UTILIZING COMPUTERS AND RELATED
GEORGE E. SNIVELY
Manager - Credit & Collection
General Electric Company
||CREDIT RESEARCH FOUNDATION
NATIONAL ASSOCIATION OF CREDIT MANAGEMENT
44 fast 23rd Street New York 10. N. Y.
c. February 1963, by Credit Research Foundation Inc.
All Rights Reserved
The Credit Research Foundation is pleased to acknowledge the
accomplishment of George E. Snively, the author of this report. His study
presents some aspects of computer applications which will become
increasingly important to the operation of credit departments as
electronic data processing becomes more common in the business world.
The study was prepared in partial fulfillment of the requirements for
graduation from the Graduate School of Credit and Financial Management
sponsored by the Credit Research Foundation of the National Association of
Credit Management at the Amos
Tuck School of Business Administration, Dartmouth College.
Mr. Snively is Manager, Credit and Collection, Finance Section,
Computer Department, General Electric Company, Phoenix, Arizona. He
graduated from the Graduate School of Credit and Financial Management,
Class of 1962.
|TABLE OF CONTENTS
CHAPTER I -CLASSES OF BUSINESS
CHAPTER II -EQUIPMENT AVAILABLE OR IN
CHAPTER III -RECEIVABLES
CHAPTER IV -CONCLUSIONS AND
Electronic computers and various devices that "talk" to
computers are being conceived at a rate which far exceeds the development
of ways to apply them. Necessity is no longer the mother of invention but,
rather, inventions are creating a necessity for
forward-looking business managers to examine problems with a broader
perspective, in order to make maximum use of the powerful tools now
available or soon to become available to them. These new tools process
work, handle and communicate information, and recommend courses of action
on a scale impossible by any other method.
Historically, business operations have been organized into compact
functional cubicles. These areas have developed their own body of
knowledge, techniques, methods of operation and Jargon. They have
carefully delineated their responsibilities and prerogatives. The new
electronic tools, however, are forcing a re-analysis of these organization
structures and requiring a revaluation of the contributions that a
particular function makes to the enterprise as a whole.
|CLASSES OF BUSINESS PROBLEMS
Business problems are being re-examined in the light of the benefits to
be derived from the use of computers or computer-like devices. These
problems ca be categorized as follows:
1. Data Processing
3. Information Storage and Retrieval 4. Information Communication
The listing is in the order in Which computers have been used to attack
these problems. It is also the general direction in which computing
hardware has been developed. However, this is not necessarily the order of
importance of these
problems. It can be argued, in fact, that this listing is in the
reverse order of importance. Equipment presently available or being
developed can be used in the solution of all four classes of problems, and
significant breakthroughs are constantly being made.
Problems involved in processing and recording masses of data are in
this category. The preparation of a payroll, payment of bills, issuing of
invoices, and inventory record keeping are all examples.
Because large numbers of clerical workers are required for the manual
processing of data, these problems presented early opportunities for
computers to justify themselves through savings in clerical costs. As a
result, computers have been used extensively in this type of application.
Computers are the solution of some data processing problems where they
process more data than is possible by any other means and still provide
Data processing applications are also being developed in the direction
of collecting data. The equipment used for these applications is generally
referred to as production control equipment and falls into two
classifications; automatic monitoring and data accumulation systems.
The monitor keeps track of a production machine's running time, down
time, and quantity made, and brings individual counts of these variables
for all production machines to a central control location. Accumulation
systems convert data inserted by a machine operator close to the
production tool into a format that can be processed further by electronic
The main job of the monitors has been to reduce the down time. One user
claimed to have paid for an automatic monitoring system in a month from
savings in reduced down time. Data accumulators have been applied to many
functions that are part of the overall job of production control. They
emphasize attendance reporting, labor distribution, order (or job) status
Simulation is the process of substituting a more easily observable
event or model for an actual event that is not as easily measurable. This
is done in order to understand the event or to predict the future.
For example, scale models of airplanes are built and tested in wind
tunnels before large sums are expended in constructing a full-size
prototype. The wind tunnel and model" simulate" the operating
conditions to be encountered by the plane in actual operation.
