Foundations of Success and Laws of Trade - Barrister-At-law

8/2/2019 Foundations of Success and Laws of Trade - Barrister-At-law

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1980


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i

FOUNDATIONS OF SUCCESSAND

LAWS OF TRADE;

BOOK DEVOTED TO BUSINESSAND ITS

SUCCESSFUL PEOSECUTION,EMBRACING EVERY DETAIL FROM THE SMALLEST TO THE GREATEST

EACH BEING TRACTICALLY CONSIDERED IN ITS PROPERORDER, FORMING A PROGRESSIVE

BUSINESS GUIDE AND HAND-BOOK OF REFERENCEFOE

YOUNG MEN, CLERKS, MERCHANTS, MECH.ANICS, FARMERS, AND THE HOUSEHOLD.BYABARRISTER-AT-LAW.

LONDON, ONT.:SCHUYLER SMITH & CO.,1877.

Sold only by Subscription throuah our Agents.


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Entered according to Act o? thk Parliament of Canada, in the yearone thousand eight hundred and seventy seven, by SCIIUYLEBSMITH, iu the office of the Minibler of Agriculture.

T-ONDON, ONT.:VIVUN, Printer aad Bterbotyper, 808 Clarence Street


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LIST OF AUTHORITIES.

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Addison on Contracts.Addioon on Wrongs and Their RemediesArchibald's Landlord and Tenant.Amould on Insurance.Blackstone's Com. on Laws of England.Broom's Common Law.Broom's Legal Maxima.Bylos on Bills and Notes.Bayley on Bills.Burge 03 Suretyship."Barrister," Cabinet Lawyer.Chitty on Contracts.Coate on Mortgages.Crabb or. Conveyancing.Collyer on Partnership.Comyn's Landlord and Tenant.Dart on Vendor and Purchaser.Dijcon on Partnership.

Fisher on Mortgages.Fry on Specific Performance,Gale on ilasements.Greenwood on Conveyancing.Hawkins on Wills.Hilliard on Sales.Jarman on Wills.Leake on Contracts.Lindley on Partnership.Mayne on Damages.Smith on Master and Servant.Smith on Common Law.Smith's Landlord and Tenant.Smitii on Mercantile Law.Stephen's Com. on Laws of EnglajuLSugd3n on Vendor and Purchaser.Williams on Personal Property.Williams on Real Property.

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PREFi^CE.For "Foundations of Success and Laws of Trade," a preface,to do justice to the work, cannot be written. The character ofthe workits immense value to every business man, to everyfarmer and mechanic, to every young man, and to every family,,makes it a book that no preface can explain, but one that hasonly to be seen to be appreciated. It is a work that has long beendesired by the peoplethe lack of which has been felt by theyoung man, the inexperienced merchant, the mechanic, the farmer,and every household; and to them we are willing to leaveit, believing that their commendations will make a better pre-faceone more satisfactory and intelligent than we can write orcan be written.We refer the reader to the pages of the work, satisfied that

its practical utility and solid value will prove a material help tothe young man in the progress of business life, and of incalcu-lable value as a work of reference and instruction to all who, hav-ing years of experience, are still not too wise to learn from thQexperience of othei's.


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NOTICFThis booK will be sold Exclusively by Subscription. It willnever be obtainable at the book stores; and there will be but oneopportunity to purchase it, which will be when called upon byour agent. It will be the agent's business and pleasure to visiteach person in his or her community and solicit their orders. Allwho avail themselves of this opportunity to purchase it will havethe book delivered to them by the agent. Tlie publishers, know-ing the great importance and value of the work, agree that theywill refund the price of the book, on its being returned to themin good order by any purchaser who, after examining the samecarefully, shall feel or express the opinion that it is anything lessthan one of the Best Purchases of His Life. This is aGuarantee never before offered by any publisher, to our know-ledge, but which we have no hesitancy in giving in reference tothis invaluable work,

THE PUBLISHERS.


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FOUNDATIONS OF SUCCESS & LAWS OF m\DE.

SUCCESS IN BUSINESSCHOOSING A BUSINESS.

Some people are possessed of the idea that choosing a businessis of the utmost importance to the young man, but we think thatthis notion has been greatly overrated. The most important fetures of every business are energy, tact and honesty ; and nomatter what business a young fcian may see fit to enter, let it bothat of a mechanic, merchant or farmer, without these threeimportant features, failure is sure to follow: with them, successIB certain to crown his efforts. Of course there are exceptions.Where the occupation is decided by nature, it is the duty of

the parents and friends not to thwart, but to assist him. Forinstance: a young man possessed of extraordinary mechanicalingenuity has no business in a counting-room ; and yet how manycan there be found! They make poor merchants; and the worhas lost their skill as mechanics.

HONESTY.A thoroughly honest clerk is indeed a treasure to any estab-

lishment, and he will very soon gain the confidence of his employ-ers. When that is the case, he is on the road to fortune, andpretty well advanced at that He can not only contiol a large


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FOUNDATIONS OF SUCCESSamount of capital, but he will also have the confidence of others,who will always have a place for a man they can trust. Dishon-esty never pays, either in a clerk or employer ; and though attimes he may be successful, yet in the end it is sure to be fatal.One of the reasons why so many clerks are dishonest is thatnumbers of employers fail to pay an equivalent for the clerk'stime ; this ho is awar< f, and, as a consequence, he occasionallypays himself, entirely lorgetting that he is cultivatir m traitof character that will, sooner or later, result in life-long disgraceand dishonor.

ECONOMY.It is easy to make money, but it is much harder to save it. If

every young man would save his earnings, instead of spendingthem foolishly, he would, in a few years, have a sufficient amountto enter into business on his own account. But look at the aver-age young man who is receiving a fair salary ! How does he usehis money ? He is ahvay " short "much more so than one whohas a family to support-*-while really he should have money inthe bank, and be able, in a few years, to take advantage of somegood opening, and enter into some business. Young man, improveyour opportunities. Don't spend your money, which, it is to behoped, you have sarned hardly, in frivolities. Don't putt' it awayin smoke. Don't get rid of it by games of chance or gambling,which will certainly result in a business recklessness, sure to endin financial ruin, however the fickle goddess, Fortune, may smileon you for a time. Always get fair value for your dollars whenyou let them go, even if at times it may be but a " Thank you,sir," for well-timed charity.

INDUSTRY.Be sure and recollect an important matter when you engage

yourself in an establishment, and that is, that you are expectedto work and not play. The eye of your employer is always onyou, and though he may not say anything, yet he thi/nks. Let his


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AND LAWS OF TRADE.thouglits be in your favor ; in fact, make them bo, for they willat some future time be your capital. Let not your interest inyour employer's business be confined to the hours of business, butalso out of businessbeing ever ready to work, ever ready toadvance the interests of the establishment, even if it does re(iuireover-hours. Make yourself useful also by knowing your business,and being able at all times to occupy your fellow-clerk's place inhis absence, thereby aiding your employer in his hour of need.It will be noticed, young man, and will be appreciated. It willpay in the end ; and if you are sufficiently wise to understandhow to make your future, you will make." industry and faith-fulness " your motto. You will also do well, at the outset ofyour career, to learn, once and forever, that all honest labor ishonorable, and none more honorable than another. False pridein this respect damages a young man in the estimation of anysensible person more than anything elsefar more than anylabor he may be engaged in. The clerk who is above " carryinga parcel " will always remain a clerk ; but he who is not afraidto do anything that is to be done will be sure to rise, and in timewill be in a prosperous business for himself. Do not be ashamedof honest work

POLITENESS.This is a clieap and servicealjle article ; in facl, it costs Noth-

ing. It is 80 cheap that some establishments do not care aboutallowing it room. Yet the loss of it is felt more keenly than theloss of any other article in the concern. Politeness in an estab-lishment takes the place of an immense portion of the capitaland the proprietor who understands that portion of the business,and makes it a specialty, is bound to be successful. It must notbe a "sham,'' but a true and natural politeness; and the differencebetween the two kinds is so easily distinguishable, that we neednot take time to investigate the methods of recognition. Thereis as much difference between the two articles as there is between


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FOUNDATIONS OF SUCCESS,

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ft dandy and a gentlciLan, or between good and counterfeit money,and as easily detected, if not more so. Let every young mandetermine to control his temper, and, under all circumstances,exhibit a kind and polite bearing.No matter how a man in business may be placed, he should

never forget himself, for just at that moment he is sure to benoticed. No matter how trivial inquiries may be made of him,they should be answered to the best of his ability, and in a pleas-ant manner. In fact, it is his opportunity, when there is nothingat stake, to show his good breeding; and it is sure to take, andwill bring its reward. Many merchants so far forget themselvesas to show their annoyance when a party examines their goods,and goes away without purchasing. They did not wint thegoods that were shown them; but if he had what they wantedthey would have purchased; hut now he has, by his want ofcourtesy, lost there custom forever. Politeness, real, genuinepoliteness, pays well. Make room for it in your establishment.

