White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1868-09-17

RAriNcs As TO STANDING AND C.rp,r-It
is generally known chat there are in the C;tv
fNe~ York establishments styling themselves
+" Instituti 'ns," Commercial Agencies" q
j." Mercantile Agencies" which are suppo.ea
to have great influence and actual power ia
producing or prejudicing the standing and
credit ofLusiness men throughout the Union.
Having their or secret agents in nearl, ev.
cry city, town, village, and at almost every
cross road in the length and breadth Of tse
whole land, these concerns have become inter.
woven with the whole mercantile system Of
the country. Every merchant, trader, manu-
facturer, and banker. whether likely or not 70
make purchases o. time or ask for credit in
any of the principle cities. is fully re ,orted at
their headquarters-his business. means, "re-
spectability," standing. are published, and
even his private habits are detailed and open
to the inquiry Of their customers. So com.
ple,e and thorough a system of espionage a
these concerns have everywhere extended, |,
probably unknown even to the police depart.
ments of France or Austria.
So long as business shall continue to be done
upon the credit system, establishments Of this
nature will probably continue to exist in some
form or another; but the mode in which they
have been conduc,ed-namely, BY printing
Books OF Reports. in which tens Of Thousands
of business men are denoted BY q dash (-);
or an asterisk ~, an interrogation point ~,
or some similar mark, siguifying that the pay
ty so indicated is 4" not recommended for cred
it," or that the customer should " inquire at
The of6ce"-must, in view Of recent decisions
in slander and lib el suits, be materially modi-
fed
Those establishments, with their numetous
clerks, standing behind long rows of desks, on
which lie ponderous volumes wherein can be
learned a story, whether true or false, Of every
merchant in any part Of the country whatever,
will probably modify their business, or pass
away-the liability, in view of recent decisions
to sander suits arising out of their operations,
being too heavy to incur.
In the Mercantile Agency case Of Beardsley
against Tappan. the plaintiff recovered ten
thousand dol lars and upon a motion for q
new trial, made before the United States Cir.
cult Court for the Southern District III New
York, the Hon. Samuel Nelson, one Of the
ablest Justices of the Supreme Court, has do.
livered an opinion denying the motion. holding
that the publicity given to information depre-
ciatory Of the standing and character Of msr-
chants, "by recording the hbelous words in .
book, deprived the communication of its other.
wise privileged character" He was further
of opinion that to legalize these establish.
mems in the manner aud to the extent used BY
the defendant, is placing one portion Of the
mercantile community under an organized sys-
it OF the other, exposed. from the very nature
Of the organization, to perveIsion and abuse" !"
| With the view Of obv'ating the objections.
BILE features of the former systems, a company,
with a capital stock of $500 900, divided into
$40 shares. has b. en- Organized an incorporat-
ed under the laws Of the State of New York
under the title of The Merrhants' Protective
Union, on a basis which seems TO be free from
the evils. difficulties, and cmbarrassments un.
der which those heretofore in existence have
labored.
The plan adopted by the Merchants Pro.
tectiVe Union. though analogous in some par.
ticulars to that Of the estab lishme3ts above re-
ferred to, yet differs in such material respects
as not to be amenable to the objections urged
against them, the main points of difference be
ing the following:
First. All necessary information as to tie
! pecuniary responsibility or financial condition
aud standing of business men will be based
upon the written statements OF the parties
themselves-so far as attainable-to be fur.
nished at least twice each year. tn. agents oi
the Union examining and revising such state.
ments Hhen deemed erroneous ard, where
the slime cannot be obIained from the partie.
themselves, BY reason Of their declining OF re.
fusing to furnish it, such information will b
supplied sy the reliable and responsible CORE.
spondents Of the institution, whose names will
also be published in the Mercantile Reference
| Reports, to be issued every six months. The
character OF its correspondents, and the pub.
licity thus given to their connection with the
organization, will prove a sufficient guarantee
Of the correctness of the information thus OF.
tanned, and the justice of the reports furnished
by them. There will be notiiss " secret" or
strictly eonfdasfial' in its reports Of the rat.
ings and markings of the credit and capital Of
business men-there will be no futile prohbi.
tion to the effect that such information " shall
never, in any way, be communicated . the
persons reported'-there will be nothing tha,
may not be exposed to the light Of day.
Second. The reports and information fur.
nished by The Merchants Protective Union
will be confined to those Who are considered
worthy Of credit Of some grade; and the
names of none who cannot be recommended
for some line or degree Of credit will Be men.
toned or in any way referred TO.
It is believed the above Plan, adopted amer
consultation with some Of the ablest counsel
in nearly every State, will avoid the evils Of
those heretofore in operation will be pro.
ductite of no harm will work substantial
justice TO all and will. at the same time, fur
uish reports more truthful and complete, and
therefore Of much greater value, than any pre-
viously issued.
IL will be seen, from their announcement in
another column. that in September The Mer.
chants Protective Union will furnish in oae
large quarto volume The Mercantile Reference
Register, containing. among other things. the
Names, Nature Of Business, Amount Of Capi.
tai, Financial Stan ing. and Rating 20 10
Credit, Of oter 400 600 of the principal nef.
chants. traders, bankers. manufacturers. and
public companies, in more than 30 900 Of the