The sun., 1919-04-21
40
HONOR CALLED LIFE
OF EXPORT TRADE
L. s. Firms Warned Against
Sharp Practices in Latin
America.
->
FAKES RUIN BUSINESS
Chance Of Statesmen Shown as
Important Factor in
Commerce.
BY LoRINa G. PEEDE.

Specially Written for the Latin American
Section Of THE SUN.
The observance or an unimpeachable
standard OF business integrity and honor
on the part of American exporters is a
factor which will In the long run prove
the greatest asset. not only to the indi-
Xiduaf but to the commerce of the entire
nation Tho dumping Of inferior and
dsfectivs products into the foreign mar
kets during years past. together with
numerous other unfortunate methods
praotised BY a certain class, and only A
certain class, OF American exporters, is
She, cause to which may be mainly at
trsbuted- the. suspicious, unfriendly and
even hostile attitude so frequently en-
countered by our best statesmen in for
eIgn lands
So" Yankee treeks' and Yankee bloor'
are epithets applied daily to our meth
DDS by Latin American merchants. and
the worthy representative of a vepu-
tnblesfirm must with tact and perslstency
work to. Offset these prejudices before he
can enjoy favor with his clients equal
to that. which European statesmen may
safely take for granted. "Palabra
1nglos' (Which has the meaning IAN
Englishman's word Is his bond") is the
miracle phrase OF the British trader in
Latin American countries and IL an as
set OF good will worth many millions to
English commerce. and for the mainte-
nance Of which no price or sacrifice IL
considered too great.
Among British commercial men as a
class the fulfllment Of all trade agree
ments to the letter is an uAwritten law,
and the value of a national reputation
for square dealing and reliability is fully
appreciated AS q consequence OF this
attitude. pressure IL brought to bear
through tho consular system. associa-
tons of producers and others. upon any
who use such national good will TO their
own advantage. the detriment OF others
or the jeopardy of national honor.
Honesty IL an even greater factor in
foreign than In domestic trade
Within our own borders buyer and
seller may for protection have recourse
to the same laws and local reputation
Is something which no one can afford to
sacrifice. In the foreign field. however.
the legality of ones action is OF lesser
import, and the preparation Of fraud
Is comparatively simple
Opportunities for Deception.
Opportunities for deception OF one sort
or another are frequent--in fact misrep-
resentation OF ones goods, which Is the
commonest OF receptions, may occur in
the early stages OF a transaction or
even before actual business Is COM
menced.
For instance, II the export catalogue
contains cuts and illustrations which
have been retouched beyond the point
Of actually, the buyer may be defrauded
from the very start. Care in this re-
gard should be used In every point In
the preparation OF the export catalogue.
It must not only be attractive. but 1t
should be in printing craft a worthy
representative of tho manufacturer ii
should tell the story OF the merchandise
as Interestingly and as allurinsiy as
possible. but 1t should never go beyond
the point OF actual fact, because the
merchant abroad does not buy cata-
logueA but goods, and a misrepresen-
ton VIII avail little In the long run.
The Same applies TO correspondence
and to samples. deception by the
use of fake samples Is of course no
more than gross dishonesty and not
worthy of discussion. but tho written
word on the page OF correspondence
which carries false idea TO the pros
pective buyer Is often an article of
more subtle nature. The ruse may Dc
effective once, but the ultimate result
Ia always the same: The days OF enor-
nous fortunes being made In exporting
/ d defective merchandise to deluded and
ignorant buyers have passed.
/ The manufacturer may assume that
because his prospective client lives in
Punta Arenas or Iquitos his knowledge
OF merchandise cannot be extepsive
with this thought IN mind he ships goods
| of single x quality, which he describes
| in his correspondence as mon plus ultra
Almost invariably such an exporter
throws a boomerang which not only
comes back and strikes blow to his
own business, but to that OF other Ameri-
can manufacturers who are selling in
that section.
The choice of statesmen is also a most
| important factor. The salesman should
| In any case typify the house which he
represents; he should also be OF the type
| who inspires confidence, who hespeaks
cordially, Is diplomatic IN situations and
| patient OF others. Above all, he SHOULD
be an American, or he cannot typify an
| American house.
How 10 Win Confidence.
To show complete confidence in the In
| tearity of your client Is the surest way
| OF instilllns similar confidence in him.
| When selling In South America the
| writer has made a particular point OF
never permitting the native customer TO
| sign an order. Not infrequently the
omission OF this customary Formally
has oocasioned surprise and protest. but
upon assurance that his word was all
| that was required, responsive feeling
of cordially and confidence invariably
| became evident. IL is not, OF course, In
| tended TO suggest that the signing Of or
ders should be omitted as a practice, for
as O matter OF fact such practice would
| be a dangerous one for those whose bust
ness runs to large figures, and the refer
| ence 10 made only by way Of illustrating
ono Of the many small ways in which
confidence may be gained
| Perhaps the greatest breach OF in
| tegrity made by the manufacturing ex-
porter Is in relation to his sales terri
tory contracts, both with agents abroad
and with commission houses and trading
\ companies in this country. This partic-
| ular shortcoming Is often difficult to de-
| tect, and Is frequently due to the care
lessness and inattention of the exporter,
| The manufacturer may have a con-
| tract with firm, say In Lima, or per-
haps with n commission house here In
New York. for the exclusive sales rights
| In all OF Peru. In return for this privi-
| lege the agent may guarantee a mini
mum annual turnover, employ special
, salesmen exclusively to push the line,
invest money In advertising or perform
| othar similar 0Aryices In inst incation Of