The San Francisco Call. Newspaper, April 9, 1906, Page 5

THE SAN FRA ISCO CALL, MONDAY, APRIL 9, 1906. MUCH TO LEARN ABOUT CHINA'S EXPERTS TEEL WHAT AMERICANS MUST DO TO GAIN THE GREAT FIELD MERCHANTS AT FAULT . IN CARELESS PACKING Unfamiliarity With Transportation and Other Conditions in Orient Is a Serious Drawback. JAPAN IS STRONGEST COMPETITOR Special Agents Crist and Burril Declare Large Opportunities Wait for Us to Bestir Qurselves. EXERTION AND STUDY REQUIRED , to say noth- { where n are extremely goods as . s a firm hoid, ous effc D FIELD IS OPEN FOR JINRIKISHA MANUFACTORY e ot sz-:dl:g= of cotton OF MUCH DISSATISFACTION | m: vet mo twc of the headings are s Y was carefu su- | 2 n certain respects. < two de- | CHINESE SUSPICION MUST : Slackn BE TAKEN INTO ACCOUNT case two n receipt of the goods the Chinese = end of the | Merchant promptly refused to take de- . 1 under the impression that they appears to | were of entirely different make from the » the player, | b e ordered. Being unable to read so as the uprights | En ould not comprehend the . of Mgkl wtu¥, sull-1 ¢ nd therefore to him of differ- c the pu e lues and qualities, or that there 1 but entirely | b en a lot of inferior grades of the un sz ind of cloth shipped from the same G w1 No argument will convince the - ned rall amg | Chinese merchant that goods thus marked come from the same source as goods of iike quality. He firmly believe ne of an order for two |that the popularity of the brand he e was consigned to Peking | handled has become known in Ameri good condition. If this | ar these sent him are imitation: 1 a larger shipment| “Another peculiarity is observable in S0 great a financial loss | these particular pie and that is that a uance of further |the ink in some of the labels is dark rs blue and boldly and plentifully applied r portion of the right side of |10 t , while in others it is pale | off entirely, and the |8 ipplied. This in ftself | e cover was broken ipright end support s splintered, the £ the bellows and all attachments mall screws brass angles ction which ndle were bent and “hipped out of nd end of the naped casting carries the by which PIANO IS ALL BUT RUINED DURING ITS LONG TRAVEL t the right hand nd caught upon on, which dug into its sur- wooden guide to the ham- en into five or six pleces, can be avoided in the ng the als and plac- separately constry t nafled in some = of the packing case. T o pre- mechanical blocks of wood could be prop- snugly into the spaces be- r casing and the upright sup- ports to the cross plece carrying the oper- ng parts of the player.” In regard to the shipment of baled Mr. Crist says the Americans are One of his reports say of the American machine-pressed bales, bound the yropes, which are considered most unde- sirable by those cngaged in foreign trade at this port. The principal disadvantage | is that the goods arrive in such damaged condition as to at once place them at a higher price, allowing for consequent loss, similar goods better packed. The of claims for damaged cloth 1stant element in importing Amer- n baled goods, which does not figure prominently in the calculation of the prices of goods from other countries. ROPES BINDING GOODS ARE | OFTEN BROKEN IN TRANSIT “In looking over the stock of plece goods in a goddwn in Tientsin, which represented between 500 and %00 bales f different countries, it was found abcut 0 per cent of them were can product. In the course of their shipment 3 pment from three instances all, of 1 removed from fully nt of the bales in sight, with the at from the consequent bursting tents had become with dirt and mud. Much of the been damaged through gbra- tearing from exposure. dition was the hasls for & discount by the Chinese mer- ich has to be entertained; and o clalm can be collected from the company, the loss has to be sus- the commission house. Baling es is considered inadequate pro- on to the g and does not admit imbursement for ¢ ained. American manufact T the metal strap baling system, only ate method of ny very strong in tensile torn by the hands cut on the side. OULD BE USED INSTEAD OF e metal not rust by does contac of the bands with which mate- llity to rust. All with iron straps red paint, these goods often elapsing b ment and arrival , the cour. nshipments. instances m abra- look into ental im- is inor- e character cording_to Ays: cause is lack of proper doubtless ap- ficant and trifling to e peculiarities have been fur- ould orainari ake the Chinaman dis- trustful and cause him to complain, but when taken In connection with the omis- sions and variations noted, variation In both arrangement and in wording, to him it 15 proof positive that there is Imposi- tion and fraud in the goods.” The Americans should be working to the end when their competitors in the Chinese trade should be practically driven s that this will sy If this country will awaken to tho opportunities before it. Regarding the cotton stuff market in China he says: TRADE COULD BE BUILT UP IN COTTON-PIECE GOODS “Out of a total value of cotton plece goods sold in this market during 1904 of over $6,500,000, approximately two-thirds of the sum stated are supplied by Man- chester mills from cotton obtained in America, shipped across the Atlantic Ocean, woven into cloth and shipped to Northern China. That a greatly increased share of this as well as of the entire | Chinese market ¢an be won