A breakeven chart "simulates" the expected operations of a
business enterprise under varying costs and volume. A credit man is
"simulating" a busines s when he projects the financial
statements to determine if funds will be available to pay for merchandise.
The popular practice of playing business games on a computer is an
example of business problems being "simulated." Player
"executives" face such management problems as sales forecasting,
inventory management and profit optimization.
Simulation problems present management with more than interesting
games. The challenges and opportunities created by the introduction of
engineering techniques into the areas of business and economic research
have been whetting the interest of management and university faculty
members for a number of years. Some educators are predicting that the
merging of the capabilities of the new high speed computers with the
current level of simulation methodology will create the foundation of a
new" scientific institutional economics". Also, as a result of
the growth of operations research and management science, we can expect
data organization and information processes to be revised drastically in
the years ahead.
Information Storage and Retrieval
The problems in storing and retrieving technical data have become so
important that major efforts in time and money are being allocated by
computer manufacturers, government agencies, and libraries to solutions.
The credit function will be a direct beneficiary of this work.
Scientists, businessmen and engineers cannot keep up with the mass of
published information. They need a fast way to lay hands on specific
subjects. A practical method of assimilating material, classifying it, and
compressing it into an index is essential for research. With such a
facility accessible to him, the researcher can focus on literature
pertinent to his general problem, then hunt up the articles that sound
promising. This can spare him months or years of duplicating research that
someone else may have done.
The fourth class of business problem with which this report is
concerned is the communication of information. Data may be processed,
related to other data in simulation studies, and filed for retrieval. It
is not useful, however, unless it can be communicated to the person who
needs it. The problems in this area are twofold: (l) the rapid
communication of information over long distances; and (2)
selective dissemination of information to the right person. Both phases of
the problem are being studied. and some harbingers of the change already
are in sight.
Business machines will have access to communication networks through
lightning fast teleprinters or orbiting transmitters in the sky to
exchange data over thousands of miles without human intervention.
Selective dissemination offers to free the executive from studying much
nonessential information to determine that it is not useful to him.
Executives who are interested in particular topics or have a need to know
will automatically receive information and reports in those fields and
will not receive material which is not pertinent.
EQUIPMENT AVAILABLE OR IN DEVELOPMENT
Exciting equipment is already available, is in development, or is being
planned for applying electronic solutions to business problems. Equipment
will be discussed as it relates to the classes of business problems
previously defined. Since the same equipment may be used in the solution
of each class of problems, only those with unique applications to the
respective problems will be mentioned. Computers or central processors
will not be discussed as equipment already available is limited only by
the ingenuity of the user. The input-output devices will be of most
interest in developing a receivables management system.
In order to process data, it must first be put into a form that can be
"read" by the computer; holes punched in cards; magnetic
printing on a check; magnetic impulses on magnetic tape; or holes punched
in paper tape. Today many of these input media must be manually prepared.
However, advances are being made to eliminate this process through devices
that will read the printed word.
Optical Reading. An optical scanner that reads words, numbers and even
punctuation marks faster than the human eye, is presently being produced
by several manufacturers. Currently, the output of the machine is usually
punched cards. In some applications the machine is
capable of reading numbers, then feeding the data in
code into a computer.
Page Readers. While present devices will read only a line at a time,
work is progressing on page readers that read a
whole page of information. The unique characteristic of the selected data
page reader is its ability to ignore information not required by the
computers for the creation or updating of individual accounts. This
facilitates the use of standard forms in the scanning process without
destroying their use as general office documents.
The devices read pages of printed characters. Work is also underway on
devices that will read handwriting by recognizing patterns in much the
same manner as the human brain does.
In this field as in many others, technological competition from other
countries is speeding developments.
Listening Devices. An experimental machine, that does arithmetic on
voice command, has been developed by one computer manufacturer. The device
recognizes up to 16 words spoken into a microphone, including 10 digits.
When the words, "plus", "minus", and "total"
are spoken, it instructs an adding machine to calculate and print out
correct answers to simple arithmetic problems. There is no present plan to
manufacture such machines, although they may some day provide access to
information systems for people who are too busy to prepare information for
|Printing Devices. Work is also
progressing on the problems of putting words on paper for newspapers and
books. New systems are being developed that appear to offer many
improvements over conventional methods of getting words on paper.
