Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1909-04-29
MERCHANTS ARE
THINKING HARD
oTTUMWA BUSINESS MEN HAVE
ENTERED INTO CONTRACTS
WITH COLLECTING AGENCY
LEGAL ADVICE ASKED
Feeling of Uneasiness Reisns, Al
though It Cannot be Ascertained
Whether or not Any Crooked
Work is on.
Have we been stung,"

.
This question is asserting itself in
the uneasy minds of number of OF
tumwa's business men who six months
ago placed accounts aggregating
thousands of dollars in the hands of
the agent of the Consolidated Adjust
ment company of Chicago for collec-
ton. The realizing Of the company's
agent in Des Moines on various notes
given by Ottumwa merchants, stimuli
taneously with an apparent falling off
in the activity of the company's col
lector. has caused the Ottumwa mer-
chants to re-read their contracts care
fully and hungrily- and the various
emotions that have arisen are con-
fiicting.
The contract itself is curiously
worded affair. 1t provides that GER
tain amount of accounts shall be sub
mitted to the adjustment company
for Its collection and that in
three years they guarantee to
collect a certified portion of these
accounts for the merchants il the
submitted accounts are retained by
the adjustment company after the
expiration of six months. For this col
lSCllOU SSl NlCS IhS lllSl ShHhb 6AFSo y
note, along with his contract, payable
in six months, as remuneration to the
Adjustment company, for Its service.
AS an example, one merchant turned
over 81 900 in old accounts to the ad.
justment company last November,
when the agent was working among
the Ottumwa business men. The con
tract entered into at the same time
provided that If the collecting com
pany retained these accounts longer
than six months, that this was evil
dence that they would undertake tc
collect the prescribed portion of the
81 900 within three years. In this
case it was $500 that was
to be collected in the three
years and turned into the mer
chants hands. Now with the contract
the merchant gave the adjustment
company's agent note for $3.50, due
in six months, which was to be re
enumeration for the services of the
company. In addition to the $500 col
Elections, the company contracted fur
Their to collect $3.50 also to Offset thu
amount of the note and to return thi
amount to the merchant. In othe
words. the merchant pays $50 at tn
end of six months, for the collection
of $500 worth OF accounts, but the ad
4 justment company has three years t
collect these accounts In and durin
that period must collect an additions
$50 to Offset the amount of remunel
alton received.
These are not the exact figures, bu
merely give rough idea of the COZ
tents Of the contracts issued here.
Six Months Is Gone.
Six months ago a number of tn
merchants contracted with the con
| pany's agent, gave him their respe
, tive notes and at the same time SUI
: piled him with several thousand dc
;. lars worth of accounts for collection
: The six months has expired and a
$ cording to the contracts, these note
y are due.
Z In no instance, so far as can
Z ascertained, have the collections mao
J. by the adjustmant company during tt
Il past six months, been enough to offs
J. the amount of the notes which a,
e due; and in addition to this, one
# two of the merchants have stated tn
J. while the sums of money forwardt
r to them from time to time since Il
# signing of the contracts gave eviden
n that the company's agents were
n work, that recently there had BET
e nothing heard from the company at a
e The activity Of the collectors seen
S. to have ceased.
When the notes were presented
r mail for payment, one or two of t
c. merchants forwarded the amounts
k their notes, explaining when int
le viewed that the adjustment compal
n still has two years and six mont
is to fulfill its part of the contra
as Others have so far refused to pay
m notes until legal advice is game
e. while still other notes, it Is rumore
is have been presented at Des Moin
d. banks for realization.
k The advice of legal authorities h
been sought, but in most cases IL
RS gives cold comfort thus far; one
h. torney remarking, "It Is pretty
le, tie contractor the Adjustment co
i'd pany.''
re If at the end Of three years the f
$500 has not been collected, the 1
a justment company returns the amor
as of the note, $3.50, with interest at
i'd per cent, the merchant also retaini
I'm the amounts collected by the compa
ul during that period.
IS
nc tious to a degree Abdul ruled by