by American | | piece goods | manufacturers and held against all com- petitors there is mot the slightest doubt; nor is ‘there doubt that that portion at present going to American houses is being striven.for by our competitors, whose ef- forts in that direction seem to be at- tended with excellent results. “Japan, India and Holland must be in- cluded among the competitors that are striving for commercial advantages in the Orfent. Our strongest position is in gray goods, and for the present the sale | of this commodity furnishes our greatest t, nine or ten ropes. Other use iron bands with buckles or | Jocked ends. There are o many disad- vantages end apparently no advantage save that of cheapness in the use of opportunity, although England has not ceased to bid strongly for restoration of her lost prestige in this line. “There is without doubt more expendi- soiled through | t. There is a metal i used by some | an mills which is better than any It appes made of malleable ROPE | »pted by shippers | e of the | estion that the | ous difficulty which Ameri- | 3 | but fourfold.” TRADE Marvelous opportunities for American goods are opea Im China, ¥y Special Agents Crist and Burril of the Depart- ment of Commerce and Labor, | who have been closely Investt. gating the vast market of the Far East. At present the de-’ velopment of this trade, the agents declare, is hampered by the carslesy methods of pack- ing used by American mer- chants and because of their ig- norance of trade comditions im the Flowery Kingdom. " American exporters tion to details that neglected they cam drive their strongest competitors, the Jap- anese, out of the field and ua- questionably hold it against the world. The Chimese already | express a oreference for Amerle | v, - [ | | , ot { | il ‘ | | | | - : V.7, QIF CATE CF 60073 | CZ GOOF.S. DINEATH T/ZCE GO0 e | da 7~ /‘Z,,T,fif,’,w THE T Ziywe kr?éfiz}’ e | Y - _ s - L | | | | ! | | | | | | | | | | | | | W37 | - | cx i -+ ILLUSTRATION OF WRECKED CONDITION IN WH:CH AMERICAN' GOODS ARRIVE IN CHINA. | ture of time, energy and money annually ; are retained here or in the immediate ; dently increasing. | by English manufacturers in efforts to control that part of the gray cotton piece goods trade which is stili retained by them and in endeavoring to reclaim the | grouna won by America than American | cotton manufacturers spend in five years | looking for new markets for, not their | surplus stock, but the employment of | their surplus energy. The army of labor- | ers seeking employment and capable of | giving trained service in America Is an- | nually increasing at a rate far out of pro- | portion to the Increase of the require- ments of the home market | OUTLET IS OFFERED FOR THE OVERSUPPLY OF “As stated by Secretar; LABOR speecl | sociation of Manufacturers, ‘the manu- factures of the United States have in- creased thirteenfold in the past forty | years, while the population has increased This,” in few words, tells the story which the futute holds for the American manufagture: His duty to himself and to his constituency is to find | & market which will employ the energies {of that rapldly increasing army in a ra- | tional manner, with a well-defined under- | standing of the needs of that market. “At a time when prosperity in all lines | of industrial activity is prevalent at home, the American manufacturer, with comparatively little inconvenience and expenditure, may safely improve the op- portunity which has long appealed to him | and secure at least a foothold in a mar- ket which, during a period of domestic business depression, will insure steady op- eration for his plant and employment for his people. “If the attention of our manufac- turers be earnestly given to a study of the possibilties of foreign markets, with the determination to learn what is wanted, how to supply that want, | how to deliver the goods, and then to | wait for profits until the business is established, it will be found in the long run that profits would be as large and as steady from the foreign as are ob- tained in the domestic market. Atten- {tion to details, preseverance, patience and a determination to win are pre- requisites to a successful export busi- i ness. In from three to five years good returns may be looked for. Sales or profits from a venture into the foreign trade must not be expected at the end of a year or two years upon a scale equal to the expectations of the home market during a like perfod.” GUILD SYSTEM IN CHINA OUGHT TO BE UNDERSTOOD Special Agent Burril declares 'in one of his reports that the American ex- porters should familiarize themselves with the guild system in Northern China. Following is an interesting ex- tract from the report: “Shanghal, it must be remembered, is the distributing point for Northern and Central China, and comparatively few of the millions. of dollars worth of goods imported annually into’ this port s opened up strong and the demand is evi- | good opportunity for Metcalf in his | 'h in Atlanta before the National As- | | neighborhood. Piece goods are brought jh-mu the -United tes almost exclu- | sively, it might be said, for the north- | ern market, and with one or two unim- portant exceptions there Is no sale for them south of the Yangste River. reference to the customs daily returns | shows that the bulk of American goods | arriving here are re-exported to Tlen- tsin, Chefu