Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1900-04-19
UP TO THE MINUTE
TRIALS OF A NEW YORK CREDIT
MAN.

Big Stores and Measures Taken for
Their Prevention-PeopIe Who May
Be Observation-Disclosures
Up to date is not enough for the cred
it man Of big New York department
store. He must be up to the minute.
The tricks that were tried on him an
hour ago are ancient history, pigeon
holcd in his memory. His business
at the present moment is with the
trick which the latest seeker after
credit may be trying to play on him.
He must be careful not to drive away
good customer whom 1t is safe to
trust, and he must be equally, or more,
careful not to give credit to one who
cannot or will not pay. His employers
do not accept any excuses. He must
not say that he did not know about
So-and-So's financial condition. 1t is
his business to know. His value to his
house depends on the amount of cred
it he grants and the small per cent of
loss which comes of it. There is abso-
lutely no sentiment about the matter
Suppose man whom you knew to
be perfectly honorable, but in tempo
rary straits, should ask you for cred
it?' This was the question l put to
the credit man of the department store
doing the largest credit business III
New York.
He would not get it," was the an
swer. Intention does not count for
much. Ability TO pay Is the thing
Last year this store lost barely one
half of one per cent. of the credits it
extended.
The credit methods of the several
large stores In New York are substan-
tally alike, the only essential differ
cnce being in the degree Of skill with
which the various credit men deny
people without offending them. First,
there is the Retail Dealers Protective
Association, composed of most of the
New York retailers who do any credit
business. For the benefit of it's NOM
bers this association issues from time
to time book of ratings of habitual
credit seekers. The latest book con-
tains more than thirty-two thousand
names, the ratings being based upon
actual dealings with members. The as
ISOLATION also makes special investiga-
tons for its members and undertakes
the collection of accounts.
experimenting this. each large store
has system Of cards, on which are
written the standing of every known
New Yorker who is at all likely to ask
for credit For instance, a white card
indicates that the person whose name
it bears is worthy of credit. Mcmoran-
da of the extent of his credit and of
any facts concerning him are recorded
there. Should future information show
that he is slow In his payments, his
name is transferred to red card. and
the reasons recorded there Should he
at last turn out to be unworthy of
credit, his name is placed on a blue
card, and he is stopped from getting
anything save for spot cash
The credit mans assistants are con-
staltly at work on these cards. They
study all the daily newspapers and ev-
cry other source Of possible informa
ton concerning the financial condition
of New Workers. A birth may mean
that the parents have an added eX-
penSc which makes 1t the harder for
them to pay their way. \ death may
have leSsenpd the earning power of Il
family a marriage or a divorce may
either increase or diminish a mans
or w0man's financial responsibility, ac-
cording to the circumstances Of it.
If judgments are entered, if mort
cages are given, If any kind Of trouble
comes to anybody whose name is card
ed in the credit department, note is
made of it,
But the ShrcwdncSS of the credit
nan is most called into play when he
has to deal with persons of whom he
has no record and these come by
scores every week.
"My first impressions are always
best" said one of these keen men to
me. "'rhc first time | see n person |
am on guard with all my faculties. The
next time | may be influenced by some
little thing which would have made no
ilnprt SSion at first. | don't believe |
ever changed my first impression that
/ did DOT make a mistake one way or
tl!c other; and it is as bad for Inc to
refuse credit to worthy person as to
give it TO N unworthy one.
I'VE don't care much for bank ref
crrnces," lie added. "rhcy are apt to
be too sanguine. | know that bankers
eve often loose in their recommends
HOns, SO set the Retail Dealers Pro
teCtivc Association to making special
investigations. They often find that
large properties are more than covered
w lutI tGiStS, mat uHShtlSllcu JuuS-
uIcnts stand against very well recon-
mcDded names. References are neces-
sary OF course, but we have TO take
them with many a grain of salt"
we divide people into three general
classes. For example, the recommcn-
datiOns of public men are seldom of
any value. A politician will usually
recommend anybody who has vote
or can influence one. And as to clergy
men. their sylnrat4iss get away with
their Judgment. The woman who
comes with the recommendation of her
pastor is pretty sure to be disappoint-
ed
What general class do you regard
as the safest risk
Army and navy people can have all
the credit they wish and no questions
asked The standard of business mo.
rality in the army and navy is positive
assurance that we will get our mon
ey.'