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Street Railway Journal
Vol. XXVI.
NEW YORK, SATURDAY, OCTOBER 7, 1905.
No. 15.
Published Every Saturday by the
McGraw Publishing Company
Main Office:
NEW YORK, Engineering Building, 114 Liberty Street.
Branch Offices: Chicago: Monadnock Block. ,
Philadelphia: 929 Chestnut Street.
Cleveland: Cuyahoga Building.
London: Hastings House, Norfolk Street, Strand.
Cable Address, "Stryjourn, New York"; "Stryjourn, London" — Lieber's Code
used. Copyright, 1906, McGraw Publishing Co.
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NOTICE TO ADVERTISERS Changes of advertising copy should reach this office by 10 a. m. Monday preceding the date of publication, except the first issue of the month, tor which changes of copy should be received two weeks prior to publication date. New advertisements for any issue will be accepted up to noon of Tuesday for the paper dated the following Saturday.
Of this issue of the Street Railway Journal 8200 copies are printed. Total circulation for 1905 to date, 327,950 copies, an average of 8198 copies per week.
Our Convention Report Numbers
In this issue we are completing our report of the four Phila- delphia conventions, by presenting the discussion on the papers of Messrs. Scott and Potter on Thursday afternoon ; the papers presented at the Claim Agents' Association ; the papers, re- ports and question box of the Accountants' Association ; the question box of the American Railway Mechanical and Elec- trical Association, and a complete account of the exhibits. The publication of one paper before the Accountants' Association, that by Mr. Tingley on the cost of carrying a passenger, is un- avoidably delayed, but all of the other reports and papers are published. We believe and trust that our subscribers will ap- preciate the prompt service which we have given them in pre-
senting this entire report within less than a week after the close of the convention, as well as the other articles which this paper has published. During the last three weeks we have printed in the Street Railway Journal an aggregate of over 400 reading pages, including the dictionary of street railway appa- ratus published in our issue of Sept. 23. These three issues have not only covered a report of the most important street rail- way convention which has ever been held, but have given as well the most complete analysis and description of the street railway system in any city which has ever been published. At the same time, the current news notes, market reports, letters from foreign capitals and other regular features of the Street Railway Journal have been retained. To those who are not especially familiar with other technical periodicals, we might say that a record of this kind within the short space of three weeks is unparalleled, ev.eriMtf'tlj'e '.palst .'hjjtefrji'pf this paper, and our previous issut'sM'.av.e^al'Way's' surpassed""' an^thjng of the kind attempted by, publishers o,f p£her techpfcal papers.
The wealth of material pije'S'entftd/ at "jtli.e1', Philadelphia con- vention precludes An, analyses in our editorial, .pag^s. -of all of the important subjects ,,'deb„ated„a,t, that ■ tirriG.'^' Several of the subjects, however, were dis;cus?;ed la.st wee°k" and in this issue interesting features of certain others will be considered.
The Accountants' Convention
As in the case of the other associations, the papers and re- ports presented at the Accountants' convention this year were more than usually complete, and reflect great credit upon the association and upon the committees and authors presenting the reports and papers.
The annual report of the standing committee on a standard classification of accounts discusses as usual various knotty problems which have come up during the year, and gives rulings for the assignment of these accounts. This report as well as those of the committees on an international form of report, and of the committee in attendance at the National Association of Railway Commissioners, indicate a progressive attitude on the part of the association to extend the field for a standard form of account and the number of companies which can adopt it. The increasing number of trunk line railroad companies which have announced their intention of using elec- tric power on a large scale, annually adds to the importance of having a standard form of accounting which will be as close as possible to the form which these companies have been using in their steam railroad accounts. At present there are a num- ber of differences between the two forms, although they are of minor importance, and it is satisfactory to learn that, in the opinion of those most interested, these differences are capable of adjustment. The possibility of an international standard has received encouragement during the past year from the con- ference which the committee on an international form of report had with Mr. Dalrymple while in this country, and as the British form does not differ directly from our own, there seems to be no serious obstacle toward a standard classification which
8
OR
:>2
642
STREET RAILWAY JOURNAL
'ol. XXVI. No. 15.
would cover all English-speaking countries. The Continental Association has officially adopted such a radically different form of account that any adjustment between the two methods seems very difficult, if not impossible. Nevertheless, if a stand- ard system of account should be adopted for all English-speak- ing countries, we believe a most important advance will be made. If this is accomplished, we believe that many of the Continental companies will adopt the same general system, especially as a number of the important companies on the Continent are now following forms of accounts which resemble the American sys- tem much more than the decimal classification of accounts adopted by the Continental Association.
The question box of the Accountants' Association is unusu- ally interesting this year, and occupies a considerable portion of the space devoted to the proceedings of the Accountants' Association at Philadelphia; this method of settling disputed points in classification of accounting should be of great assist- ance to all members of the association. In addition to these reports, valuable papers were presented by Messrs. Fullerton, Pardee, Beardsley and Tingley. The first two papers are de- voted to interurban practice, the third to methods of handling joint accounts of a large public service corporation, while the last analyzes depreciation and other factors in the cost of oper- ation which sometimes are not always fully considered.
Single-Phase Railways
The convention last week was the first street railway con- vention at which the: subject of single-phase motors has been considered, and the discussion which followed was ample. Mr. Scott's papei oh/this topic strikes the> re?dei as most straight- forward and businesslike,,' ]( has,'?' note of evident sincerity and earnestness that is very characteristic of the author, and that here is most gratifying. Most previous utterances on the single-phase problem have sounded either over-sanguine or half-hearted. Mr. Scott, however, in his paper and subsequent remarks has a story of struggle and accomplishment to tell which must be listened to with respect. That the single-phase roads now in operation have made a creditable, even if short, record is most encouraging. Difficulties are to be expected in every new line of endeavor, and if the single-phase system ulti- mately dodges them it will be the first to have that fortune. At least, from Mr. Scott's report, one must concede that the new apparatus must be regarded as not only a substantial ad- dition to the resources of electric railroading, but as giving much promise of successful work in that larger field of railway service to which the way has been so beset with difficulties. The big work undertaken by the New York, New Haven & Hartford Railroad is evidence enough that the alternating- current traction motor is here to do business.
Mr. Scott generally manages to give the engineer something to think about, and in this instance he has opened the question of variable-speed control in its broadest aspects. One of the stock arguments against alternating-current motors of every sort has been the difficulty of efficient control. Mr. Scott car- ries the war into the hostile territory by a forcible reminder that to all intents and purposes the direct-current motor is a one-speed machine under normal conditions of working, else there would have been no necessity of going to series-parallel control. One cannot get large control of speed with any known form of motor, save at the cost of some complication to avoid serious loss of efficiency, and while alternating-current motors involve a somewhat different kind of complication, it is no more serious or expensive than with direct-current motors.
I ' \
'] O ' ^ ' • tv<
It is unquestionably a fact that there are now in operation, both here and abroad, alternating-current traction systems of sev- eral varieties which are actually doing succesful work. It is equally clear, as we have over and over reiterated in these columns, that the key to large work over long distances is the use of high voltage on the working conductors. It is futile to expect a first-class long distance distribution of power on a 500-volt basis. Any system which cuts loose from this limita- tion is a clear gain, provided it shows good operative properties, which must now be conceded to alternating-current motors, not necessarily of any one kind or make. One cannot expect the alternating-current systems to reach in a year or two the perfection of detail which twenty years of experience have ac- cumulated in direct-current practice. Yet alternating-current traction undeniably has the benefit of much of this experience, and will profit by it. Given a good alternating motor system as a basis and better systems will come in due season. We note with interest that Mr. Scott is disinclined to favor, save as an emergency measure, equipments for use with either kind of current. Compromises are generally sacrifices, and the issue between the two systems seems now to be clearly defined. Are we to have two systems of traction or one, and if one, which ?
The A. R. M. and E. A. Question Box
The American Railway Mechanical and Electrical Associa- tion is to be congratulated on the quality and practical value of the answers to the question box questions, which are printed in full in this issue. It has sometimes been the case the past few years, since the question box feature became popular for conventions, that, while the quantity of questions and the number of answers to each was large, there was too much evi- dence of many questions being answered without sufficient thought being given to them. Thus some, with commendable intentions to help along the question box and contribute their share to it, have sometimes given answers too brief to be of much value. Although the opinion of an experienced man, ex- pressed briefly, as yes or no, in answer to a certain question] has its value, it is much better backed up by stated reasons. As a rule, the man who has given any specific question suffi- cient thought to make his answer of value in a question box, will be enough interested to give his reasons for his opinions in some detail.
The American Railway Mechanical and Electrical Associa- tion question box has a limited number of questions and a lim- ited number of contributors, but each answer given bears evi- dence of careful thought on the part of the contributor. We are glad to note also that the association has not been burdened with the expense of publishing and answering a lot of ele- mentary questions that any electric railway engineer should be able to answer. The taking up of space with such questions is likely to detract considerably from the excellence of the question box in the eyes of the busy, experienced man, who does not want to dig through a' lot of chaff to get at the grain. Secretary Mower, the editor who conducted the question box this year, has done an excellent piece of work.
There is hardly a question of those answered that does not give a valuable lot of boiled down information by some of the best talent in the country. Car lubrication matters receive considerable attention. There appears a great difference in the cost of lubricating a given type of car equipment on dif- ferent roads, and this should give food for profitable reflection and inquiry as to the cause. Oil lubrication has undoubtedly come to stay, and the only question is as to the best way of
October 7, 1905.]
STREET RAILWAY JOURNAL
643
applying the oil on motors that were built originally for grease lubrication. Much thought has been expended on this point, and the question box can be read with profit by all having mo- tors equipped with grease cups to be changed for oil lubrica- tion. The many other questions taken up are too numerous to be mentioned in detail here, but the question box is one of the most valuable of its kind ever produced, and must be read in full to be appreciated.
Railway Equipments
Mr. Potter's paper on the improvements in recent practice is one that will well bear careful study. It is full of useful hints, and is especially valuable to the practical railway man in emphasizing the changes of the past few years in increasing in many ways the demands upon car equipments. These have come upon the field so gradually that it has been no easy mat- ter fully to appreciate them, and many a manager has discov- ered them only at considerable cost. From a general operative standpoint, it seems a simple matter to put on somewhat larger and heavier cars and to run them at higher speed. So indeed it is, but in so doing, one runs the risk of passing the unseen frontier between security and danger. One is at every step trenching on factors of safety that are but imperfectly known. Hence, while the improvements of the past few years have been great, they have consisted of an aggregate of unsensa- tional details. The great work of the manufacturing com- panies has therefore been appreciated at its full value only by those who have followed it very closely. On the whole, the most interesting improvements have been those along the line of multiple-unit control, or rather semi-automatic control, sub- stituting for the manual controller in its usual inconvenient position a relay control far simpler to operate and doing its work more perfectly. With these changes has come a better brake control and more adequate safety devices, so as to bring the factors of safety in car operation more nearly to adequate values. These things make the difference between good and bad operation, and are important far beyond casual appear- ances.
Controller Systems
It often chances that the discussion of a paper brings out more novel points than the paper itself, particularly if the topic is a live one, and such was the case in the controller papers before the Mechanical and Electrical Association which we published last week, useful as these papers were in themselves. It is certainly a fact that cars and motors have outgrown the capacity of the earlier forms of control, with the result that serious controller accidents have occurred. Mr. Olds called especial attention to the fact that controller accidents really meant not a fault in the controller design, but merely that it was not competent to deal with the short-circuits which might occur beyond it. He described a plan used by his company, which is characterized by placing the main circuit closer be- neath the car and arranging for the protection of each motor by its individual fuse. Mr. Taylor added a description of the multiple-unit control used in Brooklyn, with the main appa- ratus located under the car and the operative controller on the platform. The general consensus of opinion seemed to be that the main control should certainly be under the car, both on the score of general safety and for the sake of avoiding severe complication in the car wiring.
This is assuredly a sound position to take, for with modern
heavy two and four-motor equipments, attempting ordinary manual control from the drum controller on the platform, means taking many risks. The car wiring becomes both costly and complicated, and the mass of cables required to effect the connections is a source of very considerable fire risk. Just how much actual simplification can be counted upon in using a relay controller with the switching controller under the car remains to be seen. In cases where actual multiple-unit con- trol is important, the gain is evident, but in the commoner case of operating single cars, the main thing is to get the con- troller somewhere near the things it is expected to control, quite irrespective of the means employed to actuate it. Whether pure electrical control is necessary or desirable merely because the controller is placed under the car or somewhere else than on the platform, is a point on which there may be justifiable difference of opinion. In any case, the main thing in distant control is, as Mr. Taylor indicated, the certainty that the apparatus will automatically go to the stop position in case anything goes wrong. Of late, remote control switches of every sort have been exceedingly fashionable, and punctilious designers seldom fail to put them in wherever an opportunity *is offered. In central station work this tendency is sometimes carried to an amusing extent, so that there are several sets of automatic apparatus keeping watch upon each other, with a final opportunity for the exasperated operator to climb down from his conning tower and put his hand to the offending switch. In some such cases, it is an open question whether it is not more work to watch the automatic labor-saving devices than to do their work, but here in modern railway practice the issue is simple.
