Evening star., 1914-10-11
DR.. Aughinbaugh, Former
Washingtonian, Writes of
Business Needs.
PIRATES OFTEN STEAL
THE NAME OF BRANDS
Branch Houses Best Method of
Handling American Goods-Best
Agency Plans Outlined.

DIR. W. E. Aughinbaugh. former
washingtonian, has written another
article in the series he is preparing
for the benefit of American exporters
who desire to increase their trade with
Latin America a consequence of the
war. He teNs of some of the prospec-
tive pitfalls that exporters to Latin
American countries should know and
avoid. and makes suggestions as tc
the best methods of putting American
goods on those markets.
DIR. Aughinbaugh has had twenty
years experience in Latin American
business circles. sHis article, which ap-
pears in Leslie's Weekly of October s,
is in part as follows:
.'The registration of trade marks
should be the first duty of trade
representative on his arrival in Latin
American countries. He should nave
power of attorney authorizing him
to act in this capacity This paper
may be prepared by any attorney, and
should be in Spanish for all countries
excepting Brazil, where the language
is Portuguese This document should
be sworn to before a notary public,
whose signature should be certlhed 10
by the secretary of state for the state
wherein it is executed, and whose seal
and signature should in turn be certi-
fled to by the Secretary of state Tor
the United States, whose seal ana sig
nature should finally be certified to by
the minister or ambassador 1or tne
country wherein registration Is de-
sired. For each country separate set
of papers of this nature will be re-
Quired.
Value of Marks.
when one considers that about 80
per cent of the population of South
America cannot read or write, and
therefore recognize an article by some
distinguishing sign or character. the
value of a distinctive trade mark be-
comes obvious.
Once your trade mark is established.
no matter how crude it may be. never
change it. To illustrate: The Chinese
are great consumers OF canned salmon
and our western fisheries supply the
article. One firm in San Francisco had
a brand famous among the celestials
The label showed a gaudily colored sal
mon with the wrong number OF nns,
and tail elevated. in the act, of leaplng
over a waterfall, down stream. with
background OF cocoanut trees. the
trade mark was known all over the
fiowery Kingdom. But the head of the
house had son just from college who
started to clean up things.
His cultivated eye at once saw that
the label of the brand was all wrong
Salmon are not colored like the rain
bow; they leap up stream only, and in
doing so do not curve their tails over
their backs; and, horror of horrors-no
cocoanut trees grow in the vicinity OF
the salmons habitat So the label was
reconstructed, and made scientifically
correct When the goods with the new
label got to China no one would buy
them. No same chop. was the laconic
reply when a Chlnaman was assured
that these were the old and well known
goods in a new dress. Argument was
useless The brand completely lost its
market. l knew one merchant IN
Hongkong who was forced to dump
two carloads of this salmon into the
sea.
Trade Mark Pirates.
The laws of most of the Latin
American countries allow any one to
register a trade mark, whether he owns
1t or not A class of men in that part
of the world make a speciality of regis
tering trade marks, knowing that.
sooner or later, a well advertised ar
ticle may get into the local market and
then they can hold up the legitimate
proprietor and eXtort money from him
for his own property. / know of two
extensively advertised American patent
medicines. one of which paid $2S,0O0 to
use it's own trade name and the other
$4,000. A mineral water company paid
$500. and felt that il got of very
cheaply a well known typewriter COM
pany refusing to pay the excessively
high sum asked by the local Dick Tur-
pin for the right to use its own trade
mark. changed its name l could NIL
pages with similar instances.
There are three methods of developing
business abroad. Each one is worthy OF
serious and careful consideration.
\ he
unwise to endeavor to build up your
trade in all countries by the same
means.
The best plan is to establish your own
agency carry your own stock, have your
own staff of assistants and your own
travelling men. This system involves a
great initial expense, much detail plan
ming and will take considerab BILE time to
perfect. 1t Is warranted if you are de-
termined to enter the field permanently
and Will pay you only provided there are
large possibilities in your line.
Branch Houses Best.
"Such aggressive American business
houses as the Standard OIL. the National
Cash Register. the Singer Sewing Ma
chine Company and the United States
Steel Corporation have adopted this
method Of invading foreign fields and
their success has been phenomenal
approval of the energetic European
concerns in this territory.
should manufacturer he disposed to
first feel out the trade possibilities for
Lis line, his representative will find any
number Of large. reputable firms willing
&" act as exclusive agents for him in Il
prescribed territory This method has its
advantage in that the initial expense is
comparatively small. while an es.abIishe
local agent. such would be selected.
could place goods AZ once with clients and
would necessarily be familiar with the
market and its conditions and could rem
,ler in many ways invaluable help in
making the venture a success from the
start Orders and inquiries from his ter
fitOry sHu1lld he turned in to him
Best Agency Plans.
Tine plan Of having an agent sell the
trade direct has It's d!sadvantageous fea-
trre in involving foreign correspondence
and banking, to say nothing of obtaining
consular invoices and giving personal at
tenti"n 10 shipping 1t also necessitates
much detail work. In New York there
are many shipping and commission houses
who often pay cash for goods in New
York city, assume all responsibilities anf
attend 10 the numerous details. II wCult
lie @tiVis;i hle Il this mode Of entering The
market is adopted to have the salesman
accept Lis orders through one of these
export houses
Let your advertising be in the Ian