Page 97 - Past Chair Book-Pre 2020

First Annual 101

In connection with the interest I think we were a little careless
about that at first. W e would let the account run three or four
months, but now we begin charging interest at sixty days. If the
customer remits in ninety days, we remit the first thirty days'
interests. We have all been taught to believe that if you take care
of the pennies the dollars will take care of themselves. I think
the wise old guiscr who originated that must have been in the
supply business to have realized its truth. (Laughter.)

H r. B rio.x : I want to say for the Executive Committee that
when that was put down on the program it was for buying as well
as selling. If we could get all tbe manufacturers to remit on the
10th for the previous month we could get that. I think it would
be well to take some steps from the buying end.
Regarding the selling end. I have had some talk with the
head man of the United States Steel Corporation. I spoke of
adopting a system of net thirty days with two per cent off. He
said ‘‘keep to the thirty days, but you make a mistake to have sixty
days for the reason that if your account don't come due until sixty
clays, and the fellow gets weak between the thirty and sixty days,
you can do nothing.” I think it is in order to take it up from a
buying standpoint.
M r. S trelin g er: I think it would be well for the manu­
facturer to give us the two per cent, and keep the other fellow off.

M r. S h i p l e y : I think it would be well to let the question
lie in abeyance for a while, because I know some of the machinery
manufacturers are considering the withdrawal of the cash discount
which they give. I think it would be better to secure that before
we touch the other as it is already a sore point with some now.

A M em b er: I think M r. Shipley is right, that as long as we
are asking for two and a half per cent we had better let the cash
discount take care of the fifteen we want later.
M r. S c o t t : I think looking to the buying end is all right,
but is not it a fact that the cash discount given to the user enters
into the purchase price? How would we be much better off in
declaring a uniform price? It really seems to me to be a part of the
selling price. The two per cent ten days is the common practice,
and was years ago. but it has gotten to mean anything. It seems