Under a car crowded with passengers, even on the platforms, are two or four big motors which must be put through an in- tricate series of combinations with complete precision, on pain, perhaps, of a disaster, costing many lives. The amount of energy required has become so great that there does not seem to be an adequate factor of safety in the usual controllers, which, being on the platforms, require a very complex system of wiring to enable them to accomplish their purpose. All in all, it looks very much as if the platform controller had been outgrown and remote control was the thing. There is none too much space beneath a car, so that it takes some rather fine figuring to get room for the controller if built on its ordinary plan. This fact makes it not altogether easy to arrange a sim- ple mechanical control from the platform of an under-the-car controller. Hence the applicability of the multiple-unit appa- ratus to a problem apparently too simple to require so intricate a solution. It strikes us that the Brooklyn plan follows sound lines, irrespective of its detail. If once the need of remote control is granted, why should one not push the plan to its legitimate conclusion and employ its resources, not merely in putting a controller beneath the car, but in so distributing the parts of that controller as to bring the real power wiring down to an irreducible minimum? There would seem to be small need of conceding to custom the aggregation of all the con- trolling devices in a single box. When we go in for remote control let us do it thoroughly and leave in the new equipment as few of the weak points of the old as we can. There is com- plication enough in a four-motor system without adding to it by trying to bring it within the scope of a single controlling drum. It is far easier and safer to complicate the control wir- ing a little and save trouble in the power wiring. In other words, granted indirect control for single cars, one had best take a fresh start and make the most of it.
REPORTS AND QUESTION BOX PRESENTED AT THE PHILA- DELPHIA CONVENTION OF THE STREET RAILWAY ACCOUNTANTS' ASSOCIATION OF AMERICA
PRESIDENT'S ADDRESS
The selection of Philadelphia for the ninth annual convention of the various associations must have had the inspiration from President Ely, of the American Street Railway Association, as he no doubt felt that the City of Brotherly Love was required in which to preside over the most important meetings that have been held since the organization of the associations. As you are all aware, the question of the reorganization of the American Street Railway Association is one that affects us most vitally and has been a source of considerable anxiety to those appointed at St. Louis last year to watch over the destiny of your association, as well as to others of the old guard, most of whom still retain their active interest in the welfare of this association. One and all of us felt and hoped that, as far as our association is concerned, we should always remain as we were — an independent organization attending to our own business in our own way, and not only maintaining our past successes and results, but jchieving new successes and progressing in every direction and in every way appertaining to the objects for which we joined together in Cleve- land in 1897. But conditions have arisen outside of our organiza- tion that necessitate our having to face a new condition of affairs, and while it may or may not affect our association,, it was felt the duty of your committee and myself to meet this condition in a broad-minded spirit and endeavor to do our share toward the welfare of the whole street railway fraternity, even if we had to sacrifice in a great measure our feelings and pride, and join hands with the members of the parent association in an effort to assist them by a reorganization that would be of advantage to them but not to ourselves.
Your executive committee, at a meeting held in New York in February prior to the meeting of the executive committee of the American Street Railway Association, very thoroughly discussed the idea of a reorganization of the American Street Railway As- sociation and appointed myself with F. R. Henry as alternate, to represent the Accountants' Association on the committee espe- cially appointed to consider this question. Both Mr. Henry and myself were present at the preliminary meeting in New York and very forcibly expressed our views that while we* were willing to assist in every manner possible the reorganization of the Ameri- can Street Railway Association, it must be understood that we would agree to no scheme whereby the autonomy of the Ac- countants' Association would be effected, and I might here repeat the addresses made by Mr. Henry and myself at that session:
Chairman Ely. — I shall be glad to hear from the Accountants' Association. W. G. Ross, of Montreal, is president of that association.
Mr. Ross. — I may say at the start that the Accountants' Association is opposed to any change whereby it might lose its identity. I do not mean to say that there is no necessity for a change in the organisation of the Ameri- can Street Railway Association. I think we are pretty well agreed, so far as we have studied the question, that there should be some change.- Our members think that Mr. McCulloch's plan has a good many features of value, but we are opposed to being a section of the parent association. We want to retain our identity and we want to retain our name. As you know, we have been in existence since 1897, and we think, we have accomplished a great deal. The accounting methods at that time were very crude, and they are now very complete. We still have many important questions be- fore us for discussion, the latest being the question of accounts for in- terurban electric railways, and there are many others.
You all know also of the good work that has been accomplished by the Accountants' Association in regard to the State Railroad Commissioners. We have a committee that is in very close touch with these Commissioners, some members of the committee being personal friends of the Railroad Commissioners, and our committee is invited to the conventions of the Railroad Commissioners, and is on very strong personal tooting with the Commissioners. I do not think we should do anything to offset the position "which we have reached. '
I believe that there is a necessity for a change in some of the methods of work of the association. I quite agree with Mr. Ely that the subjects at our meetings are not followed up as closely as they might be, on account of the subjects coming up which do not interest every one who is at the meeting. I think the street railway business has reached the stage now where there is a necessity to have associations to take up the different de- partmental work in the street railway field and discuss it more thoroughly than we have been discussing it. I think many believe that the American Street Railway Association should only look after the street railway work in a general way — it should deal with the subjects which relate to the man- agement of the company, rather than the practical operation of the road. I think Mr. McCulloch's outline in that respect is very good. I do not agree
with him as regards the general secretary having full control of all the sections of the association, because there is ■K great deal of work — I know this is true as far as the Accountants' Association is concerned — in connec- tion with our association. This work is just as much as one man can handle, and I doubt if it would be a success to have one secretary for six* or seven sub-associations or sections. As far as the Accountants' Association is concerned, there is the general work of the secretary, and we have ex- hibits of forms and blanks which are continually sent all over the country, which entails a great deal of work in itself, as well as keeping track of the forms and keeping them up to date. I think the suggestion of the chair- man that a sub-committee be formed to take this matter up is a very good one, indeed, and I think it will be productive of good results.
Then, there is the question of subscription for the purpose of maintaining these associations. Of course, it will be necessary, if the associations are divided into sections, being part of a general association, that there will be only one subscription. While I see many advantages in tha't, at the same time there are disadvantages, and one disadvantage is that the subscription might have to be so large that it would keep out a great many of the smaller companies, and we might lose members instead of gaining them. That is a question which must be studied, no matter whether there is one subscription or several subscriptions. Another important matter to be taken into consideration is the question of individual membership. I think thii meeting affords a very excellent opportunity for us to express our views, and I think after the discussion here a sub-committee should be able to study the matter out and submit a satisfactory plan.
Frank R. Henry. — I do not think there is anything additional to be said on behalf of the Accountants' Association to what Mr. Ross has said. We all feel, a:: accountants, on account of the good work we have done in the last seven years, we do not wish to imperil the value of our work through any change which may be adopted. We believe we can do better work if some scheme can be devised whereby our individuality can be maintained. That is the primary thing we have in mind. The other matters of detail could be worked out altogether satisfactorily, but that seems to be the proposition that confronts most of the accountants. They would like the scheme, what- ever it is, to be along the lines of maintaining our organization in such way that our contact with the Railroad Commissioners and other organizations in the country would give us the standing which we maintain at the present time.
We were assured at that meeting that there was not the slight- est intention of doing anything to effect the autonomy of our as- sociation, and the meeting adjourned in order that an expert be appointed to draw up the draft of the constitution.
At the next meeting of the special committee, held in Philadel- phia in June, the draft of the proposed constitution was consid- ered, and as the same had been printed and distributed among the committee prior to the meeting, we were enabled to discuss the same intelligently and considerable changes were made. At this meeting there were two changes that I endeavored to have made, viz.: — in clause "C" the elimination of the words "for specific purposes" on the ground that they were meaningless and unnecessary; clause "D," the whole of the clause, as it affected the autonomy of our association by practically doing away with our secretary's office.
The draft of the final conclusion of the Philadelphia conference has been printed and distributed among the various companies and you have all, no doubt, had a chance to study it. Attached to this draft, however, is a suggested form of charter agreement which was not approved by the special committee, and I am sur- prised that this should not have been so stated, so that the mem- bers of the various associations would know that it was only a suggestion of the expert appointed to assist in the reorganization of the parent association, and not the opinion of the special com- mittee. This agreement or form of charter would seem to make it impossible for us to join with the American Street Railway As- sociation unless it is amended, otherwise we will lose our present standing and identity. Of what has taken place in the last two days since the writing of this address, you are all aware, and it is for you now to decide what step this association should take in the matter.
ft was a very great disappointment to me at the time of my election to hear our late and valued secretary, W. B. Brockway, declare that he would not continue in the office of secretary, and to hear E. M. White also decline the office (I thought I had enough worries without such a calamity happening). However, the kindness of Mr. Brockway in offering to- continue the work until Jan. 1 in ord«r to give us time to catch our breath as well as a new secretary, was a very considerable relief, and it was a further source of relief eventually to persuade E. M. White to accept the position. It is needless to say that the work Mr.
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White has done is deserving of all praise, and that the association is to be congratulated on having such an able successor to Mr. Brockway.
While the year has been a very strenuous and unsettled one, owing to the great question of the reorganization of the Ameri- can Street Railway Association, at the same time the good work of our association has progressed most favorably, as you will judge from the various reports, etc., to be submitted to you. Two matters, however, have been considerably disturbed by the main question, and that is the membership and the conference with the other associations with regard to forms of reports affecting their departments, and it can only be expected that nothing very much can be accomplished in these directions until the reorganization of the American Street Railway Association is completed.
The question of the international form of report referred to at length by our previous president, Mr. Smith, in his annual address, was promptly taken up and a committee was appointed to consider this important matter. You will hear the results of that committee's work so far as it has gone. At the same time I can only repeat what Mr. Smith has stated — that it was un- fortunate that this matter was not taken up through a personal representative at the time it was first talked of, as it is naturally a more difficult task to succeed in getting associations to change their attitude once it has been formed. However, I think we have started out in the right direction, and hope that with patience and persistent effort we will be able to bring about an interna- , tional form of report and accounts that will be recognized as
standard the world over.
At this rather interesting period of our existence it might not be out of place for me to refer to the short history of our association ff and the good work it has accomplished. It seems to me that the
great success it has attained, as well as the continual source of congratulation from those of the American Street Railway Asso- ciation who know and appreciate the good work that has been done and the results that have been achieved, should be a source of great pride to us all, and to the various committees and offi- cials who have unselfishly and generously given of their time and brains, we are all deeply grateful.
Since the organization of the association brought about by the suggestion of our late and able secretary, W. B. Brockway, and the action of our good friend, H. H. Windsor, the history of the association has been one of unparalelled success. At the organi- zation meeting called by Mr. Windsor and held in Cleveland on March 23 and 24, 1897, there were twenty-five companies present and enrolled in the membership. Since that date the membership has steadily increased, notwithstanding the numerous consolida- tions, till it now numbers 152. To my mind this alone shows that the earnest, persistent and effective work done attracted the attention of the companies throughout this Continent, otherwise the membership now in the association would not have reached this large number.
The promptness with which the association set to work result- ing in the immediate appointment of a committee on organization and the adoption of the report on the constitution and by-laws submitted by that committee, and the appointment of a committee on a standard classification of accounts, and the interesting papers read and discussed, spoke well for the future success of the asso- ciation.
At the first annual meeting, held at Niagara Falls Oct, 19 to 22, 1897, we were officially recognized and welcomed by the American Street Railway Association, and their organization passed resolutions of endorsement and approval and pledged a cordial encouragement and support.
At this meeting a standing committee was appointed on a stand- ard system of street railway accounting. This committee was ' composed of Messrs. C. N. Duffy, H. L, Wilson, J. F. Calder- wood, W. F. Ham and H. J. Davies, and while you all know how satisfactorily they prepared their arduous task, I do not think- that those who were not in immediate touch with these gentlemen quite appreciate what a tremendous amount or self-sacrificing work has been done by that committee; not the work of a day or a month, but of years, and I feel that 1 am voicing the sentiments of all when I say that their efforts have the deep and grateful thanks of every member of the association.
It was at this first annual meeting that a suggestion was made by Mr. Bartlett, treasurer of the Manchester Street Railway Com- pany, that the form of report and accounts should be taken up with the State Railroad Commissioners. The matter was at once taken into consideration by the committee on standardization of accounts, and later on taken up by them with the Association of the State Railroad Commissioners, and after numerous conferences and attendance at the annual conventions of the Railroad Com- missioners, the committee succeeded in having the standard classification and form of reports adopted by that important body, as a standard classification and report required by them from the
various companies throughout the United States. Of the cour- tesy, kindness and broad-minded views shown by the Commis- sioners in these conferences, too much cannot be said, and the thanks of the associations, I am sure, are cordially and heartily granted to them, both for their adopting our classifications and for their kind invitations and recognitions at their annual con- ventions, providing us as these do an opportunity to work in har- mony with them in all matters appertaining to street and inter- urban railway accounting as they now exist and in new conditions that may arise from time to time, and in which they and we have a common interest.
Another and important matter that has been organized and kept up is the department of blanks and forms, initiated first by W. B. Brockway, and later carried on, improved and completed in the highest possible and most perfect manner by E. M. White and his able lieutenant and daughter, Miss White, has been a great source of assistance and usefulness to all. The great mass of work entailed in the gathering together of the various and numerous forms of the different companies was not fully realized until Mr. White made his report to the convention of 1903, when those present at that meeting were fairly staggered at the amount of work involved in bringing the department to its present high state of efficiency, and it engraved the committee of one and his fair assistant on the hearts of all members.
The work initiated and started at the earlier conventions of our association has been carried on in the most satisfactory and successful manner. The many papers on interesting subjects so carefully prepared and submitted have been most instructive, and the discussions entered into on the various topics have not been confined to a few, but have been taken up always by a large ma- jority of those present. The attendants at the meetings have been numerous, and the close attention paid to the proceedings and the earnestness with which the work has been pursued speak well for the interest taken by the various members in the con- ventions. And I do not know of any conventions of associations which I have attended where the work has been so earnestly and persistently followed up, or where more satisfactory results have been attained.
