13. The Consolidated Building Trades Credit As limited credit agency that appears to perform an important service in a difficult field, and to perform it well, is the Consolidated Building Trades Credit Association of New York. This association's activities are limited to the building interests within the boroughs of Manhattan and the Bronx, NeW York City. The membership of the association is made up of material men, contractors, builders and bonding companies.
The following description of the association's ac tivities, which was supplied by its secretary-treasurer, Mr. H. G. T. Nerge, furnishes excellent proof of the economic value of cooperation in the protection of the credit interests of an important trade: Purpose: To aid its members in guarding against ex tending credit accommodation to parties financially or morally unworthy of credit; to adjust disputes, claims, etc., by arbitration; to make charges of failure to pay or unfair methods a part of the association's credit reports after arbi tration or trial by special committee; to consolidate the interests of material men and contractors on a "broken down" building operation and secure completion of such op eration that it may be sold and at least a part of the old indebtedness salvaged; to act as the center thru which busi ness experiences may be exchanged and the source of infor mation withheld from the parties receiving reports; to rate builders, general contractors, etc.; to use the association's
influence in all matters that will be beneficial to the building industry and to credit grantors in said industry.
Each Tuesday afternoon a committee of thirty, made up of credit men representing the building-loan interests, ma terial men and contractors, meets at the association office. All credit information received by the association is read to this committee, which passes upon each return and estab lishes or revises credit ratings on the strength of previous items on file, new items and the committee men's own knowl edge of the person or firm in question. As the character of credit in the building industry differs largely from general commercial credit, four items affecting credit standing are passed upon, to wit, financial strength, moral strength, which is affected by methods of doing business, association, habits or previous failures, ability and the operation on which credit is asked, and other operations in which the party is interested, amount of building loan, mortgages, in vestment, cost of construction, location, etc. These credit headings are marked A-1, good, fair, poor or hazardous.
Weekly sheets are sent to members which advise them of new operations, transfers, mortgages, liens or similar instru ments possibly affecting creditors in the building industry.