SOURCES OF SUPPLY

Great Britain goes to many countries for its cooperage requirements, and during 1924, the last year for which statistics are available, the principal sources of supply were as shown in the following table:

NOTE. From Apr. 1, 1923, British statistics include the trade of Great Britain and Northern Ireland with the Irish Free State. From the same date the direct foreign trade of the Irish Free State has been excluded.

During 1913 Poland, Finland, Latvia, and Lithuania are not shown as furnishing any of Great Britain's stave imports, because it was not until the treaty of Versailles in 1919 that the countries named were separated from the Russian Empire.

Germany is reported as supplying Great Britain with staves to the value of £64,899 in 1913. These staves, however, were not manufactured in Germany but in Russia, and exported through the ports of Memel and Danzig, then in the German Empire. Staves from the same area are still being shipped, but Memel is now part of the Republic of Lithuania, while Danzig is a free port and the principal outlet for staves originating in Poland.

POLAND (INCLUDING DANZIG), RUSSIA, LATVIA, AND LITHUANIA

These countries, although separate geographically, may be regarded as one in considering the British sources of stave supply, for, with the exception of small quantities of pine and spruce staves shipped from Poland and Latvia for the manufacture of containers used by the cement, dry chemical, and pottery industries, all the staves imported from them into Great Britain are made of oak timber grown in the forest of Volhynia.

The Volhynia forest lies partly in Poland and partly in the Ukraine district of Russia, but the latter country, in addition to exporting through its own ports of Leningrad and Odessa, finds it convenient to use also Riga and Libau in Latvia and Memel in Lithuania, and for that reason these countries are erroneously credited with stave exports which properly belong to Russia. Poland has used the Free Port of Danzig for its stave exports.

The Polish and Russian oak staves are entirely handmade by workers whose skill embodies the results of generations of training, so that a practically perfect stave is produced. These staves are

known as the "Memel" type, and not only is the manufacture perfect but the alleged freedom from tannin of the oak from which they are manufactured has given this type of stave a virtual monopoly in the British brewing industry.

This is the most valuable stave imported into Great Britain, the full-size pipe, 3 by 6, 66 to 73 inches, being worth in November, 1926, approximately $2,500 per mille of 1,200 pieces.

SWEDEN, FINLAND, AND NORWAY

The Scandinavian countries and Finland are the principal sources of Great Britain's supply of staves for the manufacture of containers used by the cement, pickled herring, dry chemical, and pottery industries. Of these countries, Sweden is the most important, for the reason that in addition to the large quantities of spruce and pine staves (commercially known as "fir" and shipped mixed) used for containers of cement, dry chemicals, and pottery ware, Swedish spruce staves are used almost exclusively for the manufacture of pickled-herring barrels.

Finland ranks next in importance and with the development of its timber industry is supplying a large proportion of Great Britain's requirements for staves used to make containers used in the abovementioned industries.

Norway is of much less importance than either Sweden or Finland as a provider of staves for the British market, and the quantity imported from that country during 1924 was less than one-half of the 1913 total. Although a small quantity of spruce staves are imported for the manufacture of pickled-herring barrels, most of them are the mixed spruce and pine used to make cement containers.

THE UNITED STATES

Next to Argentina the United Kingdom was the most important foreign market for American staves in 1925, exports to the United Kingdom during that year being valued at $1,151,000. Tight staves numbering 7,798,698, slack numbering 1,647,142, 476,273 sets of heading, 19,053 sets of tight shooks, and 24,668 empty barrels made up this value.

Of the staves imported into Great Britain from America, the most important are oak, used principally for the manufacture of palm-oil casks and whisky barrels and to a small extent for vinegar barrels, churns, and tubs. Next in importance to the oak are the gum stavestight for glucose and slack for flour barrels. In addition to these, small quantities of hardwood staves are imported for making pork barrels and miscellaneous containers.

The heading imported into Great Britain from America is largely of oak for whisky and gum for flour barrels.

The importation of American tight oak shooks has made little headway in Great Britain. During the postwar boom and since, sample shipments have been made by American exporters anxious to develop this trade, but so far with little success. The conservatism of the British cooperage industry is probably an important factor, but the trade asserts that the barrel made locally from staves is better than one assembled from the imported shook.

Another objection is said to be the fact that most British coopers making oak barrels work on a piecework basis at a rate of so much

per barrel and are paid the same, whether it is manufactured from staves or assembled from the shook. As the shook costs more than the staves, it is not profitable to use shooks.

However true the statements may be, the fact remains that little headway has been made in selling tight shooks in the British market. A large business is done by the United States with Great Britain in secondhand empty barrels, which are preferred to new ones by some producers of palm oil, because the used barrels absorb less oil. In addition to staves and heading, a small quantity of coiled elm hoops for flour barrels is imported from America.

New Orleans, Mobile, Galveston, Savannah, Baltimore, and Norfolk are the principal shipping points for American staves.

PRINCIPAL IMPORTING CENTERS

The principal ports of entry for staves in Great Britain, with the quantities handled through each during 1924, the last year for which figures are available, are shown in the following table:

The kind of cooperage imported through each particular port is determined by the consuming industries in their proximity. With the exception of London, Liverpool, and Manchester, which handle many kinds of cooperage stock for distribution to near-by towns, other ports, generally speaking, cater to one local industry only.