There is still much work to be done, and work that is just as important as that done in the past, and we may confidently look forward, if not hampered, to a progressive and successful future, for, as the great progress that is being made by street and inter- urban railways continues, new problems and new conditions will surely arise and claim our best thoughts and energy, to .keep our very important part in the industry up to date.
In connection with the various forms and records, one of the important matters still to be followed up and dealt with is the taking up of these forms and records with the departments they affect, and as new associations are formed, such as the Mechani- cal and Maintenance of Way Associations now organized, the committee of our association appointed for this purpose should follow this matter up vigorously so as to endeavor to arrive at a standard set of forms that can as far as possible be used by all companies.
Another question that should be given serious thought is the one of depreciation. This matter has Been mentioned by previous presidents, especially by H. C. Mackay. Whether any conclusion can be arrived at or not as to the fixed amount necessary to pro- vide for such a fund, it is difficult to say. owing to the various conditions existing with the different companies, but it is a ques,- tion well worth our best thoughts, especially when we note the collapse of numerous companies within the last year or so.
There is another matter which perhaps might well be taken up by the committee on standard form of reports and accounting, viz., enlarging to a considerable extent the statistical information for our monthly and yearly reports. It seems to me that statis- tical information is of the very greatest importance to every road, not only on its own comparisons, but for comparisons with other companies.
I would call your attention to the valued and important ser- vices rendered the association by our esteemed retired secretary, W. B. Brockway. Those who have been in the association since its organization, and those who have joined since, know that to a very great extent the success of the association has been due to his untiring efforts and effective work, and I know all feel deeply grateful and thankful to him for his great services, and although the executive committee registered a hearty vote of thanks to him at the time he retired, I am sure this meeting, through its committee on resolutions, will indorse it by another one.
I am afraid I have taken up rather more time than I should have, and will just say in closing that I deeply felt the great honor that was done me in electing me to the presidency of this, and trust and am confident that its future will continue to be as suc- cessful and progressive as in the past.
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REPORT OF THE COMMITTEE ON STANDARD CLASSIFI- CATION OF ACCOUNTS
Your committee on standard classification of accounts beg leave to make the following report:
Referring to the last report of this committee, with respect to submitting to this convention the questions asked of and the answers given by this committee between the date of the last con- vention and Sept. 1, 1905, relative to certain matters in connection with the use of the standard system of street railway accounting of this association, we beg leave to submit the following questions and answers, nine in all, numbered respectively 20 to 28, both inclusive, addressed to the chairman of the committee:
QUESTION NO. 20
Question. — Should the cost of extending the sprinkler sys- tem in car houses, installed for protection against fire, be charged to Account No. 3 or Account No. 38?
Answer. — The installation or extension of a sprinkler system is a part of the "buildings and fixtures," therefore a part of the cost of the construction or maintenance of them. Assuming that the cost is dealt with as a charge to operating expenses, the charge should be to Account No. 3 — Maintenance of Buildings and Fix- tures. Answered by C. N. Duffy, Dec. 12, 1904.
QUESTION NO. 21
At the last convention of the association, Question No>. 12 was as follows: Question 21. We have in connection with our prop- erty some air compressors. Some are situated at car houses, and a pump for same is operated by a small motor in the car house. In other cases they are adjacent to our power stations, and the pump is operated by power furnished direct from the station. These compressors are used for filling the tanks in our cars for operating the air brakes on same. I am somewhat at a loss to know to what account I should charge the maintenance of the air compressors and the motors for operating the same.
Answer. — I should regard your air compressors, pumps, and the motors that operate them as miscellaneous tools, and should charge the expense of maintaining them to Account No. 9. Of course, the expense of maintaining the tanks and air brakes on the cars should be charged to No. 6 — Maintenance of Cars, and I think the cost of the air, which would include the current for operating the compressors and the labor of getting the air into the tanks, should go to Account No. 21 — Car Service Supplies. Answered by H. J. Davies, May 20, 1903.
On Dec. 13, 1904, a member of the association addressed a letter to the chairman of this committee stating that he had intended to enter an objection to the ruling of the committee on Question No. 12, but was called from the meeting before having an oppor- tunity of doing so. He desired to enter his objection in writing and requested the committee to consider same. The member is the auditor of a company operating one of the large city systems of the country, and the first company to> install a storage air sys- tem for operating air brakes. The cost of the air brake equip- ment, which included the compressor equipment, was charged to Construction and Equipment Account "K" — Cars; the mainte- nance of compressor stations was charged to Operating Expense Account No. 6 — Maintenance of Cars, the reason for so doing being that they were a part of the equipment of the cars.
The chairman presented the gentleman's letter to the committee. The committee recognized the consistency and logic of the posi- tion taken by the gentleman, from his standpoint, as well as the possibility of the proposition advanced being different from the one presented to the committee in Question No. 12, because of the conditions governing the respective propositions being different.
After a careful consideration of the arguments advanced by the gentleman in support of his position in disagreeing with the ruling of the committee and the association, the committee could see no reason for reconsidering or changing the action taken, ruling that the compressor equipment was properly a part of the tools and machinery and not a part of the cars.
QUESTION NO. 22 Question. — We manufacture our cars and do all repair work. To each shop order we charge the material used and the cost of the productive labor, also a certain per cent toi cover non-pro- ductive labor and incidental shop expenses, non-productive labor and incidental shop expenses being charged to Account No. 9 — Miscellaneous Shop Expenses. When supplies for construction or repairs are manufactured in the shop and turned over to the storekeeper, Account No. 9 — Miscellaneous Shop Expenses is credited with the expense added to cover non-productive labor
and incidentals. You will note that this balances Account No. 9 — Miscellaneous Shop Expenses. A proposition is made to leave a certain proportion of the debits in Account No. 9 — Miscellaneous Shop Expenses and create a sinking fund. It appears, however, in so doing a duplicate charge is made against operating expenses, as supplies manufactured for construction and repairs include the per cent to cover shop expenses, etc., and are charged to operating expenses in the accounts for which the supplies are used.
Answer. — If your idea of a sinking fund is a charge for a de- preciation reserve to provide a fund for the replacement and renewal of your shop-plant and equipment and the manufactured material has not borne this depreciation reserve charge, operating expenses would then stand not a duplicate charge, but an addi- tional charge, which would be offset by the depreciation reserve, which account would stand the charge for replacement and re- newal of your shop-plant and equipment when made. If this is what you have in mind, then operating expenses would not be saddled with a duplicate charge, but with an additional charge, over and above the bare cost of manufacturing the material which it is perfectly proper it should stand, provided a proper reserve is credited and is available for replacements and renewals when necessary. Answered by C. N. Duffy, Dec. 12, 1904.
QUESTION NO. 23
Question (asked by the accountant of the State Board of Rail- road Commissioners). A certain amount of paving was done in one of our cities by the city itself, and the amount to be paid by the railroad company is paid by them as "taxes," a certain amount each year until the whole amount is liquidated'. Now the question arises, should this be charged as a betterment in construction account, or the difference between the cost of the old and the new paving be charged as a betterment and the remainder to op- erating expenses? We have a number of similar cases of this sort, and while it is called "paving taxes" by the city, it still is in the nature of a betterment of the road.
Answer. — Answering the question as to whether this paving should be charged as a betterment in construction account, or the difference between the cost of the old and the new paving be charged as a betterment in construction account and the re- mainder to operating expenses, in my opinion, the latter would be the proper disposition of the charge. If the paving in question is "new and additional," it is a proper charge to Construction and Equipment "D"; if it is a substitution, for example, if brick or wooden block paving was replaced by asphalt or granite paving, the paving substituted would represent an additional investment over and above the original cost of the paving first laid. The difference in cost could be charged to construction account and the remainder, representing the original cost of the paving first laid, to operating expenses, provided, or course, that the company in question did not have an appropriate reserve account, created by debiting operating expenses and crediting the reserve account to take care of such a charge. This disposition of the charge would not be according to strict accounting principles or con- servative financiering or capitalization, for as a matter of fact, in the case of the substitution, while the new paving may be better and may have cost more than the old paving, the fact remains that there is no more paving than there was before the substitution was made; furthermore, the probabilities are that the new paving will require less maintenance than the old paving and will facilitate the. operation of the road, consequently operating expenses, would be correspondingly reduced thereby. If the difference in the cost between the old and the new paving is charged to capital, and operation would receive the benefit of the substitution in decreased cost of maintenance and increased operating facilities, in a way, you would be capitalizing "earnings."
On the question as to whether the cost of the paving -referred to should be charged in "taxes," which was the charge made by the road in question, in my judgment, the charge was erroneous, notwithstanding the liquidation of the obligation is in a sense a "tax" upon the company and should be considered a "tax" in tak- ing into account the amounts paid by the railway company into the municipal treasury, in order to determine the total amount of taxes paid by the railway company to the municipality. The reason for this is that there is no more necessity for having the space between the tracks of an electric railway paved in order to operate the cars, even if the tracks are laid in a city, than there is to have the space between the tracks of a steam railroad paved. The requirement of making a street railway pave the space be- tween its tracks is simply a continuation of conditions prevailing when street railways were operated by animal power and the space between the tracks was paved or ballasted in order to pro- vide a roadway for the animals drawing the cars. The only pur- pose which the paved roadway of an electric street railway serves is to provide a place which is appropriated by vehicles, in order
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that the vehicles may be pulled in the tracks and over the road- way of the street railway. This results in interference with the operation of the cars, to the great annoyance of the public who patronize the railway, and to the disadvantage of the railway. The use of the tracks and roadway of the railway by vehicles causes excessive wear on the rails and paving, and is responsible for collisions between vehicles and cars, frequently resulting in personal injuries and damage to property, the claims for which the railway must defend, and often, unjustly, be compelled to pay. These conditions are all brought about because the space be- tween the tracks of the street railway is paved.
This condition is unfair to the street railway, and is a burden that should not be put upon it, but which, if put upon it, should be considered as the payment of a tax compensation for franchise rights and privileges, although the charge of such a "tax" would not be carried in the accounts of the company in "taxes."
The cost of the paving is not a "tax" in the sense of being an amount levied on the property of the company, as ordinary taxes are levied, nor is it collected for the same purpose, but it repre- sents a charge against the company for tangible property, and therefore should not be carried "on the books in "taxes."
As a bookkeeping proposition, the matter should be taken care of on the books by opening a liability account under an appro- priate title, debiting construction and equipment, reserves or operating expenses, as the case may be, and then the liability ac- count would show the amount unliquidated and due on the paving in question, but the paving itself would be taken care of on the books in so far as it affected the property of the company.
In the instructions relating to "deductions from income," in specifying the deductions for taxes, as shown on page 55 of the consolidated report of committees, nothing is said as to treating paving as an item of "taxes." The item "track taxes," mentioned on page 55, refers to a charge for the payment of an annual tax based on a certain amount per mile of track operated, but has nothing to do with paving. Answered by C. N. Duffy, Jan. 5, I905-
QUESTION NO. 24
Question. — Will you please advise me if it is proper in com- puting the car-hours to figure the total hours cars are out of the car house, or the time they are actually engaged in earning reve- nue. Extra cars for ball games and pleasure resorts are some- times held with their crews on duty for two or three hours await- ing the closing of the attraction. In figuring passenger car mile- age, is it proper to include mileage made by a car between the car house and the point on system where they begin carrying pas- sengers? Our car house is situated some 2 miles from where some cars begin the regular run, and it is not clear to me whether or not this mileage should be used. When a car is disabled and it is necessary to send a relief car, it creates considerable mileage that is not necessary to actually transport passengers.
Answer. — In figuring car-hours and car-miles, the hours of service and the miles run from the time the cars leave the car house to the time of turning in at the car house, after their runs have been completed, should be included in computing the total car-hours and the total car-miles. Answered by C. N. Duffy, March 13, 1905.
QUESTION NO. 25
Question. — Will you kindly advise to what account, in your judgment, should be charged the" expense of oiling that portion of the streets which the company is obliged to maintain? This oiling, as you no doubt know, consists of sprinkling one or more coats of crude oil on the streets and covering same with sand or other similar material, and rolling same.
Answer. — Account No. 23 — Cleaning and Sanding Track. An- swered by C. N. Duffy, May 17, 1905.
QUESTION NO. 26
Question. — What account should be charged with the expense of street assessments payable by street railway companies cover- ing their proportion of cost of opening streets on which the com- pany has no track?
Answer. — Taxes. Answered by C. N. Duffy, May 17, 1905.
QUESTION NO. 27 Question (askea by the accountant of a State Board of Rail- road Commissioners). — As a sample of the questions which we are asked to pass upon in connection with street railway account- ing matters, I enclose you correspondence from a railway com- pany of this State. In order that everything should come from headquarters and that we may always co-operate with the Street Railway Accountants' Association in such matters, I have to ask that you will make proper assignment of the various additional accounts as shown by the letter and return to me, when I will in-
struct the assignment to be made as you direct. If you will kindly mark the number of the account to which you decide the addi- tional accounts should be assigned, it will cover the ground.
