The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-12-11

later disposed of their business in such
a way that they paid their creditors in
fun and still had some money left for
themselves. In this settlement the as
ISOLATION helped this firm TO collect over
$1,000 of its book accounts, most Of
which were considered doubtful.
Where the workings of the associa-
ton are understood the debtor always
comes 10 It. and in nearly every case
where he has not the debtor has eX-
pressed himself as sorry that he did
not do so. The merchants best friend
is his creditor In such a case the
creditor has been lending the merchant
money or its equivalent for some time.
and in this way has shown a DISPOSE
ton TO be friendly. He cannot act any
other way, though, if he were inclined.
because il is to his interest to realize
all he can on the account, and ne dare
not take any action which would jeop-
ardize their interest; consequently
when a merchant is owing money and
is unable 10 pay be ought first of all
to consult his creditors. as ii is their
money which is at stake. and if sat
isfactOry arrangement can be made. he
is still free 10 take any honorable
course.
Instead of doing this. some seem to
get confused and Immediately run 10
an attorney and learn what they can
do The attorney is paid TO protect
his clients interest. ana. 40 Pmattee
how the creditor suffers. the attorney
is in honor bound TO see that the debtor
gets off as easily as possible. I'm such
q case the attorney begins hguring on
bankruptcy as that VIII relieve his
client from further responsibility.
While this course is commendable ~
one way ii is bad in another. The
wholesaler must collect his accounts as
rapidly as possible in order TO meet
the bills nc Is owing. just the same as
the retailer must do this. and if the
| matter goes into bankruptcy the stock
is usually tied up while the proceed
I ings in court are being carried out,
with the result that what the creditor
| does realize is only after long and
vexatioue delay. Then again when the
case goes into bankruptcy each side
must hire an attorney. and often each
creditor hires one 10 look after his IN
terest. There are the court costs. costs
of trustee. referee, and various other
/ expenses. all of which must be paid
out of the assets before the creditors
realize anything on their claims.
hOncSlN - SOUu EDA@Ny
! The association seeks to do away
with such matters At any time that
! il can be convinced that merchant
! has been honest. and has failed IN
4 spite of his honesty and ability, the
| association is perfectly willing to COM
! promise with him and give him a set
/ Element which viii be equal 70 what he
( would obtain in bankruptcy. In such
| a case all creditors can assign their
accounts TO the association; the asso-
I citation has its regular man paid 10
/ take charge Of this work; the stock
| can be sold TO the best advantage and
| does not have to be sold under the
hammer as in bankruptcy cases. Then
there are no attorney fees on either
| side 70 pay, and no excessive court
! costs. The stock is soon disposed Of
! each creditor gets his share Of the
1 money, and the debtor still has a good
name i'm his community. Figures IN
! two such cases illustrate the point: In
/ the bankruptcy matter the costs Of set
! Ting up an estate We're over $4,000
| while in an assignment TO the Credit
Mems association. involving about the
same amount Of money the actual
/ costs were less than $500. This meant
a saving Of $500 to the creditors. while
the debtor in each case received Just
received less than IS per cent, while
i'm the other case the creditors received
66 per cent. The bankrupt now has the
I name of having gone into bankruptcy
| while the man who made the assign
ment enjoys the confidence and respect
of his creditors.
Helps to Collect Accounts.
Often a debtor is perfectly solven
if he can realize on his book accounts
but when he cannot do so he is mucl
behind If a matter goes into bank
ruptcy, the accounts due the merchan
are all turned over TO the trustee, wh'
starts out to recover all he can. TIL
merchant can hardly start in business
again. as his name IS not only RUNE,
with creditors. but his debtors also re
gard him with suspicion for havin:
had their accounts given TO some col
lection agency. When a man gets al
extension of time from his creditors n
is treated in a different way. The as
ISOLATION has a letter which il send
to each of the mans debtors explain
ing his financial condition and asking
that settlement be made Immediate
~. In this way the merchant is re
lieVed from the responsibility of de
handing settlement from his custom
ers and can enjoy their confidence an
trade, While the association stands tn
, blame for the collection Of the accounts
In granting d merchant an extension
, ways are always provided that he ca
buy his staple article TO continue bust
ness and also pay off the old indebted
ness.