liabilities, and the quotient will be the per cent. of the indebtedness (or the number of cents on a dollar) that can be paid.

To find each creditor's dividend, multiply his claim by the per cent. thus found.

2. Best & Foster became embarrassed and failed in business. Their indebtedness was $65000. The firm had cash and goods convertible into cash, $12500; building and lot, $40000; bills collectible, $2100. If the expense of settling is 5 per cent. of the amount distributed to creditors, what per cent. of their indebtedness can they pay? What will C. Greene & Co. receive, whose claim is $25800 ? Ans. to first, 80 per cent. Suggestion.-Divide assets by $1.05; the quotient will be net proceeds.

3. C. Smith & Co. have become insolvent. They owe A $3500, B $1500, C $1450, D $850, E $350, and F $450. Their effects (assets) amount to $4981.50. The charges of the assignees will be 2 per cent. of the amount distributed to creditors. What per cent. of their indebtedness can they pay? What will each creditor receive? Ans. to first, 60%.

STORAGE.

ART. 87. Storage is the price charged for the safe keeping of goods in a store or warehouse.

There is no uniform method of computing storage. The Boards of Trade, or Chambers of Commerce of the different cities, adopt such rules and rates for storage as they deem equitable. The charges for storage are usually, however, a certain rate per month for each box, bale, cask, etc.

When goods are withdrawn before the close of the month no deduction is made, but storage is charged for the full month. After the first month, for a part of a month less than one half, no charge is made, but for a part greater than one half, charge is made for a month. In some cities all fractional parts of a month are considered full months.

If, however, goods are received and sold on account, as in the commission business, or are received and delivered at the

pleasure of the consignor, an account is kept, showing the date and number of casks, etc., received, and the date and number sold or delivered. In computing the storage on such an account it is customary to average the time, and charge a certain rate per month of 30 days. If there is a fractional part of a barrel, etc., in the average, it is treated as in the case of parts of months above.

Examples.

1. What will be the storage of 150 barrels of flour at 4 cents per barrel from May 20 to June 6.

150x.04 $6. Ans.

2. What will be the cost of storing salt at 2 cents per barrel, received and delivered as follows: June 6, 1858, 120 bbls.; June 16, 140 bbls.; June 26, 200 bbls.; July 5, 300 bbls; July 16, 180 bbls.; July 20, 160 bbls. All delivered Aug. 1.

1858.

Operation.
bbl.

d. prod. June 6. Rec'd. 120 x 10= 1200

Explanation.-The storage of 120 bbls. for 10 d. is the same as the storage of 1200 barrels for 1 day; the storage of 260 for 10 days, the same as the storage of 2600 bbls. for 1 day, and so on. Hence the amount of storage is 1200+2600+7740+ 11600+6700+16500 bbls. 46340 bbls. for 1 day=4635 ( called 1 bbl.) bbls. for 1 month.

3. What will be the storage of flour at 5 cents per bbl. per month, received and delivered as follows?

Received July 1, 1858, 400 bbls.; July 15, 350 bbls.; July 26, 450 bbls. Delivered July 12, 200 bbls.; July 20, 400 bbls.; Aug. 1, 200 bbls.; and Aug. 8, 400 bbls.

Explanation.-From July 1 to July 12, 400 bbls. were stored; from July 12 to July 15, 200 bbls.; from July 15 to July 20, 550 bbls.; from July 20 to July 26, 150 bbls.; from July 26 to Aug. 1, 600 bbls.; from Aug 1 to Aug. 8, 400 bbls.

RULE.

Commencing with the first date and ending with the last, multiply the number of barrels, or other articles in store, from each date to the one NEXT following it, by the number of days between these dates. Divide the sum of the several products by 30, and the quotient will be the number of articles stored for one month, and this number multiplied by the rate of storage for each article will give the amount of storage charged.

Remark. The following form will give the student a very good idea of an Account of Storage. The form can be filled by the process used in solving Ex. 3.

4. Storage of goods on account of C. T. Wilder & Co.,

Chicago, Ill., at 5 cents a bbl. per month, by Hubby & Hughes,

What is the storage on the above account, closed April 12, 1858, and how many barrels are on hand?

ART. 88. Butchers and drovers sometimes hire their cattle pastured or fed on account, entering and withdrawing them as circumstances may require. The account is closed in the same manner as an account of storage.

Account of pasturage of cattle at 60 cents a head per week for Lewis & Vincent, Portsmouth, O., by John Goodwin, Wayne, tp.

What is the average number of cattle pastured each week (7 days), and what is due John Goodwin? Ans. to last, $159.

GENERAL AVERAGE.

ART. 89. When, for the safety of a ship in distress, any destruction of property or expense is necessarily and voluntarily incurred, either by cutting away the masts, throwing goods overboard, or otherwise, all persons who have goods on board, or property in the ship, bear their proportion of the loss.

The method of apportioning the loss among the several interests, sacrificed or benefited by the sacrifice, is called General Average, and the property thus sacrificed is called Jettison.

In ascertaining the amount of loss to be averaged, not only the amount of goods thrown overboard is considered, but also all damages to the ship, cost of repairs, and expense of detention for making repairs, including the wages of officers and crew; also the expense of entering a harbor to avoid peril, or of setting afloat when stranded; also towage in case of being disabled, or salvage paid another vessel for affording relief, etc. When the repairs made consist of new masts, rigging, etc., a deduction of of their cost is usually made, since they are considered better than the old.

13

In estimating the value of the three contributing interests— vessel, freight, and cargo-it is customary to value the cargo at the price it would have brought at its port of destination. It is sometimes valued at its invoice price at the port of lading.

13

As the wages of seamen, pilotage, etc., are paid out of the freight, a deduction is made from the gross freight for this purpose. The amount to be deducted is not determined in a uniform manner. According to some authorities, the gross freight less is the net freight, except in New York, where is deducted. The general practice, however, is to ascertain what sum will actually be left to the vessel as net freight, after paying seamen's wages, etc. Sometimes the vessel earns a net freight of the total amount, and sometimes the seamen's wages, etc., absorb the whole of a very low freight. Each case is estimated by its attendant circumstances.