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Editorial
February 22, 1957
St. Paul Recorder
Saint Paul, Ramsey County, Minnesota
What is this article about?
The editorial complains about local organizations delaying payments for small newspaper ad bills, causing extra collection costs and leading to a cash-in-advance policy despite criticism from members.
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There are entirely too many organizations in our towns who carelessly and thoughtlessly earn bad credit ratings. Many of them take umbrage at this newspaper when it insists on a "cash in advance" policy.
Too many organizations insert ads on credit, then forget about them for several months. A case in point was called to our attention this week.
An organization-composed of business people, mind you-ran an ad amounting the less than $5 in June, 1956. Monday, Feb. 18, eight and one half months later, we received payment.
In the meantime, this organization had been mailed seven statements since the end of June, whereas one reminder should have been enough to bring prompt payment. Instead the paper had to pay additional postage, clerk hire and extra stationery to send seven statements instead of one.
The cost of one or two accounts of this type would not be prohibitive, but from our experience we have an inordinate number of organizations who make a bill and then proceed to forget it.
In some instances it is necessary to phone four or five officers to get payment from organizations. Each one "passes the buck" to the other and by the time the money is received the net profit has been devoured by the time consumed by business staff members trying to collect payment.
The fair-minded individual, club, lodge or organization member will understand perhaps why we are forced to deny credit to some organizations. Many of these groups really intend to pay their account but are careless and neglect to pay it promptly. This adds expense to our operation and reduces our chance for a legitimate profit.
Usually when we have to resort to refusing credit we receive a barrage of criticism from individual members. We wonder if our organizations ever stop to think that organizations like individuals who want credit, have to deserve it.
None of the members of the particular organization we have in mind would remain in business very long if many of their clients took eight and one-half months to pay a bill of less than $5.
Even if organizations meet only once a month it should not take them eight months to pay a bill.
Too many organizations insert ads on credit, then forget about them for several months. A case in point was called to our attention this week.
An organization-composed of business people, mind you-ran an ad amounting the less than $5 in June, 1956. Monday, Feb. 18, eight and one half months later, we received payment.
In the meantime, this organization had been mailed seven statements since the end of June, whereas one reminder should have been enough to bring prompt payment. Instead the paper had to pay additional postage, clerk hire and extra stationery to send seven statements instead of one.
The cost of one or two accounts of this type would not be prohibitive, but from our experience we have an inordinate number of organizations who make a bill and then proceed to forget it.
In some instances it is necessary to phone four or five officers to get payment from organizations. Each one "passes the buck" to the other and by the time the money is received the net profit has been devoured by the time consumed by business staff members trying to collect payment.
The fair-minded individual, club, lodge or organization member will understand perhaps why we are forced to deny credit to some organizations. Many of these groups really intend to pay their account but are careless and neglect to pay it promptly. This adds expense to our operation and reduces our chance for a legitimate profit.
Usually when we have to resort to refusing credit we receive a barrage of criticism from individual members. We wonder if our organizations ever stop to think that organizations like individuals who want credit, have to deserve it.
None of the members of the particular organization we have in mind would remain in business very long if many of their clients took eight and one-half months to pay a bill of less than $5.
Even if organizations meet only once a month it should not take them eight months to pay a bill.
What sub-type of article is it?
Economic Policy
Moral Or Religious
What keywords are associated?
Credit Ratings
Advertisement Payments
Cash In Advance
Local Organizations
Prompt Payment
Business Ethics
Editorial Details
Primary Topic
Delayed Payments By Local Organizations For Newspaper Advertisements
Stance / Tone
Frustrated Criticism Advocating Prompt Payment Or Cash In Advance
Key Arguments
Organizations Run Ads On Credit And Forget To Pay For Months
Example Of $5 Ad From June 1956 Paid In February 1957 After Seven Statements
Delayed Payments Increase Newspaper Costs For Postage And Staff Time
Some Organizations Require Phoning Multiple Officers To Collect
Newspaper Denies Credit To Careless Groups To Protect Profits
Organizations Should Deserve Credit Like Individuals
Members Criticize Policy But Would Not Tolerate Similar Delays From Clients