El Paso herald. (El Paso, Tex.) 1901-1931, 1919-07-12
Merchants VIII
Charge Interest
On Accounts Due
Ell Paso Men Form Fund
To Prosecute Fraudu-
lent Bankrupts.

Resolved: that on and after August
1. 1913. it shall be the policy Of this
association 10 charge interest on ac-
counts which are more than Is days
overdue: in order TO offset the inter
esht which we are forced to pay on
money we borrow from banks TO
serve until our collections are made.
Such, in substance, is q resolution
adopted at a meeting of the Tri-State
Credit Mems association held in the
Sheldon grill room Friday night. OF
the thirty members present only three
opposed the adoption OF the resolu-
ton, on the first ballot A second
ballot was unanimous
7. E. Blanchard, secretary OF the
association explained that the meet
ing was called for the purpose OF
obtaining an expression from the
wholesale dealers as to their opinions
on the interest charge He explained
the plan, as adopted by one Texas
firm but said It had not been Gus
toma-y here.
Some here oppose It" he said,
but il can be made TO work here and
Will result in a big saving to the
mem bers Of this association It would
stimulate collections II the debtors
nave TO borrow money from the banks,
where they. pay interest, IN order 70
pay YOU. they would rather let the ac-
count run than TO pay the interest.
If you charge s slightly greater in
terest they will pay the account rath-
er than face a charge OF greater in
terest, and they will realize that to let
the account run costs them some
thing. The plan viii not curtal ousi-
ness
Customers Agree.
President c. s. Nassits OF the asso- !
citation spoke briefly explaining why
he favored the charge and round
table discussion ensued in which .
arguments against the charge were |
met. One dealer explained that since /
July he has been making a charge I
Of 10 per cent. He said that on July /
! he sent out $50 bills for interest on
last due accounts. OF that number /
he declared, only three complained OF
the charge, while a number already /
have paid the charge
E. c. Bray opposed the measure on
the grounds that other competitors OF
local dealers might not make the
charge and thereby the local mer- /
chants would lose trade which they 4
otherwise could hold
Secretary Blanchard exlsined that
Los Angeles dealers, almost without
exception, are making the charge
while a number OF dealers in San An
tonic and Fort Worth are making II
and others have signified their n
.ention of doing So He read num-
aer Of letters from various large flrms
throughout the country, each OF which 4
explained that they are making the
.harge and finding little di1tculty IN
1oing so.
To Prosecute Frauds
Mr.. Blanchard asked the support o.
he association members here IN oo-
.aoinfng a fund OF $4,000 with which /
70 prosecute frauduleSt bankrupts-
ae cited a case in Arizona which Is
It present under prosecution where
dealer went into fraudulent bank
-uptcy in order tq-keep from settle
,,enf Of his acco1nts, while q number I
IF others were mentioned where in
-estigations VIII be made OF the 49,
100 needed $4,000 has been obtained 1
md several members pledged them
.elves to contribute $500 each Tor the /
work. The plan Of payment is to OBJ
ain a 10 percent instalment as the
first payment and additional install |
uents OF the same amount as needed 4
mil the full amount of the subscrip- 1
ION is paid The members voiced
learty approval OF the plan