“BLACKLISTED.”

Timaru Herald, Volume CXXIII, 4 June 1926, Page 2

“BLACKLISTED.”

SAFEGUARD FOR BRITISH TRADES. POPULAR TATES OF FRAUD. British industry lias organised a | '•‘Scotland Yard’’ of its own. Over 1 1.501) firms jn England ’ have come into l lie organisation arranged by the Federation 61 Br.tisii .industries- lor the widest possible exchange oi “credit iul'omation’ The scheme has been in opor.-iLon now for fifteen weeks. During that period almost 1000 “undcsiran e- traders’’ have been identified and the information circulated over the country. ; The difference between the scheme arrunged by the F. 8.1. and the usual orghnisnf.'on of this kind is that inv.leml of an-ndu i s having to write, to headquarters lor information concerning an individual, ail information is. first foliated at the F. 8.1. office in London and distributed automatically to all members.

A ‘Morning Post’ representative recently obtained details of Die most common types of fraud practised on British bus.ness men. .From the numbers of cases reported to headquarters it’js obvious Dial the favourite trick is that of the “hidden assets.” The defaulter makes his purchases—and then decamps with the cash. But the F. 8.1. organisation, with its daily reports from every trade, is soon aware of the assumed names of the trickster, and; is able, to stop further deception of the linns who are participating in the teder.atiou’s .scheme. Third on the list- of these commercial frauds is Dial, of the “refusal to accent delivery.’’ The buyer orders a consignment to be forwarded ,to a foreign market. He- then refuses to accept them because of some alleged technical defect, and proceeds to buy them in at '“knock-down prices” at the subsequent public auction. Another method in common use, both in England and abroad, is that of obtaining a large range of expensive samples from different firms and then retailing the goods without making anv effort- to obtain orders.

Fifth, in order of popular methods of .fraud among the commercial crooks is Die old “confidence trick.” A man lints through a few small orders, and prom.ptlv meets Ids obligations. Then he indents for a large order. Ho gets Die goods, disposes of them without do’ay, and leaves with‘the- proceeds for unknown parts. Tim sixth method is neat. A wellspoken Englishman, representing a foreign company and accompanied by nforoign director, will visit a. firm -mi will recommend their latest product, snv sheet metal. “You will like this, Mr be says. “Just try r,

sample, and then give ns an order.” The buyer ’ sometimes agrees, and is asked to initial the form placed before him. which invariably ■is in a foreign language.'Later he discovers that lie has aetuaM.v ordered about £IOO worth of the commodity.

The prnctiee of questioning the quid-, ity of the goods ordered is another rnoD'.'d wb'-’-h tin' b.B.f. - selicme is cheeking. In one cri.se detected by the federal ion a purchaser delayed payment for tw<S years, and then challenged 'the accounts on the allegation, which ho then m-.ide for the first time, that Dm rmalitv was imsntisfnotr.ry.

. .The eighth method is that of the dis-honc-t commission agent. The agent; doubles an order received from a client, and receives bis commission on the total order. Then tin- goods are sent the agent- delivers half to «tho client ami ■ i-emjdigte.s To's|Kmsihi'ity for Die resf. Tlio’i'C.heme. Id qi'iiekjv weeding out 'these m/rndetlif.s/froiVi Urv-dne.s.s.

A protection’ selipipe of .tlnV.kind bad to come., - Frauds on-’industry of late years bad grown • to' proportions -which, with, w'dching. suspicions, were _ challenging the...integrity and credit of every holiest trader.