LAW AND ACCOUNTANCY

Otago Daily Times, Issue 19203, 20 June 1924, Page 4

LAW AND ACCOUNTANCY

CLOSELY ALLIED PROFESSIONS. MODERN BUSINESS METHODS. LECTURE BY MR J. M. PATERSON. There w r ns a very large attendance of members of the Otago branch of the New Zealand Society ot Accountants in _ the Express Company’s board room last night, when Mr J. M. Paterson, the Lecturer in Law to the Faculty of Commerce at the Otago University, gave an able and instructive address on “Law and Accountancy.” Mr J. Greenwood occupied the ’ chair.

In his opening remarks Mr Paterson said that tho professions of law and accountancy were auxiliary professions, ahd both the lawyer and the accountant were denendent to a large extent on tho common affairs of everyday life. Tho commercial lawyer and the accountant were connected much more with the modern business world than was the case a few years ago. The common denominator of both the commercial lawyer and the accountant was the business man. Modern business men must ,be supported by two experts—the lawyer and the accountant. The legal and commercial professions must get close together to assist each other, when they would also assist modern business men. Was that being done, and would that effoct tho object of tho mutual professors ? Enormous sums were being spent annually on education, but it was a- very difficult matter to spend the money wisely. It had been suggested that students of accountancy and commerce should go through a definite course of practical training. If this was carried into effect it would mean that students .of law would become articled, but that would meet v■-Ti Ibe opposition of the Labour Party. The late Richard Seddon had said that every man should have an opportunity of taking up one of the professions, and articles would never be tolerated in tho democrati-' New Zealand of to-day. The modern business man, continued the speaker, could be dated from 1915, and no one acquainted with business methods before and since that time could deny that a very great change had taken place. One of the regrettable features of the commercial life of Dunedin during the past few years was that a number of very old-estab-lished firms had changed hands, gone into liquidation, or had given up business. In most cases the firms had died of “dry rot.” They had been unable to keep up with tho trend of modern business conditions. In the North Island a number of oldestablished firms had expired about a year before that had occurred in Dunedin. The reason was that the well-known commercial stability of this city had staved off the evil day for some time, but the crash had. to come. These firms failed because they had been opposed by younger men with a full knowledge of the science of business—for it was now a science. The Americans had led the world in modernising business methods, and they had a prominent exonent cf up-to-date methods in Henry Ford. Henry Ford’s book was well worth tho attention of every business man, and his idea was that business men must succeed bv doing their best and in dealing fairly with the public Tho use of mechanical aids had practically revolutionesod business, methods—the typewriter rind the computing machines of various descriptions were to bo seen in all modern business houses.

Present day conditions had changed since the world war, as competition vvith some countries had disappeared altogether, and the foreign exchange had become a complex problem. Modern business methods reuuired more study and much greater care than before the war, and business men at tempted to secure as much expert advim as possible. Their three sources of expert information were the banker, the auditor, and the commercial solicitor. UnforUinately, with but lew exceptions, the Now Zealand banker was not as <rood an adviser as he should be. In some respects they were too conservative. In England the largest salaries were made by the commercial and not the criminal lawyers. The idea of the commercial lawyer was absolutely different from the ordinary idea of a lawyer. A commercial lawyer, and, in fact, every lawyer, should be a preventive of trouble and not a cure, The old type of lawyer was quite useful apart from commerce. The modern commercial lawyer must, know a fair amount of law. but be must understand business methods. He must meet his client on his own ground. The commercial lawyer must come in contact with the accountant to discuss their clients’ business. The auditor of the old type was merely a ‘ figure man.” and his most useful purpose was the drawing up of balance sheets to the satisfaction of shareholders, :nid to aid the prevention of dishonesty. To-day a new typo of accountant had been evolved, a man who, besides tb6 manager, assumed managerial responsibilities. In conclusion, the lecturer stated that the collaboration of commerce and law would mean greater efficiency in business, and what naturally followed, in greater national efficiency. • wt dimnssion then took r>lace, and the chairman moved, and Mr J. G. Patterson seconded, “(hat the speaker be accorded a hearty vote of thanks,” which was carried by acclamation.