The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-20
MEATY AND INTERESTING.
HE commandments THE LOCAL
ASSOCIATIONS ON ITS SPLEEN
DID ACCOaIPIISHME NTS.
GREETINGS FROM SIOUX CITY.
Another Paper Read and Reports
Received on Matters OF Interest
to the Members. S..


ton, Of Sioux City, formerly president
of the national association. An infor-
nal banquet was spread and when the
coffee and cigars had been reached, the
members were treated to a thoroughly
interesting paper by Mr.. Preston. The
subject was Competition AS Affecting
Credits" Mr.. Preston said:
1t is an honor which l assure you is ap-
preclateds to be invited to address the st.
Paul Credit Mems association composed as
it is of the men who have in their hands
the fortunes of the jobbng, manufacturing
and banking interests of this wonderful city.
| speak advisedly when l state that you nave
IN your hands the fortunes of these 1nst1tu-
| tons, for goods may be bought ever so wise
ly, advantage may be taken of all trade and
cash discounts the goods may be sold upon
large profit, but unless the credit and
| finacial department is wisely and judiciously
managed all these other labOrS and adYan-
| tages are of little avail
The Importance of the sales and the buy
ing departments are not unapprec1ated Wnen
it is said that there is no more responsible
or important position in any house than that
of the credit and financial manager. l re-
call with pleasure two summers ago, when
spending my vacation at your superb Lake
M1nnetonka taking day in ST. Paul to
consult with a few of your credit men re-
| garding the advisibality Of starting an as
ISOLATION here, and also concerning the pro-
80 >-NNN-O--~N-
| of credit men.
Messrs MacLaren, Young and Beardslee
could see the value of the proposition, but
could not conceive how any one could take
| time to organize it.
But I come here tonight to congratulate
you on your splendid accomplishments, and
purposes. 1 bring you greetings of the first
organized Credit Mems Association Of the
United States the Sioux City bureau Of cred
its, and our office to cooperate with you in
any proper efforts to secure better legislation
in the states where we are mutually inter-
ested, to prosecute any fraudulent debtors,
to distribute valuable business literature, or
in any movement having for it's purpose the
betterment Of credit conditions.
l had some timidity in venturing to adj
dress you after reading the reports Of your
last meeting, and knowing of the eminent
talent then employed and the thoughtful ad-
dress offered, but l was impressed with the
persistence Of your officers, when l had been
obliged to decline two dates upon which
they had requested my presence to have them
come the third for "any date 1 was re-
minded of one of our bright boys who want
ed watch and persisted in calling his faith
ers attention to it until his father forbade
him to speak of 1t again, but the next morn
ing when called upon for his Scripture quo
tations he repeated: "And what 1 say unto
you, 1 say unto all. Watch
In considering topics which have not been
covered in the large number of credit dis
cussions, I thought the one most timely and
important was Competition as Affecting
Credits" OF course 1 thought there wasn't
any competition up here, SO it would do no
harm to speak Of it, but it may be we
can subsidize the press, SO they will publish
what is said, and if we can only induce the
other fellows to read it we may be the means
of reforming them.
In what manner and to what extent is our
retail customers credit affected by the COM
petition he must meet? What is the WiSeSt
attitude to assume? How much of the compe-
tlt1on among wholesale houses belongs to
the credit department? What are the abuses
for which credit managers are responsible?
How can they be remeded?
You will grant me the proposition that our
success depends upon the success of our Gus
toners. Granting this I may go a step far
ther and say that, to a larger measure than
some will admit we are responsible for the
success of our customers, and if so we are
under obligations, if not impelled by neces-
sity, to render them any reasonable assistance
possible.
Let us consider first our debtors competi-
ton and how it affects his credit. How
sharp is the competition? With whom does
he compete? Sometimes we find a merchant
who has succeeded in competing with all
corners, and has eventually driven them out
Again, find town where all merchants
strive for trade by winning customers with
the aid Of cut prices.
There is much danger for the merchant who
is selling goods on too small a margin of
profit, and it is necessary to be advised re-
garding conditions existing in the way of
competition.
John Bascom has said Competition dis
closes quickly and certainly, insight indus
try, enterprise, and in conceding them their
advantage plants itself on the undeniable
principle-a man is entitled to himself" He
adds ''The severity of the strife makes men
INSCRIPTIONS" We not willing to admit
that it makes all men interruptions, but it
is true that while competition gives play to
individual powers it is looked upon too much
a warfare.
Competition is the great motive power of
production and enterprise, but it has been
11o1 J,or1
ranted, than almost any other commercial
factor.
Numerous suggestions have been made for
it's entire removal. but as yet all attempts to
supercede competition by any other motives
to eXertion have been unsuccessful.
Cicero and the Roman philosophers de-
spised commerce, and it is reported Cicero
said "a merchant could never make anything
unless he lied in the most atrocious manner"
st. Chrysostom believed it scracely possible
that a man could at the same time be q
Christian and a merchant. Even BENJAMIN
Franklin said Commerce is generally cheat
ing" but we are teaching differently now,
and our credit organizations stand as senti-
nels pointing to honesty as one of the ele-
ments emitting to credit. We say too that
honest keen competition stimulates activities
compels studious management, prunes ex-
penses places superior goods the market
and regulates prices within reasonable lin
itatons.
There are some things we, as credit men,
are under obligations to say to our customers.
Competition seems to tmpel all to grant I'M
wise credits in order to do the volume CT
business they desire, and it seems that COM
petition cannot be more disastrous in any
line Of trade than that Of loose credit giving.
Surely one can better afford to compete in
price and sell on small margin when care
full of credits for there Is no great loss unless
expense exceed profits but when they COM
pete to the point of selling goods upon credit
they are not only risking their profit but are
hazarding invested capital, and so our sug-
gestion would be, do not compete too keenly
for poor credit business.
Mr.. James g. Cannon, our national president,
has said: 1.-The question of competition in
business is one that all departments of bust
ness must meet, and the retailer who grants
credit must recognize existing conditions, and
regulate his prices to meet those offered by
cumstances unless his credits are made
under safe and well-defned system, and his
business is conducted on an economical basis.
his success will be problematical." l took oc-
casion few months ago, in speaking to the
South Dakota Retail Dealers association, to
suggest that all prices be made upon cash
basis to meet the competition OF supply
yisabIe as I believe It often to be, to sell
up0n credit, that it be made at cash price,
with liberal interest charged to time of pay
ment.
We should discourage our customers trying
to meet every price on every class of goods,
and should urge quality IN goods, honesty in
business methodS L system 1ioo ana economy In
over stocks of seasonable goods, close at
tention to busoness Details careful buying,
and urge that these Will overcome severest
competition in cut prices and cheap goods.
Let competition be along these lines of
high ideals, for this is true and successful
competition.
organization can render great service to the
retail dealers by distributing valuable liter
allure in a manner such as viii induce care
full study of all the phases of business life,
and while I NAV speak a little in advance of