Semi-weekly herald., 1912-02-26

June II, 1910, the directors decided
to have the books again audited and
Messrs Duggan and Rucker were cho-
sen to do the work. This report as
near as we are able to determine from
the books available is substantially
correct, showing net loss on store Of
81, 1,50s.15. At this period the manage
ment was taken over by the directors,
Frank Wride, J. A. Sewers, r. II.
Banks, Robin Frazer and A. Y. Cook.
December 10, 1910, Mr.. C. A. Brown
was employed for 10 days to solicit
for stock, he to receive S1.00 cash
and $4.00 in stock per day, or rather TO
be applied on note of 500 given by
him for stock. December "a, 1910,
the directors being in need OF mana
ger employed Brown for one year at
at salary of 800 per month; team
to be fed and travelling expenses to be
borne by the company. Brown to give
bond Of $4,000 and to begin work on
January Q, 1911.
This gives nm outline of the busi-
ness and the men connected herewith
during the history of the company.
These facts are gained from the min
ute book.
We do not propose to make state
ment of assets and liabilities as shown
by other reports for the simple rea-
son we have been unable to find any
original record of the amount of the
notes turned over to Mr.. p. G. Ellis
and Mr.. C. A. Brown, trustees, by
the previous directorate. Mr.. Bovee
has in his possession what purports to
be list of those notes but stated it
was not an original record.
There is no record authorizing the
turning over of these notes except n
statement in the minutes urging Man
ager C. A. Brown to collect the
amounts due. As mater of fact,
vouched for by Mr.. F. A. Rodecker,
the notes were turned over to the gen.
tlemen named for collection. The
fees of collection to be first deducted,
the expenses for 1911 to be paid and
the balance turned over to Mrs. Arm.
strong.
There are no invoices in evidence
and no merchandise account was kept.
A number of the cancelled checks are
missing.
Starting with the books of Nc
Nicholas and taking his cash book,
dated November 81, no year given,
bat presumably 1908, and up to and
including August 26, no year given,
but presumably 1909, we find he has
taken in 11,574.60, and paid out $11,-
597.03. 1t will be noticed he has paid
out $22.43 more than he has received.
This can be accounted for only by the
fact he had made errors whereby he
was long and short on cash through
out his book and in endeavoring to
correct his mistakes he made this dis
crepancy. The net shortage is $11.76.
In his day book there are number Of
entries of cash sales and items Of
cash paid out that were not individual
ly entered in the cash book according
to his custom. Mr.. McNicholas being
questioned concerning these matters
could not explain why the individual
entries were not made except to say
that in his daily balancing of the cash
book he, when finding surplus money,
would make sale entry in the day
book to cover such surplus. In check
ing we find the cash received and paid
out posted to the proper ledger ac-
counts as he posted only from his day
book Taking the bank deposits dur
ing this period as shown by his cash
book he deposited $10,719.24 and J. w.
Turner Si30.44, making total of
$11,149.6S. This is up to August 20,
1909. The bank deposits in the First
National bank as shown by the bank
book during period dating from
June 1s, 1908, to August 21, 1909, are
s12,577.55, this includes deposit of
$595. 90 made by w. T. Darlington,
thus making $11, 1,982.55 deposited dur
ing this period. There are two drafts
amounting to $s48.40 passing through
the bank of which McNicholas made
no record in his cash book bringing his
deposits down to s11,144.15; this
makes his deposits as per his cash
book, $4.5S more than that shown by
the bank book. In referring 10 the
report of September IL, 1909, these
drafts for $S48.40 were evidently not
taken into consideration when the
statement was made that Mr.. Nc
Nicholas paid out 81, ,177.2S more than
he received. Owing to the number of
erasures and changes made in the
ledger of this period we cannot go in
to details with any degree of accu-
racy as to the condition of his books
at the time he was succeeded. He
claims the books have been changed
since he turned them over and Mr..
Van Daniker his successor, asserts the
books were in that condition when CIV
en- him. The promoting expenses
charged to store by previous reports is
not fair to the business at that period
showing heavy loss, owing to the
fact that great deal of this money
was used in advertising and travelling
expenses in selling of stock to enlarge