With one such system, a draft of any book or document can be typed on a
paper tape punching typewriter which produces typewritten pages and, at
the same time, punches the text in code on a paper tape. The typewritten
draft then can be proof read and editing instructions typed out with a
correction tape produced at the same time.
Working on the information from the two tapes, a computer performs all
deletions, insertions and other editorial changes at high speed and itself
turns out a master tape of a completely correct text, which is then used
to produce a finished positive on film or paper, ready for reproduction by
offset or letter press printing.
Generally most computers used in data processing applications can also
be programmed to solve simulation problems. However, many simulations
require equipment especially designed for the problem at hand.
Not surprisingly, computer systems are being designed which simulate
computer systems. A new type of computer program that reduces time and
effort required to simulate information handling systems before they are
built is being developed. The new method makes simulation a routine
technique that can produce results in a few days instead of requiring
months of special programming efforts. The first general purpose
simulation program for systems has already been used experimentally to
analyze and evaluate a variety of system designs.
Information Storage and Retrieval
Information storage and retrieval devices are essentially still in the
development stage. One manufacturer has a desk-sized
electronically-operated system for storing some
500,000 microfilmed pages in a single cartridge and quickly retrieving any
desired page or item. Another has developed an information retrieval
machine system which can store up to 99 million microfilmed papers and
automatically find each one in moments. Breakthroughs in cataloging
information for rapid retrieval are expected to
enhance the usefulness of these devices.
Still another system is used to locate information at ultrahigh speed,
searching through 50,000 technical articles an hour. Its use marks a big
step toward mechanizing the laborious and time consuming job of searching
for specific information in a growing mas s of technical literature.
This is among the latest problems to be attacked by computer
manufacturers, but development efforts have already made many systems
An order and supply system, said to be the largest application yet
announced, has been placed in operation by one company to link its service
center with many
of its distributors. The heart of the network is data transmission
|functioning over regular
telephone lines. Data from order cards is transmitted to a service center
and into a computer, which speeds and simplifies warehouse processing
A communications system that can move information between distant
points more than 1, 000 times as fast as the human voice has also been
demonstrated. Computers in a data processing center in New York City and a
point 68 miles distant were linked by a method which permits an operator
at one point to operate a computer at the other. By this means a large
organization may distribute jobs among its several computer facilities
without regard to physical distance.
Electronic factory monitoring systems promise a revolution in
management techniques in this decade. These systems provide better, faster
and cheaper production of manufactured goods. They speed the flow of vital
information within plants employing thousands of workers, thereby,
eliminating delays in paperwork, reducing multiple operations involving
the possibility of human error, and providing a firmer basis for fast,
sure management decisions. Data flows directly from the production worker
to the memory of a computer. The processed information and necessary
action orders move in the same uninterrupted fashion back to the assembly
The ultimate of a completely integrated control system would feature a
centralized "dynamic management" staff room where total
information would flash on screens for top executive decisions. Alternate
courses of action, based on precise and timely information, could be pre
-tested before committing manpower and materials to projects under
Information Processing Centers
This survey of equipment would not be complete without noting that it
is not necessary for a businessman with a problem to acquire equipment of
his own. He may well be able to find the problem solving help he needs at
an information processing center. The high cost of electronic data
processing equipment for lightly loaded systems has given rise to a new
industry - the renting of computer time. Computer service centers are
operating in more than 200 locations around the country.
Once the computer leaders were boasting that nothing was too big for a
computer. Now, the computer centers are saying nothing is too small.
Chapter III Receivables Management
A broad system of men, machines, and technics that might be employed in
a future Receivables Management system can now be outlined. Only the
barest outline of such a system will be attempted, as credit managers have
yet to "think through" the requirements for performing their
expanded role. Much hard work will be required to determine what it is
that is wanted and needed out of such a system. Then, once the system
requirements have been determined, much more work will be necessary to
design the system.
The increasing importance of the concentration of current assets in
receivables will necessitate intensive work on the problem. It remains to
be seen whether credit managers will rise to the challenge to design and
manage the system or permit some other function of the business to do so.