MEMORY.In business, few things help and aid a man more than a good

memory. It also is a portion of the capital of the establishment,and every proprietor should possess it. The clerk, feeling thatwith it he better servas his employer, should, therefore, do every-thing to cultivate such a wonderful accomplishment. Never becompelled to say to a customer, "Your face, sir, is familiar; but Imust ask your pardon that I can't recall your name;" for thecustomer, who might have been made an old customer of theestablishment, is treated as a new one, and the door is left openfor him *o call at some otlier rival concerr. Suppose, on thatman's entrance, the clerk or proprieter had met him at the door,and after shaking hands with the new comer, and addressing him,ask when he l^ii , naming his town, and treating hiroas an old customer, and one whoso trade you wanted. You canshow that man goods! He appreciates the compliment of being


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AND LAWS OF TIUDE.remembered, and feels that you are a man who wants his custom;besides, really, you know him and he knows you.

SECRECY.Never boast! If you are doing well in business, that is your

own business, and not your rival's. To inform him of the factwill only stimulate him to greater exertion, and in the end injureyou. If, on the contrary, your business is dull, do not let thewhole neighborhood know it, for it will do you no good. Makean effort to increase your business, but do not let people know it.If you boast of your business, you are usually suspected of sup-porting your credit by words; but he who shows it by actionshas better evidence. Human nature hates secrecy and delightsin confidence, and the natural instincts of our race are to impartthe knowledge we possess to others. This should never be donewithout first well weighing the possible consequences. The suc-cessful man keeps his own counsel. ^

APPOINTMENTSMAKING AND KEEPING.Nothing speaks better for a young man, or in fact for any

man, be he a merchant or farmer, than promptness in keepingappointments. Never make an appointment that you cannot keepand if you do make one, keep it promptly. You have no right todisappoint a man, or, by your act to waste his time. If youmake an appointment to meet a man at two o'clock, it is yourduty to be there at that hour, and not at fifteen, or even fiveminutes after the time you agreed. It makes a bad impression,while promptness always leaves a good one. On the other hand,if you are a business man, it does not pay you to advertise yourlack of business by being before timethat is, to be on hand fif-teen minutes before the appointed hour. As time is money, orshould be, to all pushing, go-ahead men, and yo,u have none tospare, keep appointments "promptly;" neither waste your owntime nor that of the party whom you have agreed to meet.


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6 FOUNDATIONS OF SUCCESS,KEEP WITHIN YOUE MEANS.

No person can thoroughly and truly appreciate the heading ofthis article so much as he who by bitter experience in not doingso, has tasted the fruits thereof. No man can successfully do abusiness that requires a capital of thirty thousand dollars on acapital of ten thousand. On this rock has many a business manbeen wrecked ; and of all the evils of mercantile life, tWs is oneof the very worst. To swell his business to vast proportions, tomake his house a leading one, is a worthy ambition ; and if theman has the means, perhaps he may be successful in his efforts ;but if he has not the capital, it will be better, far better, to goslowly, surely, and keep within his means. A merchant mayhave an ambition to make himself prominent in his line of busi-ness, and to this end embark in enterprises, and, through hisagents, ransack the country, sclic? ting trade, more or less of wh !is unsafe and unprofitable ; and although he may do an immensebusiness, yet the more he does the worse off' will he find himself,he must sell on credit, and consequently he must buy on credit.His trade has grown to such large proportions that he is com-pelled to buy on time ; besides, the greater part of his new tradeis with merchants to whom he is, to gain and keep their custom,compelled to give credit. He is now between two fires. And theposition is one that any merchant, M^ho has experienced the situa-tion, will very quickly say is one of the heaviest loads that a mancan assume. Every day only adds to this load ; and in the endthe position becomes unbearable ; so much so, that the merchantloses interest in his business, and does not give it the attention itactually needs. The " bill-book " matter takes his attention ; andthe notes which grow in number and size must have his individualcare. He is pushed by the parties he owes ; and he must pushhis customers. His obligations must be met ; and he cannotafford to show any leniency to those who owe him ; and his" pushing " them, perhaps, will be the cause of changing theirpatronage to another firm. Bills receivable must be thrown into


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AND LAWS OF TRADE.bank for discount, and with no certainty but that they will haveto be protested for non-payment at maturity. Besides payingheavy interest, the bank account will be kept very low. Goodshave to be purchased at a disadvantage ; and soon bankniptcyputs an end to his misery. He has gone beyond his meanswaded into deep water, and not being able to swim, the result isfinancial drowning or ruin.

" Going beyond your means," and excessive credits, may be putdown as the curse of business. Ask any merchant, either whole-.sale or retail, as to the amount of his outstanding accounts, andthe answer will startle you ; and you will wonder how they can,with their apparent capital and business, carry such an immenseload as long as they do, and meet their notes promptly. But tothe merchant who has passed through this experience it is easyof explanation ; and the old story of borrowing, " selling out atcost," etc., is the one.Keep within your means. It will i^ the end pay you the best.

And though you may not make as great a " splurge " in theworld, yet when your rivals are figuring in the bankruptcycourts, you will be doing a good and safe business , and thoughthey were prominent in their line, you will be sure to be so, andon a much firmer foundation.

BUSINESS LOCATION.Every beginner in business should thoroughly consider this

subject, as an inferior store in a good location is far preferable toa fine establishment in a poor one. Some men who can commanda trade, and who have the means to fight opposition, may actmore independently in this respect, and open out in a positionwhich in itself is undesirable ; but to a new beginner, location isan all important matter. To be sure, the store may not come upto his wishes in many respects, and the rent, to all appearances,be high ; but this must not influence him to such a degree as tomake him refuse it. The rental between the cheap store and the


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f FOUNDATIONS OF SUCCESShigh-priced one may look formidable, ' when the superioradvantages are taken into consideration, there may be nothingalarming in it after all. Location in many cases makes the busi-ness ; and many inferior store-rooms, in a good location, are worththree thousand dollai-s, while a better and more attractive estab-lishment, in a less desirable situation, would not be worth morethan three hundred dollars. At first sight, the difference appearsgreat ; but take it day by day, and the difference will be onlyabout eight dollars and sixty-two cents for each business dayBut look at the difference in the thoroughfare ! On the street onwhich the high-priced store is situated there is continually pass-ing from fifteen to twenty-five persons, while there is one by theother establishment. Here is a value that any business mancan see at a glance ; for a merchant who understands his business,can with a little trouble, make his establishment prominent, andsecure the patronage of a large number of customers, which, hadhe been situated elsewhere in the cheaper store, he could not haveobtained. If his profits will average 20 per cent., it will onlytake the additional sales of about forty-three dollars per day tomeet the extra expense ; while many days, the extra sales, insteadof being only forty-three dollars, may run up to more than acouple of hundred. Besides this, there are other advantages inlocation which an experienced man can appreciate, and will availhimself of, as far as possible. To be indifferent on this subject,is but to accept a disadvantage which the new beginner oughtnot to contend with, for he should well consider and investigateall the influences that are to bear upon his business, according tothe location he may select. But do not attempt to save moneyby selecting a poor location, for location is capital, and payswell. APPEARANCES.

