Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-09-21
INDICATING IN MERCANTILE
BUSINESS REVEALED IN
COURT.
EXPERT ACCOUNTANT
TELLS AMAZING STORY
Judge Smith at Cedar Rapids Refus.
es to Discharge Receiver Liabilities
Of Concern Shown to be Far in es-
cess Of Assets-No Decision as to
Some Notes Of Stock Purchasers.

NNNSi AN~APASs ~Np-
to discharge the receiver Of the Iowa
Mercantile Company was withdrawn
Wednesday,. The receiver will remain
in charge of the store. Judge Smith is
considering whether he shall make an
order allowing receiver to turn back
notes of those who gave notes for the
where notes have been sold TO an in
nocent third party or save been placed
with banks as collateral for loans
The amazing condition under which
the Iowa Mercantile Company "a
operating was shown at the hearing
before Judge smith Wednesday. On
Sept. 1 there was sS74 cash on hand
with liabilities of S21s, 900. according to
the testimony of Mr.. Jacus, an expert
accountant who was a director and
bookkeeper OF the company for the past
few months only. He said there were
available assets of ssS. 900 or a total of
$4,000 If the amount due on stock
was counted but the liabilities far eN-
ceeded the assets and he declared that
the company is insoivent. Z
Jacus and Wilder We're the only wit
nesses examined up TO noon. but the
examination Of Wilder was short and
unimportant for his previous testi-
mony was made a part of this record,
without going owe it again.
Baked by Mrs. Wilder.
Whether MIR. and Mrs. Wilder had a
scheme on foot to keep the true condi-
ton of the company from being known;
was not learned, but Jacus claims that
while he was employed as private sec
rotary to Wilder and was to have full
charge of the Office and the accounts
and that after Wilder had agreed TO
have an inventory made on Aug. l and
ordered MIN TO so ahead with it. Mrs,
Wilder baked him. She was in the
store as an assistant manage and the
clerks told Jacus that she told them
they did not need to work overtime or
nights to help get out the inventory.
Jacus aid that finally by Sept, l an
inventory was completed but that part
of it was taken Aug. s, some of il Aug.
9 n il was the last of the month be-
fore il was finally completed and to-
tailed.
Jacus was employed June Is and
previous 10 hat time a public account
ant had put in a new system but little
had been done toward using the forms
and following the system. Jacus was
asked to give special attention to the
accounts payable or purchase ledger
and he mad a full and complete list
OF the creditors 4 the items of in
~debtedness to each of them. He also
listed the goods bought for future de-
livery and all of this was done just
before taking the inventory.
Caring for Indebtedness. .
Jacus wanted an inventory of the
Monticello store also but he said that
Wilder told him he would not trust
the Monticello manager and his en-
ployes to do this. Wilder also inform
ed him, he said, that the Indebtedness
! was to be taken care of by future sales
of stock.
1t seemed to make little difference
to the promoters how the business ran,
50 long as they could be out in the
field selling stock on which they drew
% to 50 per cent commission. In fact.
Jacus says Browning old him he did
not are a dam how the store went
just sc it continued in operation TO
thus keep the field open for the sale
of stock
Believes Wilder Is Honest.
Jacus stated that he did not believe
that Mr.. Wilder eve misappropriated
a cent of money and he did not be-
lieve he would do so. He was not ques-
toned in this regard concerning
Browning or Cole.
During the afternoon in the Iowa
Mercantile Company hearing Judge
Smith signed an order to have the re-
ceiver pay the September rent on the
store, $500, and this will be paid as
long as the receiver continues to use
the store. Some pianos consigned but
not sold to the company and a refrig-
orator show case also consigned to the
company but not sold, were ordered
turned over to the owners. Judge
Smith has not yet decided what will
be done with the notes still in the
hands of the company. Other c~onsign-
ed goods may De returned to the own
ers if a showing is made in court that
they were really only consigned.