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JUNE 9, 1923
THE
MUSIC TRADE
REVIEW
153
The Publishers' Ass'n Credit Bureau
E. C. Mills, Chairman of the Executive Board of the Music Publishers' Protective Association, Tells in Detail
Why It Exists and How It Functions to the Benefit of Both the Dealer and the Publisher—The
Collection Service Which Supplements Its Information Work
A great many times during
years, since the Credit Bureau
tion has been in operation, it,
and I have been taken to task
the past three
of the Associa-
the Association,
in anything but
to the financial reputation and responsibility of
the applicant for credit and, second, the collec-
tion of so-called "bad accounts" of our mem-
bers
Thus, as "bad accounts" are sent to us
i C n. 1. CREDIT INQUIRY
Name and address
of party or firm
inquired about:
JOHN DOS WJSIC COMPANY
John Doe, P r o p r i e t o r
1234 l/jain S t r « e t
F I N S V I L L L , OftEGOil
REMARKS
We-v a c c o u n t .
Date of this inquiry. . . . .?/i??/.2p.
Inquirer's key number
9
INSTRUCTIONS: Please fill In with typewriter, using one form for each name inquired about, i( have had any
previous dealings with the concern, please so indicate under "Remarks."
Form 1
polite terms by dealers here and there because,
all of a sudden apparently, some dealer that is
not paying his bills finds it difficult to secure
merchandise from our members upon any other
than a "C. O. D." or "'Cash With Order" basis.
Now and then some particularly angry dealer
will threaten us with a suit for damages or
conspiracy or boycott or something of that sort.
These threats make no' impression whatever,
nor do they affect in any way our further pro-
cedure in line with the policy of the Bureau and
the Association.
However, we are only too pleased to inform
all concerned just how the Bureau operates, the
details of its processes and actions, and that
the trade may know that the time is past when
credit will be extended to dealers of uncertain
precedents or practices.
Credit is an absolute essential to the transac-
tion of modern business.
Confidence is its
foundation. Honesty and good faith must be
its basis. It is a delicate thing, adversely af-
fected by so slight a thing as unsubstantiated
rumor; it is timid—must be carefully and con-
tinuously safeguarded.
Most creditors have no personal acquaintance
with their debtors. Lacking personal contact,
first-hand knowledge of his debtor, the creditor
must depend, as to the extent of credit extend-
ed, or the wisdom of extending any at all, upon
such information as is given him by others who
have done business with the debtor, and by the
statements the debtor makes himself. There is
no essential difference between buying mer-
chandise on credit and borrowing money at a
bank. No man should expect to do either un-
less he can satisfy the party from whom he
wishes to secure merchandise or borrow money
that he is not only willing, but able to pay and
that the obligation will be met promptly at
maturity.
It is due the honest merchant, the one that
can and will pay his obligations promptly, that
he be not subjected to competition of the dis-
honest one who defrauds his creditors and is
thus enabled to undersell the honest man who
pays when and as he should.
The Bureau's Operation
Now, as to the operation of our Credit Bu-
reau. There are certain matters and processes
that, if the dealer understands in detail just
why and how they exist and are handled, might
be helpful to publisher and dealer alike.
In the first place 1 , the dealer should under-
stand that the Credit Bureau functions in two
particular matters: first, the gathering and dis-
semination of all possible information relative
when several of them accumulate against any
one concern we automatically have notice that
In the second place, the impression that
many dealers apparently have that the Credit
Bureau is just another name for a "collection
agency" of some sort should be corrected. It is
a bona fide branch of the business of the mem-
bers, not an alien Bureau or office; it is part
and parcel of their own business and, in its
collection activities, it operates in closest pos-
sible conjunction with the individual member
whose claim is being pressed.
Now, let us suppose that a member receives
an order from a dealer with whom he has not
previously opened an account. The publisher's
first step is to fill in and send us Form No. 1,
as per specimen shown.
Immediately this is received the Credit Bu-
reau forwards to each of our members an in-
quiry, Form No. 2, as shown herewith.
At the same time there is sent directly to the
dealer inquired about a letter, stating that an
inquiry has been received regarding his credit
rating and enclosing a property statement form
for him to fill in and return. This statement re-
quires, over his signature, a schedule of assets
and liabilities, the names of firms with which
Form C. B. 2—CREDIT KBPOKT
JOHN DOE MJSIC C0UPAK7
John Doe, P r o p r i e t o r ,
1234 Llain S t r e e t
P i n e v i l l e , Oregon.
Name and address
of party or firm
inquired about:
How Long Soldc
?.W?e. A?Xv
Highest credit in past year? $....$..§{>.•.PP.
Amount now owing yon? Open Account $. 41.-.7P.
Amount past doe $
How does this party usually pay?
Your comments or recommendations:
Amount of unfilled order* f
AQUA
Usual tarns:
. 3 .9..4?y.?^..?/?. ikQ..^?
Notes or Secured 9
How long past doe?
^Ar. 1 .*. .PrOTP/t>. .30. t o . G O .
Good small account
Date of this report: ...9J.^/AP.
192
Key No.
.1A.
INSTRUCTIONS: Upon receipt of this form please fill in promptly, and return by first mail. Give complete information, and in
every instance where have done business with the concern, state your recommendations. I f Iwre done no business with it, merely
mark the form "No Account," sign key number, date and return.
Form 2
that concern is in some sort of trouble and can
he has previously done business, the name of
protect our members against further losses.
(Continued on page 154)
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