The Portland daily press., 1888-11-24
INDIVIDUAL RATINGS.
A System by Which Western Retail
Merchants Avoid Bad Creditors.
milwaukee, Sentinel. |


"Mrs. John Smith wants credit on that
BILL" said dry goods salesman to his en-
ployer
"She does, does she; what's her address
and how long has she been in town."
Lived here about year; her address is
726 -- street. Her husband is book
keeper in the St. Paul offices. She has
bought small bills here before but always
paid cash.
"Weli, let's see," continued the merchant,
reaching down box from a cabinet letter
file. "Ah, here it is, John Smith, 726 -
street,. ID. How much does she want and
for how long?"
pay 10 Two weeks or at the end of the month
certain"
Let her have the goods" Mrs Smith de-
parts with her purchases, all unconscious
now nrm 70 which she was a comparative
stranger made up its mind to give her credit.
Ratings" of business men and firms. such
as are furnished by the great commercial
agencies, "Bradstreet's" and 'Dun's," have
been more or less familiar to the public for
man many years years 1t Is only recently, however,
that similar system has been applied to
retail buyers. In Milwaukee this work is
done by company which is chiefly known
as an agency Tor the collection of retail ac-
counts. The method of operation is this:
contracts are made by the agency with
various retailers to collect their bills and also
to furnish them with information about
their customers. This contract vbliges the
merchant to furnish, in turn, to the agency a
list OF his credit customers and his best esti-
mate Oh tnelr trustworthiness and prompt
ness In paying their bills. In the office of
the agency these various reports are consoli-
dated and general result made out, which
Is sent to other dealers connected with the
agency. The various reports on the same
John Smith run thus:
Grocer-Prompt at end of month.
Butcher.Same report.
Iaior-Falr pay, sometimes little slow.
Saioon-Cash or next day.
month. f"'S ~ '-N =.
Furniture-Bought on installments, not all paid
for, 80 F
The man at the agency sizes up all these
particulars, taxes into account Mr.. Smiths
known or probable income and the size of
his family, and gives Mr.. Smith a rating ac-
cordingly, &C. d." This being interpreted
means, lis good pay, may occasionally be
SLOW, but all right If he is not let in too
deep." Thus Mrs. Smith gets her fall dry
goods on credit, up to certain point. If She
goes beyond that she is likely to be met with
request TO pay up some of her arrears.
Thomas Jones may be reported thus:
Tailor-Dead beat.
Grocer-Slow.
Butcher-SlOw
| Saloon Good pay fond of treating
furniture Slven MIN by his wife's father.
The agency sizes up these points and re-
ports Mr.. Jones as ''F' or ~" That is to
say slow or poor pay" The remarks may
be added, HAS wealthy father-in-law," or
wife has an income of her own" When
the wife has an independent means she will
probably be given separate rating. If the
wife Is extravagant or her husband has in
the past made trouble abont her bills those
facts will be noted. S
All these matters of credit giving and
rating" are of course confidential between
the merchant and the agency. Some trades
men think the reports are a pretty good
thing. Others place little reliance on them,
| preferrlng to credit only those whom they
know or to rely upon their own Judgment.
Inc growth Of the ''installment' business
and the widening perception of how really
excellent . security an iron-clad chattel
mortgage is, has cut off much of the old sort
OF credit business. One can get almost any.
thing on credit now if he chooses to secure
the seller with cut-throat mortgage or a
lease with privilege to purchase" The
increasing stringency of the laws against
selling mortgaged property also makes the
seller OF goods on this sort of credit even
more secure.