Answer. — The additional accounts referred to and the assign- ments of same, as made by the chairman, were as follows:
Assignments Additional Accounts of Same
1A Maintenance of Bridges and Culverts 1
IB Maintenance of Fences, Road Crossings, Signs and Cattle Guards 1
2A Telephone Line ".....2 or 32
5A Maintenance of Sub-Station Apparatus 5
10A Sub-Station Wages 10
16A Wages of Despatchers 16 or 19
17A Wages of Conductors, Freight and Express 17
17B Wages of Conductors, Canandaigua 17
18A Wages of Motormen, Freight and Express 18
18B Wages of Motormen, Canandaigua 18
19A Wages of Station Agents 19
22D Despatching System Expenses 22
22F Miscellaneous Car Service, Expenses, Freight and Express 22
22A Station Agents' Expenses 28, 27 or 22
22AF Station Agents' Expenses, Freight and Express 28, 27 or 22
26A Salary of Clerks, Freight and Express 26
27A Printing and Stationery, Freight and Express 27
28A Miscellaneous Office Expenses, Freight and Express 28
31A Advertising and Attractions, Freight and Express 31
32A Miscellaneous General Expenses, Freight and Express 32
37A Rent of Tracks and Terminals, Freight and Express 37
Answer. — In connection with these assignments made, attention is called especially to the following:
A. 2A — Telephone Lines. — There is nothing in the instructions under Account No. 2 of the standard classification as to the charging of the maintenance of a telephone line to that account; in Account No. 32 there are instructions to charge that account with the cost of "maintaining and operating private telephone system." In the absence of any other information than that sub- mitted, I would say that, according to the instructions of the standard classification, Account 2A of the railway company should be charged to Account No. 32, but it is possible that this is or could be treated as a part of the electric line, and might, there- fore, be charged to Account 2. This is a question where the facts should be taken into consideration in making a decision as to what should govern the charge.
B. 16A — Wages of Despatchers. — There is a question whether this account should be assigned to Account No. 16 or Account No. 19 of the accountants' classification, dependent upon whether the despatchers are superintending transportation or not. If they are, 16A should be assigned to Account No. 16 of the account- ants' classification; if not, to Account No. 19.
C. 19A — Wages of Station Agents. — Assuming that the duties of the station agents referred to are general in their character, and not strictly clerical, I should say Account 19A should be as- signed to Account No. 19 of the accountants' classification; if their duties are strictly clerical, I should say they should be as- signed to Account No. 26.
D. 22A — Station Agents' Expenses. 22AF — Station Agents' Expenses, Freight and Express. — Assuming that the expenses referred to are general in their character and do not include any printing or stationery, or any of the items chargeable to Account No. 28 of the accountants' classification, I should say that Ac- counts 22A and 22AF should be assigned to Account No. 22 of the accountants' classification; should these expenses include items properly chargeable to Account No. 27 or Account No. 28, Account No. 22 should not carry all of such expenses.
With regard further to Accounts 2A, 16A, 19A, 22A and 22AF, of the railway company, and with reference to my remarks con- cerning same, you will readily understand that there is a broader question involved than the mere assignment of the items charged in these accounts to the accounts of the accountants' classifica- tion, that it would be proper to assign them to, the broader ques- tion being the question of an interurban classification of accounts. You will understand and appreciate what I mean when you recall what has transpired in the past in connection therewith with refer- ence to the classification of the Accountants' Association, and what it is proposed to do in the future with respect to drafting in- structions governing the disposition and charge of such items as an interurban classification should take care of. For these reasons I hesitate to make an official ruling on these assignments without consulting the other members of the classification committee of this association.
However, I should say, assuming that Accounts 2A, 16A, 19A, 22A and 22AF, of the railway company, stand for such charges as would appear proper in interurban operation to charge to Ac- counts 2, 16, 19 and 22 of the accountants' classification, that the assignments should be to these accounts, as it would hardly do to leave the assignment open or optional, as between one or more
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accounts, as that would be misleading and unsatisfactory, and might lead to future complications. Answered by C. N. Duffy, July 31, 1905.
QUESTION NO. 28
Question (asked by the accountant of a State Board of Rail- road Commissioners). In treating under "miscellaneous income" the net income from the operation of an illuminating or power plant, do you have any positive rule as to the proportion of the interest on funded debt to be charged on account of the opera- tion of the plant which might be said to be used for producing light and power? Is there any way of arriving at a firm basis for a charge of this character? I understand that it must necessarily in many cases be an arbitrary settlement. Will you kindly give me your ideas as to the most positive way of arriving at a fair proportion?
Answer. — As far as I know, there is no positive rule governing this question. In fact, I do not recall in my experience that the question has ever been raised before. I would take as a basis for the charge of the proportionate interest, the interest on the investment as between the railway company's plant and the illu- minating plant; this could be determined by the proportionate kilowatt capacity of the plant, or the proportionate kilowatt out- put in the operation of the plants. Answered by C. N. Duffy, Aug. 17, 1905.
The following questions, nine in all, numbered respectively 29 to 37. both inclusive, were asked through the "Question Box," referred to the chairman of this committee, and answered by him, as follows:
QUESTION NO. 29
Question. — To what account should be charged the wages of those who put up and take down snow fences?
Answer. — Account No. 24 — Removal of Snow and Ice.
QUESTION NO. 30
Question. — To what account should a snow fence privilege be charged? The above to be put up in the fall and removed in the spring.
Answer. — Account No. 24 — Removal of Snow and Ice.
QUESTION NO. 31
Question. — Should taxes be treated as a fixed charge, or should they be charged to expense?
Answer. — The standard form of report of the association adopted at the Detroit convention in October, 1902, shows taxes as a deduction from income, therefore they should not be charged to expense: neither are they a fixed charge in the sense that in- terest on funded debt is understood to be a fixed charge.
QUESTION NO. 32
Question. — What income account should be credited with rev- enue from trail cars chartered for hauling freight? Answer. — Chartered cars.
QUESTION NO. 33
Question. — What is the proper charge to dispose of discount allowed on treasury bonds sold? Should it be charged out as part of fixed charges during length of time bonds run, or charged out direct to profit and loss, so much each year?
Answer. — The proper charge to dispose of discount on bonds sold would be Construction and Equipment Account N — Interest and Discount. According to the classification of the construction and equipment accounts and the instructions governing same, the total amount should be charged direct to Account N — Interest and Discount. If the charge was treated as a part of fixed charges and distributed over the period of time the bonds run, it would have a tendency to mislead as to the actual fixed charges which the company would have to meet and would necessitate the open- ing of a suspense account.
QUESTION NO. 34
Question. — To what account is chargeable wages of solicitor for advertisements in cars?
Answer. — The instructions of the standard system of street rail- way accounting of the association, governing a standard form of report, with reference to treating income from advertising, by a company that conducts the business of selling or renting adver- tising space in its cars instead of leasing the privilege so to do to someone else, should be the net income from this source, after deducting all expenses of conducting the business. Under this instruction the proper charge of the wages of a person engaged in soliciting advertisements in cars would be the expense of con- ducting the advertising business. There is no specific account in the classification of operating expense accounts provided or in- tended for such a charge.
QUESTION NO. 35
Question. — Our agents at sub-stations sell tickets and take care of machinery. To what accounts should we charge their wages?
Answer. — It would appear that the installation of a sub-station and the operation of the necessary machinery installed therein would require the services of sub-station employees, regardless of whether they acted as agents or in any other capacity, or whether they sold tickets or not, and should therefore be classed primarily as sub-station employees. On this theory their wages should be charged to Account No. 10 — Power Plant Wages, and carried under a subsidiary account to show they were sub-station employees and not employees of the central power plant, if such a separation should be desired. If it is desired to make the dis- tribution and charge of the wages of such employees to conform with the diversified work they may perform, the distribution and charge should be made on the basis of the work performed. If a part of their work would be acting as agents and selling tickets, a further distribution of their wages would be to Account No. 19 — Wages of Miscellaneous Car Service Employees. The ques- tioner is referred, for further information, to the committee's re- marks concerning "Account No. 19A — Wages of Station Agents," appearing in the answer to Question No. 27.
QUESTION NO. 36
Question. — Some replies were made last year to an inquiry as to mileage to use in figuring costs. Will the association stand- ardize this point?
Answer. — At the last convention of the association. Question No. 11 was as follows: "Is it customary to use total mileage (i. e., work car, special car, and snow plow, added to regular passenger , car mileage) in figuring income per car-mile and expense per car- mile?" It is assumed that the replies made to Question No. 11 are the replies the questioner refers to, which replies number nineteen in all and are somewhat diversified. The standard car- mile basis to use in figuring costs should be the revenue car-miles run, including passenger, freight, mail and express.
QUESTION NO. 37
Question. — Do> not interurban companies find present classifica- tion of accounts entirely inadequate?
Answer. — Approximately 45 per cent of the membership of this association consists of interurban companies. The association on April 4, 1905, issued Circular No. 35, wherein this committee asked for an expression of opinion from the members of the association to guide the committee in determining whether or not it would be advisable to revise the present classification of accounts. Only 18 per cent of the interurban companies were in favor of having any changes made in the present classification, and the changes suggested applied only to a few accounts. The reasons given for the suggested changes were principally for the purpose of deter- mining the cost of conducting freight and express business. Some interurban companies were not in favor of having any changes at all made in the present classification of accounts; other interurban companies replied that the present classification met their require- ments and was satisfactory. Other interurban companies sub- mitted a subsidiary classification of accounts, subdividing certain accounts of the present classification in order to make them ap- plicable to interurban operation and their own specific conditions.
The present classification of accounts was devised in 1897 for street railways, there being but comparatively few, if any, interurban railways in operation at that time. This committee does not take the position that perfection has been reached in the present classification of accounts, and appreciates the fact that it might be desirable to make some amplifications with a view to enlarging its flexibility so that the operation of an interurban railway, or any other railway, by electricity, will be covered, although it is the judgment of this committee that the present classification, through the medium of a subsidiary classification devised to cover specific- ally the operation of interurban railways, could be made to cover interurban operation satisfactorily. In view of these reasons, the answer to the question propounded is that interurban companies do not find the present classification of accounts entirely inade- quate.
PROPOSED CHANGES Referring to the discussion at the last convention of the asso- ciation with reference to the advisability of changing the present classification of accounts, particularly the amplification of same, with the idea of covering specifically the operation of interurban railways, the committee prepared the following letter, a copy of which was sent to each of the 150 members of the association by the secretary on April 4, 1905, designated as Circular No. 35:
To the Members: Hartford, Conn.. April 4. 1905
At the last convention of the Street Railway Accountants' Association of America, held in St. Louis, October, 1904, the committee on standard classifi-
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cation of accounts were empowered by resolution to revise the present classi- fication of accounts, if it was deemed advisable or advantageous to do so.
There will be a conference between this committee and a similar committee representing the National Association of Railroad Commissioners, and a similar committee representing the Association of American Railway Ac- counting Officers, held in the month of April, 1905. In order to receive an expression of opinion from the members of this association to guide the committee on standard classification of accounts in any action they may de- cide upon at the conference to be held with the committees representing the other two associations, the committee on standard classification of accounts requests the benefit of your views. Kindly answer the questions asked in this letter, supplementing same with any ideas, suggestions or criticisms bearing on the proposition that will enable the committee to understand clearly the view of each company comprising the membership of the Street Railway Accountants' Association of America.
Please give this letter your prompt attention and mail your reply to C. N. Duffy, chairman, 2020 State Street, Chicago, 111., not later than April 15, 1905. Very truly yours,
(Signed) ELMER M. WHITE, Secretary.
QUESTIONS
1. Are you in favor of having any change at all made in the present classification of accounts?
2. If so, what are the specific changes that you recommend?
3. Do you operate an interurban railway? If so, what recommendations would you make as to changing the present classification, with reference specifically to the accounts of an interurban railway?
4. Shoald there be a standard subdivision of the present classification of accounts, Construction and Equipment, as well as operating, especially a standard subdivision of each one of the Operating Expense Accounts of the present classification, with the idea of providing a uniform basis for com- paring same?
5. Do you use any subdivision, of accounts? If so, please forward a copy of same.
Remarks:
There were only thirty-seven replies received by the chairman of the committee, exclusive of one reply mailed twenty-five days after the mailing date specified in the letter, April 15, 1905, and thirteen days after the committee met to take action on the re- plies, this number, thirty-seven, representing less than 25 per cent of the membership.
Of the thirty-seven replies received to the question, "Are you in favor of having any change at all made in the present classifica- tion of accounts?" twenty-two answered "No," twelve answered "Yes," and three were in favor of having the proposition consid- ered without taking a positive stand one way or the other. Sixty per cent, therefore, of the replies received, were against the proposition of changing the classification of accounts, 30 per cent were in favor of it, and 10 per cent were non-committal. Of the twelve who replied "Yes," a large proportion were interurban companies. These companies desired such changes or amplifica- tions as would cover specifically the operation of interurban roads, their suggestions applying to only a few accounts of the present classification, the reasons given for desiring changes being prin- cipally because of the desire to provide for a separation of the cost of conducting passenger, freight and express business.
This proposition, to the minds of the committee, does not ap- pear altogether practical; they question whether or not the result attained will be satisfactory or cover what it is sought to accom- plish, in so far as the use of any classification of accounts is con- cerned. The Interstate Commerce Commission classification of accounts does not attempt to provide for any separation of the expense of conducting passenger business from the expense of conducting freight, mail, or express business, although the earn- ings are separated. It would appear to be more difficult to make such a separation on an interurban road than it would be on a steam road. The proposition of ascertaining the cost of con- ducting a freight, mail, or express business, separate and distinct from a passenger business, could, in the judgment of the commit- tee, be determined independently of any classification of accounts, as the cost of producing power is ascertained and determined by the use of the present classification of accounts, but absolutely in- dependently, in so far as the classification of accounts in them- selves is concerned, as to showing specifically the cost of produc- ing power. In other words, such a proposition is one that is to be considered and treated as a specific proposition, independently of any classification of accounts.
To the question, "Should there be a standard subdivision of the present classification of accounts, construction and equipment, as well as operating?" twenty-five (68 per cent) answered "No," nine (24 per cent) answered "Yes," and three (8 per cent) were non-committal.
