Evening star., 1940-01-15
'Neighbor' Court
smooths Way for
Trade
Arbitration Commission
SpeciuIizes in Settling
Business SquobbIes
BY the Associated Press.

BY the Associated Press.
NEW YORK, Jan. 15.-A good
neighbors" court that has hundreds
of judges-and no courtroom-is
smoothing the way for increased
trade between the United States and
her 20 sister American nations.
1t sits any place in the Western
Hemisphere where a man can hang
his hat, hears evidence by mail,
has no juries, and works just as
we'll when the lawyers stay at home.
Although it has operated so unob-
trusively it is rarely even mentioned
in popular discussion of pan-Amer-
lean affairs, the court is likely to
be very important, if war does the
expected thing and turns Latin
American business from Europe to
Uncle Sam.
Business squabbles are its spe-
cialty. Its machinery is designed
mainly for the convenience of the
little fellow who can't afford long
and costly litigation. But it is open
to all who trade between the Amer
icas.
DnnNnnjzipc thn
need IN an-Amelican relations is
a better understanding between two
widely different temperaments-the
Latins blame the Northerners for
acting superior; hustlers from the
United States accuse the Latins of
laziness--the new tribunal begins by
building mutual confidence.
No Appeals.
Each side in dispute agrees in
advance to accept the courts deci-
sion. There are no appeals.
This is nothing more nor less
than the old-fashioned principle of
arbitration, applied for the first time
on an international scale in this
hemisphere under the aegis of the
American Arbitration Association.
The name of the new court is the
Inter- American Commercial Arbi-
tration Commission. Discussed since
the first Pan-American Finance
Conference at Washington in 1915,
it was finally set up in 1884 under
the sponsorship of the Pan Amer
lean Union and the official sane
tion of the Inter- r-American Confer
ence at Montivideo in 1888.
1t got under way virtually un-
noticed by the public It's develop
ment has been slow. In five years
its largest case involved not more
than $4,000 But gradually, like oil
falling drop by drop on machine.
it has smoothed the channels OF
trade.
A typical case was that of an old
lady in Ecuador who read an ad-
vertisement for a radio set in a
Spanish newspaper in her home
town. She mailed an order to the
manufacturer of the sets in the
United States, along with the pur-
chase price, Sl2.
Return in Good Will.
When she received neither the set
nor her money back, she Weepinely
appealed to the consulate general.
The consul wrote the Inter- -Ameri-
can Arbitration headquarters in New
York.
Investigation showed the manu-
facturer who advertised the radios
had gone out of business. But a new
firm which had taken his place was
interested in establishing a Latin
American market, so it made good
the original contract and sent the
old lady her set
She had hired no lawyer. She had
suffered no expense She had ex-
perienced no delay due to legal red
tape"
She spread the news around town
so effectively that the firm which
honored her claim received over 100
orders for radio sets from townsfolk
who heard the story.
1llt 0l LUU uedI WHICH I6Su1U6U
was small potatoes from a big busi-
ness viewpoint From the stand
point Of pan-American relations,
however, it was significant; it con-
verted one case of prospective dis
trust into more than 100 cases OF
confidence and good will.
The l00-to-l return on his good
neighbor" investment impressed the
radio manufacturer so much that
he Immediately forwarded to the
Arbitration Court three claims of his
own. .
Banker Collects.
These claims dealt with shipments
made to merchants in town in
Honduras for which he had received
no payment. The debts then were
more than three years old
In letter to one of its Judges"
in Honduras, the court requested
aid in obtaining payment The Hon.
duran member Of the Arbitration
Commission happened to be the To-
cal banker of the town. Knowing
the defaulting parties very we'll, he
0Y NA cum SaSe 1.a n~