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In good years you would place a surplus in the contingency. As this reduced net profit and was not declared for dividends it wouldn't come into the tax calculation. In bad years you would use the contingency to cover the lower or non-existent profit and still allow the company to declare a dividend. The other reason for it was the sudden and unforeseen need for quick capital. Many accountants would tell you that the contingency fund was an indicator of the company's health. Although Elwin Dax & Co. had declared a modest profit year on year, the contingency fund was negligible. Interesting I thought. Either the contingency had been used to bolster profits and was now almost empty, or it had never been healthy at all. I then pulled up the Dunn and Bradstreet site. You have to be registered to enter and Accountants are always registered with D. & B. They word their reports very carefully pointing out that their summary is based on available data and should not be taken as evidence as to. After a round of hello's I started with the questions."Have you picked a candidate for director?" I asked."Yes, I think Kelly Pepper is our guy," she replied."He is part of one of the couples that had indicated that they were going to move there," I replied."Yes, they have been house hunting and have found one the suits them. They went today to fill out the paper work," Courtney replied."When is he scheduled to work next?" I asked."Day shift tomorrow," she replied."Have Kelly in the office at 10. I will call and make the offer. There is a change in the benefits I need to put out there for him since he and his wife are both working for us. Go ahead and put him in charge after I make the offer. Just be an observer unless you feel his judgment needs adjusting." The North six are coming home Thursday morning in the unmarked cars. One unmarked car is going to stay; it will be assigned to Kelly until a Suburban comes in. You and your people can go back to Frost Borough on Monday or Tuesday.
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