In this day, " appearances " are, indeed, a part of a merchant'scapital. A man who has $20,000 invested in his business can bya judicious display of his goods make his establishment outshine


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AND LAWS OF TRADE. 9

)ne who has a capital of $40,000 in the same kind of business,ittract more attention, and make a better impression on hi?customers, if the latter fails to exhibit the same taste in displayThere is much in the appearance of a well-maintained stock thaiis enticing to customers ; and if the stock is smaller than hi?Qeighbor's, yet better in appearance, it will command a largeishare of attention. Such an idea as this may appear absurd tciome parties ; but a man who has had a mercantile experiencewill endorse the remark, that appearances have much to do wittsuccess, especially were the community are to be gratified. Scimportant is this matter, that we urge tLe young beginneranceven the old merchantto pay more attention to appearances, andto make his stock show to the best advantage. It is no, necessary,nor is it wise, for a merchant to launch out in extravagant style foithe purpose of making a show. The capital invested in such a wajresults in no benefit,and many timesworks positive harm. There ishowever, no class of business to which an appropriate, neat andorderly outfit will not be advantageou5i, and pay the owner well orhis investment. An uninviting counang-roomrepelsmore desirablepatronage in one year than ten times the cost of a pleasant oneand the barren and cheerless look will drive a customer awa^about as quickly as anything else that can be mentioned. To thenew beginner this is an important matter. Let his beginninahave the appearance of economy, neatness, order, and businesfcomfort.No matter what the business may bedry goods, groceries

fancy goods, or a butcher shop" appearances " can be made tcsupply the place of one half the capital at least, and be the besipaying half to the owner of the establishment, by many oddsNo business man can afibrd to disregard " appearances," he canQofc afford to be " slovenly " in his establishment, can not rely3ntirely upon his stock, but miust look to the tastes of hisjustomers; and there is no better way to do this than in' appearances."


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10 FOUNDATIONS OF SUCCESSCAUTION IN BUSINESSETL.ES FOR CONDUCTING

BUSINESS.Every business man should be cautious, be he farmer or mer-

ihant, or be the amount involved large or small. " Think twicebefore you speak," is an old and good saying ; but in businesstransactions, to " Think twice before you ac'./' is a motto thatovery man should endoi-se, and one that will pay him t ) live upto. One-half the failures are caused by thisnot thinking beforethe act is done ; many merchant's books are loaded with accountswhen a little thinking at the right time would have left cleanpages. Besides bad accounts, a little thinking would have causedthe retention of thousands of dollars in the merchant's pocket bynot purchasing what he could very well have done without ; hisunsalable stock being the result. A little thinking at the rightmoTOent would have convinced him that the purchase was afoolish one ; and now that his money is tied up in merchandisethat he cannot sell, he sees his mistake, but too late to rectify it.Let your sober second thought always control your actions. Alittle thinking at the right moment would have forbidden theindorsement of his friend's paper, when it was certain that if com-pelled to pay the same, ruin would ensue. A man may be over-cautious ; but far better thcit way chan to be " over-risky," for inthe end it will pay the best. Think before you act ; and letyour sober second thought always control your action.

This advice is not intended to induce a slowness of decision, forthere are men who have cultivated their powers of observation toan extent which enables them almost instantaneously, to graspmentally, all phases and sides of a question, to discuss the pros,and cons, of a transaction to their own satisfaction in so short aspace of time, that it would completely astonish one who had asyet not acquired that amount of cultivation. This ability maybe possessed by most people if they but accustom themselves toa rapidity of mental exerciseyet not by all. But just such apower makes the Princes of the mercantile profession


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BUYINGCREDIT SYSTEM.This is a matter which every business man should carefullystudy, and before he embarks heavily in this line he should thinkwell of his action, and count the result. It is in fact a matterthat he should think twice over before adopting ; and after hehas begun, should hold himself always in bounds, no matter whatthe inducements may be to loosen the reins, or what profits mayappear in prospective, if he will only violate his rule. Of course,it is unnecessary to say that a man must have means if heembarks in business ; and yet there are those who do commencebusiness without capital, encouraged so to do by the offer of creditfrom parties who,having goods to sell,are willing to take the chancesfor the safety of their bills in the man's business capacity andgood luck. No man should enter into business without sufficientcapital ; and the question will naturally arise as to the amountthat may be necessary for a given business, and the best mannerof using the amount that is in hand.The cash customer, of course, has many advantages ; and whenhe goes into market, he is offered the best goods and at the lowest

prices. He buys for cash, and his trade is not only'worth having,but worth seeking ; and the merchant who has such trade usesevery means in his power to keep it. The cash customer is inde-pendent, asks no favors and can buy where he pleases. No manowns his trade. But with the man who buys on credit, the caseis different. He deals with those who give him credit, andis their customer ; and the credit takes from him his indepen-dence, his liberty, and compels him oftentimes to accept suchgoods and such terms as are not his choice. It stands to reasontherefore, that a man who is prepared to commence as a cashbuyer, and continues as a cash buyer, is better situated to attractpatronage than the credit buyer is. But the cash buyer oftenmakes mistakes which embarrass him, and make his many advan-tages come down to the level of the credit buyer ; and one of thosemistakes is over-reaching. He should never invest all his


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It FOUNDATIONS OF aUCCESSmeans at one time, but keep back a reserve to meet every situa-tionsometimes to replenish his stock, and to be ready at alltimes to pick up bargains, on which he can make a " run "something with which he will be enabled to draw custom andbring customers. .

Credit has ruined many merchants ; and our advice to everyyoung man is, buy for cash, and do not, under any circumstances,be too intimate with that deceptive friend" Credit."

SELLINGCREDIT SYSTEM.There are really but few mercantile houses in this country

which do business on the cash system ; and yet it is one of thecommonest things to hear merchants denouncing the credit system,and in the plainest language speak in favor of " selling for cash."There is not a merchant in this country whois not in favor of thecash system, and who would not, on the morrow, be much betteroff if that system was in vogue ; and they all know it. Ask them,however, why it is that they continue to do business on the planthey oppose so strongly, the credit system, and their answer ifthat it is unavoidable. But in this they go to the extreme ; forin part only are they correct. Any man can do a cash businessif he sells for cash prices ; but no man can sell for cash on creditprices. That is one mistake made by parties who try the cashbusiness ; and if they meet with failure, they join with their fel-low-merchants in denouncing the credit system ; butit can't behelped. The man who sells for cash has no bad bills ; and if hetakes that into consideration, and also that he does not have towait for his money, he can afford to give bargains that will paycustomers to come to him ; for where it pays to go, there will befound the purchasing public.

There can be no doubt but that credit, and especially longCi^. it, is in the main disadvantageous, and is the real cause ofbreaking up many a business house. Probably had the man beencompelled to pay cash for his purchases, he would have been more


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AND I^\WS OF TRADE. 18sparing in his purchases, and rroro particular as to whom he gavecredit. But as long as he can buy without money, so long willhe feel irresponsible ; and feeling thus, his business which on acash basis would pay him well, is allowed to take care of itself,and t' ^ credit system makes him reckless.

All men like to do a large business ; and no doubt this is oneof the principal reasons which influences them in pushing outtheir goods on credit. They have not the patience to wait foicash customers, but launch out and sell where they can : makecustomers ; do a large business ; meet with losses; get embarrassedand in many cases succumb to the pressure. A man who doesbusiness on credit is always in a " stew," or, in other words, he isalways in "hot water ;" and as he buys on credit, and sells oncredit, sooner or later he becomes a football between a couple olhundred parties, more or lessthose owing him on one sideand those he owes on the other. Hours that he should devote tohis business must be given up to collections, bank accommoda-tions, and hunting up of bad debts. Besides this, his houra a1home with his family are darkened by the thoughts of the mor-row ; and the time that he should give up to rest, is broken withhis troubles and business cares. The morrow comes ; and thencoHxCs the need for bank accommodations, the need of indorsers,andhe rushes to this man and that man to help him out ; but theweaving of the web around the man is getting stronger, and soonhe must go under. Cash is powerful ! Try it, and you will seethat such is the case. Sell for cash, and ycu will have the moneyto buy for cash ; but if you buy on credit, and sell on credit, yourun a risk which a cash-buyer and cash-seller does not, need not.and will not BORKOWINO MONEY.