and Newchwang, from | which cities (with the exception of | what is required for local consumption) they find their way still farther north. “In order to be fully in touch with the market, take advantage of ex- change and for other business reasons the center —of importation, Chinese the various guilds of the territory which draws its supplies from Shang- hai. The plece goods guild, as an illus- tration, has its representative con- stantly on the ground, and when there is a demand for _certain chops in his home city he is communicated with and makes his purchase from the Shanghal dealer, or what may more properly be termed the Shanghai piece goods job- ber. There are instances where the na- tive dealers of other citles transact their business direct, but these are in- frequent and cannot be said to have made any great headway as yet. INTERIOR IS REPRESENTED BY AGENTS AT SHANGHAIL “The guild is the dominating influ- ence in all commercial transaciions in Ching, and in mainrtaining an agent in Shanghal the native merchants of other cities, who are always members of these organizations, are able at all times to secure the latest market quo- tation and at the same time make It practically an impossibility for any one Chinese dealer doing busines in an out- port to obtain and have stock shipped to him at a price which will permit of him underselling the local market. The outside native merchant seldom comes In contact with the Shanghal piece goods merchants, as the business is usually transacted through the job- ber. who also assumes the title of ‘In- termediate broker.” “It seems a cumbersome and round- about way of transacting business, but it is’ the Chinese way and cannot be said to work any hardship on the for- elgn merchant, whatever may be the effect on the consumer when the goods reach him loaded down with the profits of the native middlemen and dealers who handle them. “In addition to the large shipments of plece goods made to Tientsin, Newchwang and Chefu from Shanghal a greater or less quantity is with great regularity re- exported to Hankow, Kiukiang, Chin- kiang, Wuhu, Nanking, Ichang and Chungking. Sales are frequently reporte:d for Ningpo, and ‘a considerably smaller de- mand is noticeable from Foochow and ‘Wenchow. The Vladlvostok market has | 4 which make thelr presence desirable at | agents are maintained in Shanghal by | | German and English .manufacture. | The Americany goods more than held their own with the Ens- lish goods in the competiticn for the trade of Vladivostok, and it is predicted that with the cessation of war and the return to normal conditions that field may be regarded as especially worthy of cultivation.” EUROPEAN BLANKETS COULD BE DISPLACED HY AMERICA At present European blanket makers | control the Chinese market for that line, but- Special Agent Crist believes that in time the Americans will win out in that fleld. His report on this subject will be of considerable interest to American blanket makers. He says: “Cotton blankets are sold in this mar- ket in very substantial quantities of both | The lighter weight blankets are scarcely heav- fer than outing flannel of good weight, while the heavier ones are slightly bet- ter. These blankets have an ever-increas- ing field of distribution, not only in the immediate market afforded by the prov: ince of Chihli, but the provinces of Ho- nan, Shansi and Shens! are comparatively large buyers. The importation of cotton blankets through Tientsin in 194 amount- ed to 84822 vpieces. Many of them are finding their way farther west into the interfor as far as Kansuh province and into the northern Manchurian market, the province of Kirin being a large buyer. Cotton blankets are not sold on orders from the native merchants in the manner usual to foreign trade, due to fluctuations in_the prices of cotton, but are received by the commission agent on consign- ment _from the manufacturer, who names a minimum price. Samples of the con- signment are examined by the Chinese merchant, from which he makes his selec- tien. PREFER THAT BEDDING BE LIGHT SCARLET IN COLOR Blankets most desired are those of light scarlet. Off shades are not liked and meet ‘with no sale. Two samples of blankets ‘which have been selected as the most popular sellers are forwarded. No. 1 weighs 1 pound 12 ounces, the selling price of which was 336 cents per blanket. ' No. 2 weighs 2 pounds 15 ounces, and is of closer weave, but of about the same general appearance. The price quoted on No. 3 is 44.1 cents per blanket. - Another blanket is sold in smaller numbers weighing three and a third pounds, with a quotation of 43.75 cents. - This blanket, though made of cotton in the same style, is heavier, much rougher and coarser in finish, and not so much desired as the first two mentioned. The duty on each is 2.1 cents per blanket. They are packed in bales, 330 of No. 1, 200 of No. 3. In large quantities a discount of ’seven- twentieths to. seven-tenths of a cent Is allowed. ‘“Bfforts have been made by Ameri- can manufacturers to put their blankets on this market, but with no satisfactory results up to the present. There is a » American-made | blankets and the market for them is: large, but thoSe at present in the field ! have only been.introduced by persistent | effort on the part of their manufactur- | ers. These blankets are now established | iand it will be:necessary for American | | manufacturers to sel. their goods at a| close margin of profit for a year, or, | possibly, -two years. During this time, | jhowever, a good foothold will undoubt- | | edly be obtained, and after that, with a g00d demand created, the profit can be | | enlarged by advances in the prices, | PROFIT MUST BE CUT 1N ! INTRCDUCING NEW GOODS | This method is the common one pur- | Isued in the Introduction’ of new lines ! | of goods, and should be followed in this | line. Tn addition to this, if the goods | | are handled by a good importing house | | they will often cut their commissions | | for the. purpose of further inducing a | sale, especially when they realize that | | the manufacturer is earnestly endeavor- | { ing to obtain a market for his products.” Regarding the market for enameled ware | Speclal Agent Crist says: ““Very little of the American product up to the present finds its way into this mar- ket, but that it can be introduced in com- | petition with the European article there is | little doubt. A member of a Chinese firm which has underaken to handle American enameled goods told me he could put them on the market anywhere in North China in successful competition with like arti< | cles from Austria. Decorated enameled | ware is limited in sale to the cities| where the Chinese have a greater pur- chasing power, while the plain ware has a | large sale In all towns and cities and | throughout the provinces. “The articles most in u¥e are, first of all, ordinary plain wash basins, blue out- side and white Inside, having a rim diam- eter of from nine to fiftcen inches. Basins | decorated on the white inside ground with gaudily colored flowers or other fig- .ures of Occidental design also take |very well. I mention particularly Occidental and not Oriental designs, for in this particular line of goods the Chi- nese appear to prefer the artistic crea- tions of the Western mind. Three or four designs are placed on the inner side of wash basins, with one bottom figure, also on the inner side, and the decoration | may be cither raised or smooth. BLUE ENAMEIL WARE VERY GOOD SELLER EVERYWHERE “Enameled wash basins are quoted at prices varying according to their dimen- sions, color of enameling, whether light or dark blue or pink. Blue enameled tea ketties of different capacities, ranging from one to three quarts, are good seil- ere.” Special Agent Burrill says that China is a good fleld for American dairymen and horticulturists to study. He thinks that expert . examination will elicit evi- dence going to show the possibility of putting American butter and fruits in the .Chinese markets in constantly increasing quantities. He urges investigation, calls attention to the success of others, par- ticularly and says an oppor- r extending e export e of the by adding ail kinds of frech materials refrigerator “shipd to the canned gcods that o ouUt NOW. He writes: “In a previous letter it was suggested that the installation of plants on the Paeific liners f pose solely of exporting m intermediate ports wou | tiSied by the conditions of the Orient. If. however, e sufficient capacity to tr DO’ various perishable proddcts of the United States there is no doubt expressed among the thern merchants of Shanghai China that a perm with & constantly increasing demand, could bs established. | REFRIGERATORS ON OCEAN VESSELS WOULD BE A BOON “The lies now plying between the Pa- cific Coast and Shanghai have small cold storage Plants sufficient for their own needs and it would appear that their en- largement for the purpeses indicated weuld result not only in a paying Ia- of the vestment for the management : companies throagh the increase In freight carriage, but that it would prove of sub- stantial advantage to American producers as well” Both of the special agents are anthu- siastic about the prospects for exporting American-made jinrikishas to China. They sugges “It might be proiltable for the American steel men to send an expert out to China to Investigate the possibility of intro- ducing steel into the construction of the jinrikisha. From all appearances and through inquiry among the jinrikisha masters the plan looks feasible. The principle, roughly speaking, might be the | same as that of the American contract wheelbarrow, with reinforcements and economy of matertal effected in much the same manner as is Indicated in the bar- row. “As a suggestion (made by a member of a jinrikisha syndicate here) the two sideg and back might be stamped out of steel. The steel should be as thin as pos- sible, but of sufficient strength to with- stand the rough usage to which the jin- rikishas are subjected by the coolies. At the same time the ornamentations, con- sisting of corrugatiens, flutings, or what- ever might be deemed advisable, could be stamped. Angle steel or tubing could be used for reinforcement, whichever might be the easier made and the stronger, to insure durability. “The hood hoops are now made of bam- boo and it is suggested that thin steel might be substituted, as the covering could be quite as easlly attached. The floor, it is assumed, could be made of steel and possibly covered with wood for the greater comfort of lh: p.nel’ n;l‘z; ‘The bars or shafts, it is quite pos- ;';llren""fll still have to be made of wood. because of the lack of flexibility and the preference of the jinrikisha coolle, al- though this is a minor detall” _ .