AMERICAN LUMBER TN FOREIGN MARKETS. 231 



it is supposed to be faultless. If any faults are found in any plank, 

 beam, etc., the proportion thereof is assessed against the seller by the 

 public inspector appointed for such cargo. 



3. All lumber, before it is accepted by the dealer, has to undergo an 

 inspection and measurement by a public inspector, who is jointly chosen 

 by seller and buyer, or each one has the right to name one separately. 

 These inspectors measure the cargo and assess the percentage of reduc- 

 tion to be claimed, according to the lumber standard of this port, from 

 the seller. According to this standard, no cargo can be brought here 

 without some claim against it, the lowest amounting to about 4 per 

 cent; but if it goes over 10 per cent, the buyer has the privilege of 

 rejecting the entire cargo. Such inspection is paid for half each by 

 the buyer and the seller, and amounts to 50 cents per 1,000 feet. 



4. As all the lumber is sold delivered here, the freight, of course, has 

 to be paid by the seller, which means a cash outlay of sometimes more 

 than the manufacturer gets for his lumber. The rate of freight runs 

 on an average from $10 to $14 per 1,000 feet, $12 being a fair average. 

 Of course, arrangements can generally be made with the buyer to pay 

 the freight on delivery of the cargo, but in any such case he will claim 

 the percentage (discount) for the advance so made of said freight, and 

 it goes toward reducing the a tual price at which the lumber is nom- 

 inally sold. It is the same with six months' time notes which the seller 

 receives from the buyer in payment of the purchase. These notes can 

 be discounted so long as the buyer is considered good, but this further 

 reduces the actual price supposed to have been realized for the lumber. 



Next comes the Government with its duty, which amounts to $8.25 

 per 1,000 feet on pitch or yellow pine and about $15 on white pine, and 

 is calculated as follows: On a valuation fixed by the Government on 

 pitch pine of $30 per 1,000 feet for import purposes, no matter whether 

 it has cost in reality perhaps only half of that, a duty of 20 per cent is 

 charged, and, besides, about $2.25 per 1,000 feet additional custom- 

 house charges. 



It will be seen that the freight and duty alone on pitch pine gener- 

 ally amount to $20 and more; consequently, the dealer here, in selling 

 to the consumer at from $40 to $50 per 1,000 feet, has a margin of from 

 $20 to $30 to be divided between the lumber manufacturer, the importer, 

 and himself. 



The manufacturer, in consideration of furnishing the actual material, 

 being under the heavy expense of manufacturing, making all the 

 advances until the article is marketable, and. finally, running the risk 

 of losses of all kinds, has to con tent himself with about one-third of this 

 division, and is satisfied if the New York commission merchant offers him 

 at home this much. The importer, together with his commission mer- 

 chant, running hardly any risk, satisfies himself for the outlay of his 

 money for the time being with about one-sixth of this and grows inde- 

 pendently rich on it, leaving to the actual dealer here the balance of 