Probably one of the worst acts a merchant can be guilty of isthat of borrowing money. The facility with which he can go tothe bank and get " accommodation" often acts as a stimulant tolaunching forth into business to an extent beyond hia depth, and


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U FOUNDATIONS OP SUCCESSis likely to result in more evil than good. If a merchant is doinga credit businessand by accident finds himself in a tight place,which all will at some time or other experience, when collectionsare hardhe can of course resort to "discounts," and by that meansprotect his credit. The necessity is upon him, and he must act, and,under the circumstances, he must do the best he can. But hepays dearly for that accommodation. Interest las been added tohis expenses ; and having once taken hold, it does not easily letgo. The small amount that is deducted out of the thousand dol-lars for nmety days' use of the same is a sufficient encouragementto try again, even though the necessity is not urgent, and thesmall amount of charges is no longer a bugbear. But the loan isbut for a short duration, and the pay-day soon rolls round ; to hissorrow times have not improved, and the collections and currentbusiness receipts are as slo.w as they were when the original loanw^as made. Then comes "renewals;" and, perhaps, just at thattimeand many times it occursthe bank wants to shorten up,a.^d can not accommodate. Here comes in the awakening ; thepleasant dreams disappear as with a flash ; and the man who, ifhe chose, could be independent, rushes forth on the street to raisemoney, caring not at what rates, so that he obtains it. Then addup the cost ! The first step should never have been taken. Farbetter would it have been for a man, when some money-emergencyhas come upon i)im, that, instead of borrowing, he should makesome sacrifice of stock or property, and by that means procurethe necessary aid. In this manner, he settles the matter ; andthough the immediate loss will be greater, yet, in the end, hewill be the gainer. Another important fact in this regard, andone easily proven, is, that successful borrowing is sure to begetcarelessness in collections. One is as sure to follow the other asnight follows day. It is hardly possible to suppose that a " cashman " borrows ; but one who believes in the credit system, andpractices it, and who is thus placed in a position of pressing needby the lack of promptness on the part of his customers to pay.


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AND LAWS OF TRADE. ISHad his customers met their accounts promptly, so could he, andeverything would have run on smoothly. If he had been com-pelled to raise the money from them, ho would have madegi-eat erexortionsin fact, pressed them a little harder ; but it wasmuch easier for him to get bank accommodation, and he availedhimself of that plan. Do not borrow, if you can possibly dowithout it ; for the help will becoue a snare, and in the end youwill find more loss than gain.

ADVERTISING.One of the most trying of many problems which a business

man meets, is that respecting advertising. In what channels, andto what extent is it profitable i advertise ? also, what kind oJadvertisement should he adopt ? It is certainly necessary for amerchant to bring his business prominently before the pul)licand, as far as possible, to let them know that he has somethingthat it will be to their advantage to call and inspect. But howto do it, is the question. One way is to advertise in the leadingpapers ; another is that of mailing circulars directly to the indi-viduals whom the merchant desires to reach ; and still anotherway, by posters and hand-bills. An old advertiser says :

"' Ho^ to advertise ' has worried many a man who desired tot^y his foi tune in the newspapers. It is a matter upon which itis not easy to give rules which would apply to all cases. But itsfeatures may be considered as they come to the surface, whilenow and then we are sure to find a style which may at least bemarked down as one to be avoided."There are many ways in which to advertise, and certain style.'

3f advertising are doubtless more effective than others. Muchrlepends upon the article itself and the class to whom it is to beDflTered. These considerations alone will often decide the style oiin advertisement. Some firms, however, adopt and retain a cer-tain manner of writing an advertisement, no matter of what na-ture the article may be, or the class for which it is intended


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Perhaps, of the two styles of wording, the " light " and the " dig-aified," the latter will hold its own for a longer time, while it willcertainly appeal to a higher cla^s, though, prehaps, not so large aclass of people. In the long nin, and for an article intended tobe advertised for a length of time, it is not unlikely that dignitywill tell to tlie best advantage. People are more likely to ap-prove it on " tho sober second thought."Almost every advertiser has his theory about the proper sea-

son for advertising. Some say that there is no use trying toforce trade when it is dull ; others say that trade is good enoughat certain seasons, and they only want more tiade in such andjuch months, hence they advertise at that time only. Some re-gard must be paid to season, without doubt, and advcrtisemcntfshould be so worded as to be seasonable ; but people read thenewspapers about as much at one time as another, and if at cer-tain periods an advertisement is not likely to be quite so produc-tive, that faci of its insertion keeps competing advertisementsout of the newspaper columns, and consequently gives the wholefield to the man who does advertise at that time, t'lus makingthe dull season in truth a season of plenty. Wo could not re-commend a druggist to advertise " Ice-Cold Soda " in Januarynor would we suggest " Arctic Overshoes " to be advertised bythe retail trade with much energy in June ; but, outside of a fewarticles which have their season, 't is admitted by the mostknowing advertisers that the best time to advertise is all theriME.

Advertisin'j tc be of service, must be kept up. Spasmodicadvertising will not pay as well, even though the amount ex-pended by the advertiser be the same, as continuous advertisingemd a merchant who wants to keep himself before the people.,must keep his sign up, or else, when he takes it down, rival mer-chants will take advantage of his lack of enterprise and silence,ind draw attention to themselves by putting up their sign.Some men, at long intervals, ai'e seized with a nervous idea of


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AND LAWS OF TRADJ?. 17advertising, and forthwith will rush to a newspaper ofllce andhave inserted a large, overgrown, flashily disjjlayed han(M)ill,old-fashionod in its make up and wording, and of no service toanyone. There is nothing about it to attract attentionnothingto compel a reader to pause and thinkand, of course, it makesno great impression. Then there is the other extreme, in whichf\ man, all of a sudden, comes to the conclusion that he mustwake up the people, and for that purpo.se he sits down and copies"the style of some old advertisement that has seen service formany yearswhich has done its duty time and time againandthis he sends to the newspaper. lie fails to make any arrange-ment as to position and style of insertion, but leaves it to takeits chance, and plac(., the business that he should have givenparticular attention to, at the mercy of the printer. The resultis that the i rinter, having no directions to go by, sets it up solid,in fine type, without any other than an ordinary heading, and itis inserted in the most convenient place in the paper, surround-ed, perhaps, with other advertisements that are of nmch thesame appearance. The advertisement, of course, amounts to noth-ing, and will accomplish nothingbut who is to blame ? Thenthe man will do just exactly what he ought not, for, disappoint-ed, and, perhaps, angry at the printer, seeing no rush of people inresponse to his enterprising efforts to wake them up, he losesfaith in advertising, and does nothing more at it until he againgets the fit on him, when he at once repeats his folly.

In newspaper advertising, position is a matter that shouldalways be considered. There are some portions of a newspaperwhere the a ortisements are almost worthless, while other posi-tions in the same pajjcr are worth all that is asked for them, andthat is the part in which you want your advertisement, even ifyou are compelled to pay extra for the privilege. The advertise-ment should be conspicuous and well displayed, and to obtainthis, the type need not be large enough for a poster, nor will yoube compelled to occupy a whole page to accomplish your purpose.


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Ml FOUNDATIONS OP SUCCESSBut what you say, have it so placed that it will " stand out," andnot be obscured or overshadowed by its own wordiness or byyour neighbor's advertisement. Leave a blank space above andbelow your advertisement, so that it will not be crowded ; andthough the space that you leave blank will cost you the same asif you had it filled, yet it will make your advertisement more at-tractive, and in that manner pay you for the expense.

Another important point is brevity. Condense what youwant the public to read in an advertisement until they cannot avoid reading it at a glancefor that is what you wantand you should use your skill in placing it as you want italso, exert your talents in wording an advertisement, so that, ifpossible, your style will be different from others. Yet, whileyou are doing this, do not injure what might be a good effect bysome buncombe expression that will turn the readers attentionfrom a good to a ludicrous opinion. With some merchants anonsensical advertisement has their preference, and such adver-tisements are read, but they carry no influence with them, and,though read, are soon forgotten. An advertisement to be effec-tive, should mean business, and mere " clap-trap " ifl not thething to make a good and lasting impression.

; " But what papers shall I advertise in ?" will ask the merchant.To this question we will answer: That the class of persons whosetrade you wish to obtain must be considered. It v dd be use-less for you to advertise groceries in a dry goods jfrarnal, or viceversa ; but an advertiser should look to the character of thepaper and its patrons, and the influence that the paper exerts inthe direction you wish to reach. In your advertisement youshould always be careful not to overreach the mark ; but whatyou advertise be careful to substantiate when customers callupon you, and see that the inducements you hoJd out are fulfilled.If you deceive them you get a bad reputation, and all yourfuture advertising will be looked upon by them with suspicion.Be careful what you say, and say nothing but what you mean,


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AND LAWS OP TRADE. Hand customers who come through the publication of the firstadvertisement, and find all as you represent, will call againshould you announce further bargainsfor you have won theirconfidence.

