Company News and Views

purchased
The law supposes or assumes that a person will always pay for a thing
purchased. If I should go into a store, inquire the price of a book,
and, after learning the price, should say to the salesman, ‘I will
take the book,’ and he should wrap it up and give it to me and I
should then walk out with the book under my arm, he doubtless would
come to me and say in his politest manner: ‘Why, sir, you have
forgotten to pay me for it.’ Suppose I should say: ‘Oh, yes; but I
will come in to-morrow and pay.’ But if I happened to be a stranger,
and especially if there was a suspicious look about me, and he should
say they did not give credit in that store, and I was still inclined
to walk out with my book, he could insist that there had been no sale
and that I must give the book to him. The law would protect him in
taking it from me if he did not use undue force. The law assumes,
unless some different rule exists, that the buyer will always pay for
the thing purchased, yet in law there is no sale unless the purchase
money is actually paid.

which take a sort of middle ground between the commercial bank and the
savings bank, so far as their service to the public is concerned
There has grown up in this country a class of financial institutions
which take a sort of middle ground between the commercial bank and the
savings bank, so far as their service to the public is concerned.
These are what are known as trust companies. National banks are
prohibited by law from making loans on real estate, and though State
banks are not hedged in this way, as a matter of good banking they
usually avoid loans of this character. The policy of commercial banks
is to make a great many comparatively small loans on short-time paper,
while that of the trust company is to make large loans on long-time
securities. The deposits of trust companies consist largely of
undisturbed sums such as might be set aside by administrators,
executors, trustees, committees, societies, or from private estates.
They are such as are not likely to fluctuate greatly in amount. From
the very nature of their deposits trust companies find it convenient
and profitable to make larger loans and at longer periods than do
ordinary banks. Trust companies not only receive moneys upon deposit
subject to cheque and for savings, and loan money on commercial paper
and other securities, as do commercial banks; but they also act as
agents, trustees, executors, administrators, assignees, receivers for
individual properties, and corporations. They frequently assist as
promoters or reorganisers of corporations and in the sale of stocks,
bonds, and securities. They act also as agents for the payment of
obligations maturing at future dates, such as the premiums on
insurance, interest on mortgages and bonds, etc. Trust companies are
organised under the laws of the State in which they exist and are
usually subject to all the supervision required in the case of State
banks.

order to guard himself against the unwelcome discovery of disease or
other defect? Clearly, _he ought to require the seller to give him a
warranty_
What, then, ought a buyer to do in purchasing a horse, for example, in
order to guard himself against the unwelcome discovery of disease or
other defect? Clearly, _he ought to require the seller to give him a
warranty_. A proper way is, if the transaction be an important one, to
have the warranty in writing and signed by the seller. It need not be
very long; a few words usually are enough.

industrial and social welfare that the problem of the just and
equitable distribution of their assessment is one of paramount
economic and political consequence
Transportation charges have such a general and vital relation to
industrial and social welfare that the problem of the just and
equitable distribution of their assessment is one of paramount
economic and political consequence. A consideration of the main
factors which influence the railway companies in fixing charges should
precede a discussion of the regulation of transportation by the
government.

6. What is a certified cheque? Brown gives A an ordinary cheque for
$1000, and B a certified cheque for $1000. He fails before either
cheque is presented. Why is B”s security for his claim considered
better than A”s?

Corporation bonds are issued for a period of years. They usually have
coupons attached which are cut off and presented at regular intervals
for the payment of interest. A bondholder of a corporation runs less
risk than a stockholder, first, as to interest: the corporation is
obliged to pay interest on its bonds, but may at its own pleasure
_pass_ its dividends; secondly, the bondholder is a creditor, while
the stockholder of the corporation is the debtor. On the other hand,
if a concern is very successful, a shareholder may receive large
dividends, while the bondholder receives only the stipulated interest.
A _bond_ is evidence of debt, specifying the interest, and stating
when the principal shall be paid; a _certificate of stock_ is evidence
that the owner is a part-owner in the corporation or company, not a
creditor, and he has no right to regain his money except by the sale
of his stock, or through the winding up of the company”s business.

relieve the treasury
At different times the United States government has issued bonds to
relieve the treasury. These bonds are absolutely safe and are always
marketable. _Registered bonds_ have the name of the buyer
_registered_; _unregistered bonds_ are payable to _bearer_. _Municipal
bonds_ are issued by cities and other municipalities to raise money
for local improvements. If proper precautions are taken by buyers,
municipal securities may be considered among the safest and most
remunerative investments.

Another illustration may be given. Suppose a person having made a bet
and lost is unable to pay the money and gives his note for the amount.
When the note becomes due the holder or owner sues him for the money.
He defends, as he is unwilling to pay, by saying there was no legal
consideration for the note. The money he promised to pay was only a
wager, which the law regards as illegal. And this would be a good
defence.

in connection with the storage features
Many of the warehouses find it advantageous to do a banking business
in connection with the storage features. Very frequently, for the
convenience of the importer, goods are consigned to the warehouse and
sent subject to a sight draft for the amount of the invoice. The
warehouse company will pay the draft with the exception of about
twenty per cent., which the importer is expected to furnish. If the
duty is paid then the value upon which a loan is estimated is based
upon the market value of the goods in this country. After the draft
has been satisfied the goods are placed in the stores of the warehouse
company subject to the customs and storage charges. The amount
advanced by the company bears interest at current money rates. In
illustration let us suppose bonded goods to be shipped and invoiced at
$10,000, customs duty $4000, and the goods consigned to a bonded
warehouse. The draft ($10,000) is sent to the warehousing company,
which advances $8000, and together with the $2000 received from the
importer pays the draft. The $8000 loan made by the company is then
charged to the importer at the usual interest rate, and when the
borrower withdraws his merchandise from storage he will have to pay
the government the $4000 customs duty and pay back his loan of $8000
to the warehouse company, together with interest and storage charges.
If any portion of the goods stored is withdrawn for use in the
business of the importer, the company will rebate a proportionate
amount of the interest. If goods decline in value as collateral in
storage the company will demand additional margin for its protection.
If goods appreciate in value the loan may be increased. The market
value of the goods is ascertained by the appraisement of some expert,
who receives a commission for his services.