The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-09-13
secret Commissions 10. Servants and
Trustees.

Of the London Times respecting n social
abuse. already dccp-Scatcd i'm every branch
uf commercial aud domestic industry. and
fast extending the circle of it, faint t. most
81 the liberal prof Ssons. Public opinion in
England has been awakened To the true
nature Of those proceedings which. under the
good old mercantile term of "con,mi. sion.
cloak the rankcst forms of bribery and
hlackmail. II may lac we'll To- mark the pro-
team shapes which this evil is shown to tako
ON the other side Of the Atlantic. for We su,-
poet that all of thcm have their counterpart
among Us, and will he recognized 10y many
victims.
II IL quite needless to point out that COM
mission property means the remuneration
paid by an employer for services rendered
by his agent. This ol course may either
take the form Of wages salaries, or fees. or
ii may he It variable amount proportunatc
tuthc Importance OF the transaction. Ofths
latter nature il the percentage paid to th"
commission merchant who buys or sells for
his foreign correspondent. IL l. perfectly
obvious that loyalty is the very ground
work of this relation between principal and
agent; that good faith and Identity of in
torcst are its o~-cnce. Now. the Tunes dis
closures show that under the existing state
Of things there is an absolute conflict of in
tcrc-t between the English commission NOR
chant and his foreign correspondent. The
usual and only equitable agreement being
that the principal shall have the benefit of
all discounts. the merchant remuneration
being confined to fixed percentage. the
latter arlangc- with the manufacturer to
furnish him with two invoices. one showing
nominal trade discount. which l. -cnt out
To the coi.signec, and the other containing
the larger and vclitablc discount. which the
agent keep
Tii- Mlquitous transaction may nc char
/ actcrilcd a. either bribery or blackmlil ac-
! cordng.i- II j. suggested 10y the manulac-
! tuler or imposed upon him by the merchant.
/ II takes the shape Of bribery in the common
! case OF price lists OF circulars issued in
/ duplicate by manufacturers, one of those
| being printed on thin paperior tran. mission
! abroad. but otherwise both Identical except
that the prices quoted in the foreign circular
/ are slightly higher. I'm thi, way the mer-
| chant is quietly and respectfully informed
OF tho last device Tor dcfrauding his prnri-
pal and is enabled to prepare tine lattel's
mind for tho prices which ii may lee convcu-
! lHl ~ 'llilN's VII il' R'lhl uillhs illt0 ti-
r,ngcment for secret discounts wears the
aspect Of bldckmail when a factor or
agent refuses 10 buy goods Of Il given
house unless this species Of toll il paid.
Obviously the transaction is more likely
10 assume this form than the other, and
II appears that large wholesale manulac-
turer in London lately conceived the idea of
| turning the tables on the commission mcr-
/.
and addresses Of the foreign cOiIc-p pond
cnta. and thcreupon despatched to the con-
! sinners lists of the prices at which ne WA
supplying their agents in London. The
enormous direct trade with all part, al the
4 world which wa the result oi these tactics
| supplied proof enough that the nunhor Of
victims of the "salting" process was not Il
small one, AMI exploded, moreover, the pre-
| test That consumers are aware Of the prac-
lice among commission merchants to take
pay from both parties to a transaction.
Next 10 the dishonesty which regards such
IA practice a. legitimate is the folly of as
serting that any principal would consent to
il with his eyes open
But the exposure of Illicit commissions
wa~ not confined To- mercantile operations,
nor did il oven begin with them. The cX-
po-ulc of the whole subject began with a
letter from am eminent firm Of auctionccrs,
laying bare the conduct of solicitors in deal
ing with the property of clients. aud par
ticuNrly with trust estates. IN the course
of the discussion which followed, it was
demonstrated that vast majority of solicit
TOYS, including many OF the most reputable,
regularly insist ON Il share of the aIc-
tiunorr's fees ful selling real on personal