MERCANTILE AGENCIES 1. Mercantile agency service.—The two large credit institutions known as Dun's and Bradstreet's Mercan tile Agencies are the outgrowth of the conditions that govern credit-giving in this country. Few realize the size and scope of the machinery that is operated by these agencies in their work of gathering credit in formation. The entire country .-is served by their branch offices, while in every city, town and village, their representatives are found busily investigating local tradesmen and new enterprises. The services of these agencies have been extended abroad until now their connections reach virtually to every part of the business world.
The present mercantile agency system dates from about 1837 and was an immediate result of the panic which occurred in that year. The extensive specula tion which at that time prevailed in the West was painfully felt in New York which was then, as now, the financial center of the United States. The com mercial agency came into existence as a means for determining with reasonable accuracy the credit re sponsibility of the merchants of the country.
In the year 1841, under the name of Lewis Tappan and Company, the first mercantile agency was es tablished in New York. In the beginning it did but a small business. At that time it possessed only in different facilities for collecting comprehensive and reliable credit information, hence the reports which it issued generally lacked the necessary completeness. As its facilities improved, however, the agency grew in popularity as well as in influence. It had gained a recognized position as an important institution when, in 1860, Mr. R. G. Dun became identified with it and gave it his name, which it still bears.
In 1849, a second mercantile agency made its ap pearance. That was the firm of J. NI. Bradstreet and Company. These two agencies, Dun's and Brad street's, have continued to the present time and are now so large and so well-established that it is more than doubtful that a rival institution could be estab lished. The attempt has repeatedly been made— sometimes backed with large capital—but invariably without success.
2. How mercantile agency information is collected.
—The organization by means of which the mercantile agencies collect their information is one that touches every person engaged in business in the United States and Canada. Offices are located in all the important cities in the country district. These offices consti tute central points at which the information sought by the agency is conveniently collected.
In large cities this work is specialized by assigning to certain reporters certain lines of trade. Since each important line has its own special reporter the agency is in a position to keep well informed of current hap penings, and is accordingly able to disseminate among its subscribers prompt and reliable information about the various lines of trade within the cities covered.
Territory outside the larger cities is divided into districts, to each of which a reporter is assigned. In such districts the local reporter investigates all the lines of trade found therein. As these reporters cover the same territories year after year, they become well acquainted with local trade conditions and have many opportunities to study the business of each individual concern. Like the newspaper reporter, the commer cial' agency reporter has a nose for news—that is, for such news as is of interest to creditor houses. Any rumor affecting the credit of a local dealer is promptly investigated and the result is reported to the nearest district office.
Each of the large and independently operated of fices has sub-offices in the smaller cities. The num ber of such sub-offices is governed by the size of the territory and the volume of business ordinarily trans acted, some district offices having as many as eight or more sub-offices.
In territories where reporters make only periodical visits, the agencies depend upon local commercial torneys, postmasters or reliable merchants for formation regarding sudden changes or developments that may occur in the standing of local merchants. 3. Contents of the agencies' reports.—The informa tion collected by the agency reporter and by him trans mitted to the district offices, is of three kinds : 1. Strictly news items.