The Osceola times. [volume], March 13, 1925, Page PAGE EIGHT, Image 8

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PAGE EIGHT
LOST IN
BAO DEBTS IN A YKAR
Haga Credit Frauds In Nation Re
vealad.
NEW YORD. March 7.—The unjust
penalty Buffered by honest merchants
through the operations' of unscrupu
lous competitors Is one of the chief
natives behind the movement of the
National Association of Credit Men to
drive the credit crook out of business.
During the last few years the
United Staten has been swept by a
deluge of commercial fraud. In the
pioneer days of America, when slow
transforation made six and 12
months credit essential, credit frauds
were almost unknown. The creditor
knew his customers personally and
kin judgment of their responsibility
rarely went wrong. With the devel
opment of railroads and commerce
there came shorter terms of credit.
But Obviously manufacturers and
wholesalers could not have a first-
Band acquaintance with each man
they did business with. The task of
l*aming upon a new client had to be
delegated to a subordinate. He in
turn had to rely largely on certain
commercial instruments, such as the
financial statement and rating books.
>260,000,000 Lost in Year.
In the wake of this development
there has grown up a long list of
connnercial frauds. Crooks have found
numerous ways of doctoring financial
statements and commercial ratings.
Success has embodied them until last
year according to conservative esti
mhtes, credit frauds totaled at least
9f50.800.M0.
. The question has been raised as to
whether this indicates a weakening of
Pha moral fibre of business. There is
no distinction between credit frauds
find plain theft, but the credit crimin
al ha« many circumMtilCes to his ad
vantage. When detected his offer to
siettto accounts for a fraction of the
Pull amount is a tempting bait to
dreditors, and all too often they are
willing to settle on that basis. Credi
tors argue they are too busy and the
expense too high to justify them in
prosecuting a credit crook when the
possibilities of conviction are so un
fortain. In such conditions the in
create of credit frauds is not supris
sng
If all credit crimes were energeti
cally prosecuted and compromise set
tlements refused, affairs of the Na
i tonal Association’of Credit Men be
lieve these offenses would be reduced
76 per cent.
• "The situation cannot continue
Without seriously impairing business."
amid J. H. Tregoe, executive manager
of the association.
Offer to Pay Half.
At a recent conference of represen
tative credit managers from all sec
tions of the east and middle west
in New York City to discuss the in
creasing menace of credit frauds sev
eral reports were beard of the hard
ahip they worked on reputable busi
neas firms.
"One of our customers recently
wrote us," said the president of a
wholesale dry goods house," asking
that he be permitted to settle his ac
count at 50 cents on the dollar. His
•tea was that in the last two years
three firms in the same line of busi
siess had failed and sold their stocks
of merchandise below cost. Our cus
tomer in. order to get cash to pay
current bills also had been forced to
offer his merchandise at less than he
VfAd for it. He told us frankly that
’ unless we accepted his proposition
bankruptcy appeared inevitable.
"If we allow these crimes to go un-
Chcckjid we ( arq jiejnajlzing the man
floes business honestly and en
evuraging fraudency.”
tn many Unes of'commerce the
Mem os “loss” is mounting higher and
B'frher each year. Such losses are,
•C ‘course, added to the cost of doing
Business arid'in some form ire paid
try the consumer.
<5. D. West, manager of the Credit
Justice Department of the National
Axjociat ion of Credit Meu, estimates
that this waste can be reduced about
B 0 per cent by suppression of credit
•muds. The whole problem, he de
ck:, res. is one of organization.
>1,000,000 Fund Aimed.
A few years ago the railroads were
losing approximately $1,000,000 a
roonth through thefts in the port of
•few York. Railroad officials finally
decided to establish a special bureau
Is fight these robberies. They or
9»sized their own police force-and en
gaged lawyers and investigators. It
Vrar, found that most of the thefts
lock place on barges while the freight
Vas being transferred from the New
Je rsey shore to Manhattan or Brook
lyn. Barge captains, it was alleged,
Were the chief intermediaries. They
brere in touch with receivers of stolen
property and with -a barge load of
•nerctandise in their charge they
telephone these receivers, pull
out to some point in the river and
there wait for the buyers to arrive.
