The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-11-20
TALK AT DINNER
! ON TRUSTING MEN
Members OF Utah Credit Mems
Association at Banquet.
TALK MADE BY W. H. PRESTON
EXPERT GIVES DISCUSSION ON
BUSINESS PRINCIPLES.
TALK MADE BY W. H. PRESTON

Sei@S, former president OF the national
association. After the menu had been
oIsposed OF, Orson II. Hewlett. presi-
cent of the Utah association. introduced
Mr.. Preston as the first speaker of the
evening.
postmaster Hewlett then introduced
arthur Parsons as the dean of Utah's
credit men, Mr. Parsons has been at
the head of the credit department of
the Il. &. NJ. |. for nearly twenty-five
years He talked interestingly on his
ire work, explaining how he had gone
IH'o IL IN the beginning almost over
Colhe Dy the fear that ne would not be
success and of how, after his long ex-
g'erlence, he had acquired courage
ne called it "adamantine cheek
enough. to turn down anybody not en-
titled to credit
George T. Odell and others followed
Mr.. Parsons.
Address by MI. Preston.
The address oy W. II. Preston OF Los
angeles western manager of the bank
ers' department Of the American Credit
indemnity company of New York
was on Credit Associations and
Credit Safeguards" Mr.. Preston came
TO salt Lake five years ago and or
E;thized the Utah Association of Credit
Men and he Was the first president OF
the National Association of Credit
Men, organized eight years ago.
In beginning his address Mr.. Pres
ION gave "A complete outline of the
work Of the national association. He
hald that Utah has the only association
that has not affiliated with the ma
tlonal association, but he had found
the sentiment Of the officers and mem
hers such as TO lead him to believe that
The state association will not long re-
main out OF the fold OF the national or
Eauizs ton.
The National Association of Credit
Men. I'm its work. typifies the rapid
awakening OF the credit men to the
realization OF the multitudinous perils
that beset business life" said Mr. Pres
ton, and it marks the movement of the
professional men of the country To
eradicate evils that affect commerce
Ihe story of a fairy who had a
tent which could expand TO cover the
entire army of the sultan, and still
could be so condensed as to be en-
closed in a lady's thimble may be lik-
ened to our work in that we might con-
Iinue TO enumerate these achievements
ana possibilities, and perhaps confuse
some because of their multiplicity. but
we can also express the purpose of our
organization in the compact form of
three words. better business meth
I have been asked to give some prac-
teal suggestions along the line of
credit safeguards II is an axiom that
every credit man desires for his house
the maximum sale at the maximum
profit and with the minimum loss 1t
therefore stands to reason that every
safeguard which can be thrown about
The assets Of failed concerns are those
Which call for our most thoughtful con-
sideration,
Safeguards Are Economies.
1t is not because there are nos a
sufficient number Of safeguards easily
available so much as that we some
times get the idea that awaiting our
selves of these safeguards brings about
I'm additional expense and additional
labor. The reverse is true Every safe
guard which l shall mention is an econ
omy rather than an expense and
minimizes labor rather than adds to
IL. / believe in system. but do not be-
heve in red tape
1t is not my intention 70 discuss the
buying or sales departments but to
take il for granted that the goods are
well selected and judiciously bought
and the sales are we'll made and at a
profit. We will discuss only the credit
safeguards which may be used 10 have
the goods placed in proper hands. the
machinery III IuQlNlOuS udnulll& OF
the account. which will result in realiZ-
ing i'm the most. expeditions and safe
manner upon the sales which have been
made and with the least loss from bad
debts and the slightest risk from ex-
cess losses. should they occur.
Credit Sales Increase.
Credit departments have grown in
number during the past few years. es-
fQn1 " sim .
National Association OF Credit Men. but
81 every city il is found that many
wholesalers and manufacturers are un-
dertaking TO do business without an or
Sanized credit department When ]
speak of "a credit department il does
mot necessarily mean a department
upon which no other duties are placed.
but IL means all that relates to the
handling of accounts and passing upon
credits whether that work be done by
one who also handles the buving and
selling part of the business should the
business be Of such size as not TO re-
Quire the organization of separate de-
partments, or one set apart for that
particular purpose. II would seem that
tho FIRST requisite for safeguarding
credits would be an organiza ton. suit
able TO the business. for the proper
handling of the credits. and this or
located and furnished. The banks are
giving Us good lessons on the value and
importance Of suitably furnished venti-
lated and well-lighted and heated Of
fees
This can be done even II the BUSH
ness does not seem sufficiently large to
employ "A professional credit man In
a house however. having a sufficient
business there should be "a credit man
81 full charge Of the opening Of. ac-
counts. the continuance Of sales for tho
account and the collection thereof.
Assuming then. that the credit man
has been we'll selected or that the
credits are handled by one thoroughly
competent. he then should be- given ID
solute authority IN the handling OF the
accounts. \ department is not well
manned il the one in charge has not
the full confidence Of his superiors or
essociates I'm his judgment. We do not
mean by this that he should ignore
advice or that he should net seek adj
vice from al possible sources. but we
DO mean that when he has gained all
fbe Information possible for him to OBJ
tain his judgment should be relied
upon and he should have perfect liberty
10 act upon IL. Originality should al
ways be encouraged. not criticised or
Curtailed.
Must Have Authority.
While the credit department does
not IN any way expect to infringe upon
the sales department. there should be
en- the hands Of the credit man a sutfi-
Gent authority over the statesmen so
that they Will be expected 10 respond
10 all Of his Inquiries regarding the
81 Of