Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-01-12

ALSO of fixtures: the actual value of all
real estate. less the homestead. Then, il
there are any other assets. place is
left TO enumerate them. Then the full
given and surname of each partner in 4
partnership is wanted. and there is a
line to- tell whether each is single or
married. after which the net response
bility of each is asked for.
This is supposed TO be a fair and
full statement of assets. Then there is
another page for the enumeration of
liabilities. The items on this are: On
open account for merchandise: to
banks for borrowed money: 10 others
for borrowed money: to relatives, en-
ployes or others for money left on de-
posit not included above; on real es-
tate: other Indebtedness: how much
of the Indebtedness is past due: give
details OF any items secured by mort
gage Then the statement wants to-
know more, for instance. the amount of
sales the past year; the insurance car
ried on stock and on buildings; the
names of those who on the records own
any real estate that may have been
mentioned: with what house the man
banks: of whom he does his principal
buying; and then they leave his several
lines to be filled out with references.
Ii will be said that this is consider
able information for merchant to give
up. So il is, but the rating agency is Il
confessor from which the devout mer-
chant will conceal nothing at least if he
is wise. Merchants now give the infor-
nation; they do SO as a rule when
aH
there is bad mark against their credit
ratings that may play smash some time
in the future.
Tells All. If Wise.
1t will occur TO some that it is an
easy matter to do little tall lying in
making out the items of this report
Yes it is. but it is likely to avail moth
ing.
In the branch Office. say at Chicago,
there is 4 well paid force of sleuths
whose business it is to verify the items
in the statement made by the mer-
chant. If there is the least thing to
throw suspicion on the statement, the
merchant will be asked to give a de-
tailed list of those To whom he is in
iebted and the amounts of each. Then
these creditors will be written and they
will be asked to state if the figures as
turned in by the merchant are correct.
There will be a like investigation of
the items that go to make up the assets
If the merchant. This work of verifi-
cation of statements is going on all the
time and is pushed vigorously.
There is more than a mans ledger
page in determining the credit to which
he is entitled. The mans sanity,
character. ability and habits will be I'm
1uired into. In a town like Rock ISL
and there is a local reporter for the
agency. he is always on the ground.
4 the merchant is doing a long turn at
high rolling he can be sure this will get
reported at headquarters.
Records of Courts.
Then there are the court reports and
mortgage records. The local reporter
sends in disclosures from them every
day: that is where they effect the cred |
il who has a rating in the agency. If
a merchant here files a chattel or other
mortgage. or if he transfers any kind of
property. a report of the transaction is |
sure 10 go TO the agency the same day. |
II there is anything suspicious about |
The performance. or if it is so big as to |
become a pressing matter. information |
Of il will be telegraphed to the agency |
branch office in Chicago.
Thousands of men are engaged all |
the time in keeping these ratings up TO |
date and as accurate as possible. All of |
them are experts at the work. so one |
need not wonder that the results are
good. The system is made a little bet |
ter each year. and we are about on the |
time when the only way to beat the |
credit ratings is TO turn rankly dishon- |
est suddenly and make way with re-
sources that should go to creditors. |
Men will do that very thing, and per
haps the credit agencies will never get |
a check on that performance.