There are methods of bringing your establishment prominentlybefore the public other than through newspaper columns, yetequally good in their results. Tastefully gotten up circulars,thoroughly distributed by messenger or mail rarely fail to provepaying investments to the advertiser in a considerable increase ofbusiness, providing the same consideration is evinced in theirwording as is recommended in the composition of your news-paper advertisements. Following this may be found specimencirculars, illustrating the style of composition, and exhibitingsome stylea of printing, and from which may be seen that theprominent subject matter of the circulars is brought out in bolderand larger type ,


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JTJST K/ECEI^EIDAT

THOS. A. BRUCE & GO'S.A Large and varied assortment of

READY-MADE CLOTHINGFORMUlfS'


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AND LAWS OF TRADE. HnSWSH'Z GOOBS HOUSE.

RICHARDSON & CO.Beg to annonnce to the residents of Strathroy and surronnrtlng country that they haverented No. 171 Dundas Struct (Smallman'a Block), and have this day opeueU upamag-niflcent stock of

Comprising, In part

DRESS GOODSOf all the Newest Patterns and Latest Designs in

Silks, Moire Antiques,Brocades, Poplins,

Alpacas, Calicos,Grenadines,

Lustres,&c.

Shaixrls, in Cartel's Hair,Paisleys, Silk, Lace and Woolen, Cloaks, Mantles,Hats, Ribbons, Gloves, Corsets, Hosiery and Ties,as well as all the sUiple Cottons, Muslins, Prints, TableLinens, &c., &c., usually found in a first-class estab-

lishment.

The senior member of the firm having had ten yearsexperience in the leading houses of Canada, feels war-ranted in soliciting the patronage of the citizens ofStrathroy, and guarantees satisfaction in all j)m'cha8esmade from his firm. RICHARDSOIS^ & Co.,January 15, 1877, 174 Dundas Street.


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22 FOUNDATIONS OF SUCCESSAgain, no good business bous will be without attractive busi-

ness cards, stati*^ nery, etc. Business ettiquette requires therepresentative ol any style of mercantile establishment to beprovided with his firm's care, just as much as polite societyexpects a gentleman to possess a neat and elegant calling card.

And Wholesale Dealers InCHROMOS, ENGRAVINGS, LITHOGRAPHS,

G^PHOTOGRAPHS, FRAMES, &C., &C.^gE)398 CLARENCE-ST., - - LONDON, ONT.

BCHUYLER SMITH. P. A. MACDEBMID. JAMES M. LOGAN.

BEIHHETT & GHEISTER^CAEVEsSp mm, wsm mmm mm mmmmm,

DEALERS INOil Paintings, Chromos, Engravings, Photographs, &c.

343 Dundas-St. East, LONDON, ONT.


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AND LAWS OF TRADE.RECEIVING MONEY.

23

If a customer or creditor calls at your establishment and puysan amount of money, you should make the transaction as plea-sant as possible. Do not let the party think that because themoney is due you, you are under no obligation to him for payingit ; but, on the contrary, make it appear that you are greatlyobliged to him for meeting his indebtedness promptly and cheer-fully. No man ever loses by being polite and pleasant, and thisis as good an opportunity of displaying these qualities as youcan possibly have. But the most important matter is theacknowledging the receipt of money from a distance, let it comeby mail, express, or any other manner. As soon as it reachesyou, it is your duty to acknowledge the receipt of the same in apleasant and short note, as these few lines will often be the causeof removing much uneasiness on the part of the sender, and willbeget you his confidence. (Hereafter find specimen of such anacknowledgment.) Do not let yourself rest under the idea thatyour customer knows that the money has amved safely, or, incase he orders a bill of goods, that it will be time enough toreport to him the receipt of the money when you send him theinvoice, for in this you commit an error. Every man who sendsmoney to a distance, no matter by what conveyance, is troubledmore or less until he hears that it is safe, and the merchant orbusiness man who fails to notify the sender of its safe arrivalcommits a blunder for which no valid excuse can be offered.Should you delay, the matter continually grows worse, and inthe end, many customers will become disgusted with the mannersof the house and transfer their custom to other parties who willbe more considerate of their feelings.

REMITTING MONEY.When it is desired to remit the money by mail to a distant

place, it is safer and much more convenient to send it in theshape of a draft, certificate of deposit, or post office money order


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24 FOUNDATIONS OF SUCCESSthan to enclose bills in a letter. The draft is made payable toorder, and if lost or stolen it cannot be collected until the personto whose order it is made payable has indorsed it, and, therefore,the only trouble, in case it went astray, would be in the procur-ing of a duplicate draft. Again, if the party to whom the draftwas sent should deny having received the same, the books of theperson on whom the draft was drawn would be evidence of thepayment of it. (See article on P. O. Money Orders.) A copyof a draft is to be found in the following pages, and also a cei-tifi-cate of deposit.

EMPLOYEESSELECTION AND MANAGEMENT OF.In selecting your assistants, make it a rule to be governed

solely by the fitness of the applicant for the situation. Under nocircumstances take a relative into your establishment because heis a relative, or a friend, or the son of a friend, because you havea friendly feeling in the matter. Let business be business, andlet it rule your establishment from the roof to the cellar. Becareful in your selections ; let them underatand that your eye isever upon them, and though you have the kindest feelings forthem, 3'^et they must be faithful. Always require from applicantsfor any position, that they produce recommendations fromformer employers, or furnish satisfactory references. Have yourrules, and enforce them. It is the duty of your employees toknow the rules of the establishment, and if they violate them, itis your duty to know the reason, and prevent a recurrence.

COLLECTING DEBTS.No matter what business you may be in, collect your accountspromptly and closely. Send your bills out monthly, or weekly,

as may be youv rule, and, after waiting a reasonable time, ii anyare not paid, an employee of the establishment should call andinquire about them. If the money is not then paid, he shouldmake the inquiry ivken he should again call, and be sure to callat the appointed time. If then they are not paid, the bill should


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AND LAWS OF TRADE. 25be placed in the hands of a regular collector, or your attorney,with such instructions as are necessary to ensure a prompt settle-ment by the debtor. Sometimes a party who canjiot pay themoney will give a note, payable in thirty, sixty or ninety days.Better take this than litigate, if the prospects are good of itsbeing paid at maturity. Should it be that the debtor's inclina-tion to pay may be questioned, be sure and pass it before due toa third party, as if not paid when due, the person in whose favorit is drawn will find it more difficult to collect than an innocentholder.

GOING SECURITY.Many times the failure of a prosperous establishment, or firm,

has been caused, by fear of uttering the little word " No."Refuse under any and all circumstances to endorse a note or gobail or security for anyone, or on any account, except in the lineof your own business. . We can appreciate the position of a youngman or an old merchant when asked to do this Vy some friend orrelative, yet one-half the business failures are caused by a com-pliance with such requests. The best way to avoid doing it,where the firm consists of m' )re than one person, is to have astipulation in the co-partnership articles forbidding it. In allbusiness circles this is considered a valid excuse, and no man hasa right to urge a party to disregard it.The would-be borrowers of small loans$5 and $10should

be met with a polite refusal. They are nuisances, and nine-tenths never intend to pay the sum if they get it. Stop it atDnce. Make a rule which will not, cannot, and shall not bebroken. MERCANTILE AGENCIES.These establishments are very useful to merchants who do a

wholesale business, or a business with merchants residino" at adistance. They maintain correspondents in every city andvillage in the country, who inform them of the financial standing


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FOUNDATIONS OF SUCCESSof every active business man, the amount he is supposed to beworth, the manner in which he transacts his business, and evenhis personal habits and style of living. The reports arenumbered and registered in their order of merit, and every sixmonths a volume is furnished to the subscribers, containing thenames and addresses of the dealers, and marks opposite, showingtheir responsibility. In case a subscriber needs special infor-mation in regard to a particular firm, he can obtain it by makingapplication at the office. Of course, the report furnished by suchagencies must not be always implicitly relied on, as theirinformants may not be so thoroughly posted, or quite so reliableas supposed, yet these agencies, in the main, are a valuable insti-tution to the merchant who does a credit business.NOTES AND DRAFTSPROMPTNESS'IN MEETING.Every man who is in business will place this matter in the

foremost rank of importance. To fail to meet your notes is adisaster that some merchants cannot think of without a shudder;and to fail to do so, without good cause, is not only an evil, buta crime. The amount may be small or it may be large, butit was sufficient to be made into a note, and the note has beenallowed to go unpaid. It may not have caused inconvenience,but nine times out of ten it has, for the party who held the notetook it for gi'anted that the same would be paid, and, perhaps,made calculations upon this very money. He fails to receive themoney on the note, and it may be the cause of his failing to payothers, and the mischief is done. Nothing helps a man likepromptness in meeting his notes, and nothing hurts a party somuch as to allow his notes to go unpaid.