Shift of Industrial Assets
During the past few years, accounts receivable have become an
increasingly large proportion of the assets of manufacturing concerns. At
the same time relative inventories have been declining. What factors have
been operating to cause this shift of industrial assets from inventories
to receivables? Have credit men allowed their receivables to get out of
The measure of receivables against sales does not indicate that
significant change has taken place in days billings outstanding, or that
receivables have gotten out of control. What, then, has happened? The
answer is that businessmen have used new tools to make better use of their
inventories. Manufacturers are seeking ways to reduce inventories to
minimal amounts. It is suggested, in fact, that the use of computers to
control inventories has had some detrimental effect on rates of
production and economic activity.
One concept of inventory management recognizes that inventory is not
controlled from the receiving dock to the shipping dock but is controlled
from the supplier's receiving dock to the customer's receiving dock. It
focuses the attention of businessmen on the larger problem which can be
solved with the aid of computers, often with spectacular results. The
businessman may be able to nearly eliminate standing inventory, reduce the
need for warehouses, yet provide better service to customers by better
scheduling of production.
The importance of this development to the credit man is twofold. While
he has not lost control of his receivables, he can expect increasing
management attention to receivables as they continue to represent a larger
percentage of business assets. He should also broaden his concept of his
own function, and recognize
the existence of new tools which make it possible to solve the problems
introduced by the broadened concept.
This is the concept that a credit problem begins with the marketing
research which establishes a desirable market; it proceeds to the pricing
and terms policy to that market; and ends only when
a particular customer is no longer to be served. Too often a potential
market is surveyed, customer needs and wants established, funds committed
to develop a product, plants built to manufacture the product, only
to discover that some of the potential customers for the product must be
turned down for credit reasons. If the product has a short life, as have
many technically complex products of today, such a development can be
disastrous to the business. In any case, it is
Credit decisions should take into account:
1. The funds already committed to a line of products;
2. The marketing goals of the business;
3. The possible margins to be earned and measured against the risks
of credit losses;
4. The cost/volume relationships of the business; and
5. The capacity at which the factory is operating.
Receivables Management is a concept which embraces all these
considerations, not only on the part of the credit man' s own business,
but, to the extent possible, also his customers' business.
It should not be assumed that the use of a broader concept and the use
of new tools in applying the concept will reduce the size of industrial
receivables and credit losses. Indeed, it m1.ay well be that larger
commitments of resources to receivables and larger losses will contribute
to greater profits for the enterprise. If a "receivable" is
traced back to its source it will be found that it originated in market
research. At that stage, it was established that a product at a certain
price and terms would satisfy the needs of a large enough group of
customers to make it profitable to produce the product. Our receivables
management system must therefore start at this point. It can aid market
research efforts in establishing price, terms, classes of customers,
anticipated lock-up of funds in receivables, credit losses, and sales
volume. However, the portion of the system involved in credit decisions
will be examined first.
The first step involved in credit decision is the collection of
information. A necessary item, therefore, in the proposed receivables
management system will be an information storage and
retrieval device for storing all pertinent information about an account.
Using a page reader as input, all data received on firms which are either
customers or prospective customers will be fed into the machine daily. The
daily input would consist of credit agency reports, salesmen's call
reports, replies to credit inquiries, and correspondence. Of course, if we
are dealing with a number of the larger nationally-known firms our machine
must be required to "read" the national financial journals. With
the future development
|of voice operated inputs, the
device shall be able to monitor telephone conversations and put them in
the file, thus saving credit managers many hours of dictating memos for
Upon receiving this information, the machine will sort and file it by
customer, by subject, and by chronology, to be available upon request. In
addition to this information, the device will be linked through
communications channels with sales offices and warehouses to collect
information on new orders, status of shipments, and other pertinent data.
There is little doubt that such massive information collection devices
will soon be available and much information, useful
for credit, will be fed into them by other functions of the business.
Analyzing Stored Information
The second step in a credit decision is to analyze the information that
has been collected. Here is where credit managers must make a major
to the system requirements. The credit manager, if he chooses, can sit
back and watch the many other people interested in information storage and
retrieval do the work necessary to satisfy the information needs of their
departments. If he does that, however, the system will not work for him.