The entire committee, with the exception of Mr. Mackay, met in New York on April 27, 1905. devoted a whole day to a careful consideration of the replies received to Circular No. 35, and were unanimously of the opinion that the present classification of ac- counts should not be changed. The suggestions offered were
deemed of insufficient importance to warrant the making of any change; the committee concluded that there should not be a stand- ard subdivision of the present classification of accounts formu- lated, for, outside of the feeling of the members, as evidenced by their replies to the circular letter, the committee thought it ques- tionable as to whether a standard subdivision would answer the requirements, specifically, of different companies operating under different and varying conditions. Furthermore, we were in- fluenced in our decision by the fact that we recognized that each company would prefer to devise such a subdivision as would cover its specific conditions. This is a matter that your committee has presented to the association before.
On April 28, 1905, the committee attended a joint conference in New York with the committee representing the National Asso- ciation of Railway Commissioners, together with Mr. Billings, secretary of the Connecticut Board of Railroad Commissioners; Mr. Campbell, representing Mr. Kochersperger, a member of the Association of American Railway Accounting Officers and comp- troller of the New York, New Haven & Hartford Railroad, a railroad owning and operating a large system of electric roads, and Mr. Brockway. The three gentlemen named were present at the meeting upon the invitation of Mr. Seymour, chairman of the committee representing the National Association of Railway Com- missioners. At the conference, the committee advised the gentle- men of the sending out of Circular No. 35 of this association, of the replies received, and of the position of our committee, as pre- viously stated and explained. The proposition was thoroughly discussed, Mr. Campbell, representing the New York, New Haven & Hartford Railroad, taking quite an active part in the discussion and explaining his ideas on certain questions, together with the conditions of operation of his road and their practices in con- nection therewith, with reference to the use of the standard class- ification of accounts. The gentlemen heartily endorsed and ap- proved of our position, agreed with us in our conclusions, and unanimously decided to recommend to their association that no change in the present classification be made, recognizing, how- ever, the desirability of the amplification of certain accounts of the present classification in order to cover specifically the opera- tion of interurban roads.
The question of the use of electricity by steam railroads was also taken up and discussed, the conclusion being that it would be advisable that this proposition be kept before each association through their respective committees, with the idea of harmonizing the classification of accounts of this association and the Inter- state Commerce Commission classification of accounts and ulti- mately formulate a classification devised to meet the requirements of all interests concerned.
With the idea of keeping the standard system of accounting of this association abreast with the development of the art of elec- tric railroading, in response to the replies to circular No. 35, of those interurban companies who requested such amplification of the present classification of accounts as would cover specifically the operation of interurban roads, pending any future formal action that may be taken with the other associations interested, with respect to formulating a classification of accounts that will satisfactorily meet the requirements of any electric railroad, with the firm conviction that no change in the present classification of accounts should be made, and reiterating all that has been said by your committee with reference to this proposition from their standpoint, we beg leave to submit the following recommenda- tions as to the application of the present classification of accounts to the operation of interurban railways.
If it is desired to separate the charges in the thirty-nine oper- ating expense accounts of the classification, witn the idea of hav- ing such a separation as will determine the cost of conducting passenger, freight, mail or express business separately, the com- mittee suggests the following procedure:
(A). Provide subsidiary accounts for each of the thirty-nine operating expense accounts, designating them respectively pas- senger, freight, mail, express.
(B). Charge to these subsidiary accounts such proportion of the total charges to the classification accounts as will be propor- tionately correct.
In order to determine the correct proportionate charges to the subsidiary accounts, a separation of the charges could be made and classified as follows:
(1). Specific Charges. — These charges should be based on the specific use of tracks, real estate, buildings, cars, miscellaneous equipment, tools or power, and by specific conditions of opera- tion that will permit of or warrant specific charges covering the conduct of the business as between passenger, freight, mail or ex- press.
(2). Proportionate Charges. — These charges should be based on the use of tracks, real estate, buildings, cars, miscellaneous
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equipment, tools or power, and by conditions of operation that are not specific or would not permit of or warrant specific charges covering the conduct of the business as between passenger, freight, mail or express.
The proportionate charges could be distributed on the following bases: (A). By proportionate car mileage for maintenance and transportation expenses, as covered by the twenty-five operating expense accounts, Nos. 1 to 24, both inclusive. (B). By pro- portionate gross earnings for general expenses, as covered by the fourteen operating expense accounts, Nos. 25 to 38, both in- clusive.
Referring to the alphabetical list of items chargeable to oper- ating expense accounts, with reference to the explanations and instructions of the standard system governing same, to bring about a standard method of making charges, the items mentioned below are suggested as being some of those that may enter into the charges of the operating expense accounts of an interurban road, not specifically mentioned in the alphabetical list of items chargeable, that could be grouped under the operating expense accounts designated.
ACCOUNT NO. 1— MAINTENANCE OF TRACK AND ROADWAY
Interlocking system.
signal system.
ACCOUNT NO. 2— MAINTENANCE OF ELECTRIC LINE
Telephone line (telephone line independent of the maintenance and oper- ation of a private telephone system installed and used in lieu of a public telephone service for which a rental would have to be paid, and which should be charged to account No. 32 — (Miscellaneous General Expenses).
ACCOUNT NO. 3— MAINTENANCE OF BUILDINGS AND FIXTURES Freight stations. Passenger stations. Section houses. Sub-station building.
ACCOUNT NO. 4— MAINTENANCE OF STEAM PLANT Turbines.
ACCOUNT NO. 5— MAINTENANCE OF ELECTRIC PLANT
Storage-battery depreciation.
Sub-station apparatus (including oil switches, transformers, rotary con- verters, switchboards and switchboard appliances, etc.)
ACCOUNT NO. 10— POWER-PLANT WAGES Storage-battery tenders. Sub-station employees.
ACCOUNT N0.13.-LUBRICANTS AND WASTE FOR POWER PLANT Charge to this account all expenditures for lubrication of power plant and sub-stations, including oil, grease, waste, rags, etc.
ACCOUNT NO. 14— MISCELLANEOUS SUPPLIES AND EXPENSES OF POWER PLANT Charge to this account all expenditures for operation of power plant and sub-stations, not otherwise provided for.
ACCOUNT NO. 16— SUPERINTENDENCE OF TRANSPORTATION Charge to this account wages of division superintendents, their assistants and aids, road officers, inspectors, despatchers and others employed in superintending transportation.
ACCOUNT NO. 19— WAGES OF MISCELLANEOUS CAR-SERVICE EMPLOYEES
Charge to this account wages of starters, transfer agents, switch tenders, trolley men, trail-car couplers, despatchers, station agents and other car- service employees.
ACCOUNT NO. 22— MISCELLANEOUS CAR-SERVICE EXPENSES Charge to this account all expenditures for secret inspection, transfers and tickets, conductors' books, punches, portable registers, tools for motor- men, employees' barges and uniforms; cost of getting derailed cars on track and removing obstructions and wreckage; miscellaneous expenses of car houses and stations, including fuel, light, water (except water used for car washing), ice and all other car-service expenses not otherwise provided for (exclusive of printing and stationary, which should be charged to account No. 27 — Printing and Stationery).
ACCOUNT NO. 26— SALARIES OF CLERKS Charge to this account the salaries of bookkeepers, cashiers, receivers, paymasters, stenographers, clerks employed in counting cash, tickets and transfers, clerks employed in billing and other clerical work in connection with freight and express, and all other clerks employed in the general office or elsewhere.
Referring to the classification of construction and equipment accounts and the instructions governing charges to same, the items shown below, not specifically mentioned in the instructions governing charges, should be included under the accounts desig- nated.
ACCOUNT D-TRACK AND ROADWAY CONSTRUCTION Interlocking system. Signal system.
ACCOUNT E-ELECTRIC LINE CONSTRUCTION Telephone line (exclusive of a private telephone system installed for use in lieu of a public telephone service for which a rental would have to be paid, and which should be charged to Account O— Miscellaneous).
ACCOUNT G-BUILDINGS AND FIXTURES USED IN OPERATION
OF ROAD
Freight stations. Passenger stations. Section houses. Sub-station buildings.
ACCOUNT O— MISCELLANEOUS Including installation of private telephone system to be used in lieu of a public telephone service for which a rental would have to be paid (ex- clusive of the telephone line installed in connection with electric-line con- struction, which should be charged to Account E — Electric-Line Construc- tion). Respectfully submitted for the committee,
C. N. DUFFY, Chairman.
SUPPLEMENTAL REPORT OF COMMITTEE ON STANDARD CLASSIFICATION OF ACCOUNTS
Your committee on standard classification of accounts beg leave to make the following supplemental report:
After the report of the committee on standard classification of accounts had been completed, the secretary of the association received two questions which he referred to the chairman of the committee to be answered, with the request that the answers be included in the committee's report. As this could not be done, the questions and answers are herewith submitted, numbered respectively 38 and 39.
QUESTION NO. 38
Question. — What would be the proper account to charge desks and other office furniture to?
Answer. — Desks and other office furniture, if an original pur- chase in connection with the construction and equipment of the road, or if an addition to the original number purchased, should be charged to Construction and Equipment Account O — Miscel- laneous. If a replacement or a renewal, the charge should be Operating Expense Account No. 28 — Miscellaneous Office Ex- penses.
QUESTION NO. 39
Question. — A company owning the exclusive street railway franchise and electric lighting franchise is required by the city to place arc lamps at the intersection of its tracks; also at the inters ction of its tracks with steam railroads. To what account should the cost of these lights be charged?
Answer. — As it is evident that the company in question is con- ducting a railway and a lighting business, the installation of the lamps, their maintenance and the current furnished to light them, should be considered a part of the lighting business, the expense carried in the lighting accounts, the railway charged with the service rendered by the lighting department, as any lighting cus- tomer would be charged for similar service, and the cost of the service carried in the railway expenses in Account No. 22 — Mis- cellaneous Car Service Expenses, if the lighting is necessary in the operation of the road; if not necessary in the operation of the road, in Account No. 32 — Miscellaneous General Expenses.
If it is desired to show the cost of the above as a "tax" im- posed upon the company for the exercise of the rights and privi- leges conferred by the exclusive franchise, the cost can be so shown under proper subsidiary accounts.
The net income resulting from conducting the lighting business should appear in the railway accounts under "Miscellaneous In- come," sub-head "Other Miscellaneous Income." This is in ac- cordance with instructions governing "Miscellaneous Income," as follows: "If the company conducts a lighting business as well as a railway business, the net income resulting from the lighting business should appear under "Miscellaneous Income." (See report of committee on a standard form of report for electric rail- ways, made to and approved by the sixth annual convention of the Accountants' Association, Detroit, October, 1902.)
Respectfully submitted for the committee.
C. N. Duffy, Chairman.
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REPORT OF COMMITTEE ON INTERNATIONAL FORM OF
REPORT
Your committee on international form of report, C. N. Duffy, chairman, W. G. Ross and W. B. Brockway, beg leave to make the following report:
The question of an international form of report was taken up early in the year with Ludwig Spangler, direktor der stadtischen Strassenbahnen, IV- 1, Favoritenstr. 9, Vienna, Austria, and copies of our form of report were forwarded with a request that an endeavor should be made by his association and ours to take up this question and endeavor to arrive at a form of report that
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would be international. Mr. Spangler, in replying, forwarded copies of their reports, and replies as follows:
"I received your communication of Jan. 12, and thank you for kind information. In accordance with your wishes, I send you herewith draft of the accounting system used at the present time by the City Railways in Vienna, which is identical with the sys- tem of the International Street and Interurban Railway Asso- ciation, with headquarters in Brussels, and is only amended to suit our purposes. The system issued by this international associa- tion, together with monthly report which forms the basis for statistics, was accepted at the convention at Vienna last year, and was recommended to the members of the association for their use. I place the reports, etc., relative to this matter at your service."
It was felt, however, by your committee that, owing to the difference in languages, distances and time lost in correspondence, that the matter should first be taken up with the associations in Great Britain, with the idea that it would be a simpler and easier matter to get the tramway associations in Great Britain to agree on a standard form of report, and as they are in close touch with the European associations, we could have their co-operation toward getting the European associations to agree with us on this question.
To this end a conference was held in New York on June 14, 1905, between James Dalrymple, manager of the Glasgow Cor- poration Tramways, Glasgow, Scotland, and your committee, to take up the question of formulating an international form of re- port, to bring about its adoption and to> discuss what steps should be taken in order to secure the co-operation of all parties in- terested, in order to accomplish the best results.
Mr. Dalrymple, now the manager of the Glasgow Corporation Tramways, is a chartered accountant, and was the accountant and deputy manager of the company before becoming its man- ager. Mr. Dalrymple formulated the suggested standard form of tramway accounts, presented by him to the convention of the Municipal Tramway Association of Great Britain, held in Glas- gow in 1903. In presenting his report and suggested standard form of tramway accounts to the Glasgow convention, Mr. Dal- rymple stated that he had endeavored to adhere as closely as pos- sible to the standard form which had been adopted by the street railways and steam railroads of America. The suggested stand- ard form of tramway accounts, after certain modifications and changes recommended by the joint committee of the Institute of Municipal Treasurers and Accountants (incorporated) and the Municipal Tramways Association of Great Britain, was approved and adopted as the standard form of the Municipal Tramways Association of Great Britain.
Mr. Dalrymple is very much interested in the proposition of formulating an international form of report that would be world- wide in its application and scope, and in bringing about its adop- tion and use. At the conference he assured your committee that he would do everything in his power to co-operate with us to bring about all that we hoped to accomplish. Mr. Dalrymple's prominence in the street railway world, the fact that he is a char- tered accountant, formulated the suggested standard form of tram- way accounts, and is a member of the executive committee of the Municipal Tramways Association of Great Britain, will enable him to exercise a powerful influence and assistance in the work under- taken by your committee.
