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smokey valley
SMOKY VALLEY CAFÉ2

On 12 August 1946, three people, who had previously been employed to wait on tables in one of the cafes in Baxter, Oregon, formed a partnership. The eldest of the three was Mrs. Bevan, a middle-aged widow. The other two were Mr. and Mrs. Elmer Maywood. The partnership lasted for slightly more than four months, and in connection with its dissolution the preparation of a balance sheet became necessary.

Each of the partners contributed $2,000 cash, a total of $6,000. On 12 August, the partnership purchased the Smoky Valley Café for $16,000. The purchase price included land valued at $2,500, improvements to land at $2,000, building $10,500, and café equipment at $1,000. The partnership made a down payment of $4,500 (from its $6,000 cash) and signed a mortgage for the balance of the $16,000. The doors of the café were opened for business shortly after 12 August.

One of the things that made this particular piece of property attractive to them was the fact that the building contained suitable living accommodations. One of the rooms was occupied by Mrs. Bevan and another by the Maywoods.

The Maywoods and Mrs. Bevan agreed on a division of duties and responsibilities which would allow them to keep the café open twenty four hours a day. They agreed that Mrs. Bevan would operate the kitchen, Mrs. Maywood would have charge of the dining room, and that Mr. Maywood would attend the bar. Mrs. Bevan agreed to keep the accounting records. She was willing to perform this task because she was vitally interested in making the business a success. She had invested the proceeds from the sale of her modest home and from her husband’s insurance policy in the venture. If it failed, the major part of her financial resources would be lost.

A beer license was granted by the state authorities. On 15 August, the partnership sent a check for $35 to the distributor who supplied beer. This $35 constituted a deposit on bottles and kegs necessary

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