FOREIGN TRADERS.

Auckland Star, Volume LVI, Issue 242, 13 October 1925, Page 4

FOREIGN TRADERS.

SOME DOUBTFUL METHODS. WARNING TO SMALL FIRMS. Methods which are being adopted by certain German and other foreign firms to get a footing in markets that are at present supplied by Britain are of such a nature as to bring forth an official -warning from the Department of Overseas Trade. London. The following circular has in consequence been issued from the High Commissioner's Office, Wellington: — "The Ofneer-in-Charge for His Majesty's Trade Commissioner (Mr. VV. D. Lambio) has received information which suggests that it is possible that attempts may shortly be made by representatives of certain foreign tool steel houses to secure orders which, if past experience in New Zealand and elsewhere is any criterion, may eventually have unfortunate results for the purchasers. The matter has aroused much attention recently in the 'Ironmonger' and other trade organs at Home, and foreign operators have of late been active also in the L'nited States of America. India and Australia. In view of the threatening danger to Dominion steel users, some account of the sharp practices and doubtful methods adopted by certain foreign firms with resounding titles, and capable, gentlemanly representatives, may be of value. The procedure adopted is almost as old as the notorious 'Spanish prisoner' swindle, but simple as it is, is still sufficiently guileful to entrap many an unsuspecting victim, particularly as calls are principally made, not upon established metal importers but upon small manufacturing concerns, flour-mills, sawmills, foundries, engineering shops and municipal engineers. Wonderful tales are told of the cutting powers, resistance to hard wear, and other qualities of a new steel, small samples of which are often displayed in a case. All too often the persuasiveness of the traveller results in the buyer signing what he believes to be a small sample order made out in metric terms. When the steel arrives the luckless purchaser finds that the unfamiliar metric dimensions have led him to order ten or even a hundred times as much steel as he desired, and that he is burdened with sufficient in some cases to last him for years. Nor does the steel exhibit the marvellous qualities anticipated. Some of the steel was described by the aggrieved recipients as 'mere rubbish.' In another case steel invoiced a>t £200 per ton was valued by an expert at £30. "Those who have been 'bitten' in the past need no warning to exercise the fullest care in placing orders with such representatives, and to satisfy themselves as to the bona fides of the principals. Any who find themselves in difficulties may, however, be glad to learn that at Home in several recent cases where the victims have, in spite of threats of legal proceedings, refused to accept delivery, the sellers have given way, either ordering the steel to be sold on their account 'by auction or removing it. In one case the buyers threatened a counter claim for misrepresentation, in another to charge for storing the steel if not removed at once. Still much trouble may be saved if the buyers make sure of the integrity of unknown firms, and of the accuracy of documents which they are signing." A "Star" representative, who showed the circular to the head of one of the largest wholesale firms in Auckland, was greeted with a smile. "Yes," said the merchant, "we know all about it. It's a. case of 'once bitten twice shy,' and we're waiting for him. A good many years back, in fact before the war, one of these German gentlemen came round and firms both in Wellington and Auckland were nicely swindled. Most of those who 'fell in , were not keen to talk about it." A chief officer in another firm expressed the view that Aucklanders would be a hard proposition for triclcy foreigners in the steel trade. Wholesale merchants were not likely to buy from a strange firm without checking off its credentials from their trade reference books. Still a lot depended upon the plausibility of the traveller, and small firms were more likely to be hoodwinked than the larger ones.