The Washington times., 1928-01-30
BUSINESS DATA
To BE ASKED
BY RICHARD HATTON


| interest in business circles regarding
the resolution passed at a recent
meeting of the District Of Columbia
Bankers Association covering the pre-
sentation of operating statements by
| prospective borrowers. That the
policy covered in the resolution Is
| one of sound business, as Wen as
sound banking, is generally admit.
ted but the steps leading up to the
adoption of the policy are not 30
well known.
To President Robert v. Fleming
of the Riggs National Bank, vice
president OF the d. C. Bankers Asso-
citation and chairman of the commit
tee on commercial and trade activi-
ties of the association IN 1925, is due
much of the credit for clarifying the
situation and bringing about the
present more satisfactory condition
which will obtain because of the
adoption of the resolution. In pre-
senting the resolution to the asso-
citation President Fleming stated he
desired to bring to the attention OF
the association the advisability OF
strengthening among our banks
their credit departments and credit
files by requesting and educating the
borrower to file operating statements
at least quarterly in addition to state
ments rendered either annually or
semiannually showing assets and
Liabilities.
Education Effort
"Tt is my belief" Fleming said,
that IL these statements are asked
for by all our members and II we
endeavor to educate our customers
into filing these operating statements
Of profit and loss we will not only do
ourselves q service, but also a service
will be rendered to our customers,
as they will know their business bet
ter.
I'm the last four or five years
| great progress has been made in
| having our borrowers file correct
financial statements and along
/ these lines / desire to call to the
| attention of the association the de.
STABILITY, particularly in the case
OF the larger lines of credit that are
extended, of having statements rem
dered as to assets and liabilities
and profit and loss by certified pub
| lie accountants. do not believe
| that this all can be accomplished
at one time, but certainly every ef-
fort should be made in these direc.
lions. / believe that a movement
along this line will be most helpful
TO the borrower, as he is as much
| In need of a true picture Of his
business as is the banker who ex-
| tends the credit"
| A clarifying explanation of the
recent action is, also. contained in
| the report of the committee on
trade activities, submitted by Flem-
ing at the 1926 convention in which
| this statement appears:
ut is the general practice. where
banks are extending credit to mer-
chants to require them to file a
statement of their assets and lab
| bilitfes at least once a year, but in
order that closer contact can be eff
| fected between. the banker and the
merchant your committee recon-
menda that In addition to the
statement Of assets and liabilities,
monthly or quarterly operating
statements of income and expense
| also be filed.
Some Hardshlps
This recommendation at the out
set might incur some slight hardship,
and changes in accounting methods,
but. in the end, would prove, I'M
doubtedly, Of great benefit to the
banker as well as the merchant"
The resolution adopted states that
the members OF the District of Co
Iumbia Bankers Association will re-
quest operating statements in ad-
dition to financial statements from
| their borrowers. Forms for making
these statements will be prepared
| by the associations committee on
| standardized banking forms.
Leroy A. Mershon, for the last
eleven and a half years secretary
Of the trust company division and
| departmental manager OF the Amer
lean Bankers Association and one
! OF the most widely known men &C
tive in trust company circles in the
country, has been elected vice
| president Of the United States
Mortgage and Trust Company, New
| York.
Francis B. Barlow, Of J. p. Nor
\ gan & Co, has been elected to the
board of directors OF the Home In
| surance Company OF New York, &C
cording to announcement by the
local office of the company.
Friends of Carroll Glover, presi'
dent of the Washington Stock Ex'
change, are congratulating him upon
his return to active work after an
extended illness.