The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-12-05

resolved, That the president OF lnls
association appoint a committee of three
10 formulate a plan Of insurance for the
members OF this association. who shall
report same to this association at its
next session.
j R. VAN ZANDT, Chmn.
"W. H. HUBBARD.
&C. II. SNYTH."
Mr.. GERSMAN'S ADDRESS.
Mr. George J. Gersman, of Enid. o. T,
was given the subject How Credit Should
BE Extended and What Profits the Dealer
Should Have" He stated that the bulk
Of the business Of the implement dealers
is done on the credit system and TO de-
termine who is entitled to credit is a vital
question to the dealer. he favored the
dealer giving credit only to men whose
resources are such that he can raise the
money ar any time necessity demands.
There are also cases he said. where
men have very little resources but who
should have credit, as they have plenty Of
integrity and are TO he trusted as they
carefully calculate the days OF the ma
turity OF their notes and prepare for that
day
Mr.. Gensman does not like the extension
Of time without proper renewal; was a
bad practice as it weakens the power OF
collection. He favored the creditor being
more cautious in making notes and the
dealer should be sure that the debtor is
absolutely safe before he extends credit.
There is also q common practice among
farmers that know their own resources
and the dealer knows that they are reli-
able, for them TO go TO the dealer and get
whatever implement they need and so off
without settlement. They VIII pay for it
whenever they think of it, maybe in a
year or two. depending on the activity of
the memory. In cases Of this kind Mr.
Gensman favored the dealer calling on
the debtor for a settlement by note or
otherwise within reasonable time and
no open accounts should be allowed to go
over the first Of the year
The credit system has many advant-
ages. when managed right said Mr.. Gems
man. 1T allows a dealer to do business at
the present time which if on a cash basis
would be done in the future. and it allows
a man to accomplish something with the
aid Of his purchase and enable him to ex-
tract profit from his credit
CT the profit a dealer should have Mr.
Gensman stated that it could not be fig
urod out by any per centage basis. There
are many things that enter into the for
nation of the selling price. and thine
speaker favored the dealer getting all the
profit ne could under legitimate COMPETE
tive system.
The paper was very generally discussed
by the members. Most of the speeches
made were in favor of the cash basis or
short time credits.
w p. BRINTON'S ADDRESS.
Mr.. W. B. Brinton. president Of the
Feru Plow and Wheel company, of Peru,
H., was given Decentralization of the
Implement Business Caused 10y Extend
ine Long Time Credits to Dealers and
Commissioning Goods" as his subject
tic spoke IN part as follows:
From my observations 1 believe this
10 be most fertile valley. one in which
almost all cereals can be grown. and in
The event Of 4 failure of one crop. YOU
have another to fall back on. I believe
that Wichita VIII be q city of fifty
thousand inhabitants within five years.
and that her business men and the people
surrounding her will enjoy the same IN
treasured prosperity.
"On this question il is impossible for me
10 reconcile the credit system with the
condition of prosperity now prevailing in
this section The farmers get fancy
prices for their farm produce. and l would
venture the assertion that there is not
farmer who would sell YOU load Of corn
or oats on two years credit one CT the
.aain things that enter into the demorau-
cation Of the implement business IS that
,ou give too much credit. The farmer
expects YOU to give him longtime credit.
but he would not think Of giving YOU the
same privilege. One trouble is. the farmer
has more credit than YOU have.
"Other business lines are not conducted
in this way The dry goods manufac-
turer sells his goods 70 the jobber or re-
taller on thirty days time and the dry
goods merchant expects 20 pay his bills
VIXEN they become due The implement
business is conducted on the longtime
credit system.
Look what disaster failure Of crops
would make in this territory among Tho
implement dealers. They have sold
ereat quantity Of goods on long time. and
with the failure of CROPS the farmer
comes fin ard tells sou that he cannot
pay you. lie has no money and you have
none. Tho manufacturor who pays for his
raw material Ia thirty days cannot col
lect from the dealer. We have 70 meet
cur bills Cor raw material and pay our
labor. crops or no crops, and II you do not
pay rs We cannot pay our bills; hence.
the business Tor 1t seast one s-ea- Is com
p,e;ely demoralizcd
y heleve thar this LONGTIME credit s,-s-
ten is unfair. x IS unreasonable u ask
@ man 70 give you longer credits than
r. is able % obtain himself and believe
tlat the dealers are partly 81 farit Tor
this. Il they would adopt q system -
education OF their customers and show
them how unreasonable their demands
ere. The people would soon come 70 see
things IN that Eight and they wcui5 not
ask for ion~-un,e credit
AZ this tEne ~ unexaupled prosperity
II tho lan1 Z telev & would be q good
re Cor ycu 20 bs-in ta's system - e3u-
ticr Nh.'o the farmers have tie cash +
set them iRta TIE sdea az paying cash 4
& IN or extend them credit far not longer /
ttan three months Ween TIE farmers (
fully understood youT position they would I
ofer but sliTht Il any objections our i
brsiness would Re IS large as At any time. /
We would pay our bills earlier and the /