The mirror. (Stillwater, Minn.) 1894-1925, 1917-04-19
|G@XN7|N INSOLVENT business
lSMgl is one the liabilities of
lS@4AG which exceed the assets.
UlAJ0 TnCOluopov ic tho fret


I1%4G which exceed the assets.
uG@ggY Insolvency is.x the first
stage of bankruptcy the condition
existing that leads to to the ap-
pointment of a receiver, one who
will-because he is bonded for
that purpose-conserve the assets
of the business and endeavor to
bring order out of chaos. He will
endeavor to maintain the business,
sell it's wares, temporarily suspend
the payment of claims antedating
his appointment and apply his ef-
forts to the payment of current
bills and establish a surplus with
which to pay the old bills after he
has re-established the business on
a firm basis, with reasonable credit
and redeemed prestige.
Very interesting to the creditors,
for the receiver is subject prac-
tically to their joint instructions
and they are thereby more certain
of payment of their claims. But
the proprietor of the business does
not experience the same feeling of
joy during the receivers control.
The receivers word is law and the
state of affairs he uncovers, the
wasteful practices that have gone
on, the loose, unsystematic methods
that have been used, that are
brought to light by him are the
source of many an hour of self
disgust for the proprietor. He is
the one most benefited in the end,
though, because his business is
saved for him and he has had de-
fined for him, in a very clear and
demonstrable way, the things that
led him to the precipice and that
almost succeeded in dashing him
over to the rocks of failure below.
In fact, would have dashed him
over had it not been for the re-
ceiver.
We can all profitably apply this
to ourselves. We are, to greater
or less degree, insolvent in busi-
ness. What business? The big
business. The business upon
which depend all other businesses
Life. Each one of us is engaged
in the business of living. The de-
gree of insolvency is made mani
fest by the relative condition of
our assets and liabilities. How
are we to find out what the condi-
ton is? How are we to turn in
solvency into solvency?
How does this me- Il appeal to
you? Let each man appoint re-
ceiver for himself. Who is that
receiver to be? He must be bond
ed; therefore. he must be honest
and reliable. It's a big job; but
every man is capable of acting for
himself. His bond is his ability to
be true to himself, his ability to
keep faith with himself and the
consclentiousness and sincerity
with which he pledges himself to
his task.
Now, the first thing for a receiv-
er to do is to obtain a careful and
authentic accounting. an uncolored
accounting of the assets and liabili-
ties of the business, and from that
he is able to make up his state
ment of affairs" and from the lat
ter his deficiency account" The
last named is what he is after. He
must know what the discrepancy
between assets and liabilities is and
where it came from, that is, what
has been responsible for it, so as
to know what the surplus is that
must be built up before creditors
can be paid and what phases and
departments of the business to at
tack most vigorously in cutting out
waste, stopping leaks and righting
wrong methods.