"The credit man, you know, usually grows up from office boy to cashier, and from cashier to bookkeeper, from bookkeeper to assistant credit man and then to credit man himself. Most of them have never been away from the place they were born in, and about all they know is what they have learned behind the bars of their office windows. You couldn't, for all sorts of money, hire a man who has been on the road, to be a credit man. He can get his money lots easier as a salesman; he has a much better chance for promotion, too. Still, if the salesman could be induced to become a credit man, he would make the best one possible, because he would understand that the salesman himself can get closer to his customer than any one else and can find out things from him that his customer would not tell to any one else and, having been on the road himself, he would know that really about the only reliable source of information concerning a merchant is the salesman himself.
"When a merchant has confidence enough in a man to buy goods from him —and he will not buy goods from him unless he has that confidence—he will tell him all about his private affairs. He will tell him how much business he is doing, how much profit he is making, how much he owes, what are his future prospects, and everything of that kind. The credit man who was once a salesman would also know that these commercial agency books—the bibles of the average credit man—don't amount to a rap. For my own part, I wish old Satan had every commercial agency book on earth to chuck into the furnace, when he goes below, to roast the reporters for the agencies. A lot of them will go there because a lot of reports are simply outright slander. Commercial agencies break many a good merchant. The heads of the agencies aim to give faithful reports, but they haven't the means.
"Now, just for example, let me tell you what they did to a man who did one of my customers when he first started in business. This man had been a clerk for several years in a clothing store over in Wyoming. He was one of the kind that didn't spend his money feeding slot machines, but saved up $3,500 in cold, hard cash. This was enough for him to start a little clothing shack of his own.
"Now, Herbert was a straight, steady boy. I recommended him to my house for credit. He didn't owe a dollar on earth. He bought about five thousand dollars' worth of goods and was able to discount his bills, right from the jump. Now, what do you suppose one of the commercial agencies said about him? Mind you, he had for four or five years run his uncle's store. The uncle was sick and left things really in the hands of Herbert. The agency said he was worth not over five hundred dollars and that he was no good for credit.
"I, of course, learned of this through our office and I told Herbert all about it and insisted that he ought to get that thing straightened out. He said, when I spoke to him of it, 'Why, I did fill out the blanks that they sent in to me—told them the straight of it, exactly what I had, $3,500, and they surely reported it as I gave it to them.' 'No, they haven't done any such thing, Herbert, because I looked into the matter myself when I was last in your office.'
"Well, Herbert had no trouble in getting goods from the houses whose salesmen he knew real well, but he had to suffer the inconvenience of having a great many orders turned down that he placed—either that or else he was written that he would have to pay cash in advance before shipping. It caused him a whole lot of worry. The boy—well, he wasn't such a boy after all, he was nearly thirty years old and strictly capable—was worried about all this, and I saw it. I told him, 'Look here, Herbert, you must get this thing straightened up. You write the agencies again and tell them just how you stand and that you want them to give you the proper sort of a report.'
"It wasn't a great while before the representative of this agency came around. Herbert went at him hammer and tongs for not doing him justice—then what do you think that fellow did? Nothing!
"In spite of all this Herbert paid up all his bills all right and soon established his credit by being able to give references to first-class firms who stated that he paid them promptly. So, he became independent of the agencies altogether and when they asked him for any statement after that, he told them, 'Go to ——.' Now, of course, this wasn't the thing for him to do.
"A merchant should see that the commercial agencies give him a good report because, if he doesn't, he is simply cutting off his nose to spite his face. If he ever starts to open a new account with some house, the first thing the credit man of that concern will do, when he gets his order, will be to turn to his 'bibles' and see how the man is rated. These commercial agencies are going to say something about a man. That's the way they make their living. If they don't say something good, they will say something indifferent or positively bad. So, what's the merchant to do but truckle to them and take chances on their telling the truth about him?"
"Yes, you're right," chimed in the drygoods man, "but even then, try as hard as he will, the merchant can't get justice, sometimes. One of my customers, who is one of the most systematic business men I know of, for years and years had no report. Half the goods he bought was turned down simply because the agent in his town for the commercial agency was a shyster lawyer who had it in for him. And he had all he could do to retain his credit. Just to show you how good the man was in the opinion of those with whom he did business, let me say that right after he had had a big fire and had suffered a big loss, one firm wired him: 'Your credit is good with us for any amount. Buy what you will, pay when you can.'