Credit

When you buy a Nash, Graham-Paige, Hupmobile, Chandler, Reo, Hudson or Essex motor car on the instalment plan you give the dealer your note and expect monthly bills. Those bills when they arrive are rarely from the dealer however, but usually from the Commercial Investment Trust Corp. That company has bought your note from the dealer. You owe them the money, and you pay them.

The same thing happens when you buy an Ampico or other American Piano Co. instruments on time payments; or a Servel or Electrolux refrigerator, or a Radio Corp. of America receiving set, or a certain make of barge, printing machine, etc.

The Commercial Investment Trust Corp. is one of the world's most important and essential arteries of credit. It has financial dealings with J. P. Morgan & Co., and scores of banks. In the U. S. it has 80 financing offices. Abroad are others in Canada, England, Cuba, Porto Rico, Norway, Denmark, Sweden, Germany. Only recently C. I. T. joined with Morgan & Cie, Lazard Freres, and Credit Lyon`ais to form a 50,000,000 francs credit corporation in France. Wherever instalment buying spreads business--manufacturers, jobbers, dealers, consumers--need the credit services of companies like C. I. T.

Last year the corporation did $188,271,263 business (profits $3,003,392); the first half of this year $129,865,493 (profits $2,246,590).

In the textiles business another, older and broader type of financing functions. Credit companies act as factors for the textile manufacturers. They loan money for production; they sell the goods, carry accounts. Important among such concerns is Peierls, Buhler & Co., with surplus and capital of approximately $4,000,000. It has the confidence of its trade. It seemed immutable.

Last week, however, Siegfried Peierls, founder and chairman of his factoring company surprised his people. Henry Ittleson, founder and president of Commercial Investment Trust Corp. had been asking him to sell out, and last week the deal was consummated. Peierls, Buhler, with Mr. Peierls still at its head, became an autonomous C. I. T. subsidiary. C. I. T. increased its capital and surplus to $30,000,000. And its stock rose to $104.75 on the market.