WRITTEN EXERCISES.

407. 1. What is the duty on 20 hhd. molasses, containing 63 gal. each, at 9 cents per gal., allowing 5% for leakage?

PROCESS.

63 gal. X 20=1260 gal. gross. 1260 gal. X.05 63 gal. leakage. 1260 gal. 63 gal. =1197 gal. net. $.09 1197 $107.73 duty.

ANALYSIS. Since 5% is allowed for leakage, 5% of the gross amount, or 63 gal., are deducted for leakage;

and since the duty

on 1 gal. is 9 cents, on 1197 gal. it is 1197 times 9 cents, or $107.73.

2. What is the duty, at 5 cents a pound, on 3750 pounds of coffee, allowing 5% for tare?

3. What is the duty on 500 pounds of raisins, in boxes, valued at 10 cents a pound, allowing 15% for tare, when the rate of duty is 6% ad valorem?

4. What will be the duty on $3000 worth of merchandise if the rate of duty is 15% ad valorem?

5. What is the duty, at 20% ad valorem, on 7 tons of steel, of 2240 lb. each, invoiced at 17 cents per lb.?

6. H. K. Thurber & Co., of New York, imported from Havana 75 hhd. molasses, 63 gal. each, valued at 35 cents per gal.; 125 hhd. sugar, 500 lbs. each, valued at 6 cents per lb.; 800 boxes cigars, valued at $8 per box. 7% was allowed for leakage on the molasses; duty on same, 25%; tare on sugar, 45 lbs. per hhd.; duty on same, 30%; duty on cigars, 60%. What was the amount of duties paid?

7. A wine merchant imported 45 casks sherry wine, valued at $65 per cask; 56 casks Madeira wine, valued at $60 per cask; 38 casks German wines, valued at $37 per cask. If an allowance of 4% be made for leakage, what will the duty be at 45% ?

408. 1. Into how many shares can $100000 capital stock of a company be divided, if the shares are $100 each?

Shares will be regarded as $100 each unless otherwise specified.

2. How much of the capital, or capital stock does a man own who has 30 shares? 25 shares?

3. How much stock is represented by a certificate entitling the holder to 40 shares?

4. What is the selling price or market value of 10 shares of railroad stock, when stock is selling at its original value or at par?

5. What is the market value of 10 shares of stock, if it is sold at 105% of the original value or 5% above par?

6. What is the market value of 10 shares of stock, if it is sold at 95% of the original value or 5% below par?

7. What will 10 shares of stock cost at 5% above par, if I pay a dealer in stocks or stock-broker 1% of the par value of the stock for buying it?

8. What will 5 shares of stock cost at 5% below par, if I pay a broker 1% for buying or for brokerage?

9. What is the value of 15 shares of bank stock at 90% of its par value?

10. What is the cost of 50 shares Chicago & Rock Island R. R. stock at 90% of its par value?

11. What is the cost of 100 shares Chicago & Alton R. R. stock at 95% of its par value?

12. What is the cost of 20 shares Pacific Mail stock at 261% of its par value?

13. A company whose capital stock was $50000, gained $5000 above expenses, which was divided among the stockholders. What per cent. of the capital stock was the amount divided, or what was the dividend?

14. What amount will a man receive who owns 20 shares of stock, if a dividend of 5% is declared?

15. What amount will a man receive who has 30 shares of stock, if a 6% dividend is declared?

16. A company whose capital stock was $50000, lacked $5000 of meeting its obligations. What per cent. of the stock was the deficiency?

17. If the deficiency is made up by the stockholders, how much will be the assessment on a stockholder who owns 20 shares of the above stock?

18. How much will be the assessment on 15 shares of the above stock?

19. What will be the annual income on a written obligation or bond for $5000 which yields 6% interest annually?

DEFINITIONS.

409. A Company is a number of persons associated together for the prosecution of some industrial pursuit.

410. A Corporate Company or Corporation is a company authorized by law to transact business as an individual.

411. A Charter is the legal document which defines the rights and obligations of a corporation.

412. Capital Stock is the property or money invested in the business of the company.

413. A Share is one of the equal divisions of the capital stock of a company.

The value of a share is different in different companies. Unless otherwise specified it will be regarded as $100.

414. A Certificate of Stock is a paper issued by a corporate company giving the number of shares to which the holder is entitled, and the original value of each.

415. Par Value is the value named in the certificate.

When shares sell for the value named on their face the stock is said to be at par; when for more than their face, above par, or at a premium; when for less than their face, below par, or at a discount.

416. The Market Value is the sum for which stocks sell.

417. An Installment is a portion of the capital stock paid by the stockholder.

418. A Dividend is a sum divided among the stockholders as the profits of the business.

419. An Assessment is a sum which the stockholders of a company are required to pay, to make up deficiencies or losses.

The Government and Corporations frequently issue Bonds for the purpose of raising money.

420. A Bond is a written obligation under seal, securing the payment of a sum of money on or before a specified time.

Interest is usually paid upon bonds at fixed dates, as annually or semi-annually.

421. Coupons are certificates of interest attached to bonds. They are cut off and presented for payment as often as the interest becomes due.

422. United States Government Securities are of two kinds, viz: bonds which are to be paid at a specified time, and bonds which are to be paid at a fixed date, or some earlier specified time at the option of the Government.

Bonds are sometimes designated by combining the rate of interest and the time of payment. Thus, bonds that pay 6% interest and are payable in 1881, are called 6's of '81.

When the rate is uniform for a class of bonds it is omitted, and the time of redemption and payment only are given. Thus, bonds that may be redeemed in five years, and are payable in twenty years, are called 5–20's, those redeemable in ten years and payable in forty years are called 10-40's.

The 4% consols are the bonds of the consolidated loan. They are redeemable after 30 years from July 1, 1877.

The bonds issued by States, counties, etc., are named from the rate of interest they bear. Thus, New Hampshire bonds that bear 6% interest are called New Hampshire 6's.

All bonds of the United States are payable in coin at maturity.

The various classes of United States bonds are:

1. 6's of '81

Interest payable semi-annually in gold.

2. 5–20's, issued in 1862, '64, '65, '67, '68. Interest payable semiannually in gold at 6%.

3. 10-40's, issued in 1864. Interest payable in gold semi-annually, at 5% on $500 and $1000 bonds, and annually on $50 and $100 bonds. 4. 5's of '81. Interest payable quarterly in gold.

5. 41's of '86.

6. 4's of 1901.

Interest payable quarterly in gold. Interest payable quarterly in gold. 7.4% consols. Interest payable quarterly in gold.

423. Stocks is a term which includes the stock of a corporation, the various U. S., State, and county bonds, etc.

424. A Stock-broker is a person whose business it is to buy and sell stocks.

425. Brokerage is the compensation allowed a broker for buying and selling stocks.