number, and pre- 



CrITJE kvBBER S. 



upon net cash in 10 days from the date of delivery on the dock 

 or ex-warehouse. Terms between importers and dealers are 

 cash less 10 days' interest at 6 per cent per annum. 



LONDON METHOD. 



Formerly all plantation rubber went to London and in the 

 early days, the planters, or many of them, sent their product to 



Weighing Crutif Rubber Shipments \t .\t\\ V 



pare for the auction. At the auction each broker personally 

 auctioned off his own lots as his turn came. Private sales were 

 also made before the auction. 



At the present time the same method is continued excepting 

 that there are no auctions and it is all done by private tender. 



When a consignment of spot rubber reaches the docks, each 

 lot is examined, weighed, and classified according to color, thick- 

 ness and quality. Samples weighing from one to five pounds are 

 taken by experts, each sample being stamped by public officials. 

 These samples, which represent the average quality of the lots, 

 are placed in bags to be sent to the brokers' sales rooms. 

 Intending purchasers have the right to go to the docks and ex- 

 amine the whole consignment, but as a matter of fact, they 

 never do so, as the samples are absolutely reliable. 



Sales are made for cash within fourteen days after the 

 Wednesday following the day of the sale. Buyers, therefore, have 

 their entire purchase in their factories before they make any 

 payment. A considerable portion of the rubber traded in is 

 sold on forward contracts for delivery within 3, 6, or 12 months, 

 so that purchasers can be sure of having their rubber at a fixed 

 price for a certain time ahead. Some of these forward con- 

 tracts are free on board, the rubber going straight from the 

 grower to the factory; other contracts specify London delivery. 

 In either case, the Standard Qualities Committee of the London 

 Rubber Trade Association is the arbiter in the case of any dif- 

 ference of opinion as to the quality of the shipments. 



The London broker, in addition to accomplishing the sales, 

 guarantees the credit of the buyer to whom he sells and actually 

 handles the rubber, with the attendant expense, whereas the New 

 York broker assumes no responsibility after the passing of the 

 contract. 



RUBBER DIVISION MEETING OF AMERICAN CHEMICAL SOCIETY. 



The autumn meeting of the American Chemical Society will 

 be held at Philadelphia, Pennsylvania, September 3-6, 1919, when 

 the first meeting of the newly organized Rubber Division will 

 also be held. Final arrangements for the program are not yet 

 completed; however, the inlerest shown promises a very interest- 

 ing meeting. 



