320 MANAGEMENT OF DAIRY PLANTS 



financial responsibility of all prospective customers before the 

 salesman makes any attempt to sell them goods. The retail 

 merchant should carefully watch the changing about of people 

 in his community and should investigate the responsibility of 

 newcomers without delay. 



B. FACTS UPON WHICH THE CREDIT MAN 

 BASES HIS JUDGMENT 



I. Commercial Agencies' Reports. — The Bradstreet and 

 Dun agencies are considered the most important sources from 

 which to receive credit information. For a stipulated sub- 

 scription fee a firm can secure the reports which come in book 

 form. These give the ratings of all estabhshed business firms 

 and the amount of capital stock that would serve as a fair 

 estimate for credit. They furthermore give their ratings as 

 first, second, and third class. A firm obtaining a first rating 

 should be a good risk if the credit is based on the stated amount 

 of capital stock. The one obtaining a second rating is supposed 

 to be of less responsibiUty, is often known .to be slow at paying 

 bills. The one obtaining a third rating cannot as a rule be con- 

 sidered to be a subject deserving of extensive credit. 



In addition to this report these agencies are also at all times 

 ready to furnish confidential information to their subscribers 

 concerning more recently estabhshed firms not reported in their 

 regular report or about firms reported but on which a more 

 complete report may be desired. For such confidential reports 

 or for part of them a small charge is made. 



Local credit interchange bureaus are found in nearly all 

 cities and are known by various names. Such are often asso- 

 ciated with a national association. These organizations are all 

 formed for the purpose of interchanging credit information. If 

 a member of such an association desires to obtain information 

 with reference to a certain firm, then he merely turns in a re- 

 quest for information to the bureau and usually within a day's 

 time a report is furnished to the inquiring member as well as to 

 the members who furnished the information. This report 



