The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-11-06
know only periodically what is their true
financial standing.

know only periodically what is their true
financial standing.
BETTER BOOKKEEPING NEEDED.
1t seems to me that this presents oondi-
tion that should be met by our association
perfecting and encouraging uniform sys-
TEN of accountancy for retail stores.
recognize that there Is a great diversity in
the character of businesses and that no one
set form Of bookkeeping is practicable
While we ccncede this, however, we con-
ancy which is possible, and which, while
recognizing and observing certain cardinal
facts, permits of such elasticity in bookkeep-
ing es to cover every complication. II we
can perfect such a system, and establish 1t
In fifty or 100 retail stores before the time
of our next convention, l will feel that we
have performed a labor of incalculable sig
nihcance to business interests. Such a sys-
tenn would show at the conclusion of each
days or each weeks business, as might
be elected, the exact condition of the stock,
profit or loss sustained, volume Of trade,
and every detailed knowledge so essential
to prosperous management. The possibility
Of this field of activity is to me alluring, por-
tentous and suggestive
The efficacy Of the new bankruptcy law
will depend largely upon the utilization made
of its various provisions. With this act
giving the creditors the right to select their
own trustee, it Is quite evident that the
amount of dividends paid in liquidation Of
upon the wisdom exercised in the selection
of such an official. To close out a stock
OF goods In q profitable manner, demands
business experience, judgment and tact of
barrassed debtor to act in the capacity of
trustee, Is to authorize a continuation OF
rupt condition, which Is neither polite
nor profitable. To permit an attorney to be-
come trustee Is equivalent to placing the
creditors interests in the hands of a guard
ian that is neither competent nor fitted by
training and experience for the position. In
my Judgment the situation demands the evo-
luton OF some system insuring greater
discretion in the selection Of such an official.
MIGHT NAME TRUSTEES.
What I have to offer upon the subject is
at least suggestive, though 1t may be crude.
In every district over which a bankruptcy
court holds Jurisdiction 1t seems to me that
1t would be possible for our association to
select with careful judgment competent, con-
scientious and experienced business men to
act upon our Recommendation as trustees for.
each respective line of trade. When this
has been done, list of these names can then
be sent to every member Of the association
In order that they may be able, when a
meeting. OF the creditors Of any bankrupt
debtor is called, to vote or authorize their
vote in favor of the gentleman for trustee
whom our association has pronounced emf
nently qualified for such office. 1t can be
readily perceived that any man giving his
constant thought to the best systems Of clos
III,
and profting by his increasing experience
VIII naturally grow in knowledge, skill and
Judgment. This method of action will not
only be applicable to the bankruptcy law
but also in cases of assignment, where the
laws are such as to permit of the selection
OF the assignee by the creditors involved.
or 10 per cent larger dividends for creditors
than Is the case under the haphaZard go-as-
you-piease sort Of method which now pre-
walls, and presents a possible condition of
Importance and helpfulness which this asso-
citation can be influential in establishing
AS TO INsoLvBNT STOCKS.
In considering insolvent stocks and their
proper disposition, 1 cannot but feel that It
devolyes upon the business world to devotion
some method whereby protection can be as
sured from the-injury so frequently wrought
by bankrupt sales. The question arises
whether there Is any advantage gained by
these local sales which could not readily be
obtained in some other manner Does an
insolvent stock disposed of at a local sale
after paying all expenses, ever realize more
THAN nifty cents on the dollar? Under such
favorable conditions the dividend paid to in
volved creditors might in Itself be fairly
satisfactory but in obtaining this settlement
can you compute the loss of business sus-
tanned from the other merchants in that same
community whose trade has been injured for
months and whose prices are thereby woefuI-
ly demoralized? The injury from such a
condition of affairs is incalculable, but GER
cumstances believe it is not only duty
which the wholesalers owe to the retailers
but business policy which in their own
Interest will be found profitable, to cooperate
in the establishment Of bankrupt stock clear
Ing houses in our various trade centers
The motive Of such an institution should be
the purchase of such insolvent stocks, as
must be ltquidated, at high price in
bulk as could be realized by the continuation
of the local sale, and the removal of the
goods from the local community to the clear
ing hCuaa WHARF after q iIdiciOu9
ment, they can be resold at wholesale in
smaller parcels under such agreement and
conditions as not to interfere with the even
current of trade, or demoralize prices. Such
an institution should be organized by all
the wholesale interests IN given community
an adjunct Of our association, If you
please or as a seperate enterprise. Such a
system Of operation would protect the retail
trade in given community from injury, up
hold prices, and sustain business conditions,
which, in turn, operates to the advantage
of the wholesaler as well as the retailer. Such
a business could easily pay all costs of
management, which should be the simple am
btion. If you will analyze such plan in
It's various details and rami6cations, think
you will find many more advantages than
defects, but above all you will indicate to
retail merchants that it is your desire to
serve and protect their best interests thus
creating a sentiment that will lead to i'm
provement in many other directions.
LOOKING UP MEMS RECORDS.
In the future development of our investi-
cation department there is the possibility of
evolving a new method of dealing with fail
ures that will act as stimulus to honorable
transactions, and as a deterrent influence
upon fraud. There can be no question but
that the number Of failures yearly is largely
augmented by the ease with which compro-
mise offers of settlement are effected If
possible We owe 1t to the mercantile COM
munity as well as to ourselves to inaugurate
some system whereby fraud in such cases
may not be successfully practiced. 1t is a
subject to which ! have given some thought
and to which shall shortly call the attention
OF all local associations. 1t has seemed to
me that 1t might be possible for some agree
ment to be reached between our organization
and it's members, whereby the latter would
bind themselves, in case of any failure fol-
lowed by an offer of compromise to take no
action in relation thereto until the propo-
sition had been reported upon by our investi-
cation committee. This would simply create