These receivers operated their own
boats to which they transferred the
loot
The bureau organized by the rail
roads succeeded in obtaining a dozen
or more convictions, sentences rang
ng from three to twelve years Rail
road thefts in the port of New York
dropped from $1,000,000 to £I,OOO a
month, where they hnve remained
over since.
The National Association of Credit
Men believes the New York Railroad
situation is analogous to the one they
are now facing, it, .too, can be con
quered. says a statement issued by
the association yesterday, with a well
organized fighting force. The Credit
Justice Department of the association
has been combating credit frauds the
last eight years, but limited funds
have restricted the department’s work
to investigation of actual complaints
from members of the association. Be
cause of finances, it has never been in
a position to take the offensive
against the credit crook.
The association is appealing to
business men to subscribe to a Credit
Protection Fund of $1,000,000, which
it expects to raise this spring. A cam
paign for the fund will be conducted
in New York City, Chicago, Philadel
phia. Boston, Cleveland, Detroit. St.
Louis. Pittsburgh. Cincinnati. Balti
more, Minneapolis-St. Paul. Milwau
kee, Buffalo, Kansas City, and In
dianapolis.
The $1,000,000 will be expended in
the next few years fighting the credit
crook. About 10 times the present
number of investigators will be em
ployed by the association, and these
will be stationed in 25 strategic busi
ness centers of the country. The pri
mary mission of investigators
will be the uncovering of credit
fauds, but judging from past experi
ences of the Credit Justice Depart
ment, it is reasonable to believe that
they will also recover hundreds of
thousands, perhaps millions of dollars
in concealed merchandise and cash.
KNIGHT KARD KLUB.
The members of the Knight Kurd
Klub were delightfully entertained
Wednesday evening by the following:
Mr. and Mrs. Ed. L. Quinn, Mr. and
Mrs. Roland Smith, Mr. and Mrs. Jno.
Whitworth, Mr. and Mrs. Godfrey
White and Mrs. L. B. Swift.
For , the occasion the Club Room,
where the party was given, was at
tractively decorated, St. Patrick idea
being carried out.
Os the eleven tables of guests pres
ent, Mrs. David Travis was lucky con
testant among the women, receiving
a string of beads .and Mr. Guy Bry
ant received high prize among the
men, a card table.
Following an interesting game of
500 the hostesses served a dainty
plate luncheon.
MRB. V. M. CARPENTER DEAD.
Mrs. V. M. Carpenter died at her
home in Starkville, Miss Sunday fol
lowing an extended illness.
Funeral services were held Monday
after which burial took place in Stark
ville.
The deceased was the mother of
jS. D. Carpenter, of this city, who'
left Friday for Starkville, and was
with her when the end came.
MRS. BOWEN WILL SING.
Mrs. Sam Bowen, of Memphis, will
sing at the morning service at the
Baptist Church Sunday.
Mrs. Bowen is well-known in Os
ceola and her presence Sunday morn
ing will add materially to the musical
part of the service.
Everybody cordially invited.
ENTERTAINS YOUNGER SET.
Miss Ruth Hale delightfully enter
tained about twenty members of the
younger set at her home Friday even
ing.
The guests spent an enjoyable even
ing dancing, during which time punch
was served.
DANCING PARTY FOR VISITORS.
Miss Mary Sue Hale was hostess at
her home in this city. Saturday even
ing when she entertained with a danc
ing party complimenting her cousins.
Miss Pauline Davis, of El Paso. Tex
as, and Miss Frances Krewson. of
Memphis, who are visitors in town.
During the evening dancing was en
joyed at the close ot which refresh
ments were served.
The guests for the evening includ
ed about thirty members of the young
er set.
Mr. and Mrs. E. S. Mittmin, who
have been abroad for the past two
years, arrived in Osceola Wednesday
and will make this city their home
for the present.
THE OSCEOLA TIMES
BANKERS AT WYNNE.
Group One of the Arkansas Bank
ers Association met in annual sas
'slon at Wynne, Arkansas on March
12 and had a most enjoyable and prof
itable meeting.
j Mrs. Emma Cox-Smith, cashier of
the Bank of Osceola is chairman; A.
L. Waring, of Hughes, vice-president
and J. E. Allen, of Wynne, secretary
end treasurer.