The result of our conference was an understanding between Mr. Dalrymple and your committee that he would present the proposition of an international form of report before the con- vention of the Municipal Tramways Association of Great Britain, that he would take up the question with the other tramway asso- ciations, keep us advised of anything that developed in the mat- ter on the other side of the water and work in harmony with your committee.
At the recent convention of the Municipal Tramways Associa- tion of Great Britain, held in London, July 4, 5 and 6, 1905, Mr. Dalrymple was called away from the convention before he had an opportunity of bringing up the question of an international form of report. The matter was brought to the attention of the con- vention, however, by J. M. McElroy, the secretary of the Munici- pal Tramways Association of Great Britain, and by resolution of the convention, referred to the executive committee.
Your committee recognizes and appreciates the fact that formu- lating ain international form of report and bringing about its adoption and use will require the most patient, persistent and un- tiring work on the part of the committee. However, we earnestly hope, with the co-operation and endorsement of this association and the European tramway associations, to establish an interna- tional form of report to the mutual benefit of all interests con- cerned. Respectfully submitted for the committee,
C. N. Duffy, Chairman.
REPORT OF COMMITTEE ATTENDING CONVENTION OF NATIONAL ASSOCIATION OF RAILWAY COM- MISSIONERS, HELD AT BIRMINGHAM, ALABAMA, NOV. 15-16-17, 1904
Your committee to attend convention of National Association of Railway Commissioners, consisting of C. N. Duffy, chairman, W. F. Ham and H. C. Mackay, with W. B. Brockway, alternate, beg leave to report that the entire committee, including Mr. Brockway, who was in Birmingham at the time, attended the convention as representatives of this association. There was nothing special before the convention which affected matters con- cerning the Street Railway Accountants' Association of America other than the report of the committee on the classification of construction and equipment expenses and operating expenses for electric railways. This report was as follows:
"Your committee appointed on classification of operating and construction expenses of electric railways, submits the following report:
"In pursuance of a resolution adopted at the ninth annual con- vention of the National Association of Railroad Commissioners, held in St. Louis, a committee of three, consisting of Hon. Wil- liam O. Seymour, of Connecticut; Hon. Ashley W. Cole, of New York, and Hon. R. S. Kayler, of Ohio, was appointed to prepare a form of classification of the construction and operating expenses of electric railways. This committee had the co-operation of a committee representing the Street Railway Accountants' Asso- ciation of America, and as a result of their labors a standard sys- tem of street railway accounting, covering the classification of operating expense accounts, was adopted at the convention held at Denver, Col, in 1899. This classification has been adopted in several States, including New York, Illinois, Connecticut, Pennsylvania, Virginia, Vermont and Massachusetts. So far as your committee knows, this system has given general satisfac- tion, and we have no suggestions or changes to offer. Yonr committee recommends its adoption by all the States requiring reports from street railway companies, and we also recommend the use of the standard form of report for electric railways adopted by this association at its convention held in Portland, Maine, in July, 1903."
Mr. Ham was a member of this committee of the National Association of Railway Commissioners, having been appointed by the incoming president after the 1903 convention, held at Portland, Maine, at which convention Mr. Ham and Mr. White represented this association.
On behalf of the committee representing this association, I re- ported to the convention what had transpired at the St. Louis convention of the Accountants' Association, with reference to the committee on standard classification of accounts being empow- ered by resolution of the convention to revise the present classifi- cation of accounts, if deemed advisable or advantageous to do so, with the idea of covering specifically the operation of interur- ban railways, and to take up the question of rearranging the classification to cover the operation of roads by steam and elec- tricity, notably the operation of the New York terminals of the New York Central and Pennsylvania companies by electricity; and of the committee being authorized to- meet in conference with a similar committee, representing the National Association of Railway Commissioners and the Association of American Rail- way Accounting Officers, to take up the discussion of the propo- sition in the interests of the three associations.
The National Association of Railway Commissioners, by reso- lution adopted, authorized its committee to meet with the com- mittee representing this association in such a conference. A con- ference was held in New York on April 28, 1905, between the representatives of the three associations named, and the proposi- tion of changing the classification of accounts was fully discussed. It was unanimously decided not to make any changes at present, but it was deemed advisable that the respective committees of each association keep the proposition before them, with the idea of ulti- mately formulating such changes or additions as would take care of the needs of all interests concerned.
The convention extended all courtesies possible to the repre- sentatives of our association, and we were accorded full recog- nition in every way.
The Accountants' Association and Mr. Ham were honored by placing Mr. Ham on the committee on resolutions, as well as by appointing him a member of the committee on classification of expenses for electric railways.
At the close of the Birmingham convention, the three repre- sentatives of the association made the trip by special train with the convention party through the South and Mexico, returning on Dec. 5, 1904, after a three weeks' tour, to St. Louis, the start-
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ing point. The tour afforded the representatives of the association an opportunity of becoming personally and intimately acquainted with the members of the National Association of Railway Com- missioners, their families and guests, thereby strengthening the cordial relations existing between the two associations.
The street railways of Birmingham, New Orleans and the City of Mexico entertained the convention party very handsomely, which redounded to the credit of the street railways named and to the Accountants' Association.
Respectfully submitted for the committee,
C. N. Duffy, Chairman.
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INTERURBAN FARE COLLECTIONS
BY IRWIN FULLERTON, Auditor, Detroit United Railway
"Interurban Tickets, or Fare Collections," has been the subject of a great deal of thought by every operator of interurban lines, and the brightest minds have for years been trained on this sub- ject, devising schemes and tickets by which an absolute check could be made on conductors, so that all the revenue collected by its employees would find its way into the treasury of the com- pany. The ideal system, in my estimation, is the one used in part by our friends, the steam railroads; and they have been work- ing on this same problem for upward of half a century. They have in effect in the larger cities a system whereby a passenger purchases a ticket from an agent, and, before getting to his train, he passes a gateman, who punches his ticket, which indicates that the passenger has used it in that way.
Of course, it is not possible to have all this machinery in con- nection with our electric lines, where the cars stop at cross-roads, street corners, flag stations, and in fact at almost any place where a passenger wishes to board a car.
My experience with interurban fares is to sell as many tickets as possible through agents. My reason for this is that you have an absolute check upon your agent as to the number of tickets sold, and it is much better for one man to handle the revenue than to have it divided among twenty-five or fifty conductors. Another reason is that a conductor can collect his fares more readily by collecting tickets than he can if he has to make change with each passenger. I have been on heavily loaded interurban cars where runs were made into the country for 25 miles, and destination was nearly reached before all the fares were collected — the car in each instance being operated by a good man.
The system of collecting interurban fares in effect on the De- troit United Railway system is briefly outlined as follows:
The general passenger agent is the custodian of all interurban tickets, and supplies of these tickets are sent direct to each car house foreman of the different lines. At the car house we have large cases, divided into thirty-one compartments, so as to keep the tickets for each day of the month separate. In starting out the cars for any one day, the conductors are given a certain num- ber of these tickets, and upon a blank prepared for that purpose, a record is kept of the number and the consecutive numbers of the tickets delivered to each conductor. When the conductor's day's work is completed, the car house foreman credits the con- ■ ductor with the number returned upon the blank above referred to, and this is then forwarded to the auditor's office. The blank is then checked by the accounting department, and the number of tickets used by each ^conductor must be accounted for in his report. In addition to this, the car house foreman reports at the close of each day the number of tickets in stock for that day, and this is also checked in the accounting department, to ascer- tain that every ticket of that day that has been charged to any particular car house has been accounted for, either in the car house foreman's report or in the conductor's returns. In other words, a complete record is at all times kept in the accounting department of the number and the consecutive numbers of all tickets for each day of the month in each car house.
Registers are placed in all interurban cars, and all 5-cent fares, employees' tickets and free transportation are registered. Con- ductors are required to first collect all fares on rear platform of car and then go to front end of car and collect — at all times facing the passenger when collecting and issuing tickets.
The ticket shown in Exhibit 1 is used on one of this company's divisions. It is a tear ticket and printed in two colors: yellow, "good going north only," and blue, "going south only." When this ticket is sold to a passenger it is torn off by the conductor, indicating the stations from and to which the passenger is travel- ing, and the amount of fare paid is indicated in heavy type in the lower left-hand corner of the portion held by the passenger. The part retained by the conductor is forwarded to the auditor's office,
and he ascertains the amount for which the ticket was sold by the small ending figures which appear in the upper corner of the ticket where it is torn off. *
These tickets are consecutively numbered, 'and the day of the month is indicated in the circle at the bottom.
The ticket shown in Exhibit 2 is a duplex ticket used on one of our divisions, and having four different tints or colors, two of which are "good going north only," one for even days of the month and one for odd days of the month; and the other two colors are "good going south only," one for odd and the other for even days of the month. These tickets are all consecutively numbered, and the day of the month is indicated in the circle. A conductor in issuing one of these duplex tickets is required to punch the station from and to which the passenger is traveling, the month in which the ticket is issued, and the amount of fare paid, giving one-half of the duplex to the passenger and return- ing the other half to the auditor's office.
The ticket shown in Exhibit 3 is an exchange duplex ticket. On one of our divisions all agents sell one-way tickets to all sta- tions, arid round-trip tickets to all stations where the round-trip rate is less than single fare each way. They also sell single and round-trip coupon tickets, good over boat lines going north and east from Detroit. The exchange duplex ticket is issued by the conductor to passengers holding a local agent's ticket or a foreign agent's coupon, a trip pass, or special ticket, the conductor taking up the transportation presented by the passenger and issuing an exchange duplex ticket. These exchange duplex tickets are printed in two colors, one "good going north only" and the other "good going south only." The conductor is required to punch out the station from and to which the passenger is going, the day of the month and the form of transportation. The passenger re- tains his half of the exchange ticket, to indicate to what station he has paid his fare. The conductor's half, with the transporta- tion collected, is forwarded to the auditor's office. The feature of this ticket is to avoid, as far as possible, substitution.
The ticket shown in Exhibit 4 is an agents' one-way duplex and round-trip triplex ticket, which is sold at all stations where there are agents on our rapid railway system. These tickets are the regular form of duplex and triplex tickets, except they are printed without date. The agent when issuing them punches out the station to which the passenger desires to go. He also punches out the amount of fare collected, and stamps them on the back with a dating stamp, which indicates the date and station. The one-way coupon can be sold to any station where the fare is 10 cents or more. The round-trip tickets are sold to such stations where round-trip rates are in effect. The round-trip ticket has two coupons, one printed as the "first, or going coupon," and the other "second, or return coupon."
The agent makes daily return of his sales to the auditor, send- ing in the auditor's portion of the tickets sold, and these are checked with the conductors' returns or the passengers' portion of the ticket.
The object of this form of an agent's ticket is its simplicity — only two forms, one-way and round-trip. When a supply of these tickets is issued to any station, before sending same the station to which they are sent is stamped by the general passenger agent
on the ticket where it reads "From Station."
We formerly used coupon and card tickets with the station printed in. This meant a complete set of coupon and card tickets for each station and a multiplicity of forms; but with this system, as we have said before, we have but two forms, and this ticket will soon be in effect on all of our interurban lines.
In addition to the tickets enumerated above, we have a few commutation tickets, to encourage summer travel to summer re- sorts; but these concessions are voluntary on the part of the company. Then we have some school tickets, required by fran- chise regulations for a reduced rate of fare in townships for school children, good only during school hours and on school days.
In the use of the present duplex and tear tickets we do not claim perfection; but our system is the best we have found ap- plicable to our conditions, especially as a means of aiding in- spectors in checking the conductors. The common practice of conductors all over the country is the reissuing of the tickets, whether tear or duplex; but with our different colors — only good going north or south — and with our close inspection, the oppor- tunities offered in this respect have been brought to a minimum. But our system necessitates quite a large clerical force in the ac- counting department for checking and auditing, but the informa- tion furnished and the results obtained are such that our people think the money is well spent for such services.
Note. — It was found impossible to reproduce the tickets (Ex- hibits 1, 2, 3, 4) in time to be printed with this paper. The orig- inals were on exhibition at the meeting.
October 7, 1905.]
STREET RAILWAY JOURNAL.
653
INTERURBAN TICKET ACCOUNTING
BY J. H. PARDEE,
General Manager, Rochester & Eastern Rapid Railway, Canandaigua, N. Y.
A very few years ago the questions involving electric railway ticket accounting were confined simply to one denomination of ticket. In other words, all tickets issued had the same trans- portation value and it was not necessary to use any special methods in the issuance or accounting of them. As electric rail- ways have more nearly approached steam roads in methods of train and traffic operation, it has become obviously advantageous to abolish the 5-cent fare zone and adopt the steam road system of farts based on mileage. With the adoption of that system and the establishment of ticket offices at all the principal stations, single and round trip, excursion and special rate tickets are necessary between each and every other station on the line, and instead of one form of ticket there are hundreds, and the account- ing takes on a more serious aspect. It is almost unnecessary to state that the theory of modern accounting is to record in the simplest and most convenient form such data and computations as will preserve and accurately show a complete history of any financial transaction.
This paper will simply and briefly describe the methods of ticket accounting on one interurban road, and if the facts pre- sented are sufficiently interesting to provoke thought, criticism and discussion, and thus develop simpler, more convenient and better methods, its object will have been attained. The principle of this method is that tickets are considered the same as cash, as currency or silver of different denominations, and every employee handling tickets must either produce the ticket or the cash.
