Salt Lake Herald-Republican | 1915-06-17 | Page 1 | Limiting of Credit Inquiries Indorsed

LIMITING OF CREDIT INQUIRIES INDORSED Delegates Go on Record as Opposed d to Promiscuous In Investigation Investigation Investigation In- In of Standing of Business Houses as Tending to Alarm Creditors Unduly FAVOR USE OF LOCAL CREDIT BUREAU SERVICE A. A R. R H Heywood of Ogden Raps Federal Reserve Officials Saying Instead of Waiting for System to Adjust Itself They Should Ascertain Needs HAVE OUTING AT OGDEN I P PROMISCUOUS inquiries concern concern- L in jug n j the of bu business s ine 1 hou houses es and business men wore Were condemned con rOll b by the National Association of Credit Men fen ren at their convention con session session ses ses- es- es sion yesterday ar fhe The report oC ot the committee wa was greeted b by hearty applause applause ap tip- from the delegates and 11 there theio thereas was as much comment nt from the floor oC or orthe the convention Not only were bankers bank hank ers erg and credit men who nrc are arc prone to tomake tomake tomake make such uch inquiries criticized but hut some sonic of the delegates headed by Freis s Brown Snyder of or Philadelphia condemned con con- the practice of merchandising houses sending out inquiries to more than one source of information The condemnation of the thc promiscuous OiLS ous inquiry as n to tamlin and cre credit it was the thc culmination of the hc report of or orthe the committee on credit operation co of which 0 O. S. S Larkby of or Cincinnati i is chairman It was sas pointed out thab thiat wileD when man many inquiries are sent out con- con firm order banks hanks a 1 on one cand c- c and onel creditors are apt opt to lo become alarmed an and andt that in many instances injury is done It was as pointed ou out t b by 1 J. A. A Burns of oC St 81 Louis Joulo that frequently there h ho lu o been received cd from frein different bankers hanker In one town reports concerning the standing or credit of or a firm or Individual ual which were ero radically different nt lIe Ilo cited an Instance nce of where here two lt banks banka In the same city had reported on A A. business house and their reports differed dir dif b by more than us ns to credit and the concern wa was a small wholesale house That part of or the committees committee's report repert which was adopted 1 by the lie c convention n and which led Icel to lira tho condemnation of the promiscuous inquiry follows ollow The attention of or your committee has been called to promiscuous inquiring In ing when Jien there was n no nc real necessity that thit such sud Inquiring should be made When hell paper of oC borrowers In the th open market Is offered to bunks or Institutions Institutions Institutions for approval nl within a A. certain period Inquiries ma may be made by these prospective e purchasing banks and amid In InI Institutions In- In in iii the tIme markets where the I borrowers borrower are nr supposed tl to do their I bunking banking business or merchandise buy buy- In Ing The correspondents of oC banks or Institution to which h th the lie paper has been offered arc are a asked kd to obtain In Information information In- In formation upon UlOn the Ito borrowers cr nail arid thus tItus It happens that lint the thc concern Is IN the subject of oC inquiry by hy several eral banks at the same sante time which lends to lo create alarm and amil affect t unfavorably the Iho good oo name o of the borrower r The committee recommended that the members of or the association should use the credit service sor o of the lie different city and state slate associations In the tho mator matter mat mat- ter ter or of oC tanking making Inquiries Immediately after tho tIme report kind iad been adopted several sev IVeral IV eral resolutions were offered concernIng concern concern- I In Ing promiscuous inquiries but President Preel- Preel dent Charles B. B o Meek referred them to the resolutions committee C C. i I II Mann I nn of oC Minneapolis caused some amusement b by attacking tho lie attorneys at attorneys attorneys at- at of the Ihn country as a class In the matter of ot making lolic collections He Ic ed cl the attorneys who handle handlo bankrupt bankrupt bank bank- rupt 01 or businesses tho the lInan- lInan I on Pago Page 2 LIMIT INQUIRIES AS TO CREDIT W Convention C of Credit Men Is r Opposed to Promiscuous Investigation I j Continued From Page 1 status of which Is Ii uncertain lb Ho l d against giving attorneys full tun fullIn 4 power In such matters rs and urged that the credit men have ha their best adjustor adjuster inspect the business and determine the trouble and then have the creditors got ot oth h behind the s aini try to tC pull It Iton iton I on Its feet teet Attack New Ion j A. A R. R Heywood