Page 94 - Past Chair Book-Pre 2020

Tlir Xulit'iKil .SK/’//v ami Machinery Dealers’ . Issociation
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We sent the check back and told them we could not accept it.
They came hack saying that inasmuch as this invoice had gone
through the regular course of business and the regular method
they thought we were a very peculiar crowd of people when we
owed them nothing. They finally sent us a check.
Finally this committee agreed to get a letter to be used by
all the members of the Association, and the question of discount
and limited time came up. and we found the people of Cleveland
allowed a discount on bills up to the end of the month. Inasmuch
as this abuse had gone on. we promised that we would not allow
two per cent on goods ii check was received before the 20th of the
month following the date of the invoice. That went into effect
last month. W’e did not want to make this broadcast. W’e adopted
another form which we were privileged to use if we received the
discounted hill remittance in payment of the discounted bill after
the 20th, simply notifying them that our terms were so and so.

This very formal letter goes on to state that the abuses had
become so many, and the purposes of a cash discount had been so
abused we deemed it necessary to call their attention to it, that it
was fair to all our customers that we maintain a limit of time
within which to allow this, and if the small remittance was sent
after this time we would return it. The result was that on the
22nd day of the month in which it was put into operation, the
mail brought us in twenty-one remittances. Those were invoices
for the month of December. We had not notified those people
previously, and some of them were good customers we sent this
statement notifying them that hereafter we would live up to this.
At one of our meetings a member bad a letter from a very
large coal dealer saying that they were very much surprised to
receive such notice, that their terms of payment were on the 25th
of the month following the invoice, and unless they could follow
this they would discontinue business with all these houses. Five
houses received the same, and they got replies stating that they
expected the remittances on the 20th or they would be returned.
I had expected this afternoon to make an argument on the
policv of this, and had some statements made up, but they did not
come bv todav’s mail.