The following program was carried
out:
INVOCATION Rev. R. C. Blalock,
Pastor of First Baptist Church,
Wynne, Ark.
ADDRESS OF WELCOME-Hon. Nell
Klllough, Wynne, Ark.
RESPONSE—J. E. Parr, Vice Pres.
Bank of Jonesboro.
ROLL CALL.
ADDRESS—Mrs. Emma Cox Smith,
Chairman of the Group, and Cashier
of the Bank of Osceola.
GREETINGS FROM THE ARKAN
SAS ASSOCIATION—
Loyd Rainwater, President of the
Arkansas Bankers Association.
APPOINTMENT OF COMMITTEES.
FRUIT DEVELOPMENT IN EAST
ERN ARKANSAS—R. T. Simmons
President Crowley's Ridge Develop
ment Company, Wynne.
PLANS OF AGRICULTURAL COM
MITTEE —W. H. Johnson, Vice
President, Merchants National Bank
Fort Smith.
FARM CREDITS IN GROUP ONE—
Hugh Mixon, Cashier. Bank of Ma
riana.
ROUND TABLE TALK Robt. E.
Wait, Secretary. Arkansas Bankers
Association. Leader.
REPORT OF COMMITTEES.
ELECTION OF OFFICERS.
ADJOURNMENT.
ANNUAL BANQUET AT ELKS
HALL—6:3O P. M.
S. I. A. MEETING.
The regular monthly meeting of the
S. I. A., was held Wednesday after
noon in the Study Hall of the school
house with an attendance of forty.
A set of Science Books was ordered
by the Society for the school, and
with this set there will be given a
set of Arthur Burbanks books.
The program for the afternoon was
given by the teachers and the pupils
of the grades as follows:
A set of 300 slides having recently
been purchased, a demonstration
class in “Visual Education" was giv
en by Miss Blanche Cleere. This
class consisted of pupils of kinder
garten age. showing both how inter
est w-as obtained and held.
Mrs. J. S. McCants gave an interest
ing insight into what the grades of
our school are doing.
Sho began with the sixth grade,
showed some booklets the children of
the grade has made on Cotton and
Sugar. She also showed some of the
drawings of the Arkansas Flag to
gether with its history.
She showed posters made by the
first, third, fourth and fifth grades,
called attention to the letters on the
posters which depict the skill of our
children in handwork. The third
grades also served a luncheon, break
fast and dinner in poster form.
The second grade exhibited some
models made of clay. These minia
ture aeroplanes, automobiles, wagons,
etc., show that our children are close
observers, and that they will soon
know how “to make the wheels go
round."
At the next meeting of the 8. I. A.,
election of officers will be held, and
the following nominating committee
was appointed:
Mesdames A. G. Brickey. S. M.
Hodges and C. L. Moore, Jr.
PREWITT SEMMES AT DETROIT
We are in receipt ot an announce
ment by Elmer R. Ajilburn, Detroit,
Michigan, that Prewitt Semmes, a
former Osceola and later of Mem
phis where he was a member of the
law firm of Bryan. Semmes & Brode,
Is now associated with Mr. Milburn in
the general practice of law. The firm
has offices in the Penobscot building,
Detroit.
Prewitt Semmes’ rise has been rap
id since he began the practice of law
and Osceolans expect him to win a
high place in his profession. He is a
worthy gentleman with a natural ap
titude for the practice of law and we
will be disappointed if he should fail
to write his name high in the pages
of history.
ATTEND BANKERS CONVENTION
A number of Osceolans left yester
day for Wynne. Ark., wheje they
spent the day attending the bankers
convention held In that city.
Among those who went were: Mrs.
Emma Cox-Smith. Messrs. Herbert
Bryant, R. C Rose. R. E. Fletcher,
C. L. Moore. Jr.. James Driver. J. W.
Rhodes, Jr.
Mrs. J. R. Young was a Memphis
visitor Wednesday.
Messrs. R. E. Fletcher and E. H.
Stephens were business visitors in
Jonesboro, Thursday.
Mrs. John Miller was among the
Osceolans in Memphis the latter part
of the week.
E. P. Fletcher and Ben Butler at
tended to business in Paragould,
Thursday.