ACCOMMODATION NOTES AND DRAFTS.It is better that all regular notes or drafts contain on their face

the statement that they are given for " value received," that is,in consideration of certain goods or chattels having beendelivered to the maker or acceptor. Accommodation or " wind


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AND LAWS OF TRADE. 17notes," as they are frequently called, are resoi-ted to for thepurpose of raising money where no value is given, but one partylends merely his name for the use of another. For example : Aowes B nothing, but he accepts B's draft or makes a note payableto his order. In order to get the money for the note, recourse ishad to his bank or banker. If A dishonors the note, the bank orbanker can enforce payment from B, but be cannot recover fromA, ifA can prove that the note was given without value received.

Every business man should do his best to keep the promises topay which he issues above any suspicion. He may rely upon itwhen he gives ^n acceptance that he is dealing in a matter thatis watched, and that it will not require much effort, where hisnote or draft is concerned, to ruin his credit. A written promiseto pay, therefore, is a matter that requires care, caution, andwatchfulness. It will not pay him to play any tricks with hispaper to minister to temporary necessities, for they will soon bediscovered, and his paper, that before comanded respect, will beconsidered tainted with dishonor, and he will no longer enjoy thefavors formerly granted to him.The tricks that some merchants pracUce are as follows :Two

merchants, pressed for money, exchange notes, or one draws onthe other who accepts the draft, they then offer them at differentbanks for discount as regular business paper. They are discounted,but, being at different banks, the banks are usually none thewiser for it. The trick may be successful a few times, but it issure to be discovered by the Directors, and from that time tor-ward that man's paper has lost its reputation and his name isplaced on the black list.Another trick is that which in banks is called " kiting." A

merchant in one town or city draws on another at a distance for acertain amount, and the draft is accepted ; the latter then drawson the former (whose draft he has just accepted) for an equalamount, which draft is also accepted. In this manner eachdraws upon the other for an equal amount, and neither owes the


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FOUNDATIONS OF SUCCESS

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other. Each party then present the drafts for discount at theirrespective banks, and the money is raised at the cost of com-missions for collection and discounts. When the paper matures,ofttiines the same process is repeated to pay it.

There is still another trick of straitened dealers, it is to makean arrangement with some, usually an irresponsible, party ina distant city, to act as their agent. The dealer then draws uponhis agent, who is presumed to have goods on consignments, etc.,and, without a moment's hesitation, the agent accepts the draft,and the same is then easily discounted. These acceptors,who have no capital, and are merely used to deceive banks, areknown as " dummies." But though these tricks may prosper forawhile, they are sure to be found out, and the credit of the mer-chant is i-uined.

Promissory notes and drafts which are " void " by law aresometimes pushed into banks and discounted, or passed as goodin payment of debts. Canada and most of ^.he States havepassed laws that notes given for debts in gambling and usury arevoid and not collectable, but the holder of them must bear theloss, although he may be an innocent party and perfectly uncon-scious of their character. In taking a note, if their is the leastsuspicion or doubt, as from the known bad character of the maker,close inquiry should be made as to the nature of the debt thenote was given for.

COLLECTING ACCOUNTS.In making collections of accounts the statements should be

folded neatly, and the name of each party written on the backof the same. When the bill is paid, it should be receipted bywriting the name of the merchant below the word " paid," or" settled," or " received payment," and directly under his name,if payment is made to en employee or agent, should be wi-ittenthe name of the party i eiving the same, with the word " per "before it ; also, the date when it was paid. If the account is


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AND LAWS OF TRADE. 29settled hy note, it should be so stated, and the number of daysor months the note is to run should be mentioned. As soon asthe money is paid it should always be counted by the receiver,before leaving the presence of the pai-ty paying it, so that if amistake has been made it can be corrected at once, and in thismanner embarrassments may be avoided which an after attemptto correct an error would occasion. When collecting a numberof bills, the best plan is to provide yourself with a small memo-randum book, and the amount and the name of the party payingit should be entered, in order to give proper credits. The amountsshould be added and the cash collected counted, so that you cansee tint it corresponds with the total as shown in the book. Areceipted bill should never be left without first having receivedthe money, except in very rare cases. Great care should betaken in giving proper credits after bills are collected. To pre-sent a bill after the same has been paid shows carelessness some-where, and although the. party may have his receipt to showthat the same has been paid, yet the act does not satisfy him,and leaves a bad impression on his mind, which excuses will notrub out. Give credit at once. Do not lay it aside for a,while,but the moment that the money is handed you turn to the cus-tomer's account and place it to his credit.

PAYING ACCOUNTS.Before starting out to settle accounts, a memorandum of the

amounts to be paid each party should be made. As soon as themoney is paid a receipt should be taken by the payor, the payeewritingat the bottom of the bill the words"received payment," andsigning his name directly under the same. When only a part ofthe bill is paid, it is better to take a receipt duly dated and signedthan to get the amount endorsed on the statement, as it is a moresatisfactory evicence that the money was paid than a mere entryon a statement. The following is a good form for a receipt onaccount ;


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30 FOUNDATIONS OF SUCCESS.S250. London, October 17, 1877.

Receivedfrom SCHUYLER SMITH & Co.,Two Hundred and Fifty. DOLLARS,on account.

4 J.H.VIVIAN.One thing in connection with receipts, and that is, too much

care cannot be taken of them. A receipt should never bedestroyed, bii > should be carefully marked and placed awayamong valuable papers, and be in a position for reference at anytime in the future. Do not destroy receipts,

NOTES, TO KNOW WHEN DUE.Every merchant should watch his notes ; every business man

should keep a strict record of them. If a notv^ is given, it shouldnot be forgotten, nor should you wait until you receive noticefrom the bank or holder to prepare yourself to meet it. It isyour business, and only yours to attend to this, and under no cir-cumstances should you neglect it. The best plan is to obtain anote-bookone having " stubs " like that of a bank check-book,and use the note-book in the same manner as you would thecheck-book. On the " stub " make a memorandum of the nameof the party to whom the note is made payable, the amount, thedate, and the time ; and if made payable at any particular place,so designate it on the " stub." When the note is paid, you canso mark the "stub." By attending to this practice, yon willalways be able, at a glance, to see what notes are unpaid, and whenihey are due.

This advice is of course applicable to the business house whosenotes or drafts are not very numerous. Where a large trade isdone, and notes are constantly given for the purchase of goods,and where it is an every-day occurrence to meet a note or draft,a much more convenient record of them may* be kept by using a


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AND LAWS OF TRADE. 31blank-book, specially constructed for the purpose, and designateda " bill-book." It is an admirable way of possessing an opportu-nity of learning, at a glance, the exact amount of your liabilitiesas covered by running notes and drafts, with the date of payment,Ui whose favor made payable, where payable, time to run, etc.,etc. On other side find a page of a bill-book, partially filled out.giving a thorough insight into the method, as described.

Specimen acknowledgmf^t for cash received from a customerto be applied on account, as mentioned on page 23.

(X'iS /(Pi /-tÛ^ 'HU^'CCi^'O^n dylt^/'^j^=/i,-tt^

t ^-dd. "^-e^ ^^

Cô-^^tyid- 'ZJ^-e^

>'^'M^l^'Zê4'T '^^T^-t'd^ t^.


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Dec.Nov.Oct.Sept.Aug.July.June.^BIA[April.Mar.Feb.Jan.

4) 4)

(4P

FOUNDATIONS OF SUCCESS

CO toU5 MCO (N O


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AND LAWS OF TRADE. S3CARE OF BOOKS, PAPERS, ETC.

Every merchant, business man or farmer shoulrl prize hispapers, know their value, and place them in such a position andcondition that they are always safe and easily found. In case offire make it your first object to rescue your books and papersfrom threatened destruction, and put them in as safe a placeas you can. In many instances, the observance of such a rulewould save thousands of dollars. Dishonest men will takeadvantage of the fact of the destruction of your papers, andrefuse payment of honest debts, when your evidence of theirindebtedness is destroyed. In case you have not a fire-proofvault in your ofilce, you should provide yourself with a fire-proofsafe by all means ; they are all good, and it will pay you to haveone. The next thing is to use the " safe." That is the place foryour valuable papers, and there they should be carefully putaway; and under no circumstance should you allow anythingto prevent your attending to this matter.

