Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-17

ing his own man to South America. He
might have relied upon one of the sales
agencies in South America, and shared
with other manufacturers in q frequent
disappointing experience. His pill sales
are undoubtedly larger because he gave
personal attention to the market.
In Chile especially I saw the disad-
vantages of Americans dabbling In
South American trade through one OF
the established agencies there. and I
observed the necessity for the crea-
ton either Of new agencies which shall
be pledged to handle only few lines
of goods or Of the formation OF COM
binations for foreign trade which shall
meet with the approval of the WASH
ington legal forces charged with tne
duty of enforcing the Sherman anti
trust law.
one chief objection to the present
trade agencies In South America. espe-
cially on the west coast Of South Amer
lea, is that they attempt to handle too
many lines. In Santiago. Chtle's cap
ital and chief business city. there Is
firms, and in Buenos Aires there is one
which is said to have 500 American
manufacturers as its clients.
It is obviously impossible for an
agency handling SO many lines not 70
include natural competitors among its
clients, and SO 1t must either neglect
one Of these competitors or give only
half-hearted service to either. 1t Is
also impossible for such an agency 70
push ali Of its lines, or half of them, or
a quarter of them, as they ought to be
pushed.
found the point well illustrated IN
Bolivia. The Santiago agency also mas
a branch at La Paz. Among Its many
clients was a large hardware firm OF
st. Louis. This firm became seriously
interested in South American trace,
and thereupon Immediately dissatisfied
with the service rendered by the
agency. An examination OF the BOOKS
showed that the agency had sold s4o
worth Of goods in La Paz In a year.
The firm established its own exclusive
branch in Bolivia, and in the first year
its sales amounted to $4,000.
have heard this sales agency sharp
~ criticised and strongly praised in
Peru, Bolivia and Chile. 1t was not the
nurpose of this writer to find fault with
the methods of individual firms in south
America. An objection uttered against
this firm, however, which seemed TO
he valid was that 1t handles British
goods which may compete with gooos
manufactured by it's American clients.
Few men 20 into foreign trade to get
the benefit of the salubrious climates that
NAV be found abroad. and this firm Is
probably no exception to the rule II THIS
Arm which has an Office IN New !ofk,
can make better profits by supplying
British-made goods on orders wnicn mist1
be filled in America, there Is notn.hs es ven
officially wrong about IT. put II 10 iio'
good for American trade.
MANY American firms which would ike
to extend their South American business
but which are not financially aoie 10 es-
tablish their own foreign branches. are
now left to the mercies Of agencies which
handle hundreds Of lines, possibly some
of which conflict with the goods OF tne
firms desiring to enter the new market.
For them the solution seems to be new
aeencies either independent of the manu-
facturers or engaged in co-operatlVely Dy
them.
IF new agencies are started, manufac-
turers who establish relations with 1nen
should insist that only a few lines De car
ried. and none of those competitive lines.
There is unquestionably field IN Soutn
America for new agencies OF TINS SORT
handled by competent. experienced sales
men who will devote their complete
energies to pushing a few lines OF goods.
The overhead expense on the west coast
would not be considerable, since rents are
fairly cheap. In Bueaos Aires. Rio De
cost of mafnlafning branches is more con-
siderable.
X
The ideal plan for such an agency Is to
maintain salesrooms in various CONNER
cial centers in which the latest samples OF
their clients manufactures can be on dis
play. The Latin American merchant does
not like to buy from catalogues sight
unseen" One great factor in British and
German trade success is that these
agencies maintain warehouses full Of