How does a credit man use the available information to make a credit
decision? Books and articles have been written on analyzing financial
statements. Ratios are calculated, compared with prior years, and
projected into the future in rather precise ways. After this is all done,
a "credit limit" of a definite dollar amount is established and
the account is classified as prime, marginal, or submarginal. The writer
has never seen demonstrated a rational procedure to arrive at the amount
of a credit extension from all the analyses. Invariably the process of
jumping from the analysis to the credit is called an exercise in judgment.
In many cases judgment needs to be exercised as a result of the
insufficient development of analytical methods for bridging the gap
between statement analysis and the amount of credit. It is hoped that
attempts will be made to develop such methods for then the computer can
analyze the data it has stored on an account, calculate all the ratios,
compare the ratios with industry standards, calculate source and
application of funds, forecast the financial status of the account at the
time payment is anticipated, and calculate the amount of credit.
It is possible for the computer to learn how to set limits by analyzing
the information present in a number of "judgments" made by a
credit manager and then making the same judgments under similar
circumstances. The problem with this procedure, of course, is to find
someone whose judgment is sound enough in all situations. Only through
analytical means can conclusions be reached which can be consistently
revised in the light of better techniques.
At this point an approach to the problem might be suggested.
Presumably, the system has stored all pertinent information relating to an
account, including several prior financial statements. Also stored is
information relating to estimated future requirements, and several trade
clearances. The computer is now put to work forecasting the financial
status of the account at the time in the future when payment is expected.
This can be done in several ways:
|Projection of In-fiIe
A forecast of the financial condition of the account could be made by
assimilating various pieces of in-file information such as newspaper
clippings forecasting future sales volume, SEC registrations of additional
equity, or agency reports of additional borrowings. The computer program
would assemble these bits of information in their proper place in a
forecasted financial statement.
Projection of Prior-period Trends
Mathematical methods, such as "least squares," can be used to
project past trends into the future. The computer might then be instructed
to compare this result with information of the kind used in the first
method and report major discrepancies.
Projection Based on Industry Ratios
This method could be used to simulate future statements of an account
by applying standard ratios of its industry to the company's figures, then
adjusting them for the account's historical deviation from those figures.
Determining Credit lines and Classifying Accounts
Now that a projection is available on an account, the computer is
requested to predict how the company will pay its bills by relating the
projected financial ratios to present or past conditions. Did trade
clearances show the same promptness or slowness when conditions similar to
these existed in the past? Can payment be expected to be prompt or slow
30, or 60, or 90 days?
Once the process has gone this far, the problem can be solved by
application of policy. If the seller's margins are small and net working
capital limited the policy might be to classify any account as a marginal
account where payments are expected to be 30 days slow.
The account has now been classified, but the amount of credit has yet
to be established. This can be approached by referring to the
"intelligence" information stored from market research studies
and salesmen's reports. Information regarding the per cent or quantity of
this account's volume supplied by the seller will be retrieved. The system
will again fall back on policy regarding the desired share of this
account's business, based on the expected promptness of payment. The
policy might be to supply requirements if payment is anticipated within
terms, seventy-five per cent of requirements if 30 days slow and
twenty-five per cent of requirements if 60 days slow.
Anticipated losses can be forecast by a computer analysis of losses
from previous decisions as to amounts and promptness of payment in
relation to the projected statements. The system has now established both
the classification of the account and the amount of credit involved.
Judgment in the form of "policy" has been interjected in the
system at this point but the system will also provide information to aid
in policy formulation.
The receivables management system begins with market research where
credit analyses, as outlined above, are performed on selected accounts in
the market survey. These analyses will determine:
1. If credit policy will permit the volume forecast with these
2. The extent of the lock-up in receivables;
3. Anticipated losses.
At this point the total business planning effort comes into play and
the receivables forecast is balanced against the price, volume, cost
relationships of the product, engineering and facilities risks, working
capital restraints, and cash flow. The receivables management system has
created an important input to this planning process and will produce an
important output. The final plan will provide the credit policy to be
followed which permits the accomplishment of the other objectives (volume,
income, investment) of the plan.
Collecting Information in Advance of Orders
The next step in the receivables management program is to begin
gathering information sufficiently in advance of receipt of an order.
