The Providence news. (Providence [R.I.]) 1891-1906, 1904-02-06
Rhode Island Business Men
After Legislation.
BOSTON CREDIT men SPEAK.
officers and Counsel Of Massachusetts, Or
ganIlatlsn Explain Means ofprs'sntIng
q Great Business Evil.

| The Rhode Island Business Mems as
I,ociation had an interesting meeting. last
hight I'm the Office OF George A. I.ithe-
held. I'm room 2li Industrial Trust build
ng annex. and the topic OF the evening
vas: Regulating the sale OF stocks OF
goods I'm bulk. IN fraud OF creditors"
There were three able speakers. John
a Ainsley. william M. Morgan and
Charles l.. Bird. president. counsel and
ecretary respectively. OF the Boston
Credit Mems association.
The meeting was called TO order shortly
fter s o'clock, by the president pro tenn,
ar. A. B. McCrilts. president of the as
location being absent. and the room was
yell nlled with members and merchants
nterested in the introduction OF bill
or IAN act 10 prohibit sales OF mer-
handise in b,hk In fraud OF creditors"
The reading OF the records wasdispersed
nth and Mr. John r. Ainsley OF Boston,
7as the first speaker
He explained the features of the credit
ystem. and stated that Of all the many
angers OF loss. that OF fraud was the
reatest. and the problem of guarding
gainst IL was one that interested the
nerchants OF both Massachusetts, and
ehode Island because OF the great
mount OF trade that Is carried on be-
~een them.
He gave many instances where frauds
ad been perpetrsted upon creditors and
fated that Massachusetts, had "A law that
revented the transfer OF stocks in buik
defraud creditors. To make the law
thoroughly effective he said that II would
necessary 10 have ~. or a similar law
iopted In neighboring states. Such is
be purpose I'm part or the Boston Credit
TENS association. This speaker was
ioceeded by William NJ. Morgan. counsel
the Boston Credit Men, who said I'm
hrt as follows:
THE coUNsELs SPEECH.
The credit system began nearly 1000
ears ago and was OF considerable i'm
prtance during the middle ages. but it's
hst extension dates from the develop
ent OF commercial industry connected
lth America. when trade was so greatly
ktended by the use OF steam and the
ectric telegraph.
III is stated that nineteen-twentieths OF
be business OF today is done on credit.
be eonrmous amount OF business as
pmpared with the money in circulation.
From the very nature OF things. the
edit system Is absolutely indispensable
commercial progress.
Credit is simply confidence In the hon
~ and ability OF the person to whom II
granted Credits greatest foe has al
ays been the fraud OF the person In
hom the confidence has been reposed
YE t.N- ii
ws could be fewer. Legislation does not
axe men honest, but II does tend TO pre-
mt the carrying out Of schemes and
ans OF many persons who have com
ratively few. II any, scruples as TO how
ey may acquire the property or the pro-
eds OF the property OF others.
BANKRUPTCY Law.
The bankruptcy law does not. In terms
effect. provide n remedy for what has
own TO he pernicious practice, the
ling OF stocks OF mercha ndise. unpaid
r out OF the ordinary course OF busi-
as. In bulk. This Ia generally done by
solvents not possessed OF that due regard
obligation which they owe to their
editors who have furnished them with.
rhaps, the very merchandise which they
i've sold in this way. To such on extent
~ this practice grown. that dispensers
credit have risen, ~ were. almost In
body, and asked for legislation TO give
EN- better protection from this evil.
thin a compa ratively short time. TWEEN
states have passed laws 10 correct
is:
california. Colorado. Connecticut. Della
hre, Georgia Idaho. Indiana, Louisiana.
aryland, Massachusetts. Minnesota
sw York. Ohio. oregon, Oklahoma.
hnnessee. Utah, Virginia, Washington
pa Wisconsin.
And similar measures are being agitated
several other states.
lrhe Massachusetts law, went into effect
st June.
IT'S CHIEF FEATURES.
Permit me to call your attention to
me OF it's features:
it forbids no sale, under any circum-
ances
n IL regulation. not prohibition.
~ applies only 20 sales or merchandise
n bulk" such as are not usually made
the ordinary course OF business.
II applies only 10 sales which are actual
out OF "the ordinary course OF trade
a the regular and usual prosecution Of
70 vendors business.
lrhe sale is void as against the vendors
editors
medy the particular mischief aimed at.
The Information furnished by the inyen.
ry ana list OF creditors required by ths
atute ought 20 be asked for and given
an honest sale. The requirement tc
ow the cost price is not absolute. but
liz only for reasonable diligence" The