In your exercising a care of your papers for reference, youshould make it your business to ad jpt the best plan for filingthem. Our method iias always been to arrange invoices, receipts,letters, etc., in alphabetical order ; for instance, an invoice fromBrown, Jones & Co., since it begins with the second letter in thealphabet, should take precedence in your file over Outram,Halliday &; Co., which begins with the fifteenth letter. Thepapers should be neatly folded to about the size of a sheet ofcommercial note-paper folded twice, and an endorsation on thetrop of the outside fold should be made thus

For a Letter. For an hvi'c. or Bil\Brown, Jones & Co., Outram, Halliday & Co.,

January 3, 1877. March 3, 1877.$254.

And all other papers according to the tenor of their contents, theintention, of course, being to convoy at a glance an abstract idea

E


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ai FOUNDATIONS OF SUCCESS.of what the paper contains. After the endorsation has beenwritten upon them, papers should be placed in the pigeon-holesin your desk, or other receptacle you may use for the purpose.

FILING BILLS OR INVOICES.To a mercantile house an invoice or bill is an important

ma,tter, and great care should be taken to place them in such amanner as to be always accessible. It does not pay a man, incase he desires to refer to a bill, to be compelled to look forhours for the same, or to be obliged to examine a large num-ber for the purpose of finding that particular one. All billsand invoices should be filed away in the order in which theyare received, or, what is better still, they should be placed orpasted in alphabetical order, or leaves of book should be paged,in a scrap-book, better known as the Invoice Book. All invoicebooks are indexed, and by making use of this convenience muchtrouble and vexation can be avoided.

TAKING STOCK.No well-regulated establishment can dispense with the process

of taking stock at least once a year; and if it should be repeatedevery six months, you will not be the loser by it. It tells youhow you stand; and you, by this means, can inform yourselfwhether you are richer or poorer than last yearhow yourbusiness is prospering ; in fact, it tells you just how you stand.No one can afford to disregard this important matter. Intaking stock, the value, and not the cost, should be taken intoconsideration, and should be so counted, since some classes ofgoods sufTer a great depreciation in value through shopwear andother reasons, while frequently some goods have been purchasedat bargains when the market was low, and in consequence of arise in values should show to the credit of the establishment instock-taking.


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IAND LAWS OF TRADE.

SHIPPING CLERK'S DUTIES.^

1m

Shipping.The duties of a shipping clerk, of course, vary, butwith all, no matter what business his employer may be engagedin, there are certain details which are common to this depart-ment, and therefore important, and should be so considered.

Orders.In filling all orders for goods, the clerk should becareful to Jill the order, that is, to select the number and kind ofgoods or articles that a customer sends for. This is of theutmost importance. If a customer sends for an article and youhave not the same in stock, it will pay you to go to some troubleto obtain it, as you should take it for granted that he knowswhat he has ordered, and knows just what he names. In caseyou are compelled to substitute something else in place of thearticle ordered, do your best to substitute something as near thatwhich he wants as is possible to obtain, and to that effect politelynotify the customer. After laying out the goods, a bill shouldbe made, giving the items, and duly charged in the " plotter," asthe book of entry or shipping book is usually called. In somemercantile establishments they take a copy of the bill in aninvoice copying-book in order to save time, but this, of course, is amatter for your own judgment. The process of copying bymeans of a press will be fully explained in the article on cor-respondence, which see. Pack the goods carefully. In this youcannot use too much care. Nothing looks better than a neatlypacked box of goods ; it costs little to do thisbut it pays. Fewthings injure a mercantile establishment more than bad packing,and often it is the means of losing the house a cu.stomer. Whenthe goods have been carefully packed, a small charge is ofttimesadded for boxes, if any have been used ; also for cartage, if thegoods are to be delivered to a railroad depot or steamboatwharf. But for these two charges, be careful that you do notplace the sum too high, as customers are jealous of them, and agreat many will object to paying the charges, especially if they


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FOUNDATIONS OF SUCCESShave an idea that they are high. The numher of parcels orboxes, and the mode of conveyance, should be written on theinvoice. If more than one box is used for packing, they shouldeach be numbered legibly, and, as far as possible, the invoiceshould be made out in the order in which the goods are packed.If any parcels should be received from other houses, as is oftenthe case, to be enclosed in the package you are shipping, it shouldbe so stated at the bottom of the invoice, or, if preferable, thesefacts may be given in a letter accompanying it. The invoice isusually sent by mail. This plan should always have the prefer-ence, as you are more certain of the delivery of the same thanyou would be if it were sent by private hands. If any of thearticles that the customer orders are not on hand, and none thatyou can substitute for the same, so inform him, and, if possible,state the time when the goods will be in stock.The following is a good

f FORM OF BILL OF PARCELSClaims forffcductions ttmst be mnrto within |one weeli after receipt of goods )

398 Clarence St., London, Ont., Oct. Ct\ 1877.Messrs. Roht iViTistom & Co.,

St. Catharines, Ontario.Bought of SCHUYLER SMITH & CO.

BOOKSELLERS AND STATIONERS.Terms, CaK

20256010

M No. 4869 XX BufT Envelopes, No. 5 (


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AND LAWS 07 TRADE. 87or

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are to go, shjuld be plainly marked or written on them, and ifthe goods are of such a character that the same are liable to beinjured by rough usage, the package should be marked " handlewith care ;" if liable to be injured by exposure to the weather,mark " keep dry ;" the same to be directly over the direction,thus:

BOOKSKEEP DRY.MESSRS. ROBT. WINSTOM & CO.,

ST. CATHERINES, ONT.

In many wholesale establishments they make a practice ofmarking packages with the initial letter or letters inclosed in asquare or diamond, but this is a bad practice and should not bepermitted, as often bales and cases marked in this way aredelayed, when, if marked in full, they would have reached theirdestination in good time. Some customers request shippers tonumber their boxes consecutively during the year, but this isa matter of choice, and no importance should be attached thereto;but it is not wise for the shipper to refuse the request, if thesame can be done. Many houses, and, in fact, all the leadinghouses now place their card as

FromSCHUYLER SMITH & CO.,

SUBSCRIPTION BOOK PUBLISHERS,London, Ontario."

On the r^ackage by means of a stencil plate, and in this mannernot only show who shipped the goods, but also advertise thehouse. These stencil plates, of all sizes, cost but a few dollars,and can be had in any city.

If the package is ordered to be sent as freight by railroad, two


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38 FOUNDATIONS OF SUCCESS.dray tickets should be made out, and also two bills of lading,

(Form of a Dray Ticket.)GREAT WESTERN RAILROAD CO.

Beceived, London 18Ofat Great Western Railroad Depot, London Station, the following articles,in apparent good order :

MARKS. ARTICLES. WEIGHT.

and the same handed to the drayman who delivers the goods tothe railroad company's depot. At the depot he delivers thegoods to the receiving clerk, and to him he hands the draytickets, one of which the clerk retains, while he signs the otherand returns it to the drayman. The drayman then takes thedray ticket and bills of lading to the freight clerk, who, on pre-sentation of the dray ticket signed, then signs his name to thetwo bills of lading, and the shipment is complete. The shipperretains one of these bills of lading, but sends the other to theparty to whom the goods are consigned, it being usually sent inthe same letter with the invoice. The following is a correct formfor a bill of lading


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AND LAWS OF TRADE. 39THE GREAT WESTERN RAILWAY COMPANY, OF CANADA.

This Company will not be responsible for any Goods mis-sent, unless they areconsigned to a Station on their Railway. Eates, Weights, and quantitiesentered on Receii)t or Shippmg Notes are not binding on the Company, andwill not bo acknowledged. All Goods going to or from tho United Stateswill be subject to Customs' Charges, &c.

.Date. JS7RECEIVED from.

the undermentioned Property, in apparent good order, addressed to

to be sent by the said Company, subject to their tariff and to the terms and conditionsstated above, and upon the other side, and agreed to by the shipping note delivered tothe Company at the time of giving this receipt therefor.

NO. OF PACKAGES AND SPECIES OF (JOODS.