Prospects might be statistically selected by market re search studies and
the information storage device instructed to begin storing information
about these accounts. Salesmen's call reports may then be stored and
analyzed to determine the number of accounts which, called upon for the
first time, ultimately become customers and how soon after the first call.
Statistical methods can be used to identify prospects which will need
additional information before they can be considered desirable credit
risks. When the first order is received (fed directly into the computer
from the sales office) sufficient information should already be available
for analysis by the computer with the exception of financial statements
direct from the customer. The system, however, will have already analyzed
the information in its file for reliability and, if the information is not
consistent or sufficient, will have printed out a letter requesting
If sufficient information is available, the classification of the
account and the amount of credit will be determined
by following the policy formulation determined by the business plan for
the product. The system will first check with the inventory management
system to determine if volume goals are being missed or bettered, how the
planned cost/volume relationships compare with results being realized, and
attainment of working capital objectives.
If, for instance, volume is not up to expectations and facilities which
were planned on those expectations are idle, the system would act to
increase volume (assuming it is a primary objective) by accepting larger
risks with more marginal accounts. Conversely, if volume expectations are
being exceeded, limits might be reduced on marginal accounts to provide
funds for increased capacity from receivables lock-up.
The next link in the system is the familiar data proces sing function
of updating the accounts for shipments, crediting payments, preparing
statements, and automatically initiating follow-up letters, and telegrams.
The system is not finished after successful collection is made. It is
hard at work comparing the actual payment experience with what was
forecast and adjusting the forecasting techniques in view of the
experience. It is also storing the profitability of the orders from the
account for reference in establishing credit limits on future orders.
The system must also provide assistance in customer counseling.
Composite statements could be readily prepared from the individual figures
of accounts in the same line of business. Their composite figures could
then be made available to customers for use as yardsticks against which
they could measure their own performance.
CONCLUSIONS AND RECOMMENDATIONS
In the near future the role of the credit manager will either be
drastically reduced or dramatically increased. It depends on his ability
to broaden his viewpoint and imagination in enlarging the concept of his
job. He will soon have the necessary tools to do the larger job if he is
ready to use them. Certainly the credit manager who is the bookkeeper of
the receivables ledger will rapidly fade from the scene as will the credit
manager who says "there is no substitute for judgment, " and
while saying so, discourages efforts to develop aids to judgment.
To realize his full potentialities the credit manager must begin to
"think through" the broader concept of his responsibilities, and
develop receivables management consciousness. He must understand the
systems concepts in other areas of his business so that his system will
tie into them. In many instances the credit manager will find that other
functions in his business are already doing considerable work on expanded
systems concepts to fulfill their responsibilities. These are things that
can be done only if he makes a conscious effort to delegate day to day
activities and to devote the gained time in planning a receivables
The credit manager must also write. Proposals, no matter how crude,
should be written and circulated among credit managers. One idea sparks
another and no credit manager has the ability or requisite knowledge to
design a complete receivables management system by himself. Credit
managers lack a purely technical journal as a forum for proposing new
analytical methods or systems. Occasionally a paper, usually an important
contribution, will appear in bulletins published by associations, but that
is not enough.
Computer equipment can be designed to do so many different jobs that
product planners, engineers, and programmers find it extremely difficult
to determine exactly which jobs a new computer should be designed to do
most efficiently. Design compromises must be made which may permit one job
to be done more efficiently than others. As a result, many of the more
interested technical societies carry on what are essentially lobbying
activities to make sure that the manufacturer considers their needs and
requirements in future designs. Credit managers do not appear to be
engaging in these activities, as they have yet to define their needs, and
their needs may not be given consideration in future designs.