former president pre of ot tim tho Commercial National ank e c of cf O Off Off- C den criticised the federal reserve reser hankIn hankIns hank hank- In Ins Inz act ct and the federal board of oC gov gov- Ho created a n mild sensation In Inthe Inthe Inthe the convention con Ills His address in part follows Capable and resourceful men do not always make male strong executive men of oC hanks banks and many executive men of ot banks arc perhaps capable but distressingly dis dis- tl h small The real bank hank of officered of- of h hy stron strong inch feels feel that Its career Is a n public matter malter and whim while keeping safet safety first as Its slogan slog still ma may push Its boat out In Into to a n broad stream of or finance with full cun confidence that a a ul guiding ul I ln riff han hand will maintain its safety and yet et build bull for fer commercialism In In our ambition to accomplish things w vc we t recollect heto before yielding too tn always ass ah safely f l- l sidestep those t who control control control con con- great asset assets Lest we WO forget letus let letus letus us hark harl back to the war of 1812 when Congress authorized a loan of If 16 16 The subscription therdor was only made possible b by three great capitalists cap cat all born foreign David Par- Par IEh and nd Stephen GIrard of Philadelphia subscribing and John Jacob JacobS S Astor Astor who declared In that bour hour of ot depression that their faith ralth In Inthe Inthe the future prosperity of oc the United States was unimpaired nd And the year car before when the refusal of oC Con Congress to the hank Dank of oC the United States brought the United States treasury treasury treas treas- ury un to the tho verge of bankruptcy these same Fame patriotic citizens saved sa tho the credit of oC the government so h hy by placing their funds and those of ot their friends s at the command of the secretary of oC the thc treas- treas un rs 11 tI GaJ admits the utility and convenience con con- s of oC pal paper er currency where used S with great real i sobriety and and that the tho last word has not Hot yet et then been said on national currency I ask you ou gentlemen gentle gentle- men has It now no And Anti If IC you OU answer that the preg present nt reserve c bank banle j Is the last a ast t word then tell me how much relief or progressive finance can cnn come from A bank that holds 89 per cent of ot Its deposits on hand For thc they must know that with su such suph h a largo large amount of or funds tied up an nn Interruption in I circulation of the thc medium must folo fol fol- fol I fol-I low o resulting In distress and Idleness ss Our government o knowing full Cull well that the entire nUre fabric of commerce mn may collapse col col- lapse like a building of oC cards unless the medium of or cx exchange be kept lating holds hoMs an nn especial care and su supervision su- su u- u over the banks But Is this direction always alwa's placed In hands op op- op- op crated and controlled with cleverness and sound principles That the in intention intention In- In of the chief executive so 60 to do clo Is Is of course always conceded but the vice lies In forgetting the historical historical his his- 1 fact at no matter how care re fully an nn appointment ma may be bo made mode the hour bour when oversight o can be dispensed with Is never nc safely reached a. a v j Should Investigate J And nd nd a again aln the attitude or of the pres- pres nt res reserve board waiting for Cor the new system to adjust Itself rather than tha 1 getting Into local fields and findIng find- find Ing a speed speedy wa way way- to grant and adopt credits upon sate safe lines JInes With 78 86 on hand It I is a fair Call criticism that academic speeches should now yield the stage stase to personal Investigation tion Uon of ot the needs of oC each district and how to speedily and adequately satisfy these until such time as a system or method of ot handling credits is that can be stamped with Ith an official Imprimatur math r r. r S. Bureau Report The OThe report of oC the adjustment bureau committee read to the convention h by S. S aw F. F Miller of Baltimore recommended d th that t adjustment bureaus be ho supervised bythe rAhe directors of the National asso asso- Then ensued a short discussion discussion discus discus- sion as to whether a credit credits rating bureau should be a collection agen ageny y in addition Several delegates ar argued that to permit collections would be fo tc commercialize credit bureaus and that tho stockholders would be bo looking looking- for Cor dividends dl Instead of or carrying on a rating business The Thc report of oC the on fire tire Insurance rance was read b by Arthur G. G Foster of oC Seattle chairman of ot the com corn The report ur