The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-07-13

by Washington business men annual
~ through the extension OF credit.
Much of this is "Iegitimate"-that
Is. credit is extended to firms who
prove later to be managed unwisely
and are forced TO make an assign
ment of so many cents on the dollar.
To prevent such losses most firms
Eave a credit manager or a credit de-
partment which is supposed TO insure
against uuwisc extensions Of credit.
But there are a certain class OF
credit losses not thesfaUlt of the
credit department, but the result Of
well planned frauds carried out by
clever crooks
There are many laws which send
perpetrators Of commercial frauds to
prison when caught, but there are
also many loopholes through which
certain classes of criminals can es-
cape punishment
100 Members In Body.
Opposed to these commercial fraud
artists in the United Ststes is an or
ganizstio known as the National As
sociation OF Credit Men. II is COM
posed of 100 local organizations. The
organization operating in the District
Of Columbia is the Washington As
Ia the Colorado building.
This association has 100 members
among the business men and firms in
Washington. Its active officers are:
r. Preston Shealey, secretary, and
Sidney L. Struble, assistant secretary
Executive officers are Carl c. Mueller
OF the firm OF George J. Mueller,
Wholesale candy, president; II. B.
Adams, wholesale chinaware dealer,
vice president; and w. T. GalIiher,
president Of the American National
Bank, treasurer.
This association, through co-opera-
ton Of its various local offices. has
run to earth and sent TO the "jug''
hundreds of criminals who make a
practice OF defrauding business men
through obtaining false credit in va
rious ways.
The Washington Association of
Credit Men is sometimes confused
with the credit bureau of the Mer-
chants and Manufacturers Associa-
ton. This latter bureau does an en-
drely different kind Of work, very
necessary also to the community.
Under Nicholas Brewer and Charles
]. Columbus it investigates the rep
utation and financial standing of in
diyiouals who desire credit from the
various retail stores OF the city who
are members Of the association.
National In Scope.
The Association Of Credit Men how
ever, is OF national scope; and through
cooperation and diffusion of ideas
aims to put through laws which will
make the work of the commercial
fraud artist impossible, as well as
running down and prosecuting those
who make their living by obtaining
false credit
One of these rules for the conduct
ing of credit business it calls the
safe buying rule Take a typical
small dry goods business, 1t says, with
sales OF about $4,000 a year. in the
average credit period OF sixty days
The sales are about So OO0
Expenses average 20 per cent of
The sales, or $1,000 The difference
S4.o0o--represents the merchants buy
!ag power. If he gets enthusiastic
and buys over that amount-say S.
9Go-his bills come due before he dis
poses OF his goods.
Since his normal sixty-day business
$1,000 he is in trouble If NOR
hants would keep to normal figures
n buying. the rule concludes their
s-oiume Of business would increase
formally and their buying power in
,-ie2sa normally along with it.
ca the subject of credit TO indi-
icuai retail purchasers, which is the
led covered by the Merchants and
MANUFACTURERS Association IN this
-, Eugene Besttie, credit manager
& tSe PslaiS Royal. says, THE proper
'iri.t 10 charge account is that
amount which the patron can pay
promptly. No credit should be ex-
tended the ordinary customer which
nav in, month
Gays at the least.
Some Interesting Cases.
The various local associations and
the national Office in New York are
continually running down ara aiding
Department Of Justice operatives in
prosecuting cases OF commercial
frauds. = complete rec I'D of their
s:.iEisies would be a very interesting
\ aad instructive work, but would take
= Gag time to read.
Tee Times has selected for its read
CTS some Of the most Interesting and
representative cases and are present
'Ess them in much abbreviated form.
orc OF the most interesting cases
10 come before the National Associa-
t:oH OF Credit Men was that Of
George stein. alias Henry Gerard.
whose first large scale operations
Esre at Mt Cle2ens. Mich.
Operating in that community under
The name CT the 'Speci5,ty Shops"
n the late summer and early fail he
secured over $4,000 worth Of goods,
principally upon orders sent through
re mail. After he had dropped out
- sight for about six months it was
reported that hc had gone to the
-ospitsi FOR serious operation.
After the associations representa-
tt~c5 had followed many clues this
man was finally located in Leaven-
worth, Kansas. operating under the
aame OF c. X. Noble. proprietor OF
'ha outlet Merchandise Company"
re and his wife were arrested.
Operated In Score Of cities.
IL was found that these people
had operated in Newburgh, y Y,
and & score of other cities Their
system was for the husband to open
store in city. and after securing
. large amount OF goods on credit
&c ship IL in trunks TO his wife. who
was under cover in another city.
After footing" his own store Of
IS much as possible he would dis
appear and open up in the city
where his wife was under an assum-
r.