In order to take full advantage of the new tools, credit managers must
"think through" their systems problems and develop an
1. Provide a clearing house for contributions by various credit
2. Determine equipment capabilities required in the system;
3. Make their equipment requirements known to manufacturers.
PUBLICATIONS CURRENTLY AVAILABLE
Bibliography on Equipment Leasing
Cash Flow Projection - A Tool of Credit Management
Credit Executives' Outlook
Credit Management and the Strong Vocational Interest Test
Credit Management Handbook
Credit Orientation and Training for Salesmen
Current Trends in the Practice of Charging Interest on Past Due
Customers - Your Most Important Asset
(Summary of Workshop Discussion on Customer Counseling)
Financing Industrial Equipment Leases
Guide for the Establishment of a Credit Department
Methods of Calculating Reserves for Bad Debts
Punched Card Accounting and the Credit Department (1962 Edition)
Punched Card Systems in Credit Department & Accounting Operations
Thoughts for Prospective Users of Electronic Computers for Accounts
In Progress For The Future
Computer Applications for Credit and Collections
A Study on Bad Debt Analysis
Credit Department Expenses
Credit Department Training Programs
A Study on the Value of Credit Management to Business
CREDIT RESEARCH FOUNDATION BOARD OF TRUSTEES
Ralph E. Brown, Vice President, Marsh & McLennan, Inc., St. Louis,
Kenneth E. Campbell, Vice President, Bank of America NT & SA, ,san
Francisco, California James H. Donovan, Assistant Treasurer, Jones &
Laughlin Steel Corporation, Pittsburgh, Pennsyl vania
Loretta Fischer, Secretary-Treasurer, George Ziegler Company,
Milwaukee, Wisconsin Fred J. Flom, Detroit Edison Company, Detroit,
Tull N. Gearreald, Vice President and Treasurer, F. S. Royster Guano
Company, Norfolk, Virginia
L. B. Houghton, Treasurer, Union Oil Company of California, Los
Angeles, California Harold J. Kneuker, Assistant Treasurer, American
Machine & Foundry Company, New York, New York
Lloyd Sinnickson, General Credit Manager, American Cyanamid Company,
Wayne, New Jersey Gilbert W. Sites, Credit Manager, The Times-Mirror
Company, Los Angeles, California
Irwin Stumborg, Assistant Treasurer, Baldwin Piano Company, Cincinnati,
Paul J. Viall, Treasurer, Chattanooga Medicine Company, Chattanooga,
J. Allen Walker, General Credit Manager, Standard Oil Company of
California, San Francisco, California
James F. Welsh, General Manager, McCormick & Company, Inc.,
L. B. Wilson, General Credit Manager, Union Carbide Corporation, New
York, New York
President Irwin Stumborg
Executive Vice President Alan S. Jeffrey
J. Allen Walker, Education Lloyd Sinnickson, Research
Leroy B. Houghton, Promotion James H. Donovan, Finance
Treasurer William J. McDonald
Assistant Treasurer R. M. Woodruff
Secretary Robert L. Roper
Managing Director Peter C. Peasley, Ph. D.
Associate Director George N. Christie
As sistant Director s of Re search Lionel L. Wallenrod
Elmer T. Sivertsen
COMMITTEE ON RESEARCH
Chairman: Lloyd Sinnickson, General Credit Manager, American Cyanamid
Company, Wayne, New Jersey
Vice Chairman: R. L. Carlton, As sistant Treasurer and General Credit
Manager, Continental Can Company, New York, New York
George T. Brian, Jr., Vice President, Noxzema Chemical Company,
Baltimore, Maryland John J. Costello, General Credit Manager, Allied
Chemical Corporation, New York, New York Herbert J. Dickson, Executive
Vice President, Citizens & Southern National Bank, Atlanta, Georgia
Fred Kiel, Assistant Treasurer, Owens-Corning Fiberglas, Toledo, Ohio
Harold J. Kneuker, Assistant Treasurer, American Machine & Foundry
Company, New York, New York
Walter J. Naber, Jr., General Credit Manager, Monsanto Chemical
Company, St. Louis, Missouri
R. A. Nunlist, Treasurer, National Supply Division, Armco Steel
Corporation, Pittsburgh, Pennsylvania
Richard M. Oddie, Assistant Vice President & Director, Small
Business Advisory Service, Bank of America NT & SA, San Francisco,
Jasper C. Osborne, Vice President, Trust Company of Georgia, Atlanta,
Blanche M. Scanlon, Nash Finch Company, Minneapolis, Minnesota
W. W. Smith, Manager - Credit & Collection Service, General
Electric Company, New York, New York
Robert W. Sprenger, Assistant Controller and General Credit Manager,
Johnson & Johnson, New Brunswick, New Jersey
L. B. Wilson, General Credit Manager, Union Carbide Corporation, New
York, New York