New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-05-23
THE "CREDIT MANS" WORK.
HOW BUSINESS HOUSES PROTECT THEM
SELVES AGAINST LOSS.

There is to be held next month in Kansas City
convention OF tho "credt men, OF the United
States. Tho meeting cannot fail to be one OF I'M
portance to business houses everywhere because
at It's sessions will be discussed the best methods
OF protecting the financial interests OF those houses
against losses on tho accounts OF insovent or dis
horest customers. The functions OF credit man
not generally known to the public but he Is In
many respects the most important person employed
by a mercantile concern. Briefly, he Is supposed to
be informed regarding tho commercial standing OF
every firm or individual with whom his own house
has any dealings lie Is kind of walking Brad
Streets" and the firm for which he works has the
exclusive benefit OF his Investigations, his knowl-
edge and his experience. 1t does not trust to him
alone OF course. because In the case OF large
house there would be rather more than he could
attend to- The regular mercantile agencies are
depended upon for a certain amount OF informa-
tlon usually that which concerns the oldest and
richest corporations, about whose solvency there
is commonly no question. Tho credit man may.
however, If his employers suspect a necessity for
t. be called upon TO probe still further than the
regular agencies go. In order TO make assurance
doubly sure
When a would-be buyer from remote part
OF the country presents himself to a firm TO which
he Is entirely unknown, he is introduced at once
to the credit The latter receives whatever
credentials the stranger has 10 offer. and II he Is
satisfied that the house will run no risk In selling
cepted. Various considerations determine the
amount OF security which new customer Is re-
auired to show, and not infrequently II Is supu-
lated that he shall have real estate backing
which Is known be responsible The credit man
also figures out at once the largest amount OF
credit which can be granted 10 the new buyer. this
being determined according TO the figure at which
he Is rated
Subsequently, as he runs up bills for goods, they
all pass under the credit mans watchful eye. and IL
II Is found that the customer Is close upon his
credit limit the last purchase Is often held until
II Is proved TO certainty that Its delivery VIII
entail loss to the firm. This process of Keep
Ing track OF every buyers limit imposes a never
ending task upon the credit man. ana IL Is one
which requires delicate handling too While great
caution Il necessary. there must he rs few needless
suspicious possible for these are often the means
OF driving away perfectly trustv orthy customers.
who feel themselves insuIted by tho reflection upon
their financial methods =.
In cases where there is good ground for believing
that customer will bear watching the credit
mans Investigations are very thorough. lie In
qulres as 10 the private affairs OF the buyer In
question: finds out nearly as possible the amount
OF his income. and how his money Is Invested.
and keeps eye well upon the way In which
no lives and spends With every prccautlon. how
ever. there are many losses and II Is the business
of the annual convention OF credit men to discover
better ways each year OF protecting mercantile In
terestA