New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-11
Contract Breakers Lay All
Exporters Open to
Criticism.
ARGENTINA ONE or
MANY COMPLAINING
Department of Commerce Has
Strengthened Out Many
Tangles.
From The Tribune Bureau J


Washington, Aug. 1O.I"Breaking oil
contracts and failure TO ship goods
up to specifications are not new 70
American exporters, nor do complaints
as to such practices come only from
Argentina" declared DR.. Il. L. Pratt
Chief Of the Bureau Of Foreign and
Domestic Commerce, to-day, comment
ing on the complaints from the South
American republic that American man
ufacturers had violated their contracts
The Department of Commerce re-
ceives complaints constantly regarding
the failure of American exporters "a
live up to their contracts, these com
plants coming from every section OF
the world. Numerous complaints have
reached the department from the South
American republics, and instead oil
making these complaints public agents
of the department have taken the mat
ter up personally with the American
firm complained of, and have been sue
cessful in Strengthening out many OF
them.
Only a Few Dodge Obligations.
DR.. Pratt declared that the failure
of a small minority of American bust
ness men to live up to their obliga-
tions "lays the entire business public
open to such criticisms as have come
from Argentina"
DR.. Pratt prepared the following
statement for The Tribune. criticislng
the shortsighted policy of those Amer
lean manufacturers who fail to Keep
to their agreements:
breaking of contracts and failure to
ship goods up to specifications are not
new to American exporters, nor d.
complaints as to such practices come
only from Argentina. In the great
body of American business men en-
gagged in foreign trade there are bound
to be done who are so shortslghted as
to sacrifice permanent and profitable
trade for the immediate gain in a
single transaction.
Acts Affect Whole Trade.
81 believe that the number of Amer
lean business men who fail to live IN
20 their obligations in supplying goods
of the right kind and on the right
terms is very small indeed yet the
transactions OF this small minority lay
the entire business public open to such
criticisms as have come from Argen-
tina.
Undoubtedly there have been n
number OF cases in which our exporters
fell down on their contracts or have
shipped goods inferior to samples,
especially since the outbreak of the
war in Europe. II an American manu-
facturer had made a contract without
due regard to the possibilities Of an
increase in the cost of his materials
and of shipping he was compelled
either TO sacrifice his profits and possi-
bly, sustain a loss or to break his
contract.
at may be that the American OK
porter, being unable 10 supply exactly
the goods he had agreed to, substi-
tuted articles which he considered o.
an equal value, but which were unsatis-
factory to the foreign importer, an
ne probably did this without first con-
suting his foreign customer. This in
evitably caused trouble and was a very
short-sighted policy on the part Of the
manufactures.
Great Majority Honest.
"No criticism is too harsh for the
exporter who deliberately fails TO full
fl his obligations and contracts, but 1t
should be remembered that this class
of men is a comparatively small mum
Der, and their actions cannot justly
be taken as a basis for criticising the
many honest and conscientious men who
are endeavoring to build up a foreign
trade for the United States and 10
create a good will among foreign buy
ers that will insure the permanency
OF this trade.
"The proposed arbitration agree
ment between the United States AMI
Argentina will serve as means of ad-
justing disputes between the business
men of the two countries, but the real
problem is to educate our business men
to the pOint where they will give for
eign buyers little or no cause for COM
plant, and thus prevent there being
disputes to adjust.
1--WE cannot expect the foreign buyer
to have our point of view in business
practice. What we may accept, as a
matter of course, is interpreted by a
foreign buyer as deliberate evasion
of promises and contracts, and if there
is any possibility of our exporters be.
ing unable to live UP to the promises
they have made, these facts should be
hrouObt clearly 70 the attention of the.