since that time succeeding contracts with the shipper in question had contained the clause quoted. All had gone well until this particular shipment and the buyer had now made a claim for quality. "Well," said the agent, "I shall be glad to act as sole arbitrator provided you show me the original car by which I can compare the one in dispute.' Untold trouble is caused by such matters, of which this is only one illustration. All special stipulations should be avoided and only lumber graded in accordance with established rules agreed to be furnished. Danger of shipping overgrade.-Another dangerous practice in the export trade is that of furnishing a better grade of lumber than called for by the contract. This usually occurs with a newcomer to a particular market anxious to make a good impression with his early shipments; but it is a practice strongly to be discouraged, as a standard is thereby set which it is impossible to live up to, and disappointed customers, if nothing worse, are bound to result. There is an actual case of an American exporter who shipped lumber rather overgrade at an enhanced price and then, after a while, shipped another parcel strictly to grade. An arbitration was held and it was decided that the buyer was entitled to expect what the shipper had formerly been in the practice of supplying and the award was against the shipper. Shippers' liability under c. i. f. contract. To those not thoroughly familiar with the export trade it might be thought that an exporter under a c. i. f. contract has fulfilled his part once the goods have been supplied, an approved certificate of insurance and contract of affreightment furnished. This idea is the cause of much controversy in the lumber trade because, while this may be the legal interpretation of a c. i. f. contract although it is not the intention to give this here, it must be remembered that customs of the trade are the final arbitrators in British law courts, and buyers in London claim that by the custom of the hardwood trade a c. i. f. contract does not bear this interpretation, more particularly when the payment clause reads "to be paid for within one month from date of arrival of vessel, etc." Exporters' liability under a c. i. f. contract for damage to lumber caused through deterioration during the voyage is one frequently discussed when a claim for discoloration has been made, and although an exporter may claim his liability ceased when he has furnished proper evidence of shipment, insurance, etc., the following opinion of a prominent English lawyer is worthy of consideration: Under a c. i. f. contract the risk of voyage is on the buyer, and he looks either to his underwriters on the policy or to the shipowner under his bill of lading for any claim for damage, subject to the proviso that, in shipping the goods, the seller has taken all reasonable precaution in seeing that they are shipped in such a condition that they will stand the voyage to the place for which they are intended that is to say, the goods must not only be outwardly in good condition but must in fact be able to stand the voyage to their destination without sustaining damage apart from extraneous reason. From this statement it appears that, although lumber may apparently be in good condition at time of shipment, it must actually be in condition to stand the voyage without discoloration, except for outside causes, if the exporter is to be free from responsibility. Damage caused through "sea perils," however, can not be collected from the vessels but constitutes an insurable risk, and exporters should be careful to protect themselves by covering it in their marine policy. Buckled and twisted lumber.-Much controversy has been caused over buckled and twisted American hardwood lumber, particularly gum and oak. From the nature of these defects it is rarely possible for the carriers' or the buyers' drayman or lighterman to notice these faults and clean documents are issued. The trouble is not discovered until the lumber reaches the buyers' premises, and unless negligence can be proved against the carriers, no claim could rest against them. Neither will the underwriters bear the claim unless it can be shown to be caused by perils of the seas or other insurable risk. Particular care should therefore be taken by American exporters to see that wood of such nature be shipped in such a manner and condition that it can reach its destination safely and should so be seasoned that it has no inherent moisture that will cause such a defect to develop while en route. INSPECTION OF LUMBER European lumber. There are no grading rules governing the inspection of north European and Russian softwoods, but the various grades are so well known that they can readily be established. Neither are there any for either central or other European softwoods or hardwoods, but sales are made on shippers' description and usually marked accordingly. American lumber.-Lumber from the United States alone is sold on recognized grading rules, those of the National Hardwood Lumber Association for hardwoods, Gulf Coast Classification of the Southern Pine Association for southern pine, while Pacific coast woods, such as Douglas fir and Port Orford cedar, are sold according to the grading rules as published in the "M" list by the Pacific Lumber Inspection Bureau (Inc.), Seattle, Wash. Japanese lumber. There are no special rules for Japanese oak and ash, but shipments are expected to approximate to United States rules. MEASUREMENT OF LUMBER, TIMBER, AND LOGS LUMBER AND TIMBER Softwood lumber.