MIC'S PAGE MIC

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The ancient adage 'Credit is the life of Trade' hits the old bull's eye smack in the center but from the manner in which the Building Material Dealers extend said credit to the above mentioned trad+looke like the trade had more lives than the proverbial cat.

Now seriously isn't it time something was done about this overextension of credit? Look at the following figures if you want an eyeful.

Lastyear there were 56,679 issued in L. A. C,ounty totaling $196,948,085. Of this amount only 994 contracte totaling $5,760,700 were filed. However there were 19,393 Mechanics Liens totalins $8,175,431 filed. Think it over -practically every third permit liened for an average amount of $250.00. What a load for the industry to carry, for a liened job means tied up capital, legal expense, increased overheads and the buying public have to make up the loss. Of the total amount of liens $8,175,431, it is safe to asaume that 5/o or $408,771 was a complete logs and adding to this the legal expense and Ioss on tied up capital which will equal approximately another 3/o or $245,262, you have a grand total loss of approxim.ately 9654,034.48 and all due to tfie fact that there was an overextension or careless granting of credit-and every one in the building material industry is carrying part of this burden.

Incidentally there isn't any question but that some of your over-competitive condition is due to Wholesalers, eager to 6nd an outlet for material, overextending credit to retailers to the detriment of the industry as a whole.

Look back at the above 1926 frgures and then get solidly behind legislative movements such as the attempt to license contractors and t{re filing of the financing of the job along with an intention 16 lqild-such things will tend to make for more careful credit granting and then all of you mend your own fences and be more careful before you put out your merchandise. Your granting of credit resembles the Miss.ssippi Flood-it just naturally runs wild.