Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1903-03-18
FOR BETTER CREDIT.


Under the title Of Fire Insurance and
Credit one Of the largest wholesale
houses in western New York has issued
a circular letter to customers urging
ample fire insurance protection as
guarantee for better credit The elrcu-
lar viii be Of interest in this part Of
the country as well as in the east, and
reads as follows.
Insurance has ceome to be recog-
nized as one Of the most important ele-
ments entering into the question of
credit. Next TO the trusting out of
goods, insurance against fire Is the
most importnt matter. Nevertheless.
there are many merchants who fail TO
give insurance that consideration TO
which II is entitled II Is often found
in investigating statements that either
no insurance at all is carried, or else
the insurance is very small compared
with the value Of the stock on hand
The retail merchant should realize that
when he buys goods upon credit with
out taking out a proper insurance that
he asks the jobber to assume a double
risk First there is the ordinary credit
risk and second there is the risk from
fire, Almost Invariably the goods re-
naming in the warehouses of the Job
bers are amply insured When the
goods are transferred from the jobber's
warehouse TO the store Of the retailer
they should likewise be insured against
fire.
III insurance is being neglected from
lack of appreciation OF It's importance,
ia q
that the business methods In general OF
the merchant are more of less slack
II he is needless Of insurance, which is
so vitality important. very naturally he
may be suspected Of trusting out his
goods too freely and to be an Indifferent
collector and also a careless buyer.
Straws show which way the wind blows.
and the manner In which insurance is
managed Is straw In the wind which
the Jobber Is prone to watch very close
ly.
THE high rates for insurance pre-
Vailing in towns and villages is often
given as a reason for not carrying in
surance or for carrying limited amounts
only. Does il never occur TO
the retail merchant that the
only reason for high rates is
'hAN va Allt average NItS IN Nulu To-
calities are more frequent and more
disastrous than in better protected
places? Insurance premiums are based
upon the quality Of the risk The high
er the rate Is that the insurance COM
panies name the greater the danger Is
that they know to exist hence the
greater need to the merchant Of the
protection that insurance gives. For
the merchant TO carry any part Of the
risk himself is TO be penny wise aud
pound foolish. Such course Is unjust
TO those who extend credit 10 him. Ac-
cordingly he should not be surprised
when pursuing this course, II, i'm some
cases, credit is absolutely withheld I'M
I'll his stock is sufficiently insured
THE unwisdom OF negectng insur-
ance on the score of economy becomes
apparent on some unfortunate day.
when the merchants stock is consumed
by fire and the earnings and accumu-
latons of years vanish in an nour. II
the stock had been properly insured
there would be enough to meet busl.
ness obligations and start anew. If II
was not properly insured then all Is
lost and capital and credit are both
gone. Insurance is a subject worthy of
most careful thought upon the part Of
every business man. Every merchants
rule should be 10 keep well insured IN
good companies and never 20 allow poll
cies TO lapse"