urged ed the credit men to lO see that the stocks stocks- of at their th il customers arc Cull fully Insured and that fire lire marshals are vigilant The reading read ing of the report led to a discussion of ot other ether forms of or Insurance F P F. F S. S McComas Mc- Mc l C Comas of oC Los An Angeles eles called aUer attention l n to employers employers' liability acts which are arc in lit force In several e states and ur urged elt the credit men to prepare preparo to meet such acts In all states It was the opinion of or delegates ele ates expressed on the floor noor that the credit men should be In favor ot liability commercial arbitration corn com report read rend by hy Aaron Wolfson of urged an arbitration board but he be stated that th the effort efforts of oC the committee to make malc progress were ere barren barrett of results Le Ledger rr Interchange r. r J J. J L 1 McWhorter Ic of Nashville ash who wilo said Baid he ho Introduced the word opera co o tion Into the discussion of oC the nation nation- al ar ai assoc associations association's atlon meeting at nt Louisville In 1907 and that it had been overworked over over- worked since delivered an address on ledger experiences and the trig Ins of ot credit reports Ills His address In part follows Led Ledger el Interchange e is with us tho the active principle the dynamics the very Vent I I life blood of ot our association Without It we would be he but hut dust of aC the ground Do Do- away with it H and our membership would ra fads awa away like stars before re the morning light LC Ledger interchange was our first great association success We Ye have won many victories since both within bur OUr ranks and beyond In the fields of oC legislation but hut none nOlle of ot them was equal In Importance to this first triumph It was the opening of or our led ledgers ers to fellow cre credit grantors lt that gave save us our pur place in the sun sun fun yea that made n tI fl first st among nil all the great treat business r of the land lanel Ln of ot Compensation But nui underlying this whole 8 system of exchanging cre credit lt Information there is Isa a great t natural law the law the law of compensation The elementary le lesson letson son for fOl f us all Is Is that our OUI interests aro are identical al not antagonistic and having li learned arned that wo we find running through Ji this entire entile proposition from Crom end d to end endS like a golden thread tho ho law av of oC compensation and which means that hat you ou pay for what OU you ge got Act and get what you ou pa pay for for no no more morel no ito le less lessl 8 The Tue individual house or the marcot market mar mar- ket cot that has hag attempted to get et more mOIo i Information than It gave has always Cheated her ed Itself The dice of or commerce bless noless Jess than the dice of God od are loaded You Xou be boat beat t tho the game Nashville may give ghe Louisville more information than she gets but she will get moro from Birmingham than she gives g so O at the end all our tur accounts of oC give and take are I In n exact balance Outing nt nc Ogden Immediately l following the adjourn adjourn- ment meat of the convention the delegates ates had lunch and went to Ogden and Ot Oen en canyon canon on tho the Bamberger lainberger Ogden Os-deon members of the association arranged for their entertainment Sixteen Interurban In- In cars carll were used b by the Ogden Logan LOlan fc Idaho railway company In transporting the tho visitors to and from th the tho canyon The party was tal taken cn to th the end of oC the line and returned t to the Hermitage where an nn outdoor lunch was serve served There were wele music and dancing ir in the pavilion of or the grove rove The women woman In attendance at the convention con enjoyed a breakfast at the Newhouse hotel at 11 o'clock yesterday esterday mo morning rut a g. g Last night the presidents and andIce Ice vice pre presidents of ot the different associations re represented at the convention gave gac a n dinner in tho the supper room of the Hotel Utah Those ThoMe pr present were O. O L. L Woods and II IT I 1 V. V Potter of Seattle William of Tacoma Max tax J. J Johnson of ot Wichita H. H S. S Reed of ot Sioux City It Arthur and M M. I. I II II 4 of or Salt Lake J. J G. G KI 81 nel and F F. G 0 G. G Smith of Milwaukee C C. J. J Pen Penrice rice and A. A H. H Meyers l of oC Nashville J J. J D. D Holmes of oC Jacksonville S. S F. F Miller and C. C W. W Carman of at Baltimore E Et E. Krelder of ol Kans Kansas s City J. J A. A and H. H C C. C Thomas of oC Denver cr C. C B. B Mann of or Min lInn lIn- lIn n neapolis A. A E. E Glister Gilstr r. r J. J W. W Love W. W V. V J J. J Burton II n. C. C Scott and J. J W. W of Memphis I m. m I. I S. S J j S s s. s 1 I I S j