-The Petrograd standard of 1,980 feet board measure is the basis of measurement for softwood lumber in the United Kingdom, the contents being extended to three decimal places. Hardwood lumber.-All American hardwood lumber is measured by the "American board measure" rule. Boards 1 inch and under in thickness are considered as 1 inch and computed to face measure, those over 1 inch in thickness are computed by the rule giving face contents, the total being multiplied by the thickness. The system for selling European hardwoods is by customs system, 2 inches and up in thickness being measured to the 1/4 foot in length, 1/4 inch in width and thickness, and contents computed to the foot cube and tenths, fractions of tenths being dropped. Lumber 134 to 1 inch is taken to superficial feet of 1 inch and computed to the superficial foot, in some cases to the 1⁄2 superficial foot. Under 1 inch is taken at superficial feet, irrespective of thickness. Some importers here will instruct the measuring authorities to measure oak planks customs system for selling purposes. Timber. For sawn and hewn square timber (mahogany excepted, which is covered in the section on "Woods used") what is known as King's caliper measure is generally used. By this system the sides of the piece are measured with calipers to inches and quarters of an inch, the length taken to the half foot and actual contents computed to the half cubic foot by means of the 144 divisor. LOGS Liverpool string measure "Hoppus" system. Logs such as ash, hickory, and poplar, are sold "Liverpool string measure, Hoppus system.' To obtain the contents of a log by "Liverpool string measure," the measurement is taken in the middle of the log and the method used is as defined by "Customs in the trade" issued by the Liverpool Timber Trades Association as follows: All timber in the log as at present sold on Liverpool string measure shall be sold and measured 1/4 inch in girth, 12 foot in length, and be contented out to cubic feet and twelfths, measurers using either a girthing tape or string. Girth is to be ascertained by tape as far as possible, otherwise by string at the option of the seller. In the case of round timber, if measured over bark, allowance to be made for bark 1/2 inch on 1134 inches and under, 1 inch on 12 to 1734 inches, and an additional 1⁄2 inch for every 6 inches or part thereof over. To obtain the contents of a log the "Hoppus" system is used— i. e., the quarter girth is multiplied by itself, the result multiplied by the length and then divided by 144. The final result is in cubic feet. The fraction is further extended by multiplying it by 12 and again dividing by 144, the result of which is known as twelfths. In London an arbitrary allowance for bark is made for logs measured quarter girth measure by deducting from 72 to 10 per cent from the contents instead of reducing the quarter girth as at Liverpool. This method of measuring logs makes it difficult to compare it with the Scribner-Doyle rule, which varies with the size of the individual log, the average being much greater on those having a small diameter. It is the difficulty in estimating this overmeasure which prevents an accurate computation of the net return on log shipments by the American exporter. Customs string. -Occasionally sales are made on "customs string measure" in which event the method of measurement is the same as Liverpool quarter girth, but in computing the contents the divisor is 113 instead of 144. It is only rarely that American log sales are made on "customs string measure," the usual basis being Liverpool quarter girth measure, "Hoppus" system. Caliper measure for round logs.-This is sometimes used for carrying purposes, in which event the divisor of 183 is employed, practically equaling customs string system. PUBLIC MEASURING FACILITIES The Customs Fund, timber-measuring department, measures all classes of timber for importers, shippers, and shipowners at all British ports. There are, however, certain systems of measuring which can only be undertaken by wood brokers with a full technical knowledge of the various woods, such as mahogany and fancy hardwoods, to enable them to make suitable allowances to comply with the customs of the trade. GRADE MARKS AND BRANDING Practically all lumber imported into the United Kingdom, with the exception of American and some from small central European mills, is grade marked, the brand usually being placed on both ends of the piece. This is most important, because a buyer can always see the ends of a pile while it is not always possible to see the face of the lumber. European shippers attach great importance to their brands and always show them in their advertisements in trade journals. The British importer is also largely influenced by the mark, and at the commencement of the selling season shows preference for the wellknown ones and is willing to pay high prices for these even though he will not purchase second-grade stocks at all. Lumber is resold in Great Britain to a great extent by the brand, and as the quantities of certain favorite marks are limited an importer in England will