Music Trade Review

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Handling Time Sales
By the Retail Music Merchant
Last of a series of Three Articles by P. R. Bowers, Credit Man-
ager of the Aeolian Co., New York, Discussing the Function of the
Credit Man in the Organizations of the Retail Music Merchants
O matter what form of contract is
adopted or used, the merchant has in
mind one thing and this one an im-
portant condition. He must retain title, and,
upon default in payment on the part of the
purchaser or for other violation of the agree-
ment, be in a position to reclaim his goods.
Call it a "conditional sales contract," or a
"conditional bill of sale," 'under which the
transfer of title is conditional upon payment
of a fixed amount in given weekly or monthly
payments.
A "chattel mortgage." What happens when
this form is used? The title passed with the
sale, but as a guarantee, so to speak, the cus-
tomer, in turn, signed a mortgage on the
property or goods. Practically the same thing,
is it not?
Take another form, the "lease or rental agree-
ment." The goods are leased or rented, the
customer paying so much per month for the
'"use" of the goods and, finally, after a fixed
amount (the purchase price) has been paid,
the merchant transfers title. The use of these
documents, just as I said before, is in plain
words a string on the goods until they have
been paid for. Other forms, such as the "con-
fession of judgment" and "salary assignment,"
are used in most instances to cover the sale
of goods where there is but a small chance
for repossession or where there is little re-
possession value to the goods or none at all,
as in the sale of paints and building materials.
Why these forms?
Just this—retaining title
to paints and an old pair of clothes would
certainly be what in legal circles is known as
an "empty title," so the merchant who sells
goods of this kind on time guarantees to him-
self that upon any default he witl have within
his immediate reach a document that gives him
the right to claim part of the purchaser's
weekly salary, or, through the confession of
judgment, be in a position to start immediate
proceedings for a speedy collection.
N
This, of course, is most important and covers
with which I am familiar and try to explain
briefly what is meant by its terms and con- the purchase price and terms of payment. The
payment on the goods is that portion of the
ditions:
cash price to be paid monthly, and to this is
Payments and Carrying Charges
added the monthly instalment carrying charge,
In consideration of said sale and purchase the
interest or extra charge for the privilege of
parties hereto hereby agree as follows'.
deferred payment.
1. The purchaser will pay the company or its
Default
order, wherever the company may from time to
2. Upon violation of any of the terms of this
contract, or in the event of default in payment of
any one or more of said instalment, zvhen due,
tTiHIS series of articles is based on lec- or of a sale, assignment or removal by the Pur-
chaser or any attempt by him to encumber, dis-
M. tures given by P. R. Bowers, Credit pose
of or remove said goods from the place of
Manager of the Aeolian Co., before the delivery above mentioned zvithout the written
School of Retailing of New York University; consent of the Company, all the remaining unpaid
this being his second year as lecturer before instalments shall, at the option of the Company,,
that school. He has been connected with at once become due and payable; and in default
of payment the Company at its option shall be
the credit department of the Aeolian Co. for authorised
to retake possession of said goods—
nineteen years, is a contributor to the "Re- meaning just what it says. The company may
tail Charge Account" and chairman of the demand payment of the entire unpaid balance
Instalment Activities Committee of the or repossess the goods.
Credit Men of New York
time request payment to be made, the sum of
$
Dollars with carrying charges as
hereinafter provided as follows:—•
On the
day of
\9..*.the sum
of
Dollars and the balance of
$
Dollars tvith carrying
charges added thereon is to be paid in monthly
instalments as follows:
MONTHLY
On Carrying
On goods
Charges
INSTALMENT
Total Monthly
Instalments
Beginning
with (date)
from (date)
from (date)
until the said purchase price and all carrying
charges are paid in full. No charges other than
Summing up, it is well to point out that
those specified above are to be included in the
many of these forms are necessary to meet the
purchase price unless the Purchaser defaults in
requirements of State laws, and many mer-
payment of any one or more of said monthly
chants, particularly those doing a mail order
instalments when due } in which event the Com-
business on the deferred plan, find it necessary
pany shall have the right to make an interest
to keep on hand a supply of agreements, leases,
charge at the rate of six per cent (6%) per an-
contracts and the like, constructed to conform
num on each monthly instalment in default for the
with the statute of this and all States.
period of time it remains unpaid, it being under-
To give you a more concrete idea of an in- stood, however, that no interest charge shall be
stalment contract, I am going to analyze one
made on the carrying charges included therein.
ESTABLISHED 1862
Title
3. Until the purchase price above mentioned,
with carrying charges as provided for, or any
judgment for the same or for a balance thereof
is paid in full, title to the said goods shall not
pass and the same shall remain the property of
the Company; and in the event of default in pay-
ment of any of the said instalments, the Purchaser
agrees, upon demand, to deliver the said goods
to the Company in as good condition as when
received, reasonable wear and tear excepted; or
the Company shall have the right, without notice
or demand, to retake possession of said goods,
and for that purpose may pursue the same,
wherever they may be found, and may enter any
of the premises of the Purchaser with or without
force, and zvith or without process of law,
x^herever the said goods may be or are supposed
to be, and search for same, and if found to retake
possession thereof; and all payments theretofore
made by the Purchaser under this contract shall
be deemed and considered as made for the use
o'f the said goods during the time the same re-
mained in the Purchaser's possession, and shall
be retained and kept by the Company as such,
and should the Company be required to retake
possession of said goods, the Purchaser agrees to
pay all legal costs and expenses necessary to effect
such repossession of said goods, and to waive,
relinquish and release any trespass or right of
(Continued on page 9)
UXUTEIL
NEWARK, N. J.
MANUFACTURERS OF PIANOS OF QUALITY
UPRIGHTS
GRANDS
THE LAUTER-HUMANA