Each kind of ticket, irrespective of stations named thereon, has the same form number, and all tickets of the same form number reading between the same stations are numbered consecutively from 0 to 9999, and then a new series is started by prefixing a
ro™oe-3ooo. TICKET REQUISITION.
Rochester and Eastern Rapid Railway Co.
STATION. _
MR ..AUDITOR.
Please furnish this station with the following tickets:
|
AG , COl |
5NT. MDUCTOR. |
||||
|
On Hand. Com. No. Closing No. |
Form. |
No. Required. |
Delivered. Com. No. Closing No. |
||
Received the above tickets.
Agent. . , Conductor.
. 190.
[Reproduced from original sheet, size 5 ins. x 8 ins.] FIG. 2
TICKET STOCK RECORD. ROCHESTER A EASTERN RAPID RAILWAY COMPANY.
O
£-
^^■y i
[Reproduced from original sheet, size 10 ins. x 12 ins.]
FIG. 1
TICKET REPORT.
ROCHESTER <& EASTERN RAPID RAILWAY COMPANY.
|
At Station. |
Month ot |
. 190 |
|||||||
|
OM HAND 190 |
.» |
HATE. |
|||||||
|
CON. NO. |
cusim ICO. |
||||||||
_, 190_
[Reprinted from original sheet, size 8% ins. x 11 ins.] FIG. 5
654
STREET RAILWAY JOURNAL.
[Vol. XXVI. No. 15.
ROCHESTER & EASTERN RAPID RAILWAY. AGENT'S DAILY CASH REPORT.
|
DATI |
ISO |
|
[Reproduced from original sheet, size S ins. x 5 ins.] FIG. 4
letter of the alphabet, and thus large numbers are avoided. All regular single and round-trip tickets are of regulation card size to fit the ordinary grooves in a regular railway ticket case. Spe- cial coupon and interline tickets are somewhat larger and are hung on pins in the rear part of the ticket case. Mileage books in denominations of ioo miles, 500 miles and 1000 miles are of ordinary form, except smaller than used on steam roads, and are treated the same as tickets. When a supply of tickets is received from the printer, the ticket accountant checks them against the invoice and enters them on a loose leaf ledger in which a page (see Fig. 1) or more is devoted to each form for each station. The date received, commencing number, closing number and total number of tickets received are shown on the debit side and the same data of tickets disbursed shown on the credit side.
Tickets are issued to agents on a requisition (Fig. 2). This requisition is issued by the agent, and shows the form, com- mencing and closing numbers of tickets then on hand and the number wanted. When the tickets are furnished, their commenc-
|
Fobm 0—7 |
THE |
ROCHESTER AND EASTERN RAPID |
RAILWAY COMPANY. |
|||||||||||||||||||||
|
STATIONS |
TIF |
DAILY CLOSING NUMBERS |
Fust Week |
DAILY CLOSING NUMBERS |
SKOMD WtEK |
DAILY |
||||||||||||||||||
|
1 |
2 |
J |
4 |
5 |
6 |
7 |
JOb, |
Amount |
8 |
9 |
10 |
11 |
12 |
13 |
H |
igfc, |
Amount |
15 |
16 |
|||||
|
_ |
||||||||||||||||||||||||
|
» |
||||||||||||||||||||||||
[Reproduced from original sheet, size 13V2 ins. by 16% ins.] FIG. 3
|
RECORD OF TICKET 8A |
i_r» at |
Station, for Month of 190 |
||||||||||||||||||||||||
|
CLOSING NUMBERS |
Third Week |
DAILY CLOSING NUMBERS |
Fourth Wsrk |
MONTHLY REPORT |
REMARKS |
|||||||||||||||||||||
|
17 |
18 |
19 |
20 |
21 |
SULD |
Amount |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
31 |
SOLD |
Amount |
SOLD |
Rate |
Amount |
|||||
[Reproduced from original sheet, size 13% ins. by 16% ins.] FIG. 3 — Continued
October 7, 1905.]
STREET RAILWAY JOURNAL.
655
ing and closing numbers are entered on the requisition, which is sent back with the tickets to the agent for his receipt, and is then returned by him to the ticket accountant for his riles. Efitries for all tickets issued are made on the credit side of the ticket stock ledger, so that for purposes of checking, taking inventory, or ordering, the stock on hand is shown at a glance at any moment.
The agents' accounting is confined chiefly to a cash book and ticket register. The cash book should be ruled, with four col- umns, to enable the agent to keep separate regular ticket sales, baggage check sales, interline ticket sales and chartered car reve- nue. The ticket register (Fig. 3) is a special ruled book having columns to show the different forms of tickets, commencing numbers at beginning of month, daily closing numbers, weekly revenue, total number of tickets sold during month, and monthly revenue for each form.
At the close of each day's business, the closing number of each form of ticket is entered in ticket register and the number of tickets sold ascertained by comparing the present closing num- ber with that of the previous day. After that has been computed, the agent makes an entry on the debit side of the cash book showing the number of tickets sold of each form and the rates, entering the extensions in the proper columns. When this has been done, the remittance for the total amount of the day's busi- ness, as shown by the debit side of the cash book, is made up, and the agent's cash report (Fig. 4), showing the distribution of the receipts, is filled out and corresponding entries made on the credit side of cash book. The month's business is computed in the same manner. The commencing numbers at the first of the month are compared with the closing numbers at the end of the month, and monthly ticket report (Fig. 5) is made out, showing in detail the commencing and closing numbers of tickets on hand.
Monthly ticket reports, accompanied by the ticket requisition for tickets needed, should be sent to ticket accountant not later than the second day after the close of month's business.
Monthly ticket reports are checked against the inventory and ticket stock ledger, and by these methods every ticket is ac- counted for in an easy and simple manner from the time it is re- ceived by the printer to its issuance to a passenger, and the ab- solute record is secured that the company has received the proper amount of cash therefor. The tickets turned in by the conduc- tors in their trip envelopes are counted to ascertain the number of passengers carried, and are inspected to see that all are good for transportation on that particular date. At this point, ticket ac- counting, except for some special purposes mentioned later, ends. It is not necessary to account, at considerable expense, and ascer- tain the number of sold but unused tickets, for all limited tickets expire by their own limitation, and other tickets constitute simply a liability which is unimportant except in the case of the sale of the property, and that has never yet been considered.
Clerical errors will occur, but it is almost impossible for them to remain undetected more than twenty-four hours. The agent can readily prove his work daily, and in thirty minutes an em- ployee of the auditor's office can check up any ticket office at any time.
Another very valuable advantage incident to this system is the ease with which traffic reports can be made up. For instance, the receipts of some particular ticket office may show a decrease for certain days, and a comparative report can be prepared in a few minutes which will show in what particular tickets and between what particular points the decrease arose.
Accounting is reduced to a minimum and all records necessary are preserved simply and in convenient form.
+♦♦
ACCOUNTING WITH FOUR DEPARTMENTS
BY H. M. BEARDSLEY, Sec. and Treas. Elmira Water, Light & Railway Company, Elmira, N. Y.
In presenting a short outline of the methods pursued in my own company, I have in mind about the same idea that the maker of a motion sometimes has in a parliamentary body — that is, to get the question before the house so that it may be discussed, amendments offered, etc., and the whole matter be crystallized and put finally into the best possible form. I hope, therefore, that these notes will bring out comments and amendments which will go further than the paper itself goes in suggesting a simple, compact method of handling the accounts of companies having more than one department. Our system may be of interest, be- cause I believe that to our company belongs the distinction of being the first to combine into one operating company, water, gas, electric light and railroad properties, and in addition to these
four mentioned divisions, I may say that we also operate a rack track and a summer theater as separate departments, both of these, however, being operated through the railroad department, but each one having its own set of accounts and showing its own profit or loss at the end of the year.
When the combined company was first organized and the old companies were wiped out of existence, it was probably but nat- ural that the use of a separate set of books for each department was continued, following out the method of a set for each com- pany. The cash account for each department was kept distinct from that of every other department. Each department had its own stores account, and the whole system was practically the same as when the companies were operated separately.
The present system, of course, retains the distinction between departments, as it is absolutely necessary to know the standing of each department regardless of the other departments, and to know whether or not each particular department is being oper- ated at a profit, and what that percentage of profit is. But the machinery for arriving at this knowledge is quite different to-day from that originally started when the first set of books was dis- covered to be impracticable. Our ledger to-day is a wide book, ruled with four main columns, one each for water, gas electricity and railroad, each main column having the customary ledger rulings for date, description, folio, and debit and credit amounts. Each department also continues the use of a journal. This is now a very small book, and the entries are so summarized that two or three pages per month cover the entire business which has to go through this book. Each department has its own in- voice or sales book, which was formerly carefully journalized be- fore posting at a great expense of time and labor. Postings are now made directly from this invoice book to either the main ledger or the consumers' ledger, as the case may be, and the in- voice book is summarized at the end of the month and the credits are posted directly from this summary to offset the various debits during the month.
The second system inaugurated made use of a distribution jour- nal for each department. This distribution journal is now super- seded by a distribution cash book, in which all checks for pay- ment of goods are entered, and the cash account is credited from the total of this cash book each month, and each operating ex- pense or other account is charged with the total of all entries made in its particular column during the month. This does away with the opening of ledger accounts with the various consignors of goods. This distribution cash book takes the place of the dis- tribution journal and also of the credit side of the old cash book. The debit side of the cash book has remained practically the same through all the changes. As now printed, however, the so-called cash book contains only the cash debit. It is ruled with four main columns, one for each department, each column being sub- divided according to the needs of the department. On gas, elec- tric and water departments there is a column for credits to con- sumer's ledger which are entered each day according to the total of the stubs chopped off by the cashier, who lists each day sep- arately. There is a column for the forfeited discounts in each of these three departments for cash deposits and for sundry credits. In the railroad division there is a column for passenger receipts, receipts from chartered cars, freight, tickets, driving park, theater and sundries.
In addition to the working set, there was formerly another set consisting of journal and ledger only, upon which all of the other work was summarized into the usual balance sheet accounts — that is, under assets; construction, material and supplies on hand, pre- paid taxes and insurance, accounts receivable, bills receivable and cash on hand; then on the other side, under liabilities: capital stock,. bonds, accrued interest, bills payable, accounts payable and surplus. This summarizing was done by taking each department journal and distribution journal and the cash book and summing up all the entries under the above various classifications into one entry on this "company" journal, which was then posted into the ledger and the balance sheet drawn off from this ledger. This outside, or so-called company set, has now been entirely abol- ished, and the entries for capital stock, bonds, accrued interest, bills payable and surplus transferred to the working set.
In taking up the methods of ordering goods, auditing and pay- ing bills, it must be borne in mind that, although we have but one cash account, we are very careful to keep the earnings and oper- ating expenses of the four departments entirely separate and dis- tinct. One of the aids to this end is the adoption of a different color for the stationery of each department, and this is carried through from the original superintendent's requisition for the goods to the check which finally pays for them.
It is not necessary, of course, to describe any of the details of ordering goods and checking the bills and the receipt of the goods, as it differs in no wise from the method which would be
6^6
STREET RAILWAY JOURNAL.
[Vol. XXVI. No. 15.
employed in a one department company, except for those things which we are able to buy from ourselves, and for these things no formal order approved by the general manager is issued, the superintendent's requisitions being sufficient authority for the ob- taining of goods from other departments. For instance, our rail- road department can buy tar for tar walks at the park from the gas department, and the water department can get the picks used by its street gang in laying water mains sharpened and tempered at the blacksmith shop in the car h( use. The goods bought or labor supplied are billed from one department to the other, just as they would be billed to any other person, but, of course, at cost price. This interchange between departments is quite a fea- ture of the company, and always seems to be a great stumbling block to a new bookkeeper. It is very simple, however, when it is once understood, and, as stated above, it simply involves a billing similar to that which would be employed in selling to any outsider. To give other instances of this interchange; the elec- tric department having need to use more horses than the other departments, carries the entire stable account, and men paid by the electric department assume all the care of the horses and do the driving, and the electric department charges the other de- partments for all hauling done at a fixed price per hour. The water department sells water for power to the electric plant and the electric plants sells steam for power to the gas department, and steam for heating the car houses to the railroad department. The railroad department furnishes badges for transportation to the men in the other departments who read meters, inspect ser- vices, etc., at a fixed price per month, and last, but by no means least, the electric department sells to the railroad department its motive power. Monthly bills are rendered for all these services, and except for regular monthly charges, a bill from one depart- ment to another must show the superintendent's order number and be checked ar- carefully as though it came from outside.
In addition to the above class of services which are inter- changed upon a cost basis, there is another class which is for convenience put upon the basis of an equal division into fourths. For all of this class, which includes office rent, some office ex- penses, and some of the salaries, one department pays the bills and charges one-fourth at the end of each month to each of the other departments by bill duly rendered. This account is carried in the water department, and is called "General Office Expense." There is a column for it on the distribution cash book, and the total of this column is divided at the end of each month. There is another account which is carried in the water department which is called a "Departments Account." This covers charges which are to be divided among other departments, but not according to any fixed ratio, and is analyzed carefully at the end of each month, and the other departments are charged with their due pro- portion of the account. "Taxes" is one of the items which is car- ried in this account. We get one tax bill from the city, which is itemized, of course, but we draw a check on the water department to pay these taxes, charge the amount which belongs to the water department strictly, to taxes payable, and the balance of the check goes into the department account. At the end of the month the different amounts chargeable to the gas, electric and railroad de- partments are sifted out and billed and settled for by the other departments.