take a risk as regards price. When no particular brand is needed, however, there is no hurry to buy, and unless the price is cheap importers see no reason for running any risks of a falling market. While American softwood lumber and timber is always branded, few exporters have adopted grade marking, the same mark being used regardless of the quality, and it is seldom shown on the ends where it can be most readily seen. The practice of grade marking is fairly general in American hardwoods, but they are in most cases put on the face only and consequently are unseen unless specially looked for. Softwood lumber from northern and central Europe is stenciled with various colored inks, while that from the White Sea and Petrograd is hammer branded. As illustrative of the importance attached to the branding of lumber in Great Britain, it might be mentioned that for some unexplained reason the Soviet Government shipped several cargoes of lumber with the brands stenciled instead of hammer branded. A strong protest was immediately made, and the Russian agency issued a statement, that was given the widest publicity in the press, assuring buyers that there was no difference in the system of grading from that practiced in previous years. Assurances were also given that all subsequent shipments would be hammer branded as heretofore. Value of grade marking.-Perhaps the greatest value of grade marking lumber is the free advertisement received by the shipper. Not only is lumber sorted according to its mark on the dock when it is landed, but, like a person's name, is associated with it until finally disposed of in some consumers' plant. In addition to advertising the shipper, grade marks also serve as protection against substitution by dishonest or negligent importers or their employees of inferior or discolored lumber. Last, but by no means least, an established grade mark is the shipper's best salesman, creating a steady demand which benefits not only the American shipper but also the importer who naturally is anxious to meet the demands of his customers. As a result, when next he is in the market, instead of merely asking for quotations on a certain kind of lumber, a particular brand is also called for. Importers and merchants, realizing the sales value of a well-established brand, frequently show it on their stock lists and also in their trade-journal advertisements. It is therefore advisable for American lumber exporters to register their brands and grade marks in order to protect the good will established by the quality of the lumber shipped under them, thus preventing their being copied by others. CONSIGNMENTS There is probably no matter on which American lumber exporters are in such complete agreement as the evil of shipping stock abroad unsold, on consignment, yet no sooner does even a slight improvement in demand appear in the British market than consignments, mostly of hardwood lumber, begin to arrive. In this way any benefit that might accrue to the export trade is nullified. Not only, however, is it in times of trade improvement that consignments appear but in times of depression also, thus helping to make a bad situation worse. The shipping of goods on consignment is the poorest possible method of stimulating trade; and if a shipper's agent, who has an intimate knowledge of prevailing conditions and is in close contact with the buyers, is unable to obtain offers it is the height of foolishness for an American shipper to consider his judgment better than the man on the spot and send parcels forward in any event. As may be expected, the results are inevitable-either the stock is sold at a considerable reduction under the market value or it is stored and high charges for landing and rent are incurred. In either event the shipper faces a heavy loss. Not only, however, does the shipper take a heavy loss, but the whole market for American lumber is weakened and a lower level of prices established. It might at first sight be thought that British importers favored consignments as giving them an opportunity of purchasing some cheap lumber or the agents to earn a commission, but this is erroneous. The importer naturally covers his anticipated needs by buying for future delivery, so that in order to protect these purchases and also stocks in hand he must purchase these consignments, but by doing so there is danger of his stocks becoming top-heavy, forcing them to be sacrificed to the detriment of the whole market. Neither do agents care for consignments, because they only add to their difficulty of selling on a firm order basis; the price obtained for them speedily becomes known in the trade and forms the basis of c. i. f. offers. It might be added that another reason for the low offers made for consignments is the fact that many buyers have their own waterside yards, and in buying c. i. f. all landing charges are avoided. These buyers are thus not prepared to pay a price for landed stock that will cover the landing charges, which consequently must have be borne by the shipper. The whole consignment business is a menace to sound business, and the matter should receive the serious attention of American lumber exporters if they are to obtain the full value of their product in the United Kingdom, and the first step would be to restrict their sales entirely to a firm order basis. |