METHODS OF IMPORT TRADE

The import trade in Great Britain for both American and European staves is usually handled through agents acting as exclusive sales representatives for the foreign shipper. These agents not only effect the sales but also handle the documents and carry the del credere i. e., guarantee the solvency of the buyer. There are no agents handling staves exclusively, but the import business is done through lumber agents and, except for the European softwood staves, by firms usually having a separate department to take care of it. Not all lumber agents, however, handle hardwood staves, as this business necessarily requires special knowledge, and agency arrangements should not be made except with such firms as are properly qualified. Stave agents are expected by the trade to confine their sales to recognized importers who, in turn, sell to the consumers. Although there may be some deviation from this procedure, American exporters would be well advised not to depart from the customary channels of trade.

LOCATION OF PRINCIPAL AGENTS

The principal stave agents in Great Britain have their headquarters in London, Liverpool, and Glasgow, and from those cities

they cover the whole of the country, either through branch offices or by traveling salesmen.

While a London or Liverpool agent may cover all of England, it is desirable that a separate one should be appointed for Scotland, unless the agent has an office in that country also.

TERMS OF SALE

Quotations for American, Russian, and Polish hardwood staves are made per mille of 1,200 pieces, and the customary terms charged by agents are 4 per cent for sales commission and del credere and. 22 per cent discount, both computed on the c. i. f. value. On the other hand, European softwood staves are sold on the basis of the Petrograd standard of 1,980 board feet, the usual deduction for commission, del credere, and discount being 52 per cent on the f. o. b. value. It is customary for the draft to be drawn by the exporter on the agent at from three to five days' sight for amounts varying from 75 to 95 per cent of the net invoice value, according to arrangement, the remainder being remitted on arrival and acceptance of the goods.

A complete set of documents must be attached to the draft, including an "on board" bill of lading, invoice, specifications, and policy of insurance acceptable to the buyer. It is usual to insure for 10 per cent over the invoice value to cover buyers' anticipated profits.

AMERICAN QUOTATIONS

American quotations are, for the most part, in sterling but occasionally in dollars per mille of 1,200 pieces. Although sales to England are usually made on a c. i. f. basis, Scottish importers prefer to buy ex quay. In the event a sale is made on this basis, the shipper is responsible for the landing charges, and care should be taken to ascertain what these are before making an ex-quay quotation. These charges vary in different ports, being much heavier in some than others, and unless the proper provision is made for them in computing the selling price the returns are liable to be considerably less than anticipated.

CONTRACTS

For sales of European softwood staves the regular standard form of lumber contract is used, as they are to all intents short pieces of lumber. For other kinds, including those imported from America, each agent uses his own contract-usually a blank with the specific conditions pertaining to the particular sale typewritten in.

There are no definite rules governing these conditions, but they are based on English usage with which the trade is thoroughly familiar.

For those items handled by members of the Associated Cooperage Industries of America, the rules of that association govern the contract. All contracts, however, have a clause providing for arbitration in the event a dispute can not be settled by amicable methods.

CLAIMS

Claims for quality are not frequent, according to agents handling American staves. The stave business is highly specialized and requires considerable technical knowledge, so that it is confined exclusively, both in America and Great Britain, to those conversant

with it. Many American manufactures employ stave makers trained in the oak-stave districts of central Europe, whose product has the reputation of being unsurpassed.

Of the comparatively few complaints made against American staves, the principal one is said to be for sap damage, caused by the staves having been stored for so long a time before shipment that the sapwood has become porous. Generally speaking, American exporters know what the British market requires and are careful to supply it.

CONSIGNMENTS

Importers look upon stave consignments as an opportunity to get a bargain after the charges for yarding and storage have become so heavy that they must be disposed of, according to the statement of a British stave agent. These consignments invariably result in a heavy loss to the shipper, and American stave exporters should take warning against indulging in such a practice. Consignments not only result in a direct loss to the shipper who makes them but they ruin legitimate trade, as it is difficult to persuade an importer to place a firm order for future delivery when, by waiting, he knows it is more than probable that he will be able to fill his requirements at his own price from stocks shipped unsold. Although during the immediate postwar boom stave consignments may have been profitable to American exporters, it is certain that they have not been since, nor are they likely to be again for a long time to come. only way by which the trade in staves with Great Britian can be profitable is by restricting it to a firm order basis.

IMPORTERS

The

There are comparatively few stave importers in Great Britain, and the amalgamation of numerous Irish and Scottish distilleries during recent years has concentrated the buying of American whisky staves in comparatively few hands.

In addition to the regular importers who supply the coopers with their requirements, some of the larger consumers, who operate their own cooperage plants, are, because of their size and importance, recognized as importers in the trade and buy on importers' terms. This, however, is exceptional, and because it is done in a few particular instances the selling direct to consumers by American stave exporters can not be advocated. The regular custom of the trade in dealing with importers through an agent should be adhered to.

SALES BASIS

American staves are sold on the basis of average width, the usual being 41⁄2 inches inside the sap; in other words, 1 mille is the equivalent of 5,400 inches and the invoice is computed accordingly. In order to prevent the inclusion of too many narrow staves, contracts occasionally limit the number of pieces to 1,200 to the mille.

TRADE ASSOCIATION

There is no trade association exclusively representing the stave import trade, but many of those interested in it are members of the Timber Trade Federation of the United Kingdom.

92015-28-16