The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1899-06-12
THE TIME RULE IN THE PRODUCE
BUSINESS.
To the Editor Of the pRESs

To the Editor Of the PRESS:
The article in Saturdays Argus beaded
kick Against tho Time Rule" gives
q wrong idea concerning TIE animus
and effect of snid rule, and the Wholesale
Fruit and Rredncs Exchange wish TO
state their point of view in tae matter.
In recent yoRrs the general trend in all
lines of business has been to shorter
credit. The wholesaler. no matter In
what business, has found his time of credit
being reduced first In one thing, then
another, till now in order to purchase
at rock bottom prices. he has to pay
practically cash for the goods On the
other hand he has, In this section of the
country, been almost unable to bring
the retailers to any prompter payments.
A nominal time of 30 days means In
many instances, as much longer as the
creditor can take without being in dan.
ger OF interviewing a sheriff's writ; in
many more cases it means anywhere
from 30 TO 90 days overdue. This exces-
slve credit, together with the epportun-
ity 1t gives the poor trade to get into the
wholesaler and then let him down at so
much per cent dividend. has made the
Wholesalers lot not a happy one, as any
firm In Portland can testify after lookine
over their ledgsrs.
Now in the fruit and produce trade
steps were taken two years ago this
spring looking towards renedying in part
the stringency In the money market.
The iirst hand receivers in New York,
Chicago, Boston. etc., put into force rules
limiting credit on all bills sold to whole
sale jobbers, otc., TO cash the Saturday
OF the week following day of sale. If not
paid 1.-THE name of firm not paying is en-
tered on the books of the association and
credit Is refused by all firms in the asso-
citation until the name is removed by
paying the listed bills. This brought the
wholesale fruit and produce dealer TO a
weekly pay ment basis on ell bills. More
over all car lots of California oranges,
grapes, potatoes, onions; in fact, all
goods bought in car lots are bought
sight draft attached to bill of landing,
which .meansspot cash before the goods are
unloRded. These are the conditions under
which the wholesale fruit trade have had
to buy goods for over two years; and they
in turn have had to sell in the nominal
thirty days, which as | said before meant
airy old time
The action of the Portland Exchange
is only in line with the wholesaler In
other centers, and the time is in near flu
ture when all centers will exact as strict
rules of payment,
The term ''blaoklist' is not proper
one TO apply to the list in question. The
list is not made public, Is only for the
guidance Of the firms comprising the Xxx
changei and does pot affect mans cred
1t other than to compel him to settle by
a stated time or pay cash until he does
settle. We give an average of twenty five
days credit, where we get an average of
eight days at the longest, and spot cash
ON car lots. If any one not now In the
business wants to enter the wholesale
ranks and buy his good on the terms he
would have to. same as the rest of us;
and TO sell to the trade as we have in the
past, giving practically unlimited credit,
stand all the losses by failures, beats and
natural causes, he is welcome to try it,
But judging by the lessons of the past
two years he will come to Saturdays
when he win have an aching void in his
bank account after paying his Boston
and New York bills which he will have
to pay or be on the list when he is in the
market Monday morning.
We wholesalers. cried, cursed and
sWore, when the list was put on us; and
said 1t would not last; II has not only
lasted, but the receivers in Boston who
did not at first go into the association
have at last gone in. The writer attended
q meeting of the wholesalers in Boston
two months ago, which was called to set
the ball rolling for these same rules
which we have, and judging by the re-
marks made by the various gentlemen,
representing the leading Wholesale fruit
men OF Boston, they had found 1t as hard,
and as unprohtable. doing business the
past two years as we have. The whole
salers in Providence, Worcester and other
centres have brought their retail trade
to cash every week. Boston is working to
adopt the same rule we have So the
retailer in this section Is not abused; on
the contrary he has been SO well used,
that Ii has In many eases amounted to
making the wholesaler the abused party.
No man Of good financial standing need
go on the list. There are well defined
rules OF settlement, and If needing more
time than until the 10th there is provis-
ions for that contingency. And it is a
matter of comment among the members
of the Exchange that our best trade are
the loudest in their COMMUNICATION of the
rule. The poor trade, and beats are the
ones that squirm. and howl, and those
are the ones at whom the rules are aimed.
WHOLESALE FRUIT AND PRODTJCE