The evening times., 1900-04-18

Consul General Stowe, Of Cape Town,
says
| In the United States, on shipment of a
bill of goods, drafts, both sight and time,
are drawn. draft, bill of lading attached.
On receipt by the bank at the place OF
destination, the draft is presented to the
consignee, accepted, and the bill of lading
turned over to him. He gets the goods
from the transportation company, sells
them, and pays the draft at its maturity.
la other words, the consignee is allowed
the time agreed upon in which to pay for
the goods. / submit the following letter,
| which explains ITSELF for the purpose of
calling to the attention of the manufac-
! turers and producers of the United States
/ the difficulties and annoyances which mer-
F., chants and agents here must undergo.
As the banks insist upon collecting the
/ draft on arrival tor delivery of bill of lad
/ ing is refusedD, i advise that ii be stated
on the face of the draft that upon accep-
tance by the consignee, the goods shall be
/ delivered. May / add that il would be a
/ wise step if the newspapers of the United
J States who receive the Consular Reports
would mention this item:
Colonial American Importing Company,
Manufacturers Agents,
National Bank Building.
Cape Town. January % 1900.
Col. J. C. Stowe, Consul General L. 5. A., Cape
Town:
Dear Sir: VIII you kindly allow us to point
out to you some OF the trials and tribulations
Of the importers here who dealing in Ameri-
goods
There seems TO be feeling in the States that
because there is war between England and the
two republics Of this country il is unsafe TO ship
goods to any port of Africa.
We know manufacturers with a very good trade
here who had been selling goods at ninety days
who now drawing at sight because OF the
uncertainty Of the war. This creates diSsatistac-
tion with the importer. and often is hardship to
him, in such cases he not only must pay
the draft upon presentation (no days of grace in
this colcny), but he must pay the duty, clearing
charges. etc. as Wei. which often amount to
as much the original cost Of the goods.
The hulk Of the goods sent into this country
IS sold N ninety days time-that is, goods are
shipped prepaid TO the order of the eonsignor.
and cOnsignee is drawn upon for the amount oil
the goods and charges To port of destination at
ninety DAYS sight. The bill of lading is endors-
ed over to the consignee. and all documents, IN
Guiding copy Of invoice, are attached TO draft and
put through the banks for discount or collection
1t would seem self-evident when manufae-
turer OF a merchant sells his goods on ninety
GAYS time and makes draft at ninety days, that
gou>iCupc would expect upon accepting suCh drait
to have the documents handed over to him SO he
could get his goods at once; but this Is not IN
harmony with South African banking.
/ II goods sent in this manner without special
instructions written either the draft or paper
! attached. the banks here say II means they are
not 10 deliver documents unless they receive pay
meni: and IN such cases, where consignee refuses
10 ACCEPT draft unless documents handed over,
the draft l. protested and the goods are put INTO
/ bond (Which means an enormous eXpcnse) 10
| await instructions from the shipper.
81. aA. C4tTF con
! siguoc concludes 10 pay the draft and take tAe
/ goods, ht viii receive a rebate on the exchange
1 at the rate of per cent per annum on the
/ amount while he Is charged at the present time
2ss per cent on his draft You will see the rebate
amounts to nothing in comparison 10 the amount
/ charged.
| We had a casC in point where sold bill Of
goods 10 one Of our clients here. He has teen IN
business over ten wears and has a very good cred
it, The goods sold on ninety days, and
/ shipped and drawn for ninety days. but our firm
/ neglected 10 instruct the bank to deliver docu-
! mtnts upon acceptance: and. although The
4 amount was small and the bank knew and ac-
/ knowledgud thar consignee perfectly good,
/ vet they would not deliver documents without
! srcCial instructions to do -. Our client, as ne
| said on princiule. would not accept the draft
unless the documents were handed over 10 him.
| He bought The goods ninety days, exchange
was drawn and charged for AT ninety days. and 1t
was the intention Of shippers TO give ninety da!
! and therefore he refused 10 accept the draft
The bank came to Us as agents Of the house
which shipped the goods and we told them the
4 house was perfectly good and would stand be
hind the draft. but they said the house did not
have anyehing 10 do with the draft as the bank
had bought H. and il must be paid before the
documents would be delivered. As this was all
that would satisfy them, We gave thCm our
check and took the bill Of our client for the
amount. Il either meant this or a loss ot cur
client to tie shippers.
We bavc had several such cases as this and
we know of one bank here which has over
hundred drafts Of this kind that have been re-
fused and protested. Our friends at home do not
need to think that because bill has been pro-
tested il will not be paid, for this Is more like
" to he caused 10y the peculiar banking system
Of the country than by inability 10 pay on the
part of the Consignees.
The banks are doing greater business in the
coast ports al the present time than ever before
In talking to the manager of one Of the leading
banks In relation 10 the scare IN the States about
shipping here. he said he could not see why
they should be afraid 10 ship to Cape Town, for
there was more money here than ever before.
Another banker said: The amount Of business
being done by this bank at the present time eX-
ceeds ANYTHING have ever done before.
Cape Town is not feeling the war; in fact, as
far as local trade is concerned. it never was 81
good as the present time. Port Elizabeth and East
London. being essentially forwarding towns, feel
the loss Of the up-country business much more
than we do at this port; but at the same time
their local trade has also increased TO such an
extent that do not look for any serious iall-
ures al those ports as a result of the war. We
are receiving reports from our special agents and
also from the bankers at these ports on individual
firms. and so far bills have been met, and there
are no present iqdications of there being any
trouble in the future.
The prolongation of the simply means more
business for the coast towns, very little is be-
ing grown in this country to keep the people
during the next year.
knowing the confidence American manufactur-
ers have in YOUR Judgment, place these facts
before YOU. thinking they would be of interest 10
vou and that YOU viii be able to bring the mat
Ter before American shippers in such a manner
that these troubles may be obviated Yours very
truly,
COLONIAL AMERICAN IMPORTING co.
Per A. II. MASON.