The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-08-17
GhtGnteAfqettrer.
Concerning Par,nerships.

From the y. y. journal OF Commerce.
An old salt who settled down al homt
for shore duty wrote his log, alter a pain
tu, personal experience Of such q bust
ness, that ~ partnership is the leakiest
ship that ever was sailed One reason
IS, that no business arrangements of cor
responding magnitude are ever made for
any other purpose on such IN indefinite
basis, and with the terms and conditions
so much ailoat 1t is not best even Tor
Just men to wait the period OF settlement
before they agree upon what terms tue
settlement Oughtto be made, We have
continued applications 10 dictate such
terms, but the difficulty is that there is no
standard by which II division Of partner
ship profits, or an adjustment Of partner
ship losses can be made, unless the mem
hers of the firm agree upon rule ut the
outset of their connection. Nothing Is
more disputed about than the question Of
Crcdiing to one partner interest for
paidin capital or charging to anoth.
rr partner interest for Over-draits
against his private account, There is
no rule of general application, A man
with $4,000 goes into business with,
other man worth nothing, but having u
more expert knowledge Of the trade, or u
clearer head for management, or moro IN.
tense application, and he is willing 10 di.
vide the profits evenly, saying nothing
about the interest on his Investment. An.
other thinks the capital of great impor.
lance and expects to be credited with full
legal interest on it. And 50 with largo
TRAITS. One partner, where each owns an
equal interest in concern, draws out q
large share Of his annual earnings, and
when these arc small, lives upon the prin-
Cipal; the other Is economical and saving
In such cases some firms recognize the
difference by an adjustment of interest,"
others do not, and there is no general rule.
There ought TO be u specification in the
partnership articles TO guard these points.
Where there Is not, as in the following
case, who shall decide what Is right?
"In9uiry Ig COrrGspOndeat.-A house in
business Tor some years took their book
keeper into partnership, giving him an
equal interest, although the capital of tho
house belonged to the two senior partners,
the new partner having no funds to in.
vest He continued to keep the books
until he failed in health, when u hook
keeper was employed who kept the books
entirely under the supervision Of the for.
mer bOok.kCeper
"The senior partners having all conf.
dGnco In tho integrity Of the Junior part
ncr never examined the hooks, and now
find, after the death of the latter, that he
drew from the house annually larger
amounts than the senior partners, and
omitted TO credit them with the interest
on the surplus capital invested when
closing the books each yGar.
NOW that the house Is being wound
up, will you have the goodness To inform
Ils il the senior partners are entitled to
charge interest on their surplus capital
each year from the time the copartncr.
ship was formed
AHarcr By EdltOr.-Il nothing WINS said
in the partnership articles about Creditng
interest to the senior partners, II no such
credits had been previously praCtced In
he firm, and the Junior was promised an
equal share Of the profits, we have grave
doubts II such charge could be legally
as against the estate Of the dc.
ceased. The whole story shows what u
man who does not look after his own in.
lercst himself may lose by such inalten.
liOn.