CREDIT CONTROL.

Hutt News, Volume 3, Issue 18, 25 September 1930, Page 10

CREDIT CONTROL.

_31(* MOVEMENT BY- COMMERCIAL

INTERESTS

,A unique gathering took place in Hastings on the 12th and loth of August. It consisted oi' delegates ■'•-frojn Whangarei, Auckland, Rotorua, Thames, Hamilton, New Plymouth, Haweia, Wanganui, Napier, Hastings, .Dannevirke, Masterton, Lower Hutt, Oaniaru, Dunedin, and Invercargill, representing over two thousand of the leading business houses in New Zealand and gathered together for the discussion of one subject and one subject only namely "credit and its control." \ Messrs C. R. Barrett and F. H. Mulling . (Directors of the Hutt Valley Creditors Association Limited) represent ed -fche local shareholders, comprising some 120 of the commercial and professional community of Lower Hutt and Peton«. The conference, which was held in the Municipal Chambers, was opened by the Mayor of Hastings (Mr GK F. Roche) and after a presidential address by Mr' P. Loach, (chairman of directors of \l\e Hawke's Bay Creditors Association Limited) the meeting went into committee. £i The conference was the outcome of a movement started in Hastings some seven years ago by the formation of the Hawke's Bay Creditors' Association^ an organisation created by the business men run without any idea of profit making and for the main purpose of collection and dissemination of information xegarding persons using the system of credit.- From a small beginning the movement has spread throughout New particularly in the provincial towns. Another movement, was later ..■started in Auckland under the name of National Credit men's Association, a movement for the same purpose but.operating in a somewhat different manneT. ■This organisation has to a large degr.ee : so far confined" its activities to the maio. centres. , . H. W. Dent, general manager of the New Zealand Creditmen's Association (Auckland) Limited, delivered a most interesting address to the delegates upo a the activities of credit, control orgatusations in America and the work done by his own company and its amliaoo-J corporations which are operating in the ■cities of Wellington, .Chxistchurcl?, and Dunedin. , ;-.■■ ■ Both groups were represented at "the meeting and a considerable p ire of the time of jthe conference was • devote! to discussing a methodi of the fe<le.ia:virig' jiU the units into one large boiiv .whose' duty would be the systematic collection of information. When it is recognised

that estimating from the amounts' of debts disclosed in the Official Year Book in Bankruptices and Magistrate's Court process alone the public of New Zealand are paying the equivalent of interest'at five per cent annually on a sum of thirteen millions of pounds by way of losses on credit given, it must be realised that the problems attempted to be solved are of no ' considerable moment. Those

Associations whose operations extend to the collection of accounts past due (and not .all so far do) have been- requested! by their members to recover no less a sum than two hundred and fifty thousand (a quarter of a. million) pounds— and it must be remembered that with

two oi- three exceptions these associations have been'in operation not more than two years. Moreover, those figures take no account of amounts collected by commercial collectors and'by splicitors. As a result of the gathering and the outcome of the discussion and the keen! and unanimous desire in that behalf it was resolved to create a central controlling body to be Toiown as "The New Zealand' Federation for the Protection of Credit.' ' This name expresses that deSire to protect not only the rights of the creditor but also those of the legitimate debtor both of them who suffer at the hands of an ever present and rapidly increasing body 6f professional delinquent debtor-persons who systematically abuse a system which is the foundation of the rapid expansion of trade.

This Federation will serve as a focal point for the correction of legislation at present inequitalfly operating against the credit. Insensibly the laws have been amended; amended at the behest of an inordinately sentimental progression of a great desire to pander to their constitutents. So far no specific body has existed to see "aiit the rights of the trading conrmuuityrV and of the honest payer, have due consideration. The time has arrived'when recognition, is made, of the fact that the legislature and the Courts by their interpretation of the laws have created a class of person who maliciously, purposely and regularly takes advantage of the trust of the commercial community and thereafter scorns andy defies any attempt at obtaining the honouring- of the obligation created. As the depredations of this class aie ■invariably passed on to the purchaser in. the form of higher prices to provide against bad- debts it can readily be seen that the objects Of the federation are of interest and merit the, support of thq honest credit receiving section of the conrmunity in no less a degree than that of the credit givers.

As showingthe need for the attention of our legislators to this question a perusal of the remits, and the matters dealt with show that amendments are cer-

taiiiiy necessary and if reasonable would for the butter, quicker and cheaper work ux tnooe particular laws of the country and to the end that the dishonest debtor would be checked in ids operations and the credit giver would have greater freeiiom of trade and .would be delivered ■ii om the delinquinces of the dishonest. The Conference suggested that the ' ' Soltliers Protection Regulations 1919 .riumjil be amended in that the Protection thereby ostensibly afforded shouldi be removed, the protection really being not for the soldier but for the State Lending Departments..

Many amendments were proposed to "The Imprisonment for Debt Limitation Act," this act being one which to-day is greatly abused by the dishonest debtor, ha taking full advantage of the too wide protection attoiclea Mm by tiie law.

A legal committee comprising Messrs C. R. Barrett (Lower Hutt),-H.H. Gillam (Hamilton), T. G. Nelson (©annevirke) and A. S. Tonkin (Hastings), was delegated by the/conference to consider amendments to /'The Imprisonment- for Debt Limitation Act, IQOB,'/ and other legislation and to bring down a report for consideration at the annual conference to be held early next year at New Plymouth. ' '

The position of creditors in voluntary liquidations of companies was also ''considered and remits passed proposing tp

afford to theni greater interest in. such .cases, for example in the appointment of the liquidator.

It was resolved also to form a federation and' that aIL associations should use a common title thus conveying to the public the idea of the strength of the

movement.

Another remit suggested the Registration of the names of persons engaged in business under a title which didi not disclose their, ownership.

Certain other matters in the "Ma-gis-trates Court, Act" were suggested to be altered and it was also proposed to establish a clearance service enabling any person moving from one place to another rapidly to establish liis; credit standing in his new place of residence.

The commercial community too will be assisted by educational methods in the wise control of their credit giving and the,.-whole efforts of the Federation will be towards the more .efficient working of ra, system that is in the best interests of !a young and progressive community; to eliminate from such system the vast economic waste which is a burden upon the community and to eradicate the rapidly growing parasitical growth of professional delinquents. Particularly in times, like those pertaining at present, it is the duty of every citizen to see that all economic waste is eliminated and that om- body commercial is operated upon the most productive and paying Jines. This movement will he a great help in this direction ,and it is the duty apart from being a privilege of every person Who extends credit to his customers to become an active supporter of this organisation, and the duty and privilege of every person every assistance in bringing about the desired control of.. credit ■which is the main ofojeet of the proposed " Federation and its component members to attain.

At an early date, Messrs Barrett and Mulling intend the Lower Hutt and Petone shareholders upon the matters considered at the conference and it is 'also proposed to place before the shareholders another scheme for-the' control of credit whereby it is hoped to "eliminate the heavy losses sustained in recent years by the credit giving community of. the Hutt Valley. If the new scheme is as sound as the last one put bef ar.e the business men by these enters prising gentlemen they are deserving «>£ the whole-hearted support of. the credit giving community of liOwer Hutt and Petone. , _ ' . ;-a. ?>}