630. The Tariff of 1913. The table given below gives the

duties on some of the more important articles of import as fixed by

Example 1. Find the import duty on 50 dozen pairs of men's gloves, the duty being a specific duty of $2.50 per dozen pairs. Solution. 50 x $2.50 $125.00, which is the required duty.

=

Example 2. Find the duty on an invoice of carpets (velvet) valued at 18,650 francs, the duty being 35% ad valorem.

Solution.

18650

.35

93250

55950

6527.50 francs

35% of the invoice price is 6527.50 francs. To reduce to United States money multiply by .193, which is the value of a franc in dollars. This gives $1259.81 as the duty.

WRITTEN EXERCISES

Find the import duty on each of the following, and tell which are specific, and which are ad valorem duties.

1. Imported 120 dozen pairs of men's gloves from Montreal, Canada.

2. Imported 1480 gallons of olive oil from Italy.

3. An invoice from Hamburg containing:

6. An invoice from Sheffield, England, containing:

8. 8490 pounds of landscape views.

9. Printing paper (over 2 cents a pound), value $45,820.

10. Oriental rugs, value, 27,400 francs.

11. Trimmed hats, value, 15,600 francs.

12. Automobiles, value, 75,350 francs.

13. Imported 2860 meters of carpets from Paris, invoiced at 13 francs per meter.

14. I bought an invoice of Oriental rugs, paying £386 16s. for them in London. What was the total cost of the rugs in United States money, including the duty?

15. An automobile is bought in Paris for 12,800 francs. What is the cost of this machine laid down in New York, including the import duty and the freight which amounts to $85?

16. An invoice of jewelry is bought in Holland, amounting to 17,450 florins. Find the cost of this invoice including the import duty.

CHAPTER XLIV

PARTNERSHIP

631. A partnership is an association of persons for the purpose of carrying on a business and sharing its profits and losses.

The persons forming the partnership are called partners and the business concern is called a partnership, company, house, etc. It is designated by giving the names of some or all of the partners, such as Harper & Baird, Lucy & Sons, etc.

632. Kinds of Partners. There are four principal kinds of partners: (1) real or ostensible; (2) silent, dormant or secret; (3) limited; (4) nominal.

633. Real Partners. A real partner is one who is known to be such and who is fully liable for all obligations contracted by the partnership.

634. Silent Partner. A silent partner is in all respects a real partner except that his connection with the business is kept secret. If the fact that he is a partner is discovered, he is liable for all obligations of the partnership the same as a real partner.

635. Limited Partners. In the articles of partnership it is sometimes specified that the liability of one or more partners shall be limited to a certain amount or in certain definite ways. Such partners are called limited partners.

636. Nominal Partner. - A person having no interest in the profits of a partnership may permit his name to be used by the partnership. Thus, a partner may sell his interest, one of the conditions of the sale being that his name shall continue in the firm name. This may be of considerable importance to the firm because of the good will connected with the name. Such partners are called nominal partners.

637. Contributions of the Partners. Each partner contributes to the partnership something which is regarded as being commercially valuable. This may be cash, land and buildings, merchandise, personal services, good will, etc.

638. Sharing of Profits and Losses. The articles of agreement usually specify the ratio in which profits and losses are to be shared by the partners. However, each real partner is liable to the full extent of his property for the debts of the firm. Limited and even nominal partners are liable to third persons who have no notice of the special kind of partnership.

639. Resources. The resources of a company consist of all its property of whatever kind, such as cash, real estate, merchandise, etc. 640. Liabilities. The liabilities of a company consist of all debts of whatever kind, such as notes payable, accounts payable, etc.

641. Present Worth. The difference between resources and liabilities is called present worth.

642. Apportioning Profits Equally or in a Fixed Ratio.

Example 1. A firm consisting of three partners makes $8940 in profits. What is the share of each partner?

Solution. In the absence of any special agreement the profits are divided equally. Hence each partner's share is $8940 ÷ 3 = $2980.

Example 2. Two partners, A and B, agree to share all gains and losses in the ratio 3:2. During one year the business shows a loss of $1860. How should the loss be shared?

Example 3. In a partnership consisting of four persons, A contributes $14,000; B, $12,000; C, $20,000; and D, $25,000 in capital. At the end of the first year the net gain is $16,500. Find the present worth of each partner.

Solution. The gain of each partner is $16,500 ÷ 4 = $4125.

Hence their present worth is

643. Profits Divided in Proportion to Investment.

Example 1. A contributes $20,000; B, $30,000; and C, $35,000. Apportion among the partners in proportion to their investment a gain of $11,800.

Example 2. A contributes services equivalent to the income from an investment of $40,000. B contributes $35,000 for 5 months and then adds $20,000 more. C contributes $75,000 for 7 months and then withdraws $40,000. Apportion a year's net profits of $27,500 according to investment.

1. A contributes $8000; B, $10,000; C, $12,000. Later A withdraws $1500; B, $2000; C, $1800. At the end of the year the net earnings are $10,500. Find the present worth of each partner, the profits being divided equally.

2. A contributes good will, services, and $5000 cash. B contributes services and $10,000. C contributes $50,000 cash. Each partner is to receive 6% on the money invested. Of the remainder A receives 60%, B, 30%, and C 10%. If the net profits for the first year are $12,000, find the present worth of each partner.