The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-10-20

the conviction that competition is met, at
least IN so far as it is desirable to meet 1t,
tnat the margin of profit cannot be lessened,
that terms OF sale cannot be made more lib
eral and the price has been made with the
understanding that the contract Of sale is
to be carried out. Now what Is the con-
tract as it comes to US, speaking only of the
credit and collection department. The goods
are sold upon specified time, with spe-
cff1c provision for discount for advance pay
ment within definite time. The obligation
is payable at our Office in funds at par. No
calculation has been made for any failure of
the buyer to comply with the terms of the
contract Neither has a loss of any part or
the account been considered. 1t is then man
ifestly our function to uphold the sales de-
partment after order has left there, and 1t
is henceforth in our tender care and to do
this strict compliance with the terms OF the
contract is necessary.
But what are the honest facts in the case
Let us be frank though we blush to learn
of our shortcomings. Is the statement con-
troverted by any number of credit men that
our books show accounts equal to at least
the amount of nearly one months sales past
due? And this, too, in the knowledge that
about one-tenth of the customers have dis
counted
The interest account of most houses does
not, 1 am sure, demonstrate that this fact
is appreciated. The discount is not taken
promptly, but still we allow it, forgetting
that the rate allowed for cash discount is
greater per annum than the per cent Of profit
on most goods.
The collection and exchange account shows
that we have in many instances paid that por-
ton which our customer contracted to pay
for we have either drawn upon him because
of failure to pay promptly, or we have &C
cepted his local check and paid the ex-
change ourselves. But you say these are small
items, and so they are, but bear with me-
If you are doing million dollars business
annually land of course all ST. Paul houses
exceed that amount and if you are carrying
thirey days OF your sale past due, you are
in some way, either through borrowed money,
or because of idle capital, paying interest on
$50, 1888, which at per cent, equals $416.66
per month or S., 900 per year. this is one-half
of per cent of your entire sales. 1t Is prob
ably true that you are paying exchange on
drafts which you make for past due bills, or
for exchange on local checks. another $500
per year, for that is only 81 per day. Con-
servat:vey stated then land 1 have sought
verifcation) the credit departments outside
of losses from bad debts are averaging to re-
duce the dividends from business at least
L per cent, or $4,000 on a 1000, 900 business,
or to 8 per cent of a dividend on capital
usually needed for such volume of business.
Now did net come here to say that all this
could be avoided, for l have been faithfully
very earnestly that it is our business to use
all honorable efforts to reduce the shrinkage
from these sources, to as small an amount
as possible. Those of us who have been
endeavoring to accomplish something along
this line report quite satisfactory progress.
JUSTIN Mccarthy in his abe biography of
Hon. William E. Gladstone, says that Mr..
Gladstone, thought nothing gained while
ought remained to be done" This should
be the leading characteristic of credit man.
Ralph Waldo Emerson said: THE world be-
longs to the energetic" and the enrgy which
we should have if properly directed will
demonstrate the truth of his statements.
But you are asking now for specific rene
dies, and l shall endeavor to name them.
One Of our statesmen came to me few days
ago and said: IF you will carry Mr.. Blank
for a certain amount, he VII transfer his
account from Blank & Co. to u.s. This was
competition in credit departments, for the
Blank
Withstanding their unwarranted leniency he
has become dissatisfied, or at least our sales
man thinks he has, so we could have his
trade. My reply to him showed that 1 think
such competition unwarranted and unbusineSs-
like and neither for the best interests of
my house nor the customer in question. l do
not wish to infer that l have not slow ac-
counts or accounts that are not being carried;
but when such is the in any house. it
should only be from necessity to tide a man
over, and not taken on deliberately in the
course of competition. The salesman's state
ment that Thus & So carry this man and
don't draw on him, and let him have all the
goods he wants, should be the surest posi-
bic guarantee of the order being turned down.
Frequently a customer writes that he often
has an account, $500, a month two past
due, and other houses do not charge him in
terest; he will not trade with a house charg-
ing interest. Here is competition again.
Shall we meet it? Why not frankly write the
man that it is for his own best interests
that he conduct his business so as to meet
Why not emphasize the fact that you are
doing him favor in thus trying to strength
en- him? Surely the house carrying large
lines and extended accounts should have
learned something these past four years but
the scramble l see now going on through
TINS great Northwest since the nations of the
entire world are drawing from the worlds
greatest granary which granary is largely
held in Iowa, Minnesota, the Dakotas and
Nebraska, this scramble which is participated
in by the credit departments, calls for a
Of rpi Lot
OF some brilliant sky rocket of politician
across the financ.a al horizon may again call
US to settlements and Withdrawals of long
lines with the same disastrous results.
We are men of details and even the men
ton of competition in accepting personal
checks Is not too small matter, for the
aggregate exchange charge on these items is
a considerable expense short time ago our
national secretary sent out letter inquiring
how this might be overcome, to which /
replied by stating that a short argument
should be printed showing the delay, expense.
danger and injustice of this practice. 1t
should contain manly, bus:ness-like argu-
ment, and the customer given to understand
that you leave the treatment Of 1t to his
sense of business equity. 1 have been doing
this for long time with very good sue
cess, and find most customers have been
sending personal checks thoughtiessiy and
readily reform. 1 am frank to say, however,
that in no section of our trade territory do
throughout Minnesota and Northern South
Dakota and North Dakota. Gentlemen. shall
we continue this competition and for the fun
OF OF ~ 1t pay 10 to % cents for collecting a
Richard T. Ely has said: Having fixed the
fact in mind that the dominant motive in
those business methods which yield most
gain are bound to prevail, and to drive from
the field of competition less profitable bust
ness Methods 1 believe the suggestions
which 1 have so crudely and hurriedly given
point to the methods which yield most gain;
they have been tried and not found wanting
all our business transactions, but let the
managers of the credit departments place
a high standard and have lofty ideals. Thus
shall we be able to win success for our
selves and to make the business world bet
ter for our having wrought faithfully
Since making this topic one for special
mind incident related of Ulysses. You |
remember when returning in his ships of the
many accidents which befell his company,
and as he desired to avoid others, when he
he about to pass the point where the
beautiful but baleful sirens sang, he had
himself dashed to the ship and had his sailors
for it is related that none heard and lived, |
for they would cast themselves in the sea
and be dashed to death against the rocks
in their efforts to reach these attractive
sirens. Ulysses, enchanted as others had
been, strove in vain for release from his
bonds. The incident concludes by saying
sirens and lived, for the hearers in despair
cast themselves into the sea and were lost.
Is it possible for us to bind ourselves to
our commercial bark, with strong ties OF
business prudence, common sense, broad
mindedness and wise methods and to SO fill
the heads of our statesmen with other thoughts
that they may not hear the sirens unreason-
able song of competition, and thus be i'm
PEELED to throw themselves into the sea to
perish? Is it possible that these sirens can
be so discouraged that they will not further
tempt US to swerve from the true course?
Then shall our bark reach the harbor In
age having won for US retirement from fur