Another group of Americans made a contract to deliver coal to a French
railway "subject to call." Without taking the trouble to inquire just
what "subject to call" meant in France, they signed and sealed the
bargain. Then they discovered that the railroad wanted the coal
delivered in irregular instalments. Meanwhile the consignors had to
store the coal in French yards where space to-day is almost as valuable
as a corner lot on Broadway. They were glad to pay a cash bonus and
escape with their skin.

Still another group made a contract with the Paris Gas Company for a
large quantity of coal. They discovered later that the company expected
the coal to be delivered to their bins in Paris.

"But the American plan is to sell coal f.o.b. Norfolk," said the
spokesman.

"We are sorry," replied the Frenchmen, "but the coal must be delivered
to us in Paris. The English have been doing it for forty years, and if
you expect to do business with us you must do likewise."

When the Americans demurred the company held them to their contract.

This last episode shows one of the great defects in the American system
of doing business abroad. We insist upon the f.o.b. arrangement, that
is, the price at the American point of shipment. The foreigner, and
especially the Frenchman, wants a c.i.f. price which includes cost,
insurance and freight and which puts the article down at his door. The
German and English shippers, and particularly the former, have made this
kind of shipment part of their export creed, and it is one reason why
they have succeeded so wonderfully in the foreign field.