Mr. and Mrs. Jas. Cartwright, of
Memphis, spent the week end in Os
ceola guests of Mr. and Mrs. J. W.
Cartwright.
John R. Miller left Monday morn
ing for an extended visit with his
parents, in Texas. While gone Mr.
Miller will also visit with his daught
er, Merrill, who is attending Sophie
Newcomb College at. New Orleans,
La.
Mrs. Roy Spence and Mrs. Eric
Fletcher were Blytheville visitors,
Friday.
John Douglas and Miss Ruth Hamp
ton motored to Blytheville Thursday
evening and attended the Morris—
Lomax wedding.
Mrs. Hale Jackson and Mrs. B. W.
Bragg were Memphis visitors the
first of the week.
Mrs. S. S. Sternberg, of Blytheville,
was a guest at the reception given
by Mrs. F. P. Jacobs at her home
Wlndover Terrace at Grider, on Tues
day afternoon.
Buck Limerick and Dick FeltUs, of
Forrest City, spent a short while in
Osceola Sunday.
Mrs. H. A. Behrens, accompanied
by Mrs. Chas. Behrens, of Jefferson
City, Mr., spent Monday in Memphis.
Mrs. E. P. Fletcher left Tuesday
morning for month's visit with her
sister, in Jacksonville, Fla.
Jazz Johnson was a business visi
tor in Memphis the first of the week.
Mr. and Mrs. W. J. Keiss were
among the Osceolans in Memphis,
Tuesday.
Miss Pauline Davis, of El Paso, Tex
as and Miss Frances Krewson, of
Memphis, grand-daughters, of F. B.
Hale, are visiting relatives in town.
C. B. Young and Nathan Weinberg
were guestit at the. dancing party
given by Miss Carrie Mae Hires at
her home in Luxora, Monday even
ing.
Mr. and Mrs. J. C. Young were Mem
phis visitors. Tuesday.
The family of J. B. Bunn, manager
of the Osceola Lumber Co., arrived
this week from Marked Tree, and
will occupy the new cottage of A. S.
Rogers which has just been complet
ed.
Mr. and Mrs. J. W. Quinn left yes
terday for a stay of several 'weeks
in Hot Springs.
In a letter received from Mrs. Chas.
E. Bragg, who is teaching school in
Ft Lauderdale, Fla., she says that Mr.
Bragg is improving daily and all are
getting along fine.
Miss Gillespie, teacher in the Os
ceola Public School, was a Memphis
visitor during the week end.
Mrs. T. A. Bolding is confined to
her bed this week with rheumatism.
Misses Mary C. and Evaline Ward
were Memphis visitors Wednesday.
Mr. and Mrs. J. S. McCants were
in Blytheville yesterday on business.
James Coston, of Blytheville made
his usual week end visit to his par
ents, Judge and Mrs. J. T. Coston.
Hon. A. F. Barham was a business
visitor in Marked Tree the first of
the week.
Mrs. Ida Tucker is expected home
the latter part of the week from an
extended visit in Biloxi. Miss.
Mr. and Mrs. W. H. Bebee have re
turned home from an extended visit
in Texas, where they were called to
the bedside of her mother, who was
seriously injured in an accident some
weeks ago. and though she is much
better, will not be able to leave the
hospital for about three weeks.
Mrs. John A. Bowen, of Memphis,
it spending the W'eek in Osceola the
guest of her sister. Mrs. N. G. Cart
wright.
Mr. and Mrs. F. B. Hale were among
the Memphis visitors the latter part
of the week.
Mrs. L. B. Swift was among the
Osceolans in Wynne, yesterday, and
attended the Bankers Convention.
Congressman W. J. Driver, arrived
from Washington. D. C„ the first of
the week, tor a two weeks visit in
town.
Miss Lucile O’Donald, accompanied
by her mother and sister, and several
friends, was up from Memphis Sun
day for a short visit with L. G. Smith,
and family.
J. W. Cox spent yesterday in Wynne
and was among those to attend the
Bankers Convention held there.
VIOLIN
RECITAL
BY
FRANCIS
Macmillen
AT THE
Court House
Auditorium
Osceola, Ark.
Friday Evening
March 20th
1925
At 8:15
MRS. DAVID
KRIEGSHABER
At the Piano