ested persons as appraisers of the property and assets of the assignor. If the assignee fails to give bond, then such appraisers must be appointed for the same purpose, as soon as the trustees shall be appointed, and shall have given bond. The assignee or trustee must, within thirty days after giving bond unless the Court shall allow a longer time, make and file in the Court an inventory, verified by his oath, of all the property, money, rights, and credits of the assignor included in the assignment, which shall have come to his possession or knowledge, together with an appraisement thereof by the appraisers under their oath. At the end of filing the inventory, the assignee or trustee must also file a schedule of all the debts and liabilities of the assignor within his knowledge. This schedule must be verified by the oath of the assignee or trustee, and must contain the post-office address of each creditor,as far as the same can be given. The assignee or trustee shall proceed at once, to convert all the assets received by him, into money, and to sell the real and personal property assigned, including stocks, bonds, etc. upon such terms as the Court may order. Whenever the Court shall be satisfied that it would be for the advantage of the creditors of the assignor, the Court may order the business to be carried on by the assignee. At the expiration of eight months, (in some states one year) from the appointment and qualification of the assignee or trustee, and as often thereafter as the Court may order, an account shall be filed with such Court, by the assignee or trustee, containing a full exhibit of all his doings as such, together with the amount of all claims remaining uncollected and the amount, which in his opinion may thereafter be collected. Whenever on settlement the account shall show a balance remaining in the hands of the assignee or trustee, subject to distribution among the general creditors, a dividend shall de declared by the Court, payable out of such balance, equally among all the creditors entitled, in proportion to the amount of their respective claims against the assignor. An assignée or trustee should direct that the books be opened to conform with the inventory of the appraisers, and should have them conducted upon the prin ciples of double entry. The system of accounting should depend upon the nature and extent of the business. When the books have been properly opened and conducted, it is an easy matter to render a partial or final account. There is no prescribed form of such accounts, but they should be made in as simple a manner as possible, and the simpler and plainer it is, the better it is, if it be accurate and complete. Every assignee and trustee should have a thorough knowledge of the law. He should not transact any important business without the advice and consent of the Court, to whom he is responsible. There are so many points in which the assignee and trustee are held personally liable, that I would advise a written order from the Court, for all important matters. Trouble might be saved also, by seeing that such orders are entered upon the Court Journal. 2. Yes. 3. He should be compelled to show the papers of his appointment. 4. Yes, but the assignee should give sufficient bond of indemnity to protect the company, if the original certificates are not surrendered. 5. Yes. Auditing 1. Is it necessary for an individual, firm or corporation to have their books, accounts and financial affairs audited at regular intervals by disinterested auditors? 2. What is to be gained by having ones books and accounts audited and investigated? 3. By whom should ones books be audited? 4. What is the expense of an audit by a reputable and reliable firm of Public Accountants? 5. Is there any guarantee that a regular audit will prevent loss through dishonest employees? Auditing Answers. 1. Every well regulated business or financial con cern should have its books, accounts and financial affairs audited and examined regularly by disinterested auditors. 2. The benefits to be derived from regular audits and investigations by reputable disinterested Experts are numerous. Such a practice does not only put the questions of solvency, financial standing and credit beyond doubt, but it puts the management fairly before the Proprietors, and Stockholders, increases the value of securities, and wins the confidence of the Public generally. It guards against errors and protects against loss through fraudulent operations. 3. By experienced, competent careful, reputable disinterested Public Auditors. For work of this kind, consult D. A. Keister & Co. Public Accountants and Auditors, Business, and Financial Investigators, No. 88 Wall Street, New York City. 4. This question is difficult to answer. It depends upon the amount of work done, how it is done, when it is done, where it is done. Such work is contracted for by the job, also by the day; the prices vary. 5. D. A. Keister & Co., the well known Public Accountants and Auditors, 88 Wall Street, New York City, will GUARANTEE YOU AGAINST LOSS through dishonest employees by placing them under Fidelity Bonds, if you will enter into a contract with them to serve you as Consulting Accountants, and to audit periodically your books, accounts and financial affairs. The safety and accuracy of their accounting methods, and the efficiency of their periodical audits, enables them to furnish these Bonds without charge, other than that made by them for Auditing, which their methods have made concise and inexpensive. WE MAKE SPECIAL EXAMINATIONS AND REPORT UPON THE PROPERTY, ACCOUNTS, FRANCHISES AND FINANCIAL AFFAIRS OF INDIVIDUALS, FIRMS AND CORPORATIONS PROPOSING TO CONSOLIDATE OR ISSUE BONDS. D. A. KEISTER & CO. 88 WALL STREET, NEW YORK. Auditors. Questions. 1. Should the Auditor of a corporation or firm be one of the members? 2. What are the qualifications of an Auditor? 3. Where can such Auditors as referred to in the last question, be found, and what are their names ? Auditors. Answers. 1. The Auditor of a corporation or firm should be a disinterested person. He should not have any interest in the business whatsoever. 2. An Auditor should be a thoroughly scientific accountant, with an established character, and a will of iron; he should have a thorough knowledge of the National and State Banking Laws, and of the Statutes of the State relating to the Department of Public Accounts, Finance, Assessments, and of the duties and responsibilities of State, County and City Treasurers, Auditors, Commissioners, etc. as well as Commercial Law, and the rights, duties and liabilities of Shareholders, Directors, Officers and Creditors of Corporations. He should be a man of uncompromising integrity; know his duty, and do it without fear or favor. 3. D. A. Keister & Co. Public Accountants and Auditors, 88 Wall Street, New York City. Bank Deposits Questions. 1. When money is deposited in a bank, to whom does it then belong? 2. If a Receiver deposits money in a bank, and the bank fails, is he personally liable? 3. If a trustee deposits trust funds in a bank to his own credit, would he be personally liable if the bank fails. 4. Are the directors of a bank personally liable to a depositor, if they receive deposits when the bank is insolvent? 5. Can a bank properly refuse to honor the check of a depositor who is indebted to it on a past-due note for an amount greater than the sum on deposit ? 6. If a depositor draws a check on a bank in which he has sufficient funds for its payment, not encumbered by an earlier lien in favor of the bank, may he sue the bank for damages on its refusal to pay the check to the drawee? 7. Do checks delivered to a bank by a depositor, for collection and deposit, at a time when the bank was insolvent, as must have been known by its officers, and which had not been collected when the bank closed its doors, remain the property of the depositor, or of the bank? 8. What constitutes fraud on the part of a bank in receiving deposits? Bank Deposits Answers. 1. The relation of banker and depositor is that of debtor and creditor. Deposits on general account belong to the bank and are part of its general fund. The bank becomes a debtor to the depositor to the amount thereof, the debt can only be discharged by payment to the depositor, or pursuant to his order. 2. If a receiver, without an order of the court, or without authority in some governing statute, deposits the money which comes into his hands in a bank, he would be held personally liable for it, if the bank should fail. 3. A trustee who deposits in a bank and causes to be credited to his private account, money of the trust fund without giving any notice that it is not his private property or making any special agreement in regard to it, thereby converts it to his own use, and would be personally liable for it. 4. Yes they would. To accept deposits knowing the bank to be insolvent would be a fraud. 5. Yes. 6. Yes. 7. They remain the property of the depositor, and may be recovered by him from the receiver. 8. To constitute fraud on the part of a bank in receiving deposits when insolvent, which will authorize |