322 MANAGEMENT OF DAIRY PLANTS 



however, for a firm to allow such a record to be the only source 

 of information upon which to determine his worthiness for 

 credit, if such information is not recent. 



III. Reports of Other Merchants. This information is 

 obtained by securing from the applicant the names of other 

 firms from which he is buying goods. The credit man after 

 obtaining such information writes to the credit men of these 

 firms for their opinion in regard to the responsibility of the party 

 in question. 



IV. Financial Statement of Firm Represented by the 

 Applicant. Any firm or individual asking for extensive credit 

 should be willing to present a financial statement. Such state- 

 ment should be signed by the proper official or party in order 

 that it may be of real value. This statement is one of the more 

 valuable parts of the credit information, as it sets forth the 

 financial condition of the concern. Such a signed statement 

 when received is filed together with other credit information in 

 reference to the applicant. 



V. Financial Responsibility of the Individuals of the 

 Firm. If a corporation, this may not be of much value, as the 

 liability of the individual is limited. It is, however, of much 

 value when it concerns a copartnership, as in such any one of 

 the partners can be held liable to the full extent of the indebted- 

 ness. 



VI. Character of the Individuals that Own and Operate 

 the Firm's Business. An honest man with limited means is 

 always a better credit risk than one who is dishonest, even 

 though the latter may be in possession of unlimited means. The 

 one who is honest and in possession of sufficient determination 

 and a strong moral character will always be able to demand 

 the limit of credit, whereas the one who lacks either of these 

 qualifications will be considered with a certain degree of sus- 

 picion. 



VII. Business Experience and Ability of the Applicant. 

 The person or persons responsible for the outcome of the busi- 

 ness should have experience in that particular business. If 

 such persons have been successful previously in a similar line of 