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AND LAWS OF TRADE. 41of a combustible or dangerous nature, are only carried by special agreement, andin no case will the Company be liable for the loss of or damage to such articles.The nature of such goods must be plainly marked on the outside of the packagecoutainiug the same, and notice thereof in writing given to the Clerk or otherBer\'ant of the Company with whom the same are left at the time of sending.

9. Live Stock is carried by special contract only, and upon the followingconditions of carriage:

I. The owner of animals undertakes all risks of loss, injury, damage andother contingencies in loading, unloading, conveyance and otherwise, whetherarising from negligence, default or culpable misconduct or otherwise on the partof the Railway Company, its servants, agents or officers.

II. The Railway Company do not undertake to forward the animals by anyparticular train, or at any specified hour; neither will they be responsible for thedelivery of the animals within any certain time, or for any particular market.

III. When free passes are given to persons in charge of animals, andwhether such passes are used in travelling by any regular passenger train, or byany other train whatever, it is on the express condition that the Railway Com-pany are not responsible for any negligence, default, culpable misconduct orotherwise, on the part of the Company or their servants, or of any other personor persons whomsoever, causing or tending to cause the death, injury or deten-tion of such persons, or injury to or loss of their baggage.

IV. Live Stock must be fed by the owner while in transit ; the Companymay feed them at the owner's expense, but .*re not bound to do so. When sentin quantities of less than one car load. Stock will be charged at per head.

10. That in all cases where not otherwise provided, the delivery of goodswill be considered complete, and the responsibilities of the Company shall termi-nate, when the goods are placed in the Company's shed or warehouse (if there beconvenience for receiving the same), when they shall have arrived at the place tobe reached upon the Railway of this Company. The warehousing of them ^villbe at the owner's risk and expense, and if the Company be unable to store orwarehouse goods received by them, it shall be lawful for them to place them inany warehouse that may be available, at the risk and expense of the owner of theproperty so stored, and the charges for storing, warehousing, and conveyanceshall form an additional lien upon said goods.

1 1 That Lumber, Coals, Bricks aijd all other goods of like bulk and descrip-tion, and goods cirried by the car load, shall be taken as delivered, and the Com-pany's responsibility in respect thereof, shall cease upon the car in which they arecarried being detached from the train at the Station on the Company's line towhich they are consigned, or at the Station where, in the usual course of busi-ness, they leave the Company's line.

12. That Timber, Lumber, Staves, Lath, Shingles, &c., and Tan-bark, willbe conveyed only at the risk of and to be loaded and unloaded by Owner.

F


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13. That all goods, from whomsoever received or to whomsoever belonging,shall bo subject to a general lien, not only for the carriage of those particulargoods, but also for any general balance that may be due by the owners of suchgoods to the said Company ; and if in six weeks after notice shall have been giventh.t' such goods are detained for any claim of the Company, and the money duebt! Uv.t paid, the goods will, at the discretion of the Company, be sold by auctionor private sale, to defray the Company's claims and all exjtenses incurred thereonbut Fish, Fruit, Meat, Dressed Hogs, Poultry, and all other perishable articles,be disposed of, at the discretion of the Com])auy, immediately after giving theabove notice, and without awaiting the expiration of the above period of sixweeks.

14. That all goods addressed to Consignees at points beyond the places atwhich the Company have stations, and respecting which no direction to the con-trary shall have been received previous to arrival at those stations, will be for-warded to their destination by public carrier or otherwise, as opportunity mayoflfer, without any claim for delay against the Company for want of opjiortunityto forward them ; or they may, at the discretion of the Company, be suffered toremain on the Company's premises, or be placed in shed or warehouse (if therebe such convenience for receiving the same) pending communication with the Con-signees, at the risk of the owners as to damage thereto from any cause whatso*ever. But the delivery of the goods by the Company will be considered complete,and all responsibility of the said Company shall cease, when such other carriersshall have received notice that said Company is prepared to deliver to them thesaid goods for further conveyance ; and it is expressly declared and agreed, thatthe said Great Western Railway Company shall not be responsible for any loss,damage or detention that may occur after the said goods arrive at said stations,or places on their line nearest to the points or places which they are consigned to,or beyond their own railway.

15. That all property contracted for at a through rate, or otherwise, to orfrom places beyond the line of the Great Western Railway, if shipped by water,shall, while not on the Company's Railway, or in their sheds or warehouses, beentirely at the owner's risk. In case of loss or damage to any goods, for whichthis Company or connecting lines may be liable, it is agreed that the company orline 80 liable shall have the benefit of any insurance effected by, or for account,of the owner of the said goods, and the Company so liable shall be subrogated insuch rights before any demand shall be made on them.

16. That no claim for damage to, loss of, or detention of any goods forwhich this Company is accountable shall be allowed, unless notice in writing, andthe particulars of the claim for said loss, damage or detention are given to theStation Freight Agent at the place of delivery within thirty-six hours after thegoods, in respect of which said claim is made, are delivered.


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17. No Agent or other employe of the Company is authorized to take chargeof Bank Notes, Money, or other valuable papers.

18. No less charge will be made for any single package or consignment thantwenty-Jive cents.

19. Storage will be charged on all freiglit remaining in tho depots more than48 hours after its arrival.

20. Demurrage at the rate of two dollars per car per day will be charged onall cars not unloaded within 24 hours after arrival, and for this the Comi)aiiy shallhave the same lien as for Freight.

21. The charges on all Freight, &c., must be paid before the goods will bodelivered, and this Company do not hold themselves accountable for the correct-ness of any moneys charged as "back charges" on Freight, &c., by other roads,companies or individuals.

Hamilton, Januaky 1, 1875. JOHN CKAMPTON,General Freight Agent.

Some railroads and steamboats are very careful in regard totheir receipts, and will sign none other than those furnished bythemselves. Railroads, on application, will furnish the blankbills of lading required, free of charge.

If the goods are ordered to go by vessel, two dray ticketsshould be made out, and sent to the ship with the boxes orpackages, one of which shall be retained by the agent receivingthe goods, the other by the clerk of the vessel, who, in turn, willgive duplicate bills of lading. One of these should be retainedby the shipper, and the other sent to the party who ordered thegoods.A bill of lading may be indorsed over to another person, whothus obtains a right to claim the goods.

It is important that a shipper should send a bill of lading tothe customer, as this is proof positive that the goods have beenshipped. It is but a very little trouble to do this, and manytimes will more than pay for it by saving anxiety on the part ofthe customer, as well as a loss of confidence. Also, in case ofdelay, it takes the responsibility off the shoulders of the shipper,and he, by having the bill of lading in his possession, knowswhere to lay the blame.


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H FOUNDATIONS OP SUCCESSp

I

EXPRESS SHIPMENTS.In case the goods are to go by express, an entry should bemade in the receipt-book of the company which is to forward the

same. All the principal companies have books for this pui*pose,which they supply to shippera free of charge, while for lines whodo not furnish the receipt-books, a general receipt-book shouldbe used.When the package is taken in charge by the Express Com-

pany, the shipper should see to it that the receipt is signed bythe party receiving the package, as, in case of loss, this receipt isthe only evidence that you have that the same has been sent.The charge of cartage should be omitted, as the Express Com-panies call for the goods. The following is the usual form of anexpress receipt;


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AND LAWS OF TRADE.

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# FOUNDATIONS OF SUCCESSSometimes a party orders goods to be sent by express, C. 0. T).,

which means, cash on delivery, the same to be collected on thedelivery of the goods by the company's agent, at the place ofdestination. In this case a bill of the articles should be madeout by the clerk, and the full address of the party given on thebill. All the principal express companies furnish shippers withA envelope, used by them for this purpose. In this envelopeyou place your bill, and on the outside you write your name andplace of business, and the name of the party on whom theC. 0. D. may be. You also place on the envelope the amount ofthe hill, and in case the party is required to pay the charges forthe return of the money, you so direct, by writing under thehead of remarks " collect return charges." If you fail to do this,the company will collect the charges from you. In your receiptit is always well to mention the value of the package, and alsothe amount of C. 0. D, On the package, in lower left-handcorner (on the C. 0. D. packages), mark C. O. D., and the amount.It is not necessary to receipt the bill, as the express company,acting as your agent, will receipt for you, and their receipt issufficient. '

When the mone^r accompanies the order, a bill of thearticles should be made out and receipted, and sent to thecustomer.A party receiving money fron?. an express company should be

careful and see that the amount is

Foundations of Success and Laws of Trade - Barrister-At-law

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