Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1878-06-05
InSOIVent Debtors.

a wholesale 1rm recontly, IN refusing 10 slSH
any compromise whatever proposed by bank
rupt furnishes somo wholesome data ths! ),
would be wise in tho main to accept as rome
dial step in the right direction, even though It
may seem harsh and unreasonable in occasional
cases of honorable and unavoidable failure
Their argument is that they sell TO all their Gus
toners with the understanding that they arc
to receive full payment Of hundred cents o.!
every dollars worth of good furni:hej, and that
they cannot afford as business men, and IN JUS
tice 10 their solvent customers. to accept only
part payment from those who fail. They said
they must have dollar for dollar or take their
chances in bankruptcy proceedings. !heso
people who ask them to compromise have tallei
in q town where they have largo numbor OF
solvent prompt paying customers. and they
could not afford 10 furnish goods at loss than
their value TO insolvent concerns who propose
TO continue in trade, competing with those VINO
toners accountable for their mistakes in making
bad debts, and if they cannot resZ, full pay
ment in this case, they would pocket the los
themselves and mark ono point gained in the
matter of experience. They stated that tho I'M
preston was cut that it was an honest failure
and that the firm was entitled to settlement "
grounds Of merit and former good sLandin
The fact was, this bankrupt firm have for severs
years been doing reckless business. buying /
the full! extent Of their credit and selling o'
long time, and taking desperate chances IN or
der 10 get trade from other dealers in their local
ity They have maintained good and respecta.
BILE connections in largo city, and have long
been esteemed far above their deserts and this
advantage has been greatly abused to the injury
Of the jobbers Of the city and the retailers OF the
town where this lasolVcnt llrm propose 10 con
tinue business.
Tho wholesaler, who had been asked TO sign
compromi 20 oil ~ cents on the dollar continued :
1T there is to be 81 cents loss in this case, We
think it would be better to throw the concern
into bankruptcy and lot the local III merchants
have q chance Of buying up the stock 3. a forced
sale, and thus be enabled to recover somo OF the
losses incurred through competition Whlch
could lead to nothing but ban kruptcy in time
Evory compromise made with lnso went deal
ers is a direct impoaition on those win"
pay their bills in full, and We think tho tmo has
come for making this thing Of soekiag compro
ises at from 25 to g. cents on the dollar too odl
Gus to be tolerated. To illustrate our meaning
we will suppose that firm whom we will, tor the
sake CT name, call Cut, Slash & Co., 60 t)a
country town wherethe merchants are generally
prudent and solvent. They open business with
great show Of enterprise, and announce Their
determination and ability to servo the public OF
greatly reduced prices. They oner astonishing
ing inducements" and get the community
worked up 10 the idea that the solid merchants
OF Inc piaCe UAVe uUeu CualRiHS cAttn' nsn"'
prices AS result the old firms must mark down
their goods below paying prices or permit thor
customers to leave them for time. AS a gen
era thing the established merchants meet the sd.
venturers on their own ground. and sell ata loss,
till the crash comes, for come it must. sooner or
latter, and then Messrs. Cut Slash s. 90. come
10 the city with long list. of lsbiticss, and no
assets worth naming, and unbushingly ask q
compromise which will enable them to get goods
at 50 cents on the dollar, and thus maintain
disastrous competition against those who ar"
solvent and reliable. But how long can thos"
firms which arc now solvent remain So IT they
are thus continually forced to compete with
rivals who pay only ono.hslf the curret market
rates for the goods they got Of jobbers. and sell
to consumers at less than the prices they agree
to pay? And journalism is by no means OK
empt from this class of competition. while the
steady going periodical may point also to IKE
difasters occurring to competitors in tho Eold
where now lay their moudering remains. Th'@
is question worthy the serious consideration "i
all dealers Confec5i0NerS' J0urnni