For all that, a traveling credit man of the right caliber is frequently able to give excellent advice to the small dealer and to instruct him in principles of good merchandising. He often finds a dealer who is unsystematic and ignorant of many things that he ought to know relating to ordinary principles of suc cessful merchandising. In fact some of these deal ers are not capable of managing their business un aided in such a way as to be safe credit risks. The traveling credit representative by tactfully instruct ing and strengthening the ignorant or weak merchant not only increases the latter's chances of success, but makes him a better and a safer customer.
The traveling credit representative is often able to serve his house still further by promoting harmony and cooperation between the departments of sales and credits, eliminating by his visits the causes of fric tion that sometimes arise between these two.
As evidence of the character and extent of credit information obtained by such traveling representa tives, the report form shown on this and the following page is of interest. To obtain the desired information calls for much close questioning of the subjects of the report; but in the hands of a capable and tactful rep resentative of the credit department the examination need not be either long or painful.
12. Local attorney as credit reporter.—In every city and town of any consequence there are to be found attorneys who specialize in commercial busi ness or who at least have departments for the handling of such business. These attorneys assist in collect ing claims against local debtors from out-of-town creditors. They undertake to bring suit in court when circumstances demand such a course, and give atten tion to claims in bankruptcies, etc., as fully in another chapter.
Such attorneys are usually in a position to render valuable service to the distant credit man. Their pro fession brings them in close contact with the busi ness and the business men of their localities. Their training qualifies them for judging accurately local business conditions. Moreover, their relation to the community enables them to use their information with out thereby violating any trade confidence and with out injury to their own business interests.
In cities large enough to offer a considerable amount of commercial business, law firms have found this class of business distinctly profitable and have gone to considerable expense and trouble in collect ing and filing information relating to the credit stand ing of local merchants. Frequently the credit man
obtains very valuable information from such sources.
13. Law lists and free attorney reports.—A num ber of law lists or attorney directories are published in which attorneys seeking commercial business have their names and addresses entered. For "represen tation" of the list in their town or city the attorneys pay the publishers a certain yearly fee, the amount of this fee depending upon the size and business im portance of their respective localities.
These law lists are placed in the hands of whole sale houses, collection agencies, and others who may have out-of-town claims to collect. The publishers generally guarantee the prompt remittance of all moneys collected by the attorneys listed in their pub lications. For the purpose of securing a large use of their lists by those who have profitable business to send to attorneys, publishers generally demand of the latter that they furnish upon request free credit re ports on merchants in their localities. Report blanks are provided for the use of the subscribers and sold to them at a certain price per hundred, the under standing being that in return for such free reports the attorney is to receive whatever collection business the forwarder may have in the attorney's locality.
This plan is by no means infallible; it is usually satisfactory in direct proportion to the energy and interest displayed by both attorney and forwarder. The free-report system has been greatly abused. Merchants have often been found to send under cover of two or three law lists inquiries to several attorneys in the same town, promising in return to each at torney whatever collection business they might sub sequently have in that locality. At times two or more attorneys in a town on comparing notes, would dis cover that they were being "worked" by some ambi tious credit man who sought to obtain the largest possi ble amount of free information about a local dealer. These abuses eventually became so flagrant that many attorneys refused to continue the free-report service. In many counties bar associations adopted a schedule of fixed rates for all legal services performed by their members, these rates also covering the furnishing of credit reports. Owing to the growing antagonism with which commercial attorneys generally view what they term the "free report evil," the use of these re ports is less extensive than formerly.