9. Payment of an estate is tmable to pay all the debts of the decedent, the following order of preference is usually observed: (1) funeral ex penses and costs of administration, (2) expenses of the last illness, (3) taxes, (4) judgments and decrees of record, (5) claims for rent, not exceeding one year, (6) claims of servants, not exceeding one year, (7) recognizances, bonds, sealed instruments, notes, bills and unliquidated accounts and demands. This statement is admittedly very general, but sufficient to give an idea of the order of payment of claims under American and under Canadian law. It would be impossible to detail the numerous variations in force in different states and provinces.
10. Control of estate upon person can be sane upon some subjects and insane on others. If he labors under an insane delusion he is called a mono maniac. Such a person, while incapable of making valid contracts upon the subject of his delusion, may be perfectly capable of making valid contracts upon other subjects. Thus, a monomaniac on pianos may not be bound by a contract on this subject, but may be thoroly capable of binding himself in the pur chase of a horse. A person whose reason has become generally unbalanced is ordinarily placed in the care of a guardian, and a guardian, who may or may not be the same person, is also appointed to take care of hiiproperty. While the insane person's estate will be answerable for necessaries actually supplied to him, all other control is entirely in the hands of the guard ian, and dealings with the lunatic are generally void.
11. a person owes more obliga tions than he can discharge lie thereby renders the property of others, consisting of rights against him, more or less invalid. He is said to be insolvent. Technically, the condition of insolvency is defined by the American Bankruptcy iket as follows: A person shall be deemed insolvent whenever the aggre gate of his property, exclusive of any property which he may have conveyed, transferred, concealed, or removed, or per mitted to toe concealed, or removed, with intent to defraud, hinder, and delay his creditors, shall not at a fair valuation be sufficient in amount to pay his debts.
If this condition of insolvency is likely to injure his creditors the debtor is declared a bankrupt, his prop erty is taken and administered by a trustee represent ing the creditors, and the debtor, if not guilty of fraud, is permitted to start his business life anew. The bene fits of the discharge may be obtained by anybody who voluntarily puts himself under the jurisdiction of a bankruptcy court. All persons owing one thousand
dollars, except wage-earners and those engaged chiefly in farming or the tillage of the soil, may have their property taken from them thru so-called involuntary bankruptcy proceedings. Persons who are adjudged bankrupt are entitled to the benefit of the state exemp tion laws, in force at the time of the filing of the petition in the state in which they have had their domi cile, for the six months, or the greater portion there of, immediately preceding the filing of the petition. When the bankrupt begins his business life anew he inherits debts created by fraud or embezzlement; debts not scheduled in time for proof ; judgments for fraud or wilful injuries; taxes; and debts arising after the petition is filed.' 12. Advantages of single control in business.—The ownership and control of a business by a single in dividual has at least four advantages: simplicity, flexibility, secrecy and strong incentive to industry — or direct motivation.
13. Simplicity of single control.—An individual possesses the free right to make contracts, and since he is ready to back up his obligations with all his wealth, he asks no special privileges from the state when embarking on an individual enterprise. He need not pay a special organization tax, nor submit to the visitorial powers of the state. He may com plete his business at am,,- time and direct his energies to other fields. It is true, that many occupations affect the public health or welfare to such an extent that those engaging in them must satisfy some govern mental requirement, such as paying a license tax, or passing an examination to satisfy the authorities that they are fit to pursue the occupation without injury to the public. The list of occupations thus regu lated is extensive. It includes, among others, those persons dealing in futures, keeping billiard or pool tables for profit, keeping laundries, and those who publish newspapers. It includes also the occupa tions of architects, attorneys, auctioneers, bakers, banks, bill-posters, brewers, bridge-companies, brok- ers, carriers, cigar and tobacco dealers, confectioners, dentists, detectives, druggists, drummers, emigrant and employment agencies, grocers, peddlers, hos pitals, ice dealers, inn-keepers, insurance companies and brokers, junk dealers, liquor dealers, food dealers, photographers, physicians, plumbers, teachers and many others.