important way. As the representative of the house, if the salesman is possessed with a real interest for its success, he can gather all kinds of information concerning conditions which are a help to the credit man.

The value of the salesman's information depends to a large extent upon himself. The quality of the information furnished is in the nature of opinions and must be considered together with a knowledge of the salesman's characteristics. In many cases, in order to make a good showing on his sales, he is prone to become over-optimistic. On the other hand, there are many salesmen who have become so well acquainted with their business and their district that they are able to judge a situation as well as, or better than, the credit manager.

One of the most important assets of a business house is its "good-will." In getting and keeping the "good-will" of its customers, a house is materially aided by the cooperation of the sales and credit departments. This is well illustrated in the collection of slow accounts, when the salesman, who understands the customer's situation and difficulties and can sympathize effectively with him, can often succeed in collection and at the same time keeping the customer's good-will in cases where the credit man's letters have been of no avail.

The proper cooperation with salesmen will often eliminate the necessity of turning down accounts after they have been sold. Selecting customers is as important as turning down bad accounts; in fact, it is more important because it is constructive rather than destructive in the development of business. Sometimes salesmen go into their territory with a list indicating the good prospects in the localities to be covered.

The Salesman's Report.-The salesman generally carries a report which comes in with the order on any new account. Often, also, he fills out a slip for old accounts if there are

any changes in conditions. Two forms of salesmen's reports are shown in Figures 15 and 16.

The Attorney.-Some firms have found that attorneys may be a means of securing supplementary credit information.

What Credit Limit do you Consider Him Entitled to?......

This applies particularly to the small town attorney, who knows the debtor and his place of business, his reputation and the local conditions affecting his standing. The attorney can get information on business ability, habits, local reputation, local conditions, value of property, outstanding claims and lawsuits,

and other personal items which the merchant in a distant city is unable to get. Home town gossip is a source of informa

Salesman's Credit Recommendation to be Mailed with all New Accounts and used in Recommending Temporary and Permanent Increased Ratings.

Names of Insurance Companies......

Is he using borrowed capital-if so, how much? $.

What security has he given?....

Reputation for paying bills..

What other houses extend him credit?.

Have you explained our terms?....

Other Remarks...

Date...

For Dept. Use only

Bradstreet rating...

Salesman's Signature

.Dun rating....

Figure 16. Salesman's Report on Typical Business

tion more or less reliable on all of these points. Though not wholly reliable, it sometimes gives useful warning of the need for further investigation.

Nevertheless, while the attorney has access to many sources which the average citizen is unable to reach, the reports of credit men are not very favorable to his usefulness as a source of credit information. This is due largely to the very nature of the legal profession. The merchant to be investigated may be a client of the attorney from whom information is asked. In the oath which the attorney takes upon entering the practice of law he swears to maintain inviolate the confidence and at every peril to himself, to preserve the secrets of his client. The attorney is therefore prohibited from giving any reliable information which he might possess.

As to persons other than clients, of course, the attorney would not be restricted in any way, and his value as a source of information would depend upon the size and character of his practice. But here, too, he is restricted in his ability to furnish information. The attorney is not primarily a business man. His training is cultural and technical; and so, as a rule, he is not an expert in giving advice on a credit risk. In a general way, he can furnish information valuable in determining the conditions affecting property, for he can investigate and report the clearness of the title as to heirs and encumbrances. However, this information is usually on record, and can be ascertained by any individual through a search of the public records.

Furnishing credit reports is an incidental matter to the average attorney, and he seldom furnishes the report except as a matter of convenience for his clients. An attorney of good repute, who has a worth while practice, is unable to take the time necessary for making a reliable report. Another item to be considered is that no business house would pay the attorney for a credit report at the same rate of compensation that the same firm would pay for research in other lines. There are in most communities attorneys who specialize in commission business, and maintain a separate department

for the purpose of supplying credit information. Various publishers develop lists of attorneys who are available for this purpose. An example of this is found in the Martindale Service. This Service prints the name of a subscribing attorney from each town who has been found, after due investigation, to be of good repute. This list is published in book form and distributed to mercantile houses. The aim of the Service is to help business houses make collections in various parts of the country at the least possible expense. Oftentimes forms are prepared to fit the particular situation, both for the use of the house asking information and the use of the attorney.

The Bank.-Credit men have not been found enthusiastic about the bank as a source of direct credit information.

Banks are eager to know whether or not a borrower is maintaining a good credit reputation among mercantile houses and are always asking for complete information concerning depositors who wish to secure bank loans. That the credit manager of a mercantile establishment should cooperate with a bank is accepted as good business practice, for the bank account of any person is a good credit indicator and all business firms have been schooled for decades in the idea that any business man who declines to show himself to his banker becomes the victim of his own prejudices. If he refuses to give complete information he is open to suspicion and distrust.

On the other hand, when the credit man asks for information from his bank, he often finds it difficult to obtain. The answer given most often by a bank includes merely a statement that Mr. So-and-so keeps a good balance and he is considered to be a good customer. The justification of the banker in this connection is generally prefaced by such arguments as the following: