UC-NRLF PROFESSIONAL ACCOUNTANTS BERESFOBD WOBTHINGTON. '■'■v^*:-- f. fk'. M ^ Professional AccorxTAXTs AN HISTORICAL SKETCH BE RES FORD WORTMINOTON KpirhdrmVi. GEE & CO., Pristfrs and Pihlisiii: rs, 34 Moorgatk Strfkt, E.C. 1895 a"^ ^^^?. PREFACE. A S ii prac'tioal (jUfilitication for ;itteiiiptin,t( :i work f)f this nature, which apparently has not been previously undertaken, there is claimed a mixed professional and official experience ex- tending over a period of twenty-five years. In addition, a patient examination of details, and a careful consideration of the whole, have been given to the subject, in order to arrive at what are deemed correct conclusions. These are quite unprejudiced, as the writer, whether to his dis- advantage or otherwise, is in no way connected with any Association of Accountants. B. W. 200.1M EBBATUM. Page 46, for "Bell" read "Evans. C()N'1'i-:n'J's. TAGE C'liAi'TKK 1. — Intrudiutioii 1 11. — An Accountant's Ixcpurt ubuut 17-21 11 III. — Early Pro^a'ess of the Pro- fession .... .... .... '1^) IV. — The Kailway Mania and its Se(]ucl .... ... .... 87 \'. — Official Liquidators .... .... 18 YI. — Auditors — Past and Present.,.. 59 VII. — Trustees in Bankruptcy .... (38 VIII.— The Institute of Chartered Accountants .... .... 80 IX. — Provincial and Foreign Accountants ... .... 03 Ai'j'KNDix I. — {A. tV.- B.) Observations made upon exaniinin;^^ the books of Sawbridge i^' Company, and an anonymous criticism thereon .... 108 II. — Extracts from Holden's Trien- nial Directories from 1700 to 18-21 120 III. — No. of Companies, with author- ised capital, registered from 18(33 to 1893 .... 12(3 C'H Al'TKU 1 INTHODrcTlON, 'TO coiiimence, for the sake of symmetry, with •d delinition, as is usual on similar occasions, professional Accuuutauts in the primary sense are those who have, or who pose as having, a superior expert kipwledge of accounts, the benefits of which ac(juii'(Miit'nt tlicy arc \vilHn<^- to dispense to those who may require them. The word Accountant is derived from the French compter, from the Latin conipntare, and was originally written Accomptant, but, by gradually softening tlic proiniiiciation, in time the orthography changed to its present form. Both spellings appear to have been used in- differently for a considerable period, the doublets compti')- and confer being still preserved m French. The profession of Accountancy is open to any one who chooses to adopt it, and there is nothing to prevent any incompetent person from practising it. As a descriptive term the word Accountant is a most elastic one, and is not Z INTKODUCTION. infrequently assumed by those mixed up with money lending, bogus company promoting, book- making, and other shady occupations. This is a fact to be deplored, but though attempts have been made to obtain a remedy for the evil, there appears but little chance of success in the immediate future, and of limiting the use of the term by law to those qualified by character and examination to bear it worthily. However, that universal remedy, tincture of time, will most probably in the end produce a desirable effect, and place Accountancy on an equal basis with the other learned professions of law, medicine, and divinity. Then, and not till then, will the position of Accountants be completely recognised and pro- tected. And here, in order to get rid of an un- pleasant remark on the earliest opportunity, the opinion must be expressed that some practising Accountants, happily now in the large minority, are deficient in their first essential business (jualification, viz., a thorough knowledge of the theoretical laws and practical adjustment of conjplex accounts. Every Accountant should be able to apply to any business w^hatever a system of accounts which is absolutely perfect. The passing of the strict examinations provided by the Institute of the Chartered Accountants INTKUDLCTIUN. 3 and otluT Societies is necessarily producing' beneticial results every day, and will in euurse of time eradicate any possibility of reproach on the ^^•ounds of i^Miorance or incompetence. 'J'he latest ^^eneration of Accountants starts equipped with a knowled«,^e of various subjects which the older sthool only acquired from time to time by practical experience. Some years ago many articled pupils emerged from their term of apprenticeship with very little more knowledge of their profession than they possessed on the first day they set foot in the City. Several of these had no doubt during that period greatly improved their game of billiards, lost a little money at pool, and on the leading racing events of the sporting year, discovered an acconnnodating cigar dealer, and increased their visiting list by the ac(|uaintance of sundry wine-bar Hebes. To apply the refrain warbled by the comic vocalist, "That used to be the racket, but it don't go now." Those dolce far niente days are as dead as Queen Anne, and appli- cation and attention to work reign in their stead. Aspiring epigrammatists and others have on occa- sions aimed their harmless shafts of satire at this professional class generally. The late acconqjlished Senior Registrar of the Bankruptcy Division, Mr. William Hazlitt, who inherited much of the ability of his distinguished father, and who revelled in 4 INTRODUCTION. jocularity, on one occasion expressed his opinion that " an Accountant was a person unaccountable for his actions." No one who was acquainted with the amiable Eegistrar would accuse him of perpe- trating so gross a calumny on a highly intelligent body of men, and the statement must be accepted as an instance of the impossibility of some people, no matter what their position, to refrain from making a joke whenever the slightest opportunity is afforded them. A gentleman, who had been a partner in a private banking company in the City, which failed some years ago, once made the now obsolete remark to the writer, more in sorrow than in anger, that " Accountants made their fortunes by the misfortunes of others." He subsequently inferred that they showed unwonted zeal and energy in the pursuit of their calling, " for," added the quondam banker, " it takes them all day to get their business and all night to do it." Both these expressions were, doubtless, extravagant figures of speech, but still the fact remains that some years ago, at all events, there existed a strong popular feeling that Accountants were in reahty a body of men who sprang into existence owing to the Com- panies Act of 1862 and the Bankruptcy Act of 1869, and who flourished on the ruins of once prosperous undertakings and the wrecks of private fortunes. INTRODUCTION. 5 These statutes, especially the latter oiu', as will bt; seen hereafter, did attract some who liad a keen scent for the salvage from commercial wrecks, but at the same time it is ^a-ossly unfair to tar all the Hock with the same brush, for there is — especially at the present time, and always has been within ordinary recollection — a majority in the profession, whose integrity and honesty, to say nothing of ability, rank very high indeed. Men whose know- ledge of intricate accounts and of complicated tinancial transactions is absolutely necessary to the commercial world in times of serious financial trouble ; and it is no reproach that they should receive fair remuneration for honourable and very useful services. Moreover, Accountancy now rests on a firmer and broader basis than any Bankruptcy or Winding-up enactments can affect to an alarm- ing extent. Some members of the profession have as little to do with this description of business as has a lirst-class family lawyer. Prosperity suits their pockets much better than periods of disaster. Preparatory to tracing, so far as possible, the causes of the great numerical growth of profes- sional Accountants, the following very brief historical outline of the principal subject with which they deal may be deemed neither out of place nor uninteresting. There are three systems of keeping' books, and U INTRODUCTION. they each have their advantages. The No Entry system prevents the trader putting himself to inconvenience, and is perfect ease and leisure so long as it lasts. Single Entry seems simple, but will never allow of a coup d'opil giving the actual state of affairs. Double Entry effects this desirable consummation, and makes the accounts check each other to a considerable extent . To seriously argue the relative merits of Single and Double Entry, as systems of Bookkeeping, is about as puerile as to compare a system of mensu- ration without demonstration with the propositions of Euclid, and to discuss the two under the common name of geometry. This system of Double Entry, so far as can be traced, is due to the Italians of the fifteenth cen- tury ; and the number of treatises which have since been written upon it would fill an extensive volume with their titles. How long the Italians had it, or when they acquired it, is not known. If the Arabs had it, of which we know nothing, the probable surmise would be that it came from the East with algebra in the thirteenth century. Bookkeeping was certainly known to the ancients, we gather from Pliny, and Cicero, from his letters to Atticus, seems to have had bill transactions between Rome and Athens, when he arranged for his son's education without the necessity of remitting money, IXTRODT'CTIOX. 7 which certainly iinphes soiut' kind of account kcep- in,l,^ hut the evidence that ])()uhh' Kntry was in use is (juite inconchisive. It estahhshes the fact that de])t()r and creditor accounts were common, hut that was a very long way off the Itahan method. The two most celebrated early treatises are those of Lucas Paciolus, or Lucas di Borgo, and of Simon Stcvin de Bruges, better known as Stevinus, both of whom were highly accomplished mathematicians. The former, in which the Double Entry method tirst appeared in print, was con- tained in Paciohis's celebrated Sudiuki (h- Arithmetical dr., Venice, 1494. The work of Stevinus was originally published in Dutch about 1544, and it is in the folio edition of Snellius's Latin version, published in 1(305. This treatise was drawn up, we are told, for the use of Prince Maurice of Nassau, and is the first in which the Double Entry system is shown to be applicable to something more than merchants' accounts. It explains how to keep public accounts by it ; and it is said Prince Maurice caused it to be employed for some time. Stevinus shows that every transaction must tind two places. " *S'/ y>//rro," he says, " id cnirit/li/ m iiiircs sfN/enn/i dares, qini in hn-o istnd (/isj)t>?irr(s ! Ad fainilicr imjtensa.s (ip/iofierein scribendo. Inijienscp familicp dehent /irr tircam.^' That is, if a boy gets a stiver 8 INTRODUCTION. to buy nuts, Stevinus would very properly have it entered to the Family Expenses Account, as " Family Expenses Debtor to Cash," with the balancing entry in the Cash Account, " Cash Creditor by Family Expenses." Some authorities consider a work by John Peele, who published in 1569, to be the oldest Enghsh work on Double Entry, and by others this is doubted. There appears to have been an early treatise, ''Newly augmented and set forth by John Melhs, scholemaister, 1588," being "a briefe instruction and manner how to keep bookes of accompts — by three bookes, named the Memoriale, Journal, and Ledger," which purported in the preface to be a re-publication of one published at London in 1543 by Hugh Oldcastle, schoolmaster. There appears to be no doubt of this having explained the method of Double Entry, as an extract shows " that one parcell in the Journale maketh two in the Ledger." In 1652 Collins published his " Introduction to Merchants' Accompts," and in a further edition, 1674, the author says that he had been urged by the stationer (what would a publisher say now to anyone who called him so '?) to give a new edition, which might be improved. " But I concur not," continues he, "finding that my said long experience hath not at all advanced my knowledge INTliOlTCl ION. 9 in ^ood iiit'tliod of Accoiiipts, thoii.^li 1 confess I nnderstiind tlic natnrt' and intrigues of bad ones nnuh l)t'tt('r than I did." (Ireat numbers of En^lisli works were published during the last century. In The Accoinifanf, London, 1750, by James ])odson, the Double Entry method was probably for the hrst time applied to the details of a faini and a retail trade. This had been done before, considering the trader in the light of a merchant, and keeping the accounts of goods in a very aggregate form. But one of Dodson's examples is the case of a retail shoemaker, and the Soles Account and the Uj)j)er leathers are kept distinct. In 179() Mr. E. T. Jones, of Bristol, a lineal ancestor of the mend)ers of a firm of Chartered Accountants now practising in London, devised, to use his own words, " a plan for keeping books correctly," and on whicli he wrote a treatise, from which he derived a large s\nn of numey. This work was followed by innumerable others, and from first to last they have a very strong resemblance in detail, although the number of ''new" and "improved" systems which have, from time to time, at no very distant dates, been sprung on the public, appears at the tirst l)lush somcwliat startling. In considering the growth of professional Ac- 10 INTRODUCTION. countancy there must be considered the enormous development of British commerce, for that the two subjects have a strong bearing on one another is clearly obvious to the least reflective mind. In addressing his confreres at Birmingham in October 1888, the venerable gentleman, who was then President of the Institute of Chartered Accountants, remarking, in the course of his speech, " I have had fifty-six years' experience of the pro- fession, and during that period I have watched its progress carefully and anxiously. In my early re- collection there were very few professional Ac- countants of any importance in the City of London, and their business was comparative!}- limited. Since then the vast expansion of the commerce of the country, the increased confidence, and the appreciation by the public of the services of the profession (together with the business arising under the Joint Stock Companies Acts) have placed us in a very enhanced position, which has resulted in the considerable augmentation of our duties." The progress of trade and the productive arts in the Middle Ages w^as very considerable, both in quality and extent. Italy especially developed a degree of art and opulence for at least two centuries before England had discovered any manufacturing quality, or knew how to utilise her INTKODUCTION. 11 nidst valuiibh' raw materials. During the fifteenth and sixteenth centuries the c-ourse of trade in these ishmds was wholly chan^^nl, as well as vastly ex- tended, and has never looked baek. The present century has witnessed an extension of the com- mercial relations of mankind, of which tliere is no parallel in previous history. \'arions causes supported the activity of connnerce in the first four decades, but the great movement which has made the century so remarkable was chieHy disclosed in practical results from about 1840. Mr. David Macpherson, who published his elaborate Annals of Co?n merer in 1805, states that in 1764 the total imports of Great Britain amounted in official value to i'l 1,250, GOO, and the total exports to X'17,446,306. In 1830 the total value of British produce and manufactures exported was i'53,288,580, and the total value of imports 4^62,048,000. In 1873, the declared value of exports of British and Irish produce and manufactures reached the enormous total of i'255,073,336 ; and the imports the still more astcmishing total of .4370,380,742 ; an expansion of trade within the third of a century wholly without example. During the past twenty years the development has not increased in the same gigantic manner, as the exports for 1893 are returned as 1*277,138,270, and the imports i:404,6.S8,178. 12 INTRODUCTION. In studying the history of the monetary and financial affairs of this country, one cannot fail to observe the apparent regularity with which seasons of great commercial prosperity have been followed by those of speculation, panic, and ultimate distress. During the past hundred years these changes appear to have succeeded each other as regularly as the seasons, and it is indeed a vain expectation to suppose that it should be altogether otherwise. Speculation under our monetary system is the natural result of commercial prosperity. When- ever we find ourselves under circumstances that enable the acquisition of rapid fortunes otherwise than by the road of plodding industry, we may be almost justified in auguring that the time for panic is at hand. Capitalists must have some species of investment for their money, and if the ordinary channels are closed against them by the great number of people who wish to embark money in the same direction, modes of investment which under other circumstances would be neglected are looked upon approvingly. That is, to a great extent, the short natural history of speculation ; and when it is conducted without any prudent control, panic and embarrassment follow invariably in its steps. However, the evil of a panic is not altogether unmitigated. Not only is the com- mercial atmosphere cleared by the explosion of a INTRODUCTION. 18 niunber of estublishiiients wiiich IkkI cxistod on a false basis, not only are wroiif? principles exposed, and, therefore, cheeked in their power of ])rodncin;,' mis- chief, but the necessity of a reform in a state of laws under which such vast evils have been allowed to flourish is deeply imprinted on the public mind. A few years ago a Chartered Accountant of large experience, and possessing undoubted ability and shrewdness, thus expressed his forecast of the subject : " The impression I have formed is that the world is grown rather wiser, and that when- ever a genuine panic takes place it will probable- be caused neither by excessive absorption of capital in railways, as in 1847-49 ; nor by excessive credit, as in 1857 ; nor yet by bad banking, as in 1806 ; but rather by a vast reacti(jn caused by some great event, such as a very l)ad harvest affecting a strained money market, and a mercan- tile community heavily burdened with stocks. Tin- multiplicity of currents of affairs in the meantime tends to mitigate all that is bad, and to moderate all that is favourable in the national fortunes, so that we must all be content to work harder and gain less than the generation which preceded us." It will be seen that the commercial crises of the present century, which it is deemed necessary to refer to hereafter in some detail as being explana- tory of cause and effect, have largely augmented the business of professional Accountants. CHAPTEK II. AN accountant's KEPOHT ABOUT 1721, A S possibly some readers have not left school upon a recent date, and do not retain a lasting" recollection, or possess a vivid conception, of that great financial catastrophe, expressively known in history as the South Sea Bubble, it may not be superfluous to reproduce the salient points in connection with the collapse of that disastrous undertaking. For that purpose, so far as the historic outline is concerned, recourse has been had to Mackay's Memoirs of Extraordinary Popular Delusions. The South Sea Company was formed in 1710, and in a few years, owing to the reputed wealth and respectability of its corporation, came to be considered the rival of the Bank of England. Though their trade with the South American States produced little or no augmentation of their revenues, they continued to flourish as a monetary association, and, at the suggestion of Sir John Blunt, one oi the directors, they Anally laid before Parliament their famous plan for decreasing AN ACCOINTANT's liLl'UKT AJJ(JL T 1721. lo the National I)('l)t, offcriii,^- tlic (loNci-iiiiiciit l'7,50(),()0() for the incdccniahlc aiimiitii's, whicli liad heeii .i^a'anted in the last two rci^iis. At the connncnceinent of Fchrnarv 1720 they receiN'ed permission to hrin.i; in a Jh'll to that effect. I^xchan.ue Alley went into a fever of e.xcitenient, and the company's stock which had heen at 130 the previous day ^a-adually rose to 800, and continued to rise with the most extraordinary rapidity durin<( the whole time that the Bill was under discussion. Mr. Walpole was ahnost the only statesman in the House of Commons who spoke out boldly a^^ainst it. He warned them in eloquent and solemn lan<,aiage of the evils that would ensue. "It countenanced," he said, " the dan<^^erous practice of stock-jobbing, and would divert the genius of the nation from trade and industry. It would hold out a dangerous lure to decoy the unwary to their ruin, by making them part with the earnings of their labour for a prospect o^ imaginary wealth. The great principle of the project was an evil of lirst-rate niagnitude ; it was to raise artificially the value of the stock by exciting and keeping u}) a general infatuation, and by promising dividends out of funds which could never be ade(juate to the purpose." The warning fell on heedless ears ; for the first time a speculating fren/y had seized upon the nation. 16 AN accountant's eeport about 1721. The Bill was two months in its progress through the House, and during this time every exertion was made by the directors and their friends to raise the price of the stock. So eagerly did all classes follow the bait, that men and women, from royalty downwards, flocked to Change Alley, in such numbers as to necessitate tables with clerks being set in the street. Other schemes of the most ex- travagant kind were exploited, bat the most preposterous of all, and which showed the utter madness of the people, was one engineered by an unknown adventurer, entitled, "J. coynpaiuj for carrying on an unclertal-ing of great advantage, hut nobody to hioiu loliat it is.''' The giant of "promoting " genius who essayed this bold and successful inroad upon public credulity merely stated in his prospectus that the required capital was half a million, in five thousand shares of ^100 each, deposit .£2 per share. Each subscriber, paying his deposit, would be entitled to .£100 per annum per share. One morning this great swindling financier opened an office in Cornhill. Crowds of people beset his door, and when he shut up at three o'clock he found that no less than one thousand shares had been subscribed for, and the deposits paid. He was thus, in a few hours, the winner of i£2,000. He was contented with this useful sum, and started the same evening for a AN AfCOL'NTANT's UKTORT AlJOlT 1 ( 2 1 . 17 forei^ni shcnv. It is barely necessary to add he was never lieard of any more in Tjondoii. He has had many disciples since. Who can doubt that if some of them were bron<^dit to justice, and sentenced to the ''cat," what a beneticial result such richly merited punishment would create ? Durin.u^ the month of May the South Sea Stock continued to rise, and on the 28th of that month it was quoted at 550 ; in four days after this it took a prodigious leap, rising to 890. It was now the general opinion that it could rise no higher, and many persons took the opportunity of selling out. However, at the commencement of August, the stock was returned at 1,000 per cent. "The bubble was then full-blown, and began to quiver and shake preparatory to its bursting." It is needless to detail the stages of the collapse of the company, but ''the ebb of this portentous tide was so violent that it l)ore down everything in its way, and an intinite number of families were overwhelmed with ruin. Public credit sustained a terrible shock ; the nation was thrown into a dangerous ferment ; and nothing was heard but the ravings of grief, disappointment, and despair." To quote the words of the Parliamentary History, " And thus were seen in the space of eight months the rise, progress, and fall of that mighty fabric. 18 AN accountant's report about 1721 . which, being wound up by mysterious springs to a wonderful height, had fixed the eyes and expecta- tion of all Europe, but whose foundation being fraud, illusion, credulity, and infatuation, fell to the ground as soon as the artful management of its directors was exposed." Public meetings were held in every important town, at which petitions were adopted praying for the vengeance of the Legislature upon the directors. It was said that there was no law to punish them, but one statesman expressed his opinion that they ought to follow the example of the ancient Romans, who, having no law against parricide, because their legislators supposed that no son could be so unnaturally wicked as to murder his father, made a law to punish the heinous crime as soon as it was committed. A Bill was accordingly brought in for restraining the directors, cashier, and clerks, from leaving the kingdom for twelve months, for discovering their estates and effects, and preventing them from transporting and alienating the same. A select committee of thirteen was appointed, with power to send for persons, papers, and records ; and they immediately set about their work of investi- gation. One of the directors was a Mr. Saw bridge, and he, as did others of his co-directors, petitioned the AN accountant's KEJ'OliT AllOC 1' 1 7"2 I . 1 !) I loiisc of Coiiiiiioiis, ot" which \\v was ;l iiiciiiher, for Iciiiciuy. This ^entlciiiaii stated that "lie he^^an the woiid with a very considerable fortuiK^, and all the time he was director of the Sonth S<':i Company he was a partner with Turner and ("aswall in the hankiii,^- ti'ade, and was hy th(^ multiplicity of his affairs drawn oil' from constant attendance on the service of the company." An investigation of the books of Sawbridf^e and Company took place, and the report made thereon is, apparently, the first existin^^ record of the employment of the services of an Accountant in a matter of this nature. This report, which was published in pamphlet form, commences, " Observations made upon examinin^^ the Books of Sawbrid^^e and Company. By Charles Snell, Writin*,' Master and Accountant in Foster Lane, Ijondon " (see Appendix I., A). The document is undated, but, in all probability, it was prepared at the very end of 1720, or the early connnencement of 1721. From its stron^^ ten- dency, which is very special pleadin;;- indeed, it is most likely that Mr. Snell was either employed by Mr. Sawbridge and his partners, or by Mr. Stanhope. It hardly seems probable that he took instructions from the Connnittee, or that some victim of the swindle thought tit to place the matter in the hands of an Accountant on his own responsi- 20 AN accountant's EEP015T ABOUT 1721. bility. Mr, Snell appears to have had a difficult subject to deal with, and though, possibly, his argument nia}^ be ingenious, the simple question arises why the entries he calls fictitious appeared in the books at all, unless they possessed some practical significance ? Very possibly the books were "readied" for him, and the date he starts from, March 1719, altered from 1720. It will be observed tha,t Mr. Snell makes no allusion to the alteration in the name of Stanhope to Stangape. This, to a certain extent, seems to have been the natural view taken by an anonymous critic (see Appendix I., B), who published some remarks hostile to Mr, Snell's report. That gentleman appears to have become excited at this attack, for he replied with a somewhat heated statement in which he stands very much on his dignity. The reply is endorsed " Charles Snell, Writing Master and Accomptant, his answer to a paper without a name relating to the examination of the books of Sawbridge and Company," and is headed " A short answer to a paper beginning with Charles Snell, &c." It runs as follows : — " The account in that paper is not the account in question, for the account in question stands in the books of Sawbridge and Company on Fol. 99, carried to Fol. 62, carried to Fol. 7. . . . And to those I appeal. . . . Therefore, when AN ACCOT'NTANT's l;Kl'(H;T AliOlT 17'21. '-! 1 aiiyoiu' coiiipjirt's it with tliosc ;icc'Ounts as printfil in my observations, or with the ori^jjinal books . . . and finds it not to be the same, he has the hl)erty to think wliat he phrases of tlie person who pubhshes it, upon an atlair of such consequence. And therefore I demand, if he thinks tit to reply, to answer this (piestion. vi/.: — " Whether the accomit he has piibhshed stands npon the books of Sawbrid^e and Company . FoL 99 . . . FoL 02 . . . FoL 7. YES or NO. " And withal I tell him, that if I were to deal with the accounts in the same manner as he has done with these in question, that I could make them at any time conclude against him, or for him. But such a barbarous action I always abhor, as I should be ashamed (as an Accomptant) to make an account of that nature creditor by profit and loss for gain uiade by that account . . . when such a line in the same account always imports a loss. '' And, in answer to his question at the bottom of his paper, I say that if he will look (but I would not have him do it by halves) he'll find in the account of the same persons, in the general account of Stock Leidger, the other half as a Credit to that Debit, viz. : — /Per Contra Cr. Turner, Caswall ct Co. Dr. : 12th Dec. 1720. By cash I per two notes, £*2oO,000. 22 AN accountant's report about 1721. And will find these two entries (in the same per- son's account) destroy each other, and only serve to pass that sum from one account to another for that very end. " Charles Snell." On the 16th February 1721 the Committee of Secrecy made their first report to the House, in which they stated that the progress of their enquiry had been attended with many difficulties. " In some of the books produced before them, false and fictitious entries were made ; in others, entries with blanks ; in others, entries with erasures and alterations, and in others leaves were torn out." They found also that some books had been destroyed, and others taken away or secreted, and that the whole enquiry presented a scene of iniquity and corruption. The report then proceeded to point out in detail, amongst other things, that Mr. Charles Stanhope (one of the secretaries to the Treasury) had re- ceived the enormous sum of .£250,000, as the difference of the price of some stock, through the hands of Turner, Caswall & Company, but that his name had partly been erased from their books and altered to Stangape. Mr. Stanhope pleaded that he knew nothing about this, and that what- ever had been done in the matter was done without his authority, and that he could not be held re- AX accot'ntant's HKi'oirr aikmt 17'21. '2:i sponsible for it. He \v;is ;if(|uitte(l l)y a small majority of three, which caused the ^^reatest dis- content throu*(hout the country ; for history states that it was notorious to every unbiassed and un- prejudiced person that he was a «^ainer of the sum in question by means of fictitious stock given him to promote the passing of the Dill. The House, in subsequently dealing witli this transaction, passed the following resolutions: — That the using of the name of Stanhope in the books of Turner cV: Company was an unjustifiable and unwarrantable practice. That it appears to the House that Sir George Caswall did, after the House began to inquire into the conduct of the late directors, order a bookkeeper of Turner & Com- pany to erase in several places the name of Stan- hope and to make the name Stangape, which was accordingly done. That it appears to the House that, during the time the Bill enabling the Com- pany to enlarge their capital stock and fund was depending, a large parcel of stock, entered in the Company's Cash Book as sold, was taken in by the late cashier for Elias Turner, Jacob Sawbridge, and Sir George Caswall without any valuable con- sideration or suthcient security given for the acceptance of such stock. That there was a cf)n- siderable profit made out of the stock so taken in. That Sir George Caswall, bv concurring with his 24 AN accountant's eepokt about 17"21. partners in having the stock so taken in, has been guilty of a corrupt, infamous, and dangerous prac- tice, highly reflecting on the honour and justice of Parliament, and destructive to the interests of His Majesty's Government. That Sir George C as wall be, for the said offence expelled and committed to the Tower. That the estates of Sir George Caswall, Mr. Sawbridge, and Mr. Turner be subject to make good this sum to the company. It is only natural to expect that, in cases of such national importance, we should find preserved any fragmentary record of an Accountant's report, which in this instance proved of no weight what- ever ; but the foregoing evidence establishes beyond any possible doubt that independent Accountants were consulted professionally at a comparatively remote period in the history of this country. ciiA r'i'i:i: in. KAKLY I'KOGllESS OF THE PKOFESSION. ^pHERE appears to be but little doubt that the "*■ persons who afforded assistance on matters of account during the last century, or at all events in the early portion of it, derived their principal source of livelihood from imparting instruction in bookkeeping- and penmanship, on both of which subjects the Mr. Snell referred to in the last chapter wrote several treatises. At the end of some of these works his professional or business progrannne is fully set forth in form of the follow- ing advertisement. " Such persons as may desire their children taught by the author a most noble and generous way of writing all hands, and how to connnand their pen. "The i)ra(tical manner (of Arithmetic) used by merchants in calculating and examining their Accompts. " Foreign Exchanges, their Calculations, JSego- tiations, and Arl)itrations. '•The true maniicr of keeping Merchants' 26 EARLY PROGKESS OF THE PROFESSION. Aecoiiipts (the Waste Book having been real business) stated in the Itahan method of Book- keeping by Double Entry. " He also fits persons for Pnbhc Offices, and boards at his house such as desire it." There are instances, prior to Mr. Snell, of Accountants acting as teachers. In the third edition (1660) of The Merchants' Mirrour, by Richard Dafforne of Northampton, the author is described as an "Accountant and teacher of the same, after an exquisite method, in the English and Dutch languages." This pedantic writer says, in an epistle dedicatory, " After many years residence at Amsterdam in Holland, I (upon the often importunate letters of some merchants, very good friends) resolved to pitch the tent of my abode in London, which being eflected in anno 1630, I then (after some rest) set my course upon several stationers' shops ; there gazing about me (as one reviving from a trance) to view what the laborious artist had acted and divulged in print (as other nations) for the assistance of Merchan- tising, wherewith (blessed be the Great All) this renowned city is interlaced and adorned. But as a skipper anchoring in an unknown ile presently perceiveth those parts not to be inhabited, by the non-tillage or the like, even so (contrary to my expectation) I, perceiving the number of writers KAiii.v ri;()(;i;i:ss ok tiik I'Koi'kssion. 2( to be few, feared their love to tlie art to be small.'" To rectify this deplorable state of thing's, and to supply a practical remedy, Mr. Dafforne states : "I emboldened myself to prepare this antidote, being by nature obliged to offer up part of the widow's mite of my knowledge unto the land of my breath's first drawing." Access has been had to the second edition of a work dated 1789, described on the title page as " Modern Bookkeeping, or, the Italian Method Improved, containing rules and directions for Gentlemen's and Merchants' Accompts by Double Entry : written originally for the use of his own pupils by Richard Hayes, Accomptant and Writing Master of Queen Street, Cheapside, but late of Princes Street, near the Bank of England." At the end of this publication there appears an advertisement from Mr. Hayes, very similar indeed to the one emanating from Mr. Snt'll, including the allusion to the privilege of being able to board at his establishment. The inference from this is, that pupils were very probably in the habit of coming from the provinces to London, for instruction in the branches of knowledge imparted by these gentlemen, and that wlien in the metropolis, they put up under the roof of their teacher. It is to be hoped that, for their material comfort, they received a irenprcus dirt, duriuL'' thr 28 EAKLY PKOGEESS OF THE PROFESSION. period they were acquiring a "generous way of writing all hands," whatever that may mean. In an address to the reader, Mr. Hayes says, " I here present you with the product of those leisure hours that my daily business of teaching affords me ; it being a piece upon that useful art called Bookkeeping, and was indeed at first designed only for the use of my own pupils. But having had the misfortune to lose a manuscript copy of some of my former works (they being always wrote for that aforesaid use) and the great fatigue that I underwent to furnish myself with another, made me determine to publish every piece (that I wrote from that time forward) as soon as I could get it in readiness for the press, and as they are generally pieces of great ser^dce to abundance of people in different w^ays of life, I always made a tender of them to the public." It may possibly not be a too violent wrench of the imagination to suppose that, in offering the public the benefit of his theoretical knowledge in book form, Mr. Hayes at the same time employed a subdued method of indicating that he had no objection to "make a tender" of practical assist- ance to traders and others in connection with the keeping of their books and accounts. To make a short digression, the tenth chapter of Mr. Hayes's book is a miniature one, consisting. KAKLY riiOClKKSS Ol- llli; I'lK tl'KSSlON. 20 ill its entirety, of two sentences; and, jud^H'd from the critical standpoint of the l)ack-cnd of tlic nint^teenth century, appears elementary. It is headed, '^ Showing the ivd// tt> pricl: a pttir of hooks ojv/'," and runs as follows : — "As to the manner of pricking" a pair of books over, it is done by takiui^- your .Journal, and such other books as you post from, and so to examine every article of Dt. and Ct. to see the sums do agree ; and as soon as you are satisfied that the articles and sums do agree put a dot or scratch in the margin of every book wherein such articles are entered. This do against every article, until you have examined the same and gone through your Ledger, and if you have connnitted an error by omitting any article of Dt. and Ct., or have been mistaken and have wrote one for another, you must rectify the same according to the directions in the ninth chapter foregoing." In the previous chapter the author inveighs in vigorous terms against the practice of erasing, which he appears to consider at least a crime of the secondary degree. In tlie year ITo.S a Mr. John London, late of Tiverton, merchant, favoured the public with his theory of tlie " most complete " system of Book- keeping, and in the preface thereto he remarks, ''Before I proceed, it may be well to take notice of a 30 EAKLY PROGRESS OF THE PROFESSION. failing very common to persons concerned in trade, which is this : That though they do not know how to keep their accompts in the proper manner, they are ashamed or afraid to apply to somebody to put them in the way of doing it themselves, or to employ a bookkeeper to do it for them . Some such are ashamed to apply for instruction because they have gone for a long time in ignorance, without considering that the wisest of men are quite at a loss in regard of some particular part of knowledge, though upon the whole they are persons of an excellent understanding and of great experience in business in general, and therefore under such cir- cumstances it can be no disgrace to apply for instruction, though late in life and in the height of reputation ; but to neglect in a matter of conse- (]uence would be reproachful to their prudence." From these words of Solomonian wisdom, which speak eloquently for themselves, we gather that some prudent traders did seek instruction and advice in connection with their books. If it was thought necessary to produce further evidence of this nature to show the position of affairs at this period, other extracts conveying a similar meaning could be quoted, but it will probably be agreed that sufficient has already been written on the point. It appears difficult to arrive at any other conclusion, save that, if a KAKI-V l'Ji(i(;KKSS (IF THE I'lUJl-'ESSK^N. -^1 person was unable to open a set of books, and then keep them ^oii^^S '<^^^^ that if he wished to learn how to do so, or wanted any advice in connection therewith, he applied to one of the craft as repre- sented by Mr. Snell and Mr. Hayes. The obvious course to adopt in endeavouring to form an approximate estimate of the numerical increase of Accountants was by reference to directories. In the early precursors of the present voluminous Post OfHce Directory, which was sold for a few shillings, it is stated on the title page, that the contents in( hulc, " Manufacturers, Merchants, and Principal Traders." Except in isolated instances, Accountants do not appear to have been deemed of suiiicient importance for some years to command any record in that publi- cation, for in the issue for ITUO there only seems to be included one member of the profes- sion, a Mr. James Davidson (see below). The British Universal Directory, of the same year, which contains " a list of the inhabitants of London, Westminster, and the Borough South- wark," includes the following names and descrip- tions: — Butler, William, Writing Master and Accomp- tant, 4 Oxford Court, Cannon Street. Davidson, .James, Accoujptant and Agent, 7 Fenn (Jourt, Fenchurch Street. 32 EARLY PEOGRESS OF THE PROFESSION. Gosnell, Thomas Knolles, Acconiptaut, New Crutched Friars. Rose and Clarkson, Accomptants and Agents, 78 Cannon Street. Shortney and Son, Commercial Accomptants, 38 St. Mary Axe. It will be observed that the joint qualification of writing-master and Accountant still remained, but it seems to be disappearing towards the end of the eighteenth century, and that what may be described as "general utility" Accountants were developing. The term " agency" is a very comprehensive one, and whether these gentlemen were commission, rent, house, land, insurance, or partnership and business transfer agents, it appears impossible to ascertain. If they had a speciality at all it may probably have been the last one ; or, indeed, the word may have been used as denoting the practice of effecting arrangements between debtors and creditors ; a coarse of procedure of very early origin. The panics of 1793 and 1797, which arose from the abstraction of gold from this country, owing to its being sent abroad for subsidies and loans to our allies, do not appear to have had any appreciable influence on the increase of Accountants. In 1799 there was published, at five guineas, the first issue of Holden's Triennial Directory, including Bankers EAia.Y PHOr.RKSS OF IHF. I'lloFF.SSIoX. 83 Trades, Professions, and Occupations in London, Westminster, Southwark, and ten miles distant. In tliat comprehensive compilation there are returned eleven Acconntants whose names, descrip- tions, and addresses have heen extracted, as their perusal may possibly afford some little interest. (See Appendix II.) Having regard to the large number engaged at the present time in the account-book manufac- turing industry it is somewhat significant that in this directory there appears to be only one firm solely engaged in that special trade, viz., Richard- son (.\: Harrison, ruled and accompt-book warehouse, 82 Cornhill. In Holden, for the period ending 1811, there appear to be twenty-four Accountants. (See Appendix II.) The panic of the previous year, when failures to the extent of ten millions occurred from over-trading speculations and excess of imports, probably did not affect these figures ; but the gradual increase was inffuenced by the natural development of Accountancy, co-equal with the progress of commerce. The passing of the Act for tlie Relief of Insolvent Debtors may have introduced some little business to Accountants by way of preparing the simple Statement of Affairs reijuired to be filed in every case. However, the enormous strides with 34 EARLY PROGRESS OF THE PROFESSION. which the trading world was inarching rapidly onward told its inevitable tale on the growth of the profession, for from Holden for the three years ending 1825 (apparently the last issue) there has been extracted the goodly list of seventy-three Accountants. (See Appendix II.) A comparison of the lists leaves the impression that the majority of these Accountants did not come to stay for a permanency. It was with a feeling of relief that the self- imposed and unexhilarating task of extracting these names was completed, for either the expense was too great or it did not occur to the proprietors to classify the trades and professions before 1840, when the Post Office Directory com- menced this convenient method of reference. In that year there were, according to that authority, one hundred and seven Accountants in practice in London. To Mr. Canning, who entered the Ministry as Secretary for Foreign Affairs in 1822, are attri- buted many liberal measures in connection with our commercial transactions and the reduction of many duties in different branches of trade. Money had, by the year 1824, become plentiful, and as interest was low many projects were started for its investment. Joint stock companies abounded, for the purpose of securing ample returns on the most KAKLV I'HOdKKSS OF Til I', I'llOKKSSION. .'55 unlikely sclu'iiit's. So i;_;ti()|-iiiii wci'c sonic ot t lie sprculiitors tliiit wuniiing-paus and skates formed part of the e.\})orts to countries on, or borderin<,' on, the torrid zone ; and e(iually absurd was the spccu- hition of a company which sent a slii])load of milk- maids to siij)ply l)ucii()s Ayres with l)iittcr made from the milk of the wild cattle in that re^n'on. About the middle of lS-^."> embarrassment bc oflicials of the 13oard of Trade, at that date, exhibited the same strict discipline they do in the present year of grace. In addition to this, the Railway Companies Clauses Consolidation Act of 1(S45 provided by sections 101-lOS for the appointment of auditors, who were given certain powers and [)rivileges. The last section referred to stated : — " It shall be lawful for the auditors to em])loy " such Accountants, and other persons, as they " may think proper, at the expense of the " company, and they shall either make a special " report on the said accounts, or simply confirm " the same ; and such report or confirmation " shall be read, together with the report of the- " directors at the ordinary meeting." This power was, apparently, quickly availed of, for one gentleman, still the head of a well-known firm of Chartered Accountants, who audit the accounts of a leading railway company, had his serv^ices called upon at an early period in the career of that line. On the HJth October 1845, the railway mania received its death blow, for on that day the Bank of England raised the rate of interest, and the 44 THE RAILWAY MANIA AND ITS SEQUEL. effect was immediate. Money became scarce ; the price of the stock and scrip was lowered ; and the confidence of the people broken. Although the mania for new lines passed away, it is not to be supposed that those who had received the money of depositors in many instances returned it, for the directors and provisional committee men proceeded gravely with their work. A most extraordinary demand for surveyors was the con- sequence, and we have it on the stated authority of an eminent Chartered Accountant, although, perhaps, he could have had but little personal experience of the matter, that some of the members of his profession undertook the duties of levelling, when doubtless they exhibited great adroitness in the use of the theodolite. In vain did advertisements promise high pay, and make no great requirements for this branch of skill. The demand exceeded the suppl}^, and a golden harvest was reaped in consequence. Absurd impractica- bilities were attempted, so long as the survey was made and the sections lodged in time. The pay was in proportion to the urgency, and many men received for a week's work more than they could have conscientiously earned in a year. The time, however, soon arrived when the Legis- lature found it necessary to interfere for the relief of the public, and to adopt measures for at once THK HAILWAV MANIA AND ITS SKc^l'KI,, 45 deteriiiining tlic dissolution of the nmncioiis coiii- panies left as the wrecks of these speculations. For the railway calls visihly increased every month, and the evils attendin<^ the mania more forcihly than ever developed themselves. At the very lowest estimate, a deduction of 7s. (k\. was made for preliminary expenses on each deposit of 4.'2. It was the conviction of those best quali- fied to form an opinion that this was the most disastrous period through which the middle class ever passed. "Entire families were ruined. There was scarcely an important town in England but beheld many suicides. The debtors' jails were peopled with promoters ; Whitecross Street was tilled with speculators, and the Queen's Bench was full to overflowing." To add to the prevalent misfortune, tlu^ grain and potato crops of 184(5, both at home and abroad, were extremely deficient. In May 1S47 the highest average price of wheat was lOos. 2d., and in August it descended as low as ()4s., which produced a feeling of considerable distrust for those engaged in the trade, especially for many who were known to have operated nioif with the view of speculation than legitimate profit. A panic commenced with the heavy failures in the corn trade, and subse(|uently brought down many large mercantile est;ibh'sliments, stockbrokers, and pro- 46 THE RAILWAY MANIA AND ITS SEQUEL. vincial joint stock and private banks. Mr. D. Morier Bell compiled two very interesting books, one dealing with this panic ; the other, wdth the subsequent crisis of 1857-8. In two extensive appendices thereto are contained a number of statements and reports prepared by Accountants, whose names, in most cases, are still very familiar to any one at all acquainted with the profession. Referring to these statements, Mr. Bell says, " If not really exaggerated, the Balance Sheets which were laid before the meetings were at least so constructed as to give the best possible appear- ance to affairs, and as it was endeavoured to be shown that by patient care and watchfulness many of the firms could satisfy claims in full, the process of inspectorship was with extraordinary unanimity resolved upon as the most advantageous and inexpensive mode of liquidation." In liquida- ting under a Deed of Inspectorship, it may be stated that it was the general custom for a creditor or creditors to undertake the management and supervision — so that in that respect Accoun- tants could gain nothing by misrepresentation. In July 1858 the Select Committee appointed to inquire into the operation of the Bank Act 1844 published its report, in which is quoted some of the evidence of " two eminent Accountants who did not profess to have studied the abstruse ques- TIIF, KAIl.WAV MANIA VND ITS SKgCKL. I7 tioiis ot ciiri'du y, nv r('j)r('S('iit('(l t licinsclvcs ;ts piirticularly coiixci-saiii witli the operation of the Act of 1844." 'I'lu'sc ^^('iitU'iiU'ii, the report ^oen on to say, availing theiiisi4ves of their experience; of 1847, ascril)e(l the calamities of 1857 to the ^n-eat abuse of credit, and consequent over-trading. In a recent pleasant interview with a Char- tered Accountant who connnenced practice about the middle of the century, that gentleman stated that he had often considered and discussed the matter, arriving at the confirmed conclusion that the disastrous period of 1847-8 did more than anything else to first place Professional Accoun- tancy on a solid and substantial basis. CHAPTER Y. OFFICIAL LIQUIDATORS. ''pO check the evil which arose at the South Sea Bubble period, and to prevent its recurrence, the Legislature of the day passed a statute (6 Geo. I., c. 18) familiarly known as the "Bubble Act," illegalising many of the " airy nothings called bubbles" then in the market, and by which the assuming to act as a corporation — a very vague term — rendered the offender liable to heavy penal- ties. One prosecution is reported shortly after the passing of this Act, after which eighty-seven years elapsed without any proceedings whatever at law, so heartily was the nation wearied of joint stock enterprise. The foreign and colonial trade of the country was at one time in a great measure monopolised by a few chartered companies, such as the Russian and the Levant, the East and West Indies Companies, the Hudson Bay, and the African. All these monopolies have long since been abolished, and the business of the nation has OFFICIAL LK^rinATOliS. }0 passed to a c()iisi(leral)l(' extent tVoin the hands of private tirnis to those of joint stock companies. Coiniiiercial companies are a comparatively modern creation in En^dish hiw. For a con- siderable time a trading association was at best only a partnership, and between large partnerships and small ones there was no legal distinction whatever. Each of the members was responsible for the debts of the association, and all the mem- bers had to unite in instituting an}' legal process. The great inconvenience of this increased with the growth of trade, and finally, in 1834, after some previous legislation having a similar tendency, the Crown was empowered to grant to companies, by letters patent, without incorporation, the privilege of suing, or being sued, by a public officer. Further, in LS44 a company could be made bankrupt, and its property administered under the Bankruptcy Act. Other legislation shortly took place, and the Winding-up Acts of 1848 and 1849 were passed, which provided for the appointment of unofficial persons termed Official Managers to administer the assets. In 1855 Limited Liability was introduced, share- holders being made responsible to the (^xteiit only of the amount of their shares, and during the following year there was a further Act passed, by which a limited 50 OFFICIAL LIQUIDATORS. company could be wound up in bankruptcy. In 1862 a consolidation of the numerous Acts relating to companies was effected by the Act for the incorporation, regulation, and winding-up of trading companies, and other associations, which gave the Court of Chancery exclusive jurisdiction in winding up. There have been various amend- ments to the Act of 1862, the most important to note here being the Companies Winding-up Act of 1890, which effected a revolution in the liquidation of companies which are wound up compulsorily, as it assimilated the practice, which has existed in bankruptcy since 1883, very con- siderably to the curtailment of Accountants' ser- vices. The Official Liquidator owes his origin to section 92 of the Act of 1862, for it was ruled that it was desirable that liquidators should be dis- interested persons, and in the vast majority of cases the position was filled by Accountants. This statute undoubtedly proved the best friend the profession ever had, and the amount of grist it brought to their mill will be most readily appreciated by reference to the table contained in Appendix III. This shows that during a period of thirty-one years 44,435 companies were registered, of which number 26,074 have died a natural death, or been wound up, or amalgamated with, or OFUciAL r.iQrn).\T()Ks. 51 absorbed by, some other concern. In ihe course of a paper read Ix'iorc the Statistical Society in April 1886, Professor Leone Levi — than wlioni there could be no higher authority — said, ''From LS()-2 to 1 884 as many as 13,8-20 com- panies have disappeared from the remaster with a nominal capital of 2,215 millions. How much real capital has been spent or wasted by abortive companies there is no mode of ascertaining. Yet some estimate may be made of the same as follows : — In small companies the proportion of capital paid up is about 15 per cent. But in large com- panies, and especially those that were abandoned and never started, the amount paid up was un- doubtedly much less. A proportion of 5 per cent, is as much as can be taken to have been actually paid on the whole nominal capital. Assuming that proportion, the total amount obtained would be about 110 millions, and if of this the half may be supposed to have been returned, the actual loss would be ■)5 millions in about 20 years, that amount probably representing not all waste, l)ut a sum. in great part, at least diverted from produc- tive employment, and passed into the hands of persons who spent it unproductivdy in the concoc- tion of abortive projects." The Post Office Directory of London for ls(;2 returns the inniiber of Accountants at 297, and 52 OFFICIAL LIQUIDATOES. during the following seven 3'^ears they had in- creased by the same authority to 452. During the early existence of the Act there were keen contests for the appointments of Official Liqui- dators ; and to avoid the discreditable squabbling which sometimes arose, a rule was laid down that no one should have the costs of an application for the appointment but he who applied and succeeded. The general practice of the Court became that the person nominated b}^ the peti- tioner was appointed. No security was given in any of the very large cases, because it was im- possible to give security of any use. This was recognised by Vice-Chancellor Wood, when he was examined before a committee of the House of Commons on the Companies Act of 1867, and it speaks volumes for the respectability and integrity for the Accountant's appointment to such positions of trust. Section 93 of the Act provided that there should be paid to the Official Liquidator such salary or remuneration, by wa}^ of percentage or otherwise, as the Court might direct. Regulations as to the mode of remuneration were drawn up in 1868 by the Master of the Eolls and the Yice- Chancellors, and approved by the Lord Chancellor. It was on a sliding scale, the Liquidator's remune- ration ranging from £1 to j£12 per day of eight hours, and the clerks from one shilling to three orriciAi, i,i(,)rii)AT()Rs. 53 shillings and sixpence per hoin-. It, will not [)vr- hiips be considered invidious to remark that l)c)ssibly Aceountants, like other industrious people who are paid by time, are not so anxious as other sections of the publie to be restricted to the eight hours system, for it is recorded, but the accuracy is not here vouched for, that a Licpiidator, on one occasion, managed to get 148 hours out of a single week, which, not including Sunday, works out at the rate of 24 j| hours to the 24. If true, a paralysing feat of Accountancy I The first few 3'ears this statute was law was productive of many heavy failures of joint stock concerns, which laid the foundations of the most substantial fortunes ever amassed by professional Accountants. The announcement of the stoppage of the great establishment of Uverend, Gurney & Co. Lim. produced a panic of extraordinary severity in the City, which extended to all the great com- mercial centres of the country. The pious Quakers who were at the head of this firm had only ten months previously converted their business of money-dealing and bill-broking into a hmited liability company. As those were the days when a company could scarcely be launched twenty-four hours without having the shai-es bought up, it was floated very successfully, the trifling sum of half- a-million being paid for the so-called goodwill. 54 OFFICIAL LIQUIDATORS. What that goodwill was intrinsically worth may be estimated from the fact that it subsequently proved, in the course of the liquidation, the company, when formed, was heir to a deficiency of .^1,400,000. It is only fair to add, a section of the shareholders formed an independent committee, and indicted the directors criminally for issuing a fraudulent prospectus, and the trial of these directors resulted in the acquittal of all the defendants. The collapse of the company took place on the 11th May 1866, and during the following month two well-known Accountants were appointed to liquidate the company. This process was not finally closed until the end of 1893. There is no doubt the gigantic estate was a most difficult one to deal mth, and maii}^ circumstances contributed to make the winding-up one of unusual complica- tion. For instance, a heavy law suit was carried on in Spain against the Marquis de Campo for the payment of calls, &c., due by him. These pro- ceedings, which were commenced in 1866, lasted until 1882, when a sum of £'90,000 odd was recovered. Three calls, amounting to ^25 per share, were made by the liquidators, and on which nine- teen returns, amounting to X'7 18s. 2d., were paid, the last instalment being in December 1891. The OFFICIAL M(,)ri]tATOns. 55 creditors rccciMMl l'l,ni3,8 I'KKSKNT. ()5 aniiu.'illy to the l^oard of 'J'nidc, in prescribed form, copies of tlicii- Ivcvciiuc Account and Balance Sheet, This necessitated the ahnost entire moditication and alteration of the different books requisite for this somewhat exclusive busi- ness. Professional Accountants were immediately called in, and under their directions the old books were abolished to make way for those of a more useful nature, and adapted to facilitate the preparation of the accounts in accordance with the requirement of the Act. That a very heavy responsibility rests with pro- fessional Auditors is very clear from the recent judgment of Mr. Justice Vaughan W'ilhams in a matter which came before the Court, on a mis- feasance summons, in which it was sought to make the directors, managers, and auditors of the London and General Bank, Lim. (one of the group of Balfour companies), liable for certain dividends which, it was alleged, had been impro- perly paid. His Lordship expressed a hope that a great institution like that of the Institute of Char- tered Accountants would see the propriety and expediency of declaring against the })i-a(tice adopted in tliis case ; l)ut, be that as it might, he held that these accounts laid year l)y year before the Company were utterly illusoi-y, in that they did not afford the shareholders any materials on ()6 AUDITORS — PAST AND PRESENT. which they could really judge of the state of the Company, and whether the dividend recommended by the directors ought to be declared and paid. In dealing with the case of the auditors, Judge Williams said that they ought to have known the real condition of the Company — that the interest given as profit was not paid, and that the securities on which advances were made were insufficient. The fact that they had knowledge of the state of the company was demonstrated by their each year appending a varied and more cautious certificate to the Balance Sheet. There was a gradual alteration in these certificates, and, it seemed, not made for the purpose of giving in- formation to the shareholders of the declension and condition of the Bank, but of making the auditors safe. Therefore, in his judgment, the graduation of the certificate was not a matter which could be relied on in favour of the auditors. The judge finally held the auditors liable for the final, as dis- tinguished from the interim, dividends declared in certain years. It is stated, against this decision an appeal has been lodged. The question has been put on previous occa- sions. Is it the duty of an Accountant to garble and misstate accounts in the interests of those who em- ploy him? The answer is. Most certainly not. A solicitor is bound to twist the law as best he can in Al'lMTOKS I'AST AND I'JIHSKNT. 67 the interests of his clii'iits, Ix'ciiusc^ hiws -dw oywu to vai'ious iiitcrprciaiions, l)iit Accouiiiaiits should deal with tii;uri's as facts simi)ly. it would he well to act strictly in accordance! with this principle, gratnitonsly suggested hero, in remenihrance of threatened Ic^ishition to [)ro\ idc a Govcrnnient l^epartnient to audit the accounts of puhhc companies. Accountants have nothing whatever to do with estimates or hopes of profits, and the recklessness with which statements are some- times prepared, with the view to the conversion of a private concern into a pubhc company, should he abandoned. The reports incorporated in some prospectuses during the past few years have, on subse(|uent examination, proved the reverse of reliable, which all respectable members of the profession nuist deplore as injurious to their general welfare, even if the matter is considered from that point of view alone. It is especially the moral duty of an Accountant to be scrupu- lously exact in connection with Trust Estates and P^xecutorshii) Accounts, as he often has to protect the rights of legatees and recipients ; not infre- quently, helpless widows and orphans. CHAPTEE VII TRUSTEES IN BANKRUPTCY, * WITHOUT delaying to expatiate on the more ^^ ancient statutes referring to the law of bankruptcy, which was slowly evolved out of the criminal code in answer to the necessities of a wide-spread industrial life, it may be stated the Act 6 Geo. IV., c. 16, introduced the principle of deeds of arrangement without a pubhc bankruptcy. Disclaiming a wish to make any personal reflection whatever, it may, perhaps, be permissible to remark that some of the officials appointed to administer the existing statute have yet to appre- ciate the simple fact that bankrupts are not criminals, and should not be considered as such. Other people have made the same mistake, but it is an error to suppose that all creditors are straight, and all debtors crooked. No legislation on bankruptcy has, up to date, given universal satisfaction. Arrangements of some sort between debtors and creditors, without having recourse to any legal tribunal, is evidently a venerable custom, and Accountants have been TKISTKKS IN BANKRUPTCY. 69 connected with ncj^'otiations of this dcscriptiou for a considerahle time. Unfortunately, in many cases, arrangements outside Court are not prac- ticable, it being impossible to obtain the recpiired signatures of creditors. Where such a course is feasible, and there exists a compact body of creditors whose debts are easily ascertained, assign- ments, properly and conscientiously carried out, are for the benefit of the pockets of all concerned, and avoid heavy fees, the sum of one shilling at least, in the shape of a stamp, being charged to estates every time a debtor, or one of his creditors, takes the liberty of sneezing in the vicinity of the Bankruptcy Buildings, as some humourist once remarked. There are some Accountants whose business is almost entirely made up of the failures of persons in particular trades, and which are almost invariably settled without a visit to the Court. Lord Brougham's Act of 1831 established the Bankruptcy Court, at the same time appointing OfHcial Assignees to get in the bankrupt's estate on behalf of the creditors. This Act recognised the status of Accountants, for Official Assignees re- quired to be " merchants, brokers. Accountants, or persons who were or had been engaged in trade." Various other statutes during the next twenty 70 TRUSTEES IN BANKRUPTCY. years made unimportant changes in the constitu- tion of the Court ; but the Bankrupt Law Con- sohdation Act 1849 effected several important changes in the system, encouraged private arrange- ments by making a composition accepted by nine- tenths of a bankrupt's creditors binding upon the rest, but it was subsequently decided that, to make such a composition binding, it must be accompanied by a complete cessio bonorum. The preparation of the Balance Sheets required to be lodged by debtors under this Act very largely assisted in bringing many Accountants into promi- nent notice before the commercial world, and some members of the profession established their repu- tation solely in connection therewith. One gentle- man, whose firm subsequently attained world-wide fame, was the son of an Official Assignee, and in consequence, no doubt, of this relationship, quan- tities of work flowed in upon him. Several others, who joined the profession at this period, had been clerks in the service of the Official Assignees, where they acquired a wide and varied experience ; whilst it was not an unusual phenomenon for a bankrupt who had thus gained a practical insight into the business to develop into an Accountant himself. Such was the early experience of one who after- wards became a celebrity of the profession. It may be added that there is one instance, at all events, riMSTKKS IN ItANKlUl'TCV. 71 of the h\u;il profc^ssion having- biH'ii ivcruitcd iiudcr similar circii instances. At that time the passing of tlie bankrupt's examination was contingent on a favourable report being made by the Otticial Assignee as to the accuracy of the accounts, and if these accounts were incorrect, or insutticient, the bankrupt was not allowed by the Court to pass. The conse- quence was that it was almost the invariable practice to employ an Accountant. The fees at present granted by the Official Receivers for preparing statements of affairs are by no means encouraging or remunerative, but in past times this class of business proved a considerable source of emolument. There was, apparently, for some time no scale of Accountants' charges, nor was there any allowance made, for the preparation of tlie state- ment, from the debtor's estate. He had to find the money, and a sufficiently fair amount of it, and when he paid a business visit to his Accountant he, no doubt, came prepared to settle for the assistance rendered him. The Bankruptcy Act 18G1 made traders subject to the law of bankruptcy, and empowered a majority in number and three-fourths in value to bind the minority, but ^vithout a cessio hotionnn. This arrangement was found to lead to fraudulent compositions, and by an Amend- 72 TRUSTEES IN BANKRUPTCY. ment Act in 1868 enlarged powers were given to non-assenting creditors. Still, the control of creditors was felt to be too small, and to remedy this the Bankruptcy Act of 1869 was passed, official assignees were abolished, and trustees were appointed to distribute the debtor's estate. The creditors might appoint a committee of inspection to superintend the operations of the trustee, and a Comptroller ' in Bankruptcy was appointed to receive the trustee's accounts, after they had been audited by the committee of inspection, and take notes of any irregularity in the proceedings of the trustee. This Act had had a tenure of existence until the 1st January 1884, when the existing measure came into operation, the leading features of which it would be superfluous to refer to here. Nor will the vexed question of Officialism v. Pro- fessionalism be discussed, although, as Sir Roger de Coverley remarked on quite another matter, "it is one of those questions on which a great deal is to be said on both sides." The passing of that notable piece of legislation, the Bankruptcy Act 1869, increased the number of ill-educated and rapacious persons who dubbed themselves Accountants, and who, to speak plainly and advisedly, played fearful havoc with any estates which fell into their hands. Mr. Justice Quain went a good deal further in expressing his TRLSTEES IN UANKRUPTCY. 73 views oil the subject, for in 1875 he suid from the Beiuli, " The whole affairs in bankruptcy have been handed over to an ij^morant set of men called Accountants, which was one of the greatest abuses ever introduced into law." This wholesale and unqualified condenmation was unmerited and un- called for, but the majority had to suffer for the misdeeds of the erring minority. Speaking under different circumstances in May 1.S98, for he was at the time the guest of the Institute of Chartered Accountants, Lord Chan- cellor Herschell gave the profession a very different character to that attributed to it, possibly in a hasty moment, by Judge Quain. On the occasion referred to, the Lord Chancellor said, '' Xo doubt grave mistakes were made from tmie to time, and those who were wise after the event — not a very difficult thing — were apt to criticise Accountants somewhat severely because they were not wise before the event — which was a very different thing. I do not mean to say that mistakes had never been made, and that there had never been a lack of that care and assiduity which ought to be brought to the discharge of their duties. I do not mean to deny that in particular cases there might have been a laxity which it would be desirable to avoid ; but, allowing for all the defects which arose in the discharge of their 74 TRUSTEES IN BANKRUPTCY. duties, I believe Accountants merit the confidence they possess." The writer had the misfortune to be acquainted with one firm, the senior partner in which had been, a short time previous to the passing of the Act of 1869, an assistant in a furniture warehouse, whilst the junior member, it was reported, had devoted his versatile abilities to giving instruction in the latest fashionable dances. They jointly formed, to use a popular expression, an extremely "warm" brace of self-styled Accountants, and took immense credit to themselves by the boast that, if there w^as any remote possibility whatever, they always declared some dividend, should it only amount to a fractional part of a penny. What limit they placed on the precise meaning of the word possibility, it is impossible to say. Against this piece of vaunted benevolence is to be placed the fact that, if an estate showed twenty shillings in the Jb, the creditors were fortunate if they received so man}^ pence, provided the realisation and distribution rested with the firm in question. It was a case with them of putting beggars on horseback, and obtaining the proverbial result, and in no half-hearted, donkey-ride kind of fashion, for though they attended to their business, they launched into reckless extravagance, and made any funds w^hich came to their hands fly like dust THISTHKS IN HANKUI I'TCV. 75 before a March wind. When, after the passinf( of the l^ankruptcy Aet 1888, they were eahed upon to account for unclaimed dividends, it was not surprisin^^ that they thou^^it, Hke some others, the simplest way of settlin.uf matters was to decamp. They had apparently quite overlooked the fact that the golden stream might not always trill on so merrily, that the source might become dry and the current cease to i\ow. They have perhaps since realised the wish expressed by Persius in the familiar line, Virtutem videant intabescantque relicta. After quitting the country, for their country's good, they thought tit to forward to an official department, a statement, in which they attributed their troubles to having been obliged to pay exorbitant commission to several solicitors for the introduction of business. So far as they were con- cerned, this species of turning Queen's evidence, in a futile attempt to palliate a desperate situa- tion, by jumping on the backs of the men of law, was contemptible in the extreme, but it emphasised the fact, which was an open secret in many quarters, that certain legal prac- titioners did dispose of business to some Ac- countants for a more or less high consideration. The respectable members of the profession would 76 TKUSTEES IN BANKKUPTCY. have nothing to do with such terms at all, so the solicitors in question had to carry on negotiations with the unscrupulous section, who sprang from nowhere at the time. This class was glad to accept any terms, the alternative being that they would have had no business at all. Hence the sweating of estates to pay two parties instead of one. Probably, these legal gentle- men, when about making affidavits of fitness upon an application for the appointment of a receiver, left their consciences in safety and solitude at home. Experience proved the working of this Act to be on the whole a failure, as too much liberty was given to the debtor, who laughed in many cases at his creditors, filed his petition, and got a friendly Accountant appointed first receiver, and then trustee. The wide use of proxies, and the manner of convening and holding some meetings, was open to grave condemnation. Touting for proxies, which was strongly reprobated by all respectable solicitors and Accountants, was largely adopted. It is a fact, which can be hardly gainsaid, that touting in some shape or form is still prevalent ; and, probably, few matters would fall into the hands of the Accountant who simply sat in his office and waited for what fortune would send him, but under the Act of 1869 creditors too readily gave TRUSTEES IN BANKRUPTCY. 77 their pnixies to persons who had httle to rccoin- iiiend themselves with beyond boundless impu- dence and audacity, and who were so conscientious that when they could not get themselves appointed solely, objected to the selection of others, and eventually robbed a small estate by two of these hun.nry gentlemen bein^^ appointed joint trustees. Some tratiic also took place in selling proxies by those who did not hold a sufficiently strong hand to control the situation. Thi' remuneration of a trustee was left to the creditors, and practically that meant, in small estates, to the trustee himself, for with the proxies by which he voted himself to that position he could pass his remuneration. It is a matter of the commonest philosophy that if you want to obtain your object with another of your fellow-mortals, the simplest and surest plan is to invite your prey to dinner and spare no expense on that repast. Some trustees appreciated this piece of worldly wisdom, and adopted it success- fully as a means of working on the members of a committee of inspection. There was no distinction between the expenses attendant on the investiga- tion as to the conduct of a debtor by a professional Accountant qua Accountant, and expenses solely incidental on the work of realising the assets by the trustee qua trustee. Both wcic lumped 78 TRUSTEES IN BANKRUPTCY. together under the general head of trustee's remu- neration. If the trustee's account was not suffici- ently large to suit himself, for the expenses incurred in reahsing the estate, he could insist on a Deficiency Account, and Stock and Cash Accounts being prepared under his own or clerk's eyes, which materially helped to swell the time expended on the estate. It \vas the duty of the trustee to render certain accounts to the Comptroller in Bankruptcy, but in many cases this was very loosely complied with. The oificial referred to, in a report supplied to the House of Commons on the 15th July 1879, stated: " There being no general audit of a trustee's account {i.e. in liquidations) defalcations cannot be discovered till the trustee's business happens to be suddenly closed by his death or other causes. A trustee may continue an uninterrupted defaulter so long as his receipts on account of new business suffice to meet pressing payments on account of old business." This subsequently proved to be too true. There w^ere no good official statistics of bank- ruptcy kept prior to 1861, nor any figures showing the practical results under the liquidation clauses of the Act of 1869. Since the decease of that statute, possibly, some people have had enough bankruptcy returns to satisfy them for an ordinary hfetime. TRUSTEES IN IJANKIU TTCY. 79 Taking n broad purview, (^xtondint; over some period, it appears tolerably plain that bankruptcy is likely to vary with the ups and downs of trade ; to increase in years of adversity, and diminish in years of prosperity. It also seems that assets, roughly speaking, yield something like two-thirds of the debtor's estimate, and that the costs and expenses of administering these assets, whether by otlicials or professional men, are about one-third of the amount realised. Further, that the proportion of expenses varies inversely to the size of the estates, being highest in small ones, and lower as the estates increase in magnitude. It has been previously stated that in 1(S69 the London Accountants numbered 452. In 1875 they had increased to 590, and at the end of 1883 to 840; whilst at the present time they number a little over 1,000. Whether, considering the present state of affairs, the profession of Accountancy is, like those of law and medicine, overcrowded, is an abstract and open question on which probably a wide divergence of opinion exists. CHAPTER VIIL THE INSTITUTE OF GHAKTEEED ACCOUNTANTS. " lUHAT Lancashire thinks to-day England thinks to-morrow," appears to have been the principle on which professional Accountants first grouped together for their common benefit, for the very sensible step was first taken in Liver- pool, in 1870, to establish a society in that highly important centre of commerce. This movement was adopted in London during the same year, by the formation of the Institute of Accountants, and two years later the Society of Accountants in England, not to be confused with any existing association, made its appearance. A Society of Accountants was also established in Manchester in 1871, and one in Sheffield in 1877. Although Liverpool was the practical pioneer in this movement, it is perhaps hardly correct to award that city all the honour and glory of the step, as on January 9th 1868, the formation of an Accountants' Institute was" advocated by The Times, being, in fact, a THK INSTITITH OK CHAliTERED ACCOUNTANTS. 81 continuation of the remarks from tliat paper proviously (|Uot(Ml. " it has been one of tlic Icadiii.L;' evils of recent times that an occupation Hke this, which requires the lii^'hest quahfications of connnercial experience, and a degree of inte,<,a-ity capable of resisting the most constant and insidious temptation, should have been left without any means being provided by which the most respectable members of the body might earn a definite position, calculated to exclude the herd of disreputable persons, who act merelv as the tools of delinquent directors and officials, or of the lowest class of attorneys, and whose knowledge of their calling has generally been derived from personal experience of failure in every other pursuit they have tried." After a few years it was deemed advisable to take steps to obtain a Charter, and to amalgamate these various societies. Some necessary discussion between the representatives of these bodies took place, and a petition was presented, which is embodied in the Charter. It states amongst other points : " That the profession is a numerous one and their functions are of great and increasing importance in respect of their employment in the capacities of liquidators in the winding-up of com- panies and of receivers under decrees and of trustees in bankruptcies or arrangements with 8'2 THE INSTITUTE OF CHAETERED ACCOUNTANTS. creditors and in various positions of trust under Courts of Justice as also in the auditing of ac- counts of public companies and of partnerships and otherwise." The petition goes on to say that it would be for the public benefit if the members were incorporated, and points out the conditions which would be laid dow'ii for the future admission to membership, embracing a system of examinations relied on to have an educational effect of a highly beneficial nature. The Charter was signed on the 11th May 1880, and the Societies became amalgamated and formed the Institute of Chartered Accountants in England and Wales. Had this movement, which in a short time has immensely improved the social and educational status of the profession, taken place some years sooner, the benefits conferred would have been incalculable, for it has created a feeling of esjyrit de coiys, and joined into one body, for their own and the public welfare, many scattered units, who thereby became subject to the rules of the Charter, and the regulations of a governing body known as the Council, having powers to exclude entirely, or suspend, any member for malpractices or offences, and to cause notice thereof to be published in such new^spapers or journals as may be selected. Tiir: iNSTiTUTK i)i-" ciiAi;ii:i;i;i> accoin tan rs. S3 Since 1880, the l)ii-iiiiii,L;ii;iiii niid Midland Counties Society of Churtered Accountants, and the Northern Institute of Chartered Accountants at Xe\vcasth\ ha\'e come inlo existence, the Uienibers of which also belong;' to the Institute of Chartered Accountants in lMi<;iaiid and Wales. Principally owin.i; to the provincial meetings which have been held from time to time, the members have become acquainted with each other, and have obtained wider and better views on matters con- nected with their profession, as they have had opportunities of discussing points on which they are nnitually interested. The Charter confers upon the members the right to use the letters F.C.xV. or A.C.A. after their names, meaning respectively Fellow or Associate (){ the Institute of Chartered Accountants, and which appears an unnecessary distinction. During the fourteen years which the Institute has been in existence, its membership has very largely in- creased. At the date of the first annual report in May 1882, the members were distributed as follows: 189 Fellows, 512 Associates in Practice, IGO Asso- ciates not in Practice, 32 Membcis not in iMigland and Wales, giving a total of 1,103. The member- ship in October 1804 amomited to 2,083, consisting of 647 Fellows, 015 Associates in Practice, 447 Associates not in Practice, and 74 members not in 84 THE INSTITUTE OF CHAETERED ACCOUNTANTS. England and Wales. To this total London con- tributed 336 Fellows, 341 Associates in Practice, and 194 Associates not in Practice for themselves, but the majority of whom are most probably in the service of other Chartered Accountants. The bye-laws of the Institute were drafted and settled at a general meeting, being finally sanc- tioned by the Privy Council on the 21st March 1882. As copies of the Charter and the Bye-laws are easily obtainable, it is unnecessary to refer to them in much detail here, beyond reproducing the fundamental rules of the Institute, set forth in section 19 of the Charter, as they are most im- portant to the welfare of the profession. 19. The rules next hereinafter set forth shall be deemed fundamental rules of the Institute (that is to say) : — (1) A Member shall not allow any person not being either a Member of the Institute or in partnership with himself as a Public Accountant to practise in his name as a Public Accountant ; (2) A Member shall not directly or indirectly allow or agree to allow of participation by a Solicitor in the profits of his (the Member's) professional work or accept or agree to accept any part of the THE INSTITUTE OK CHAIITEUED ACCOUNTANTH. S5 profits of the professional work of a Solicitor or any coiniiiission or bonus thereon ; (3) A Member shall not directly or indirectly accept or agree to accept from an Auctioneer Broker or other Agent em- ployed for the sale or letting of or otherwise in dealing with any real or personal property in the management administration or disposal whereof such Member or his partner or any of his partners shall be engaged any part or proportion of or any commission or bonus on the charges payable to such Auctioneer Broker or Agent ; And the following rule shall also be deemed a fundamental rule of the Institute with reference to all Members not being in practice as Public Accountants at the date of this Our Charter (that is to say) : — (4) No such Member shall follow any business or occupation other than that of a Public Accountant or some business which in the opinion of the Council is incident thereto or consistent there- with. In consequence of some agitation in 1884 to 86 THE INSTITUTE OF CHARTEHED ACCOUNTANTS. alter this last sub-section, the Council very wisely resolved that the business of an Auctioneer is not incident or consistent with that of a Public Accountant. Chapters V. and VI. of the Bye-laws deal with articled clerks and examinations. No member, it is provided, shall have more than two articled clerks, who must be over sixteen years of age on entry, and, subject to exemption, have obtained a certificate of having passed the preliminary examination. Every articled clerk, after the expiration of the first half of the term of his service, must pass an intermediate examination, to test the progress he has made in professional knowledge. This consists of questions on Book- keeping, Auditing, and the rights and duties of Liquidators, Trustees, and Keceivers. A person who passes shall not present himself for the final examination within two years. In addition to the subjects already enumerated, this examination comprises the principles of the laws of Bankruptcy and of Joint Stock Companies, of Mercantile law, and of the law of Arbitrations and Awards. This course, it must be admitted, covers extensive ground, but it is deemed advisable for students to acquire such knowledge with the object of a better fulfilment of their duties in after life, without at all encroaching on the domains of the legal THE INSTITUTE OE CHAHTEHED ACCOUNTANTS. .S7 profession, whicli, of course, is to l)c c-ircfully avoided. In connection with the Institute, there is a Cliartered Accountants Students' Society of London, which has for its object the advancement of its members in the knowledfije of the theory and practice of Accountancy. This Society affords to its ordinary members every facihty by way of lectures, debates, and classes, for ac(juiring proficiency in the subjects comprised in the examination programme. Members have the privile.i^e of borrowing books from the library, which comprises some 600 volumes. On the 1st February 1894, this Society was composed as follows : honorary members (in practice) 97 ; honorary members (not in practice) 67 ; ordinary members, 298; total, 462. A building for the Institute was contemplated at the time of the granting of the Charter, but it was not until May 1888 that a suitable site, situated in the most central part of the City of London, was acquired for a term of 999 years ; a period sufficiently long to, perhaps, admit of a visit from Macaulay's New Zealander. The area was sufficient for the erection of a handsome and artistic building, containing a large and lofty hall, council room, a library and reading room, and most convenient offices for the accommodation of 88 THE INSTITUTE OF CHAIITEEED ACCOUNTANTS. a courteous secretary and his assistants, who — so far as these pages are concerned- — afforded all the assistance in their power to a complete stranger. At the present time the library includes about three thousand books, most of which have a direct professional interest for the members. In their first annual report, submitted on the 5th May 1887, the Board of Governors of the Char- tered Accountants' Benevolent Association sum- marised the steps taken for the formation of a body with that charitable and deserving object. The Council of the Institute had appointed a committee to consider the basis on which a benevo- lent association could be formed. After careful consideration the committee prepared a scheme, and drew up draft rules and regulations, which were approved by the Council. On the 24th March 1886 a meeting was held at which the Association was formed, the rules and regulations approved by the Council were adopted, officers were appointed, and an appeal was issued to all members of the Institute asking them to become members of the Association. Eule 3 of the Association states its mission to be "the relief of necessi-tous persons who are, or have been, members of the Institute, whether sub- scribers to the Association or not, and of the necessitous widows and children of deceased THE INSXrn TK or rHAUTEUEI) ACCOUNTANTS. 89 persons, who huve been members of the Institute, and in the event of the death of a person who is, or has been, a member of the Institute, without leaving' widow or children, the rehef of necessitous rtdatives, or others dependent on him for support ; preference being given in all cases to subscribers and donors." Kules 10, 11, and 12 provide that the relief given shall be by way of donation, in sums not exceeding one hundred guineas, and by grant- ing annuities not exceeding fifty guineas, which may be varied or discontinued from time to time. From the hrst accounts submitted in 1887, it appears that the investments of the Association then amounted to 1' 1,819 lis. These had in- creased in March 1894 to £3,988 18s. 5d. During this period of eight years X'G28 17s. 6d. was dis- tributed to applicants for relief. This seems to be a small sum ; but it is stated the object is to accumulate a fund, as no doubt in course of time the demands for assistance will be more numerous and urgent. The qualification for a vice-president is a donation of not less than 50 guineas ; that of a governor not less than 30 guineas, or an annual subscription of not less than three guineas ; and that for an ordinary member a donation of not less than 10 guineas, or an annual subscription of not less than one guinea. In May 1887 the Association consisted of 221 members, viz., 25 vice-presidents, 90 THE INSTITUTE OF CHARTERED ACCOUNTANTS. 10 life governors, 31 annual governors, 19 life members, and 136 annual members. In March 1894 the membership had only increased to 252, which, taking into consideration the aug- mented membership of the Institute, is no progress at all. The appeals issued, to induce members to join, appear to have been sent out in vain, and only put the Association to unproductive expense. This is no place for a charity sermon, but leaving that most estimable virtue aside, and looking at the matter from a prudential aspect alone, it seems passing strange that the present state of affairs should exist for twenty-four hours instead of close on ten years. The Institute has not adopted any scale of charges to be followed by its members. Perhaps it would be scarcely feasible to draw any very distinct or arbitrary rule by which Account- ants' remuneration should be universally settled. At the same time, it is evident that, if possible, some assimilation, other than that in bankruptcy and the winding-up of companies, should take place, if only to protect the profession against attacks for so-called over-charging. In 1885 the Society of Accountants and Auditors was incorporated by articles of association, and registered under the Companies Act. These articles state their objects are to provide a central THK iNsrrn IF. ok en \i;ii;iU':i> accountants. 1)1 organisation for Accountants and Auditors, to provide for the better definition and protection of the profession; to promote and foster in com- mercial circles a higher sense of the importance of systematic and correct accounts; and to assi.st necessitous members, c^'c. The Society, which inchides many professional gentlemen in practice in I880, but who, by the rules of the Institute, were debarred of the privi- lege of joining it, without first passing the course of examinations, has adopted much the same lines for working on as its prototype, and is represented by local Societies in Birmingham, Shefheld, and Manchester. It has also a Students' Society, and a similar curriculum for examination to that of the Institute. The members are also divided into Fellows and Associates, which in ^lay 1894 reached the total of 755, there being 431 of the former, and 824 of the latter ; including 105 Fellows, and the same number of Associates, in London. The total number of students at that date amounted to 7'2. The ranks of the profession have lately been invaded by that irrepressible development of cheap education — the New Woman ; and a memorial has been presented to the Institute, froni the Society for Promoting the Employment of Women, asking for admission. This is not surprising in an age 92 THE INSTITUTE OF CHAETERED ACCOUNTANTS. which encourages female doctors and lawyers, and agitates for female suffrage ; when ladies have "views" as to women's rights on this side of the grave, and are aggressively sceptical as to anybody's rights, wrongs, or existence on the other. T/vr>w \ (rCn^^ Q^^ :iiAUIEK IX. ' PROVINCIAL AND FOUKIGN ACCOUNTANTS. ^PHE progress of professional Accountants in the provincial cities of England has been, to a large extent, proportionately co-equal with that in the metropolis, and in these centres students have now very similar educational facilities to that pro- vided for them in London. Holden's Directory for 1808 comprises the prin- cipal traders and professional men in many of these towns, and it appears from that compilation that there were at that date three firms of Accountants in Liverpool. In Kelly's Directory of 1864 they numbered very close on 100, and in the publication recently issued, they amount to about 175. In this ancient city, the origin of whose name is so nuK'h involved in obscurity, there are 114 members of the Institute and ;M of the Society of Account- ants. By a phenomenon analogous to the disturbance of planets, two neighbouring url)an centres exercise a mutual influence on each other, and either pro- mote each other's development by supplying 94 PKOVINCIAL AND FOKEIGN ACCOUNTANTS. complementary advantages, as in the case of Man- chester, the manufacturing town, and Liverpool, the commercial town, or injure each other, when the advantages are of the same kind. In Manchester, which, by the way, has also given antiquarians considerable trouble to determine the origin of the word, there were, according to Holden, not any Accountants in 1808. In 1864 there were 88, and in the Directory return for 1892 they num- bered 189. At the present time there are in Cottonopolis, which has now even greater prospects before it, 229 members of the Institute, including 81 Fellows, 100 dissociates in practice, and 48 Associates not in practice ; whilst the Society of Accountants is represented by 41 members. In Birmingham, so intimately associated with the sponsor of the present Bankruptcy Act, there were in 1808, two Accountants, including a Mr. Edward Smith, described as a "Notary Pubhc, Accomptant, and Canal iVgent." There are 166 members of the Institute, and 27 of the Society now resident in this very pushing seat of industry. Bristol has been in past times a very impor- tant seaport, and so long back as 1552 the Company or Society of Merchant Venturers of Bristol received a Eoyal Charter ; the name Venturers referring to the trading ventures of its members, who "put themselves, PROVINCIAL AND I'OllEIGN ACCOUNTANTS. iJO their factors, servants, j,^oocls, and iiierchun- di/c, to peril on the sea." 'I'hc province of the society was to " oversee, rule, or govern the art or mystery of Merchants" in Bristol, and for more than three centuries the history of the society is the history of the City's commerce and progress ; but of late years the exclusive privileges formerly enjoyed have been lost, and the society itself has altogether ceased to make corporate ventures. It has, however, escaped the extinction which befell all the other Bristol guilds, and, although as a corporation it no longer discharges its original functions, its individual members are still leading merchants of the City. There were in Bristol two Accountants in 1808 ; in 1861 they numbered 74 ; whilst at the present the Accountants there include 57 members of the Institute, and 5 of the Society. In Sheffield, the great centre of the cutlery, plated-goods, and general hardware manufactures, there are 66 members of the Institute, and 24 of the Society, whilst in Newcastle, which was raised to the dignity of a city so recently as 1882, there were in 1870, 25 Accountants. It is now repre- sented by 18 Fellow^s, 25 Associates in practice, and 13 Associates not in practice, of the Institute, and 8 members of the Society of Accountants. Accountancy is also substantially represented in Ashton-under-Lyne, Bolton, Bradford, Bury, Car- 96 PROVINCIAL AND FOREIGN ACCOUNTANTS. diff, Chester, Derby, Huddersfield, Hull, Leeds, Leicester, Middlesbrough, Northampton, Notting- ham, Preston, Southport, Sunderland, Swansea, and Wolverhampton . In 1808, Dublin — which, barring the national beverage industries, cannot unfortunately, at the present day, be accused of being an impor- tant commercial centre — had two Accountants, one, Barnaby Egan, sworn broker and Accomptant, the other, Matthew Newport, public Accomp- tant. Just 80 years afterwards, Ireland obtained a Charter for some of its Accountants, on similar lines to the one granted to England and Wales. There are now some forty-five members of this Association, and the present issue of Thorn's Directory returns the number of Dublin Accoun- tants at 52. Bankrupt estates are administered by Official Assignees in an economical, expeditious, and efficient manner, and the conduct of debtors is fully investigated, without harassing that fre- quently unfortunate person with a catechism of trivial and irrelevant questions some four or five times during his passage through the Court. Fully ninety-five per cent, of the Statements of Afi'airs are prepared by Accountants, and are paid for by the debtors or their friends. There can be no doubt whatever that in Scotland Accountancy has developed a degree of importance, i'KOVINlIAL ANL> I-OHKKIN ACCOUNTANTS. \)7 and that Scotch Accountants rank lii^Hicr, than in any other part of the world. The ^U'ntleini'n at the head of the profession are thorou^ddy acconi- phshed, and possess very extensive acquirements and experience. The Society of Accountants in Edinhur^di was incorporated l)y Royal Charter in 1854 : the Institute of Accountants and Actuaries in Glas^^ow in 185o ; and the Society of Accountants in Aberdeen in 18()T. Some few years a,L,^o, a gentleman, very familiar with the profession in Scotland, summed up the wide range of practice in the following language: — " The business open to an Accountant in Edin- burgh is varied and extensive, embracing not merely all matters of account, but requiring for its proper execution a knowledge of actuarial science, and a thorough acquaintance with the general principles of law, particularly of the law of Scotland, and more especially with those branches of it which affect mercantile relation- ships, insolvency, bankruptcy, and all rights connected with property. The Court of Session — the Supreme Law Court in Scotland — has fre- quently before it suits involving matters of Ac- countancy, in the extrication of which an Accountant is almost always employed to aid the Court in eliciting the truth, as such investiga- tions are manifestly (juite unsuited to such a 98 PBOVINCIAL AND FOREIGN ACCOUNTANTS. tribunal as a jury, yet cannot be prosecuted by the Court itself without professional assistance on which it can rely, the iiccountant to whom such a remit is made by the Court performing in substance all the more material functions discharged in England by the Master in Chan- cery. Accountants in Edinburgh are also largely engaged in judicial remits, in cases which are peculiar to Scotland, in bankings and sales, in processes of count and reckoning, multiple- poinding, and others of a similar description. They are also commonly selected to be trustees in sequestration estates and other voluntary trusts." It may be accepted as a broad statement of fact, that bookkeeping has developed a higher degree of refinement throughout continental Europe than it has in these islands ; and, that, on the other hand, professional Accountancy, as we know it, has not attained anything like the importance attached to it in this country. In Paris, where there are stringent regulations about bookkeeping, there is an Institution called La Chambre Syndicate des Comptahles dii Depart e- ment de la Seine, which w^as founded in 1882. The conditions laid down as qualifications for member- ship are certainly not stringent. All that is stipu- lated is that the applicant must be {a) an Accoun- rUOVlNClAL AND FOHKKiN ACCOIN TANTS. \)\) tiint, (/>) at least twenty-one yea is of a^^c, (c) a Frenchman or naturalised, (d) nuist justify his morality, and (c) must have paid the modest en- trance fee of three francs, and a monthly suhscrip- tion of one franc. The Municipal Council of Paris have in the past ^iven this Chaiiiher the annual subsidy of 1,500 francs (A'GO), two-thirds of which is devoted to the pubhcation of a represen- tative journal, and the remainder applied to educational purposes. Till' auditing of the accounts of public companies is almost entirely done by the shareholders, whilst attached to the Tribunal cle Commerce are some dozen Admin id rat eurs et Liquidateura de Sociefi's. In the Paris Directory for 1894, under the heading of C()))ij)fahilitc, there are some 120 names, and from the descriptions attached to some, these gentlemen appear to do work of a very miscellaneous nature. In Italy, the cradle of the scientia atnabiliSj Accountants (Ragionieri) or professors of comp- tability are licensed, and there appears from an Indicatore del Comniercio e delV Iitdusfria of recent date, to be a large number of them in that coun- try. In 1(S9"2, an Exhibition of Accounts was held at Genoa. The exhibits were divided into four sections, the first two being eomiected with sets of books of account arranged for different classes of l)usiness, and the last two were devoted to educa- 100 PROVINCIAL AND FOREIGN ACCOUNTANTS. tional and professional literature. Similar exhibi- tions had previously taken place at Turin, Milan, Bologna, and Palermo, but at these, foreign countries could not participate. In the most recent one, however, England, Germany, Spain, Eussia, and x\merica were represented. Among the awards made to successful exhibitors was a highly-merited one to the proprietors of The Accountant, the valuable organ of the profession, whose deeds it chronicles from week to w^eek, and whose interests it advocates with zealous, fostering, and unremitting care. Any Accountant who has the slightest ambition to keep himself posted in the multifarious changes which concern him, cannot dispense with a systematic study of this interesting publication. They don't appear to make Accountants as a distinct class in Germany, for the work there is done by notaries. The same observation applies to Eussia, where it may be added the realisation of bankrupt estates is effected by creditors. In Austria, in cases of bankruptcy, the Tribunal appoints experts in Bookkeeping, who state their opinion about the accounts of the debtor. Most of the English-speaking nations appear to have followed the lead of the old country in the establishment of Societies or Institutes of Accoun- tants. An American Association was, in 1887, ll;(>\ INCLYl, ANL) FUUEIGN ACCorNTANTS. lOl iiicurpomtecl under the laws and statutes of the State of New York, its stated object being " the elevation of the profession of Publie Accountants." There are numbers of Accountants in the princi- pal cities throughout the States, and they have been augmented during the past few years by some tirms of high standing in London establishing branch offices in JS'ew York and Chicago. It seems to be a common mode of attracting business by advertisement, some directories containing pages to the effect that certain gentlemen are supreme at "locating errors" and discovering "fictitious entries" and "fraudulent operations." An Ac- countant who left this country in a hasty manner in 1883, has now a very large connection in New Y^ork, entirely worked up by a standing advertise- ment in a leading daily paper published in the Empire City. There is, apparently, ample scope for Accoun- tants in America, if a statement made a few years ago in the Office Men's liecord can be even approx- imately relied on as correct, the assertion being that sixty per cent, of the books there were always out of balance. Possibly the position of the average American Accountant was ad- mirably described in the course of an interview, subsequently reported in the New York Times. The expert said " I am an Accountant ; my duty is to lOi^ PROVINCIAL AND FOKEIGN ACCOUNTANTS. mind my own business. When the bookkeeper tells the junior partner that $331 cannot be placed without forcing a balance, the firm sends for me, and I find where the money is gone. My pay is $2 a day, and I work slowly as a rule. Some Accountants hurry, and miss important facts ; others charge a lump price ; but I find deliberation, care, and keeping silence the best method. My income has never fallen below $3,000, and has never been more than $4,000 in ten years' work as an expert." Nature has gifted some Americans mth a wondrous power of mind for figures. They begin early, and some of these prodigies have been widely known in the States as "lightning calculators." It is stated that a lad, Zerah Colburn, settled a question which Euler at first declared could not be solved. The problem was submitted to Colburn, and that youth discovered by mental calculation what the great French mathematician had only found after great labour. In 1879, an Association of Accountants was formed in Montreal, the Council of which has powers " to maintain the discipline and honour " of its members. Two years later, the Institute of Accountants and Adjusters of Ontario was estab- lished at Toronto, its object being " to afford the public a guarantee of efficiency and abilit}^, by rilOVINClAL AND I'OllEKiN ACCUl NTANTS. 108 •^a'aiitih.i; its diploma or certificatt' to coinpctent and reliable persons, and to give expression to the views of the Institute upon (piestions incident to the profession." Australia is well provided for in the shape of Associations of Accountants. The Adelaide Society of Accountants was incorporated with the object " of bringin F()1;ku;n accountants. 105 !i short moral '' ta.i,'." It has been seen what injury and disrepute was caused to the profession duringthe career of the Bankruptcy Act of 1869, owin^ to tlic delinquency of some persons who adopted the call- ing at that period. If nothing else were necessary, that result clearly proved the lirst and greatest (]ualitication for success, either individually, or as a class, to be strict integrity. The words of immor- tal Shakespeare should be kept incessantly in mind, as an unfailing maxim in the manifold duties of life— This above all, — to thine own self be true ; And it must follow, as the night the day, Thou canst not then be false to any man. APPENDICES 108 APPENDIX I. ^ Ph Ph id a £172; Compt .SP ^ "a, a o ^ ^ o S : ^'^ ^ g o CO '3 ° o i i pj CO ^ ,3 a 2 H CD o CC : ^ g a • 03 ^- a ^ g "s o CC o . T3 O i c3 S O Q e3 m o ao c6 'C O CO o 1^ 'i B ,. i s ■< CM o o C3 ^ P p. § 1 'B :2 •JJ CC c3 cS o 2 a ^ a -^ o -2 i s '^ : c3 •" a 1T3 O O o >-< a CO O (C g a D CC c3 CO CC eS .^ CD -a a 2 • 2 CO o z CO en P^ < o a ^ . § fl >- ca g s -2 a S ^ a 1 a A S3 W) CC bO a 'S x> a o a CO © o ea CC CO -^ 5 '^ O 0) o ^ s >> 'S o a u o "2 -a «^ "to a 1 2 cq H O Q S ^ S3 o a o "^ 1 1 ° 8 fl CO g 02 d CO Al'l'ENDlX I. — A. iUU o CO eS 2 O j: ^ "c •a 3 S 5 o O o^ v^ 5C zc x" -^ 'E c o c-) •^ X ^ =^ 5 ^ ►-> o o o >. in a L- t~ -3 Q ei L-^ a L-^ > O L-^ l~ '2 s a a o □ 'S S u . 1 1^ -a c3 1- c o o 3 S o '■J o o "id 3 B o >-■ o 3 |5 "a* a 3 o o >> ■" ^ oy o t3 e! a eS 5 o 93 d S o B U .4^ 3 s s TS ^ 3 CO . o 3 > o O eS > i) a s ci3 .2 >> - o ^ O ■k3 3 <2 =a 2 s. -^ d - s o o ■r. i^ 3 2 O . 73 o — >^ =^ =- r2 P 5 = O 5 ^ — ? » c d o c: 3 •s _c > ^ ■f. C2 110 «« t3 K a , 2 o S <» 'S o 'C 5 f^ ^ o ■- - — • ^:r-H&oaa)cHa_r §«5 ^^^rSsa.p^^ o ^ Pu Ta "TS o a g cc '^ s cu a o :2 . a a >5 .2 I' ^ ^ S - "^ ^ ?^ g M eS -S a -g 9 .2 o * 3 H^Jo acaOjogoC/i^S ^ a Al'l'KNDlX 1. Ill s o o o y "* O — to a 2 «a a - cS W5 ^ o 3 ^ ops P. .2 S a □ 0? 2 " 1^ 3 ^ 0) O 15 c3 O P< »- a > s5 ii o n >^ -r n o =^ a ^ o o a i ^ -5 ago .a ». tS * o ^ -*a a — •~ *? - 3 tJ .2 a. 2 a O 3 ^ J3 £ .2* o 3 ° o .2 - a -S o j5 ::i — X rS . 3 3 ^ a s -** 'W CO o a •/! o ^ " o o >, o 5 .E 2 * 9 — = "^ a> « .- -r a i <^- o § "3 OS CI > "^ O I- o o to (M a ^o a a cti J - ° -§ a 3 o IS S o -s 5 2 .a t-- l-H -^ > o us :;; 5J crt to O o r3 BO tn . J t3 us a .t; a - (S 112 APPENDIX I. 3 f^ ^ -^ pq cc CO o H o H B o :2 ^ a a o "^ '« ^ (— ) 03 O « :::3 X: s •" p. o P5 o <; D s ^ TS CO ^ s*i ^ a .S -a O -S ^ ^ •o a *" •^ s CC ai 'C n3 33 aJ ."S o" "S T3 e3 09 o _ 'a & a -a fa o ^ -3 O ^ o o" IC CD Ol •55 o" T— 1 en o en a c3 a a o CD 05 •2 a ^ a > o 03 a 5-1 a a o d > to Is Sh lIj Al'l'KNI'IX I. — -A. 113 s 2 - £ c « "5 = 1^1^ a — X ;i ^ o — _ o tS ^ 5 S - '^ > eS C - ^ ^ - 2 « d ~ ii t* CO t-T of & x 2 o5- < ^ O o O C c/; . ^ ffl O S 05 c 13 3 "5 2 S a O •« II J ,-1 00 o o o -• s p -? > ^ 2 S. a o u £ « O. "H, ''■« & u o o ^ T3 >» ^ o cc £ X .tf « ^ - ;:;; u .t: 3 6 'J5 2 = 3 cr o J3 H .^ E~ S3 t- •- 3 » :S 3 3 a '■A u] d £ S -§ « c » .2 M a 3 to ra a - tn J3 60 eS j3 o a* o o o ^ M 2 d d « 5o v: .^ J d •^ hi a c« O ^ J= 2 - O := o o — *^ J- 3 d ei »« .2 5 -a o ■fl O ± >> ^ a ►i y " a y s z', -^ -a .= eS x> i> ^ - «a o ^ £ > t- - 114 APPENDIX I. O te O O II "J P4 a a o .5 ^ S -*^ rd o n3 =3 O -5 -d P. 2 •? 'o g t^ .-s s o cs rq a o W >> o -d g -i3 ^ :: pq -< o o CO O .ti ci .TS •S ^ 2 W S '^ cS as c ^ ti ti s .2 .§ a Sh ^ ^ o CD ,a .1-1 ^ ,^ c3 OJ ^ C/2 o "^ - H M CO -d cS 'iLj S 3 ^ i -2 o r^ ^ ."::; CO ^ -^ Sr" flj ^*^ i-M ? fl d ti W s ^ 5: .t5 ffi a ?^ Ari'KNDIX I. A. 115 60 .2 -2 o « .tf iJ o ,^ .2 a 3 ° -o <0 S -2 o "t! CJ Ml 3 S O O o -= t s S a 8 -3 o _2 O T3 C- ^ ^3 TS Qj "fl « t>-. -5 a = 3 •- O (M tS -^ s s s "" i: 5 o -S o .9 S o U « 'fi ^ ^- = S « "o 2| 3 tfl rO 3 « .2 c/: «3 2 a J3 O o o < 2. •a 3 3 2-3 ^ -^ c3 o C tJ 2 O IIG APPENDIX I. ^ 5-' c3 .2 3 5 eg 8 60 O C o" 1 "*" 5b >i -^ o --J re re X .S O H fJ >^ fii o c >> (5 g -- s v) a o o O 3 c3 ^ c3 "o^ re ,43 o d ^ n rii! U) P4 O S '3 fl c 02 'S « _o t- o -^ tS bo S Q 55 .2 <« -c c -S ^ 2 r a 2 o '3 >5 o a ^ c3 i .5 -ij as 5 o .2 ° ■"C! 3 .2 «2 o, ;^ a, a «4-l S-l o CO 03 o >5 t3 q. ^1 a 13 o" cf sS ■M o W C-l o S f^ II x ^ cj «r a -a ^ ^ g _a re c5 r; r,3 -^ Ph ^ > p S 2 o i o fl- o « .2 - o O o . u CO O O ^ o8 O u 8 I O O ^ CN aj ca 3 p O t~ CO ->* o s a s « O ■« 3 3 ^ V e3 '3 o (o fc< o I- ° ■s 5 § a to ^ "5 :2 "^ o ^ - o S a, . O c3 o §- o .^ I „ 3 wj ? « O eS S) -^ J O 3 , TS 3 1= i IK . •*" > a ^ o O o o o . o 5 ^ ^ <^ i _ o • o ^ o ■Jg a -g r-j O c3 J So SS ot~ig !-' si on o '-' a ^ - s ^ ^- S- -= ^ § M 2 s »2 2 -a o :2 : if do ^ c3 § ^ ? ^ ^^ ^ .5:2 § t^ -2 ^? ^. ^ - ^ fe 2 -§ >, § 5 to >i § U ° ^- «2 ^ .S =« S ^ 2 2 <=> So Crl-5§'3_, CO So ■5 -5 k5 o o AlTF-NhlX I. -L! 11) 8 3 < no O 8 2 d to o O e3 1 ^ OQ o o O o (— 1 O k. 3 X "o o TS ■A _s - J- v. 5 -^ ■" a 2 3 3 O S d ^ O £ ^ S >> cS S o - c 5 O o 2 o" =! " — I- 3 ^ ■^ iiJ V " ^ ^ ''- o -i 2 > o £^ — •= 3 i:: 2 ■c; "o S 2 p s Appendix II. Extracted from Holdcns Triennial Directory 1799. Name. Adey, John . . Black, Geo. . . Clark, V. Clarke, T. . . Davidson, Jas. Fraser, A. Freeman, T. Mill & Sinclair Smith, B. . . Smith, S. . . Woodhouse, J. Occupation. Accomptant . . Agent & Accomptant Accomptant . . Writing Master and Accomptant Accomptant . . Accomptant . . Accomptant . . Accomptants and Notaries Accomptant . . Accomptant . . Accomptant . . Address. Cavendish ct. Houudsditch 22 Princes st. Lothbury 40 Penton pi. Pentonville 110 High St. Marylebone 11 Cliffords Inn 51 New rowr, Prescott street 1 Liquordpoud street, Gray's Inn lane 22 Exchange alley 7 Scots yard. Bush lane. Cannon street 4 St Chard row, Gray's Inn road 23 Tokenhouse yard, Lothbury Al'I'ENDlX II. 1'21 Extracted from Ilohlen's Triennial Directorij LSOO-ll. Name. Allen, Nash, jiiar. Bert & Co. . . Black, Geo. .. Brown, W. . . Clark & Peutlow Cooper, James Cottle, R. Davidson, Jas. Gable, J. Gosnall, J. Jones, F. Lund, C. Lyon, C. MacLaurin, D. Panton, T. .. Phipps, Nic. . . Snow, John . . Snow & Scrivens Occupation. Accomptaut & Agent Accomptants and Brokers Agent & Acconiptant Accomptaut . . Accomptants tt Navy Agents Accomptant . . Auctioneer, Appraiser, Accomptaut, and Agent Agent & Accomptant Accomptant & Agent Accomptant . . Accomptant . . Accomptant & Insur- ance Broker Writing blaster and Accomptant Address. 25 Fish .street hill 15 Old Jewry 29 Princes street 2 Great St. Helens 3 Barking Churchyard, Tower street 38 Steward st. Spitalfields 9 Carey lane 22 Stamford st. Blackfriars 18 Commercial row, White- chapel 23 Groat Prescott street G8 Threadneedle street 20 Austin Friars Kensington Gore Agent & Accomptant 1 Castle street, Cornhill Accomptant . . Accomptant . . Accomptant . . Accomptants 101 Fenchurch street 10 Westminster buildings, Aldersgate Kensington ftoro Earl street, Blackfriars 122 APPENDIX II. Name. Van Saudan, B. Well, Thomas Whiteside, R. M. Wild & Son . . Willey, M. J. Williams, Geo. Occupation. Address. Notary Pablic, Trans- 3 Royal Exchange, and 5 lator& Accomptant Winchester street Accomptant . . Accomptant . . Accomptants Accomptant and Auditor Accomptant, Ap- praiser and Auc- tioneer 10 Garlick hill, & Walnut Tree walk, Lambeth Huggin lane, Thames st. 321 Oxford street 13 Brewer st. Golden sq. 88 Cornhill Extracted from Holden's Triennial Directory 182.2-4. Navie. Adams, E. R. Allen, N. Auld, R. Black, Geo. . . Blundell, B. . . Capes, J. S. . . Chedeville, J. Cottle & Watt, Occupation. Accountant . . Accountant . . Accountant . . Address. 8 Basinghall street 25 Old Fish street Crane court. Fleet street Agent and Accomp- 29 Princes street, Bank tant Accountant . . . . 4 Tokenhouse yard Accountant and Auc- 29 Friday street tioneer Commercial Agent Craven street. Strand and Accomptant, and dealer in Brit- ish and Foreign Lace Accomptants, Auc- 9 Carey lane, Cheapside tioneers, and Ap- praisers Ari'KNKIX II. 123 Navic. Cuff & Co. . . D.widsoD, Jamos Higgles & Gurroy Duncan, Andrew Duplesis, J. F. Evans, C. Feruie, Kbcnezer Gerlach, G. H. Gosnall & Sons Gow, W. C.iav, H. Occu]>ation. Agents and Accoun- tants Agent & Accountant General Accountants, Custom House and Commercial Agents Accountant & Agent Accountant . . Accomptant . . Managing Director of the British Com- mercial Insurance Co. and Public Accountant Accountant . . Agents and Accomp- tants .Vccountant . . Agent (t Accountant Address. 1 Frith street 22 Stamford street, Black- friars Copthall buildings Church court, Old Jewry 45 Burr st., London docks 21 Old London street 35 Cornhill 33 (Jreat St. Helens Great Prescott street 14 Keppel st., Southwark 3 Deans court, Doctors commons Hanson, -T. M. Heald, Timothy Heathfield, H. Hemming, John Heramings &. Co. Henley & Teesdale Hitchins, J. C. Holborn, \V. .■\ccountant .. .. 27 Pudding lane Accountant and Arbi- 7 Cloak lane, Dowgate hill trator Accountant & Agent 2 Green Lettuce lane 34 lied Lion street 14 Wttlbrook 28 Walbrook .\ncountant . . Accountants.. Arbitrators and Ac comptants Accountant . . . . 3 Crooked lane Arbitrator and Ac- 15 Cloak lane countant 124 APPENDIX II. Name. Occupation. Address. Hughes & Hunt Husey & BroAU Hutton, J. . . Jenks, Jas. . . Accountants and 14 Angel court Commercial Ag'nts Accountants.. .. 91 Watling street Accomptant and Re- 2 Great St. Helens feree Accountant . , Katte, Stephen . . Accountant Kirkpatrick, George Accountant Lowe, R. Lund, C. Maclaurin, D. Mills, James Moore, R. T. Musgrave, W. P. Palmer, S. . . Panton, Thomas Pennell, Jas, . . Phipps, John Piper, John . . Plimpton Pohlmann, J. G. Randall, John Ravenhill, John Rizhton, C. . . Accountant . . Accomptant . . Agent & Accomptant Accomptant . . Accountant . . Auctioneer and Ac- countant Auctioneer, A p- praiser, and Ac- comptant Agent & Accountant Accountant . . Commercial Agent & Accountant Auctioneer and Ac- countant Accountant & Agent Accountant . . Accountant . . Accountant . . Accountant . . 1 Church court 86 Cornhill Chancery chambers. Chan- cery lane Bridgewater square 20 Austin Friars 40 Coleman street Johns' Coffee-house, Corn- hill, and 8 Chapel street, Pentonville Size lane 3 Bread street, Cheapside 1 Birchin lane 29 New City chambers 145 Cheapside 22 Cateaton street 18 Basinghall street 63 Fenchurch street 16 Bernard st. Russell sq. Mitre court, Aldgate 24 Moffatt St. City rd. 3 Crooked lane. Cannon st. AITENDIX 11. 125 Xdtn Rose, J. Occujiation. Adilrcss. Auctionoor and Ac- Cluircli court, Old Jewry couutant Uouthledge, John .. Accountant .. .. 11 Burr st. East Smithfield Saltmer, G. . . Ravery, \Vm. Searlo & Bourne Shortney, R. Simpson, J. . . Smitb, T Smith, T Snow & Scrivens Thompson, H. Ticlkins, G Watson, F Watson, F Webster, R. :\I. Wilkinson, R. Willatts, W Willey, John, & Son Wilson, J. & W. Wilson, R Wood, J Woodcock, R. Wrigglesworth, Jas.. Wright, Wm. Accomptant, tioneer, &c. Accomptant . . Auctioneers, Ap- praisers, and Ac- countants Commercial Accomp- tant Accountant .. Accomptant . . Accountant . . Accomptants Accountant . . Accountant . . Accountant . . Accountant, Sec. Accountant . . Accountant & Referee Agent & Accountant Accountants & Gen- eral Agents Accomptants Accomptant . . Accountant, Ac. Agent & Accountant Accountant, Ap- praiser, Ac. Agent A Accountant \uc- 3 Paternoster row 19 Wynyatt st. Islington 12 Bucklersbury 22 Elder st. Spital sq. 20 Little St. Thomas Apostle 27 Little St. Thomas Apostle Commercial Sale Rooms S Earl street, Blackfriars 4 Copthall buildings 5 Jeffries square 8 Thavies Inn, Holborn 7 Smith St. Westminster Cloak lane, Watling street 3 Copthall court 22 Paternoster row 17 Buckingham st. Strand 47 Basinghall street 43 Wells street IF) Basinghall street IH Walbrook ;J5 Walbrook .0 Mincing lano Appendix III. Number of Companies, with authorised Capital, registered from 18G8 to 1893 inclusive. Year. Number of Companies Registered. Aiithorised Capital. 1863 .. 790 . £139,988,000 1864 .. 997 237,237,000 1865 .. .. 1,034 205,392,000 1866 .. 762 76,825,000 1867 .. 479 31,465,000 1868 .. 461 36,528,000 1869 .. 475 .. 141,274,000* 1870 .. 595 38,252,000 1871 .. 821 69,528,000 1872 .. 1,116 133,041,000 1873 .. 1,284 152,056,000 1874 .. .. 1,241 120,540,000 1875 .. 1,172 82,477,000 1876 .. 1,066 48,314,000 1877 .. 990 66,800,000 1878 .. 886 65,857,000 1879 .. 1,034 75,508,000 1880 .. .. l,302t 168,466,000 1881 .. .. 1,581 210,711,000 * Included a mushroom company for 100 millions. t The increase in the number of Companies registered in 1880-83 aro-e from th? re-registration of banking and other companies under the Ace of 1879. APPENDIX III. Year. Xumbcr of Companies Rc'jistcred. AuHioriscd Capital. 1882 . 1,G32 . . £254,711,000 18S3 . l.TOG . 167,680,000 1SS4 . 1,511 . 1:38,491,000 1SS5 . l,l.S2 . 119,222,000 ISSC) . 1,891 . 115,850,000 1887 . 2,050 . 170,172,000 1888 . . 2,550 . 353,781,000 1889 . . 2,788 . 241,277,000 1890 . . 2,789 . 238,759,000 1891 . . 2,686 . 134,261,000 1892 . . 2,607 . 103,403,000 1893 . 2,617 . 96,654,161 The number of Companies actually existing in April 1885 wore 9,344, with a total paid-up Capital of £494,909,862. The correspouding figures in April 1894 were 18,361, and £1,035,029,835. JUST PUBLISHED. Demy 8vo. about 300 pages. Price 6 J^ OTJIIDIE TO INCOME-TAX PRACTICl: BY ADAM MURRAY and ROGER N. CARTER, Chartered Accountants, Manchester. CONTAINING A Summary of the various Enactments relating to Income-Tax; Instructions as to the preparation of Returns for Assessment and Accounts in support of Appeals on the ground of over-assessment; also for claiming Exemption and Abatement; AND A CONCISE POPULAR DIGEST OF THE PRINCIPAL LEGAL DECISIONS ON THE CONSTRUCTION OF THE ACTS: FOR THE rSE OF TAXIWYERS. GEE (.V: CO., ;34 Moorg.\tk Strket, London, E.G. " VVe consider this book likely to be of considerable utility both to practitioners and students ■ it contains an enormous fund of information within a comparatively small compass, and the views ex- pressed are, in general, sound and thoroughly reliable." — Accountant. "The work is, in our opinion, a good one." — Law Times. "The new work by Lawrence R. Dicksee, while intended particularly for English Accountants, is of interest to American bookkeepers, and advances much that is of help." — Business. " I consider this an admirable book ; it certainly supplies a long-felt want, as it goes very fully into the subject-matter in quesiion."—" Secretarial," by Gerard van tie Liniie. "The candidate for the Intermediate Examination will find in it all he requires to satisfy the Examiners in this subject, so far as can be possibly learned from a book; and to the candidate for the Final it will prove no less valuable, read in the light of his five years' experience ; and, all Examinations passed, and the peaceful harbour of Membership of the Institute gained, the Chartered Accountant will do well to keep it for reference." — Students' Telephone. AUDITING: A PRACTICAL MANUAL FOR AUDITORS BY LAWREN(]E R. DICKSEE, F.C.A. Late Lecturer on Bookkeeping at the Technical Schools of the County Borough of Cardiff . About 320 pp. Demy 8yo. Cloth, price 10;6. Copies may be had interleaved with plain paper at an extra cost of 2/- In writing this Work the author has kept in view two main objects — (1) To supply in a convenient form the information most likely to prove of PERMANENT and PRACTICAL UTILITY to the Profession. (2) To supply, larithin the compass of one vrork of moderate dimensions, THE WHOLE OF THE IN- FORMATION likely to be required by Students read- ing for the EXAMINATIONS OF THE INSTITUTE. Although, from time to time, it has been thought desirable to mention the opinions held by leading Members of the Profession, the present work is by no means a mere conglomeration of previous publications, but AN ENTIRELY NE^iT AND ORIGINAL \«^ORK dealing with the subject very thoroughly, and in considerable detail. ESPECIAL ATTENTION has been bestowed upon the chapters deahng with the questions of principle involved in THE VALUATION OF ASSETS AND LIABILITIES, while the RESPONSIBILITIES OF AUDITORS have received all the attention that the intrinsic importance of the subject demands. Intending purchasers should forward their orders to Messrs. GEE & Co., 34 Mourgate Street, London, E.G. Parts 1, 2 and 3 NOW READY, Price 4\- each Part, or Complete Work with Index. 10,6. Part I. strikes us as bfuuj tJic fiiost lucid and complete erjiosition of the Iheorij of double-entry that we luivc yet seen, and if only the succeeding parts arc of equal merit, Mr. Dicksee's book will be entitled to a foremost place among professional literature." — Accountants' Journal. ' There can be little question but that 'Bookkeeping for Accountant Stiulents' tvill e^rn a place beside its autlior's ' Auditing ' as a tiseful work." — Accountant. Bookkeeping for Accountant Students r-.v LAWRENCE R, DICKSEE, F.C.A. AUTHOR OF "AUDITING, " FORMERLY LECTURER ON BQOKKEEIING AT THE TECHNICAL SCHOOLS OF THE COUNTY BOROUGH OF CARDIFF. The Work, which is specially prepared to meet the requirements of Candidates for the Examinations of the Institute, consists of three Parts : PART I. contains a full and complete explanation of the Theory of Double- Entry, as iipplied to accounts of a simple nature ; and is supplemeuti'd by copious Exercises luul Questions that combine to make it a work of the highest educa- tional VilluC. PART II. deals with tin Accounts of Traders, including Partner- ship Accounts. Stock Accounts. Adjustment Accounts, etc., etc. ; together witli numerous Exercises and Questions. .1 special feature of this jHirt is a concise account of the Commercial Terms in general use, with tlieir French and German eqnirnlenta. PART III. dials with tlic Accounts of Manufacturers, nscludinji a system of Cost Accounts, the Accounts of Joint Stock Companies, the Double-Account system. Depreciation, etc., etc. ; and contains various specimen rulings of convenient forms nf books of account. A complete Index to liie wliule work is j.ul)lishcd \Mtli this part. GEE & Co., 34 MooKCATi: Street, London, E.C. JUST PUBLISHED, PRICE 1/- COMPARATIVE DEPRECIATION TABLES LAWEENCE R. DICKSEE, F.C.A. {of the firm of Sellars, Dicksee <£ Co.) AUTHOR OF "auditing," "BOOKKEEPING FOR ACCOUNTANT STUDENTS," ETC. Just Published, about 220 pages, demy 8yo., Price 5 - Executorship Accounts BY Messes. F. WHINNEY, June., Barrister-at-Law, AKD A. F. WHINKEY, A.C.A. Being a series of Lectures on the law of the subject, together with a complete Set of Accounts. CE£ & CO., Printers and Plblishero, 34: Moorgate Street, London, E.G. SECOND EDITION— KN LA KG ICn AND AMFLiriKD Royal Svo., Cloth, Price lus.fnl. CllAKTHRHI) ACCOUNTANTS' ^_ And the Law RckitinK thereto LllxiKbLO HY of the Middle Temple, Baryistey-at-Law ; and Fellmv of the Institute of Chayteyed Accountants in England and Wales; Authoy of "Auditors," &€. One of the ^'reat wants of Members of the Profession is a Standard work of the Charges of Chartered Accountants, to which they can refer their Chents, when asked either to quote a fee for future services or to support an account of Charges already rendered. The Second Edition of this Work has been considerably enlarged, and contains many valuable decisions in the Courts affecting an Accountant's Remuneration. It also contains the Scale of Charges which prevails amongst the leading practising London Chartered Accountants for Auditing:;, mzikxn^ Investigations, etc. The Charges of Liquidators, under the Act of 1862, and the Act of 1890. The Charges of Special Managers and Trustees in Bank- ruptcy, Receivers in Chancery, etc. The Charges for Assisting Debtors and Directors of Com- panies in Liquidation in the preparation of the Statement of Affairs. The Charges of Arbitrators, Witnesses, etc. Also a Chapter on the Law Relating to Commission so far as it is likely to affect Chartered Accountants. It contains also model Bills of Charges ; to these are added Tables which show at a glance the calculations from one hour to one hundred days, of seven and eight hours each, at every rate per day. GEE & CO., Printers and Publishers, 34 Moorgate Street, E.C. A SECOND EDITION AUDIT NOTE-BOOK JUST PUBLISHED, embodying many improvements that have been kindly suggested by purchasers of the first issue. These improvements include a stronger binding ; space for a list of the books kept; spaces for remarks against each item of the yrogramme ; spaces for queries raised in the course of the audit for the anstvers received thereto ; and for the initials of those responsible for the correctness of the answers, etc., etc. It is an acknowledged fact that no audit can be effective unless the routine work is systematically carried out and carefully supervised. The Audit Note-Book is specially designed to afford principals and their managing clerks the utmost facility for supervision with the minimum of labour. No accountant should be without it. A sepai'ate Note-Book is required for each audit, and when the year's audit is completed the book is docketed and placed among the other papers, so as to be always available for reference. The size of the book is so arranged that it may be conveniently carried in the pocket, or tied up with papers of foolscap size. The AUDIT NOTE=BOOK is now issued in two series, viz. : — No. 1. — Suitable for a Monthly Audit. No. 2. — Produced in accordance with a suggestion received from Messrs. Turquand, Youngs & Co. Suitable for a Quarterly or Half-yearly Audit. An increased space for "Remarks" is supplied in this series, which cannot fail to prove of use. The prices (for either series) are as follow : — Per dozen books ... 5/- Per hundred books ... ... 40/- A specimen book will be forwarded (post free) 6d. Customers' names will be printed on the Covers free of charge, if 100 or more copies are ordered at the same time. To prevent delay, all orders, together with remittance, should be forwarded at once to Messes. GEE & Co., 34 Mookgate Steeet, London, E.G. NOW READY Volumes 7., 77., ///. and /!'., Price 12.9. (jd. each, or 40.S. the Set. Subscription 3 6 per annum. Including Index Biennially. TilK Hccountante' /llbanual A most valuable fund of information concemini? various points of Practice and Law Relating to the Profession is tLat contained in the (Questions and Answers of the Institute Examinations; but owinj? to the fact that u<> Index of these Questions and Answers has yet Keen published, it has up to the present been hitherto practi- cally inaccessible to practitioners. With a view to remedy this defect, we decided to issue the back numt'crs of the Questions and Answers bound in Volumes, with a cnpioaa and carefully- prepared Index to each Volume. By this mean'* an extremely valuable mass of information, which up to the present has been available only to the Student for Exaruination purpo'^O'j, is thrown open to practitioners ; and the series — comprising a complete professional code that will be in daily request — should find a place on the shelf of every member of the Profession. Throughout the St-ries, the Answers have been written with the utmost care, and the views of specialists have been obtained in all caoes where there has been the slightest doubt as to the correct practice. In the preparation of the Index, the greatest pains have beei taken to frame h in accordance with the requirements of Chartered Accountants, and aU points of law that have been rendered obsolete by recent legislati'in have not been indexed. We have received many urgent representations from members of the Profession that such a publiearion as this would be of the greatest value, and we have no hesitation in addinif our own opinion that the Series will form one of the most valuable Contributions to the literature of the Profession. The first Volume comprises the Examination Questions an'i .(\jiswers from December, 1884, ro June, 1887, both inclusive, and the second Volume includes thoee from December, 1887, t^ June, 1890, while the third Volume comprises the Questions and Answeis from December, 1890, to June, 1892 (both inclubive). The Questions and Answers publi.)hed after that date will form the succeeding Volumes, which it is proposed to issue every other year. To those who have subscribed for these Questions and Answers as and when issned, the Indices will be supplied separately, price 2 G each, and will thus be obtainable for binding up with Subscribers' own sets. To Annual Subscribers, how- ever, the Index is supplied free ofjfurther charge. To those who have not hitherto subscribed, we wonld earnestly retji-est early application, as our stock of copies is not great, NoTA Bexe. — By becoming Subscribers, Accountants will obtain their copies of the "Accountants' Manual" at 7- each, instead of 12/6, the published price. Gee S: Co., The Accountant Office, 34 Moorf?ate St., E.G. THE ACCOUNTANT (Awarded Silver Medal, Esposizione Italo- American a, Geneva 1892.) (TWENTY-FIEST YEAE OF PUBLICATION). ISSUED Weekly, in time for Friday evening's mail. -»- The Accountant is the only medium of commmiication between the Members of the Institute of Chartered Accountants in England and Wales and Accountants generally throughout the United Kingdom. It contains Original Articles, Correspondence, Lectures and Debates on Bookkeeping (with specimens of accounts), Auditing, Liquidations, Bankruptcies, as well as reports of all Decisions as to Administration Cases, Arbitrations, Winding-up of Joint Stock Companies, Liquidations, the Bankruptcy Act, Mercantile Law, and Partnerships ; and is generally a complete Record of all Matters of Interest to the Profession. Extract frovi the Speech of the President of the Institute [Mr. J. J. Saffery), at Newcastle-upon-Tyne, October 2ncl, 1890. "As this is the only recognised organ of out profession, I would take this opportunity of urging upon every me nber of the In.stitute to endeavour to do his quota in making this paper of real and substantial benefit to the profession. "This must be by support; not only iu the way of monetary >ubscription, but of literary contribution in the form of suggestion, enquiry, report, and such like communications." Subscription: Yearly, 24/-; Half-yearly, 13/-; (Po>t Free United Kingdom.) „ „ 26/-; „ 14/-; „ Abroad. London : GEE & CO., Printers and Publishers, 34 Moorgate Street, E.G. THE ACCUUNTAXTS' jOL'RXAL (With 'which is incorporated The Accountants Students' Journal.) Annual Subscription, 7s. 6d. post free. Each monthly part contains : — Two or more original articles upon topics of professional interest. A series of specially written paragraphs upon current events. Notes upon recent legal decisions. Lectures delivered to the various Students' Societies, and other matters of interest. In particular, attention is called to the series of original articles which deal with the questions set at The Examinations of the Institute, and give appropriate answers thereto, and to the Prize Essay Competition that IS open to all Accountant Students. This Journal— which, with the exception of the lectures, consists entirely of original matter — will prove an indispensable addition to the bookshelf of both Practitioner and Student. The work possesses an educational value of the highest import. Vols. I.. II.. III.. IV.. v.. VI., VII., VIII.. IX., X. and XI., Bound Half-Calf, Gold Lettered, Vs. 6d. each. GEE cV CO., Printers and Publishers, 34 Moorgate Street, London, E.G. Foolscap Folio, Cloth Bound, Price 7s. 6d. ACCOUNTANTS' ACCOUNTS A System of Accounts for use in the offices of Accountants. Containing particulars of the necessary Books to be used, with Specimen Entries in each. BY WILLIAM HENRY FOX (of the firm of Fox, Sissons & Co., Chartered Accountants). This book contains the transactions of the firm of " Messrs. Debit AND Credit," Chartered Accountants. It is divided into five sections, viz. : — 4. — Time Books. 5. — Miscellaneous Books. I. — Partners' Private Books. 2. — Clients' Financial Books. 3. — Petty Cash Books. Section i contains the detailed Balance Sheet of the firm at the 31st December, 1887, together with Private Ledger and Journal Entries. The books in this section are the ones to vi'hich the principals alone have access. Section 2 comprises the financial books which are written up by the cashier, viz. : — The Clients' Ledger, Journal, and Cash Book, with specimen entries for each ; an adjustment account being opened with the Private Ledger. Section 3 contains a self-balancing set of Petty Cash Books, comprising Ledger, Cash Book, and Journal, which are separately agreed by double entry ; an adjustment account being opened with the Clients' Ledger. Section 4 contains a full system of Time Books, showing how the results of the Daily Time Books are summarised and agreed step by step and brought into the Time Ledger, which is kept by double entry. Section 5 deals with various other Books used in an Accountant's office in connection with his own accounts which are not included under any of the other four sections. Throughout the Book the principle is adopted of keeping the specimen accounts on separate pages which would correspond with the actual Books used, except as to size, and any necessary explanation is given on the opposite page. By this means the system may be followed with greater facility, the reader's attention not being distracted by an undue quantity of figures and letterpress being brought under his notice at one time. This system will be found to be equally applicable to large or small businesses. Orders for the Book should be forwarded, with a remittance of 7s. 6d. per copy, to GEE & Co., Printers & Publishers, 34 Moorgate Street, London, E.C. •2-2(» Pages, dciiix Svo., Cloth, I'rice os. STHVHXS' r.ANKRlPTCY A DEMAND has arisen for a short work on the above, which, whilst treating the subject from a legal point of view, will still BE OF USE MAINLY TO CHARTERED ACCOUNTANTS and others, engaged more often in the City than in the Law Courts. Text books on this subject there are enough and to spare, but with scarcely an exception they treat the law either from a popular point of view, or else their bujkiness renders them useless to a large and important class of persons. The general dutlines of the subject, i.e., THE TEXT OF THE ACTS, AS MODIFIED BY LEADING CASES, IS WHAT IS WANTED. Under these circumstances, we have published a book which will, we hope, meet the demand. The work was placed in th« hands of Mr. T. M. Stevens, M.A., B.C.L., Barrister-at-Law, whose Lectures on Recent Legislation, published in the Transactions of the Chartered Accountants Students' Society, show that he has a clear view both of the law and of the requirements of the class for whom we pubhsh, and whose successful book on Mercantile Law is a guarantee of his literary powers. THE TEXT OF THE ACT IS GIVEN IN EVERY CASE, AND EACH SECTION IS FOLLOWED BY SHORT NOTES, containing, it is hoped, all that is required to assist to a clear understanding of most points which may arise in practice. The great aim has been to produce an accurate short volume on Bankruptcy, exclusive of Court procedure ; this, it is hop^d, we have been able to accomplish, and the public will be none the less pleased to hear that we have managed so to keep down the cost as to be able to publish at a price of Five Shillings. GrEE & Co., 31 Moorrjate Street, London, E.C. An Entirely NEW and ORIGINAL Work ON Advanced Bookkeeping SPECIALLY ADAPTED FOB Accountant Students and Bookkeepers. THE ACCOUNTANT'S AND BOOKKEEPER'S VADE-MECUM Price 7s. 6d. By G. E. STUAKT WHATLEY, Accountant (Exam. Inst. O.A.) The Work consists of a Seeies of Shoet and Concise Aeticles upon Capital and Eevenue Expendituee, Revenue Accounts, Deficiency Accounts, Depeeciation, Reseeve and Sinking Funds, Adjustment OF Paetneeship Accounts, Joint Stock Companies' Accounts, Tabulae Bookkeeping, Hotel and Theatee Accounts, and other matters not geneeally dealt with in existing Woeks on Bookkeeping, together with useful Foems and Dieections. The Author's aim has been to provide a work that will meet the requirements of Accountant Students preparing for the Examinations of THE Institute, but it will also be found that the book is one that loill he useful to the general body of Bookkeepers, and will form a necessary adjunct to the study of Elementary Bookkeeping. The Work is not that of a theorist, but is the outcome of many years of the Axithov s practical experience. GEE & Co., Peintees and Publisheks, 34 Mooegate Steeet, B.C. THE :Accoitntautit' Ilianj for JM)() READY IN OCTOBER. The 1806 Editions of these well-known Diaries (with the exception of No. 3) will contain a Complete Directory of Accountants , corrected to the latest possible date, as well as additional information and improvements. No. 1 DIARY, One page for every Week-day, with all informa- tion, Foolscap Folio, Cloth, Lettered 8s. Od. No. 2 DIARY, Two days on each page, Foolscap Folio, with all information. Bound in Boards ... ... ••• ••• 3s. 6d. No. 3 DIARY, Three days on each page, Foolscap Folio, Bound in Boards, but without Special Information or Directory Is. 6d. No. 3a DIARY, Three days on each page, Foolscap Folio, Bound in Boards, with all information ... ... ... ••• 2s. Od. Editions Nos. 1. 2 and 3 are specially Ruled and Headed according to the pattern approved by most practising Accountants. No. 4 DIARY, One page for every Week-day, Medium Octavo, with all information, Cloth, Lettered 5s. Od. No. o DIARY, Two days on each page, Medium Octavo, with all information, Cloth, Lettered 2s. 6d. COPIES INTERLEAVED with BLOTTING PAPER will be supplied, if ordered before going to press, at an extra cojt; of 2 - each for No. 1 ; 1 6 each for Nos. 2 and 4 : and 1 - each for Nos. 3 and 5. Los DON : GEE cf CO.. Printers d Publishers, 34 Moor^ate Street, E.C. Just Published. Price 2/6. govm& of ^cconni ^ooksr FOR VAEIOUS CLASSES OF BUSINESS. COMPILED BY J. G. JOHNSTON, Chartei'ed Accountant, Edinburgh. This publication is designed to meet the requirements of business men who wish to have, in a brief and compact form, a practical illustration and description of the books required in order to record their position and the progress of their business with t,he least possible expenditure of trouble. It is divided into the following parts: — Part I. — Forms of Books for Manufacturing Businesses. Part II. — Forms of Books for Retail Businesses. Part III. — Forms of Books for the use of Solicitors and Law Agents. Part IV. — Forms of Books for the use of Stockbrokers. Part V. — Forms of Housekeeping Books. Part VI. — Form of Investment Register and Calendar of Income. Each part comprises specimen pages of a complete set of books adapted to the particular class of business indicated, while directions for balancing and a form of balance-sheet are appended in each case. Special attention is directed to the forms for use in retail businesses. Here Single entry is more commonly used than Double entry, although the latter method is by far the more accurate and satisfactory. The forms now suggested are based on the Double entry system, but, in their working, are as simple and expeditious as the Single entry method, while the full record of results and complete counter-check which cannot be attained under that system are rendered possible by the forms proposed. The forms are not merely theoretical, but, for the most part, have stood the test of time and experience in actual practice during a course of years. GEE & CO., 34, Moorgate Street, London, E.G. NOW RKADY- SECOND EDITION. Price 2s. 6d. A Guide to the Aceountancy 1^'ofession A useful Handbook to A rticled Clerks, and all ivho intend becoming Chartered Accountants, and an invaluable Guide to Parents, Guardians, and others. This Work, a second edition of which is now ready, is specially designed to afford the fullest and most reliable information on all matters concerning the Accountancy Profession, and the conditions to be complied with in order to qualify a candidate for admission to the Institute of Chartered Accountants. Amongst other matters, it contains the following : — A short history of the origin and rise of Accountancy, and the steps which led to the Incorporation of the Institute of Chartered Accountants, cc. And generally all information necessary or useful to those who contemplate entering the Profession. GEE & CO.. Printers and Publishers. 34 Moorgate Street. London, EC. GEE #" CO., Letterpress & Lithographic Printers, Bookbinders, & Publishers, 34 MooRGATE Street, London, E.G. ^ Special Facilities for the Printing' and Publishing of Authors' Works on Mutual Terms. COMMERCIAL, LEGAL, and ACCOUNTANCY PRINTING EXECUTED WITH NEATN ESS AND DESPATCH. ESTIMATES BY RETURN OF POST. Demy 8vo., Cloth, Lettered. Price 2s. 6d. EXECUTOKSHIP ACCOUNTS BY Mk. OSWALD HOLT CALDICOTT, F.C.A. BIRMINGHAM. Being a complete set of the Trust Accounts of the late A. Bradshaiu, Esq., with explanatory text. Revised and printed in good hold type. GEE & Co., 34 MooRGATE Street, London, E.G. MEETINGS. COMPANIES', CEEDITOES', or OTHEEWISE. Verbatim BEPORTS OF MEETINGS can be arranged for by giving A DATS NOTICE to GEE & CO., Printers and Publishers, 34 Moorgate Street, London, E.G. Q6 Ai iFORNIA T,n.|; * RETURN CIRCULATION DEPARTMENT TO— ^ 202 Main Library ,: LOAN PERIOD 1 HOME USE 2 3 4 5 6 ALL BOOKS MAY BE RECALLED AFTER 7 DAYS 1 month loans may be renewed by calling 642-3405 6-month loans may be recharged by bringing books to Circulation Desk Renewals and recharges may be mode 4 days prior to due date DUE AS STAMPED BELOW DEC 2 3 1981 i 7, - UNIVERSITY OF CALIFORNIA, BERKELEY FORM NO. DD6, 60m, 12/80 BERKELEY, CA 94720 2f)0.M Tvii T.I..CITY OF CALIFOKXIA I.IBRARV I