Arizona republican., 1914-12-17
Modern Methods of Safe guarding Credits Explain ed by President of Ma tional Associ a tion of Credit Men to NJ. and M.
BRIDGES ADVOCATES
 STATE INSURANCE,
Says Rate Making Commits sions Have Proven Fail ure Wherever Tried and Solution of Problem is a State System

That cooperation has supplanted competition as the life of trade and that modern business methods are coming more and more to employ this principle in the matter of safe guarding credits, was the declaration of C. E. Meek, presi- dent of the National Credit Mems As sociation and vice president of the American Exchange National bank of New York before the Merchants and Manufacturers Association last eve ming. The address followed a dinner lat the Arizona club
 Under the new regional system of banks, signed statement will be re- qured from each borrower as to his financial condition" said President Meek. This statement will amount l to an inventory of the merchants stock of goods, and on it will be based his borrowing capacity Member banks who will be asked to rediscount this paper will handle the paper through credit departments, which will be | established for this purpose.
 The old idea of withholding infor- nation as to the standing of custom 1 CTS no longer obtains" he declared | Prominent manufacturers and bus- ness houses now open their books to their competitors investigation, and thus often avoid carrying undesirable | accounts on their books. The new system of requiring d signed state 1 ment from the applicant for a loan will work q benefit to the business man himself as well as to the banker, for he will know that his paper will have to be rediscounted by member bank in the system, and will be anxious to keep his financial standing the very best.
 1 An organization sue has you have here can accomplish q great service to the community in protecting it's members against losses. By getting together, you are able to work in harmony toward the elimination of pleased with the splendid spirit of cooperation l have seen here and l feel that the confidence 1 have had | in your country here is fully war ranted.'
 President Meek discussed at length the work of the national association and in this connection read paper on the relation of the banker to the new idea of safeguarding credits. de- scribing in detail the methods used by number of banks in educating their depositOrs in the new system
 "A banker is no longer merely a banker he said, The is also business advisor and can often render valua- bie service to customer who might be tempted to extend his credit be- yond its rightfu limits" He also urged the importance of reliable in surance for the merchant. as this item often constitutes the only safe guard lOf his assets
 Bridges for State Insurance State insurance, not state rate
 making as the solution of the fire and
 casualty insurance problem in Ari- Zona was advocated by State Super ilntendent of Insurance Bridges. who
 was the next speaker Mir. Bridges
 declared that the companies now
 operating in the state have no in-
 tention of lowering existing rates il the near future. and that effort. would be made at the next session o
 the legislature to secure the passage
 of a bill providing for rate making b,
 the state. This arrangement he sait
 had been a failure wherever tried
 and that the only solution of tn,
 problem is state insurance.
 "The state can furnish fire insur
 ance at fifty cents on $100 and mak,
 money" declared Bridges "A stat,
 rate making board has no power {,
 compel insurance companies to con
 tinue to operate under the rate.
 established, and the result ~of tn,
 passage of such law would be tn, withdrawal of every company now il
 the state as was recently seen in tn,
 case of Kentucky. Under the presen
 code foreign companies are not re
 quired to furnish bond in this state
 and the only recourse We have is {, !, suspend their charter in case losse
 are not paid within the specified
 period