Our stores and supplies are all kept at one point, and stores account is handled by the water department. There is a special form of requisition for stores, and the checks for payment are drawn on the white checks of the water department. At the end of each month the storekeeper sends in four reports, one for each department, with the value of the stores used duly distributed between the various operating expense accounts. On the water department journal, the report for the water department js en- tered, simply charging the various operating expense accounts and crediting stores: also on the water department journal the other departments are debited with the amount used by them, and stores are credited. On the journals in the other departments the reports are entered up by debiting the various operating ex- pense accounts and crediting the water department the total.
In handling the cash, even after the separate bank account for each department was abandoned, the fiction was kept up for some time, of a separate cash balance in the cashier's hands for each department, and although he might make but one deposit to the bank in a day. say of $2,000, he would figure that he took a cer- tain amount of this from each department and would enter on his book a balance carried forward to the next day for each depart- ment. The system now is much simpler, as he starts in the day with but one amount on hand, he enters on his blotter the various amounts received under each department, carries out a sub-total, foots us the entire receipts, deducts his bank deposit .and carries forward the balance to the next day. We have a page in our blotter for each day, properly ruled and printed, and the keeping
of the cash seems to be at the present time a very simple matter. By means of the system which has here been partially outlined, we are now able to handle the entire business of the company, which has increased 25 per cent or 30 per cent jn the last three or four years, with an expenditure for office help about 40 per cent lower than had been required up to the time the system was in- augurated. There are one or two imperfections which we hope to have eliminated very soon, but on the whole it works very well, and we can commend the prominent features most thoroughly for a small company like ours.
-^*^-
QUESTION BOX OF THE STREET RAILWAY ACCOUNTANTS' ASSOCIATION
QUESTION 1
What is the best method of establishing a "Sinking Fund Ac- count?"
ANSWERS
A sinking fund would be established by a resolution of the board of directors. The sinking fund account would be opened by the ac- counting department. — C. L. S. Tingley, 2d Vice-Pres., The Ameri- can Railways Co.
Deposit at bank each month, in a special account, the propor- tionate monthly amount required for the sinking fund. — S. C. Rogers, And., Youngstown-Sharon Ry. & Lt. Co., Ohio.
If the sinking fund account is not a fixed amount per annum, then it would be better to set aside a fixed percentage of the gross earnings. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Set aside a certain amount of the net profits each year. Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
By setting aside a per cent of gross earnings for depreciation, and a per cent on bonds if for bond redemption. — Montreal Street Railway Co.
It depends upon what the sinking account is for. If it is to take care of extraordinary items of maintenance, a certain amount may be charged to the operating account which would be affected, and this amount set aside for the specific purpose desired. If it is to take care of losses by fire, a certain per cent of the earnings might be taken, or an estimated sum charged to operating and credited to insurance fund. If it is to provide for payments on account of damage to persons or property, it might also be treated in the same way. In all instances it might be well to invest this amount in some interest-bearing securities and allow all accumulations to be credited to it. — H. L. Wilson, Aud., Boston Elevated Ry. Co.
The proper method of establishing a sinking fund account de- pends upon the purpose for which the fund is to be applied. Sink- ing fund or reserve accounts created to distribute equitably during the twelve months of the year, the proper charges account opera- tion, such as "injuries and damages," "legal expenses," "fire in- surance," etc., should be created by charging to the various ac- counts an arbitrary percentage of the gross earnings, each month, and crediting same to the sinking fund or reserve account. If the purpose of the fund is to pay off at maturity outstanding bonds, an amount should be transferred annually from the "surplus account" that will be sufficient to pay in full the indebtedness for which the fund was created. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Buy up your own bonds and save the interest on them ; they can be reissued when money is required from the fund. — F. E. Smith, Aud., Chicago Union Traction Co.
Draw a check for amount desired and deposit same in a separate bank account, charging sinking fund account and credit cash. We assume that sinking fund account must be an available asset as cash or security that can be converted into cash on demand. — H. T. Bunn., Aud., Knoxville Traction Co., Tenn.
To set aside each month in deductions from income an amount for sinking fund account. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
By making a periodical charge against profit and loss. — W. F. Ham.
It seems to me that the sinking fund account connotes the pay- ment of money into a separate account which shall be maintained in cash, and used only for the purpose for which the sinking fund is established. Such funds may be put at interest and should be laid aside from time to time through the profit and loss account. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry, Co., Mass.
By deducting from earnings monthly one-twelfth of the amount cf sinking fund required for the year. This amount should not be included in operating expense, but considered a "Deduction from Earnings," and charged to profit and loss at the end of the year. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
October 7, 1905.]
STREET RAILWAY JOURNAL.
657
In addition to having a sinking fund account in the general ledger, it is desirable to open a separate set of records for the sinking fund account. A separate bank account is advisable, and a book showing the detail of securities held in sinking fund should be kept. — P. S. Young, Comptroller, Public Service Corp. of N. J.
Assuming that the "Sinking Fund Account" referred to is to be a cash reserve or the equivalent of cash, it should be established by setting aside certain amounts at given periods, in order that the amounts so set aside, with the accumulated interest thereon, will equal the amount of the sinking fund that it is intended to establish. The required amount should be credited to "Sinking Fund" and debited to "Reserve for Sinking Fund," proportion- ately, for any specific period, monthly or yearly, preferably monthly. The amounts so proportioned should appear in "In- come Account" as a deduction from "Net Income" under the item "Reserve for Sinking Fund." — C. N. Duffy, Secy, and Audi- tor, Chicago City Ry. Co.. 111.
QUESTION 2
What is the best method for filing cancelled coupons' ANSWERS
Have had scrap books made and each page is intended for bond of same number. The coupons, as fast as paid, are pasted on the page corresponding with the number of the bond, and it is intended when the bonds are paid, to paste each bond on the proper page. The pages in this book are made just the right size for whichever covers the most space, bond or coupons. — H. S. Swift, Secy., The Toledo Ry. & Lt. Co.
Enter in book specially ruled and headed, and numbered con- secutively down the lines from page .to page, giving date of pay- ment under the heading of quarterly, semi-annual, or annual dates of year, as the case may be, using a rubber dating stamp for date of payment. All open spaces will represent unpaid coupons, and at . any time a balance can be taken off in a few minutes. Then file the coupons away in numerical order, say in packages of 100. As de- linquent coupons come in, they can be entered with date of pay- ment, and then placed in the proper numerical package. This makes a very condensed record, and, particularly where many cou- pons are handled, is a great saving of labor and bulky handling over the old method of pasting coupons in books. — P. V. Buring- ton, Secy.-Aud., Columbus Ry. & Lt. Co., Ohio.
Have a scrap-book made with a page for each bond, and a space on each page for each coupon ; then as the coupons are returned by the fiscal agent, paste each coupon in its proper place. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
The best method of filing cancelled coupons is by pasting the coupons in a book which is specially ruled with spaces for each in- dividual numbered coupon. This method shows at all times just what numbered coupons are missing, and of what date. The leaves of these books are generally made of manilla paper, with scrap- book binding. — S. C. Rogers, And., Youngstown-Sharon Ry. & Lt. Co., Ohio.
A complete list of the numbers of all coupons paid should be at- tached to the voucher covering payment, and the cancelled coupons can then be arranged numerically and filed in that manner. — Clar- ence Jones Thomas, Secy., San Antonio Traction Co., Texas.
We have found the most satisfactory method of handling can- celled coupons to be : Pasting them in numerical order in a book made for that purpose and keeping each six month's series to them- selves, or having a separate book of each series, the manner of handling being regulated by the number of coupons in each series to be cared for. They can also be filed similar to the manner usu- ally followed in fiiing cancelled bank checks, keeping a record of the outstanding coupons in each series. This plan would involve less work, but there is a great danger of losing or misplacing the cou- pons, and is not as satisfactory to the trustee, as it requires more work on the part of the trustee in examining the coupons. Fur- thermore, in Missouri we have to present the cancelled coupons to the recorder for cancellation in order to get the mortgage released of record. The latter plan would cause more work and therefore more expense in this connection. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Attach them to a regular coupon book, which you can purchase from any large printing house. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
In filing our cancelled coupons we use a large blank leaf book and paste the coupons on pages of same. The pages are numbered from I to 500 in one book, 501 to 1000 in another, and so on up to the total number of bonds issued. Each page is divided into squares and numbered (if, for instance, the bonds were for 25 years, the squares would number from 1 to 50"). — W. H. Danker- ley, Aud., Utica & Mohawk Valley Ry. Co., N. Y.
In book form, have pages ruled across sectionally so that each
space will contain one coupon. Coupon from bond one should be filed on page one, and coupons from bond two on page two, and so on throughout. When bond is redeemed the coupons on page bear- ing same number would be turned over to the trustee with bonds for destruction. — Montreal Street Railway Co.
We file our cancelled bond coupons in pasteboard boxes holding one thousand (1000) coupons each. Upon receipt of coupons from the trustee, they are arranged in numerical order, and those out- standing are noted by crossing off the corresponding numbers on a blank enclosed in each box, the total number outstanding being checked with the ledger account. Each subsequent lot of coupons being treated in like manner, and when any box is filled, it is certified, sealed, and filed away ready for delivery to the trustees. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
In boxes made to fit the several issues. These boxes should hold numbered cards for each coupon, which cards should be withdrawn when the coupons they represent are inserted. The cards remain- ing in the boxes indicate the numbers outstanding. — F. E. Smith, Aud., Chicago Union Traction Co.
When a bond issue is not over one or two million dollars, would say that the best way of handling cancelled coupons would be to paste them in bound books of manilla paper specially ruled for this purpose, in numerical order, leaving spaces for the missing cou- pons, if any, to be pasted in later. In the case of a larger bond issue, it is perhaps better first to sort the coupons, numerically, in packages of 100 and note the missing numbers, if any, on a sheet of paper attached to package, and hold same with rubber band at- tached until the 100 is completed, when package should be tied with linen thread at each end, winding thread around several times in same manner as tickets are received from printer. When cou- pons are all in, bind packages of 100 coupons up in larger packages of, _say, 1000 coupons, and file in a uniform filing case, with proper information on the outside concerning contents. — J. T. Slocum, Secy, and Treas., International Ry. Co., Buffalo, N. Y.
We have large canvas-bound books made, containing fifty leaves each, each sheet ruled giving spaces just the size of coupons, in which we paste the coupons in numerical order when they are paid. The cover of book is labeled showing particular kind of coupons, also have the top of each page printed with spaces for coupon numbers and date of payment. This method is very satis- factory, as it keeps all coupons in numerical order ; the blank spaces showing number of all coupons not paid. — H. T. Bunn, Aud., Knoxville Traction Co., Tenn.
The best method of filing cancelled coupons is to have a large book in which are glued the coupons in numerical order, using one book for each series of bonds. — C. O. Simpson, Treas., Bir- mingham Ry., Lt. & Power Co., Ala.
Bv pasting them in speciallv ruled and numbered coupon books. — W. F. Ham.
I think the easiest and best way for filing cancelled coupons would be to punch two holes through the top and file them away consecutively by number of bond, and each semi-annual payment by itself. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
It has been the custom of the writer to keep coupons of a certain date in numerical order, and when all have been paid and returned by the bank to send them to the trustee under the mortgage and request that they be destroyed, and a certificate of cremation issued and filed in the office. By this method no valuable space is taken up in the safe and the statement is easily audited. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
A scrap-book with squares printed corresponding in size and number to the cancelled coupons which are pasted thereon in nu- merical order, each page to contain fifty coupons. — E. T. Moore, Secy., Dallas Consolidated Elec. St. Ry. Co., Texas.
We have been pasting cancelled coupons in book provided for that purpose, and find it satisfactory. Where there is not too large a number of coupons, think this is a good method. — W. H. Bur- roughs, Secy, and Treas., Memphis Street Ry. Co.
Coupons should be filed numerically by bond and coupon num- ber in uniform sized boxes, a record being kept of the missing coupons in each box. The book record in which coupons are pasted, while a good one. occupies considerable space and in- volves more labor than the above-mentioned plan. (See exhibit.) — P. S. Young, Comptroller, Public Service Corp. of N. J.
QUESTION 3 /;; cases zvherc same company operates both railway and lighting plants: Equitable division of expenses not directly chargeable to either plant.
ANSWERS
This company divides all expense which cannot be charged di- rect to railways or light on a basis of the output from the power house. This of course is a proper method of distributing the ex-
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STREET RAILWAY JOURNAL.
[Vol. XXVI. No. 15.
pense at the power house, but we use the same percentage for di- visions of other expenses. In some cases it is not correct, but in the total it is not far from right. — H. S. Swift, Secy., The Toledo Railway & Light Co.
The most equitable way of dividing expenses not directly charge- able to either railway or lighting department is to base the division on relative per cent of earnings derived from a year's operaton under similar conditions. — P. V. Burington, Secy,-Aud., Columbus Ry. & Lt. Co., Ohio.
If connected with generating station, proportion on a kw-hour basis; all other, for which specific apportionment is not obvious, on basis of gross receipts. — C. L. S. Tingley, 2d Vice-Pres., The Amer- ican Railways Co.
General expenses not directly chargeable to either railway or lighting plants can be proportioned at the close of each month ac- cording to the gross earnings of each. This plan gives the railway — provided, of course, that its earnings are about equal with the lighting company — the larger proportion of the general expenses during the summer months when its traffic is the heaviest; and the reverse is true of the lighting plant in the winter when its business is the heaviest. The easiest way to accomplish this is to have one or the other pay all of these expenses, and at the close of the month charge the proportionate amounts to the other departments or companies. — S. C. Rogers, Aud., Youngstown-Sharon Ry. & Lt. Co., Ohio.
An equitable division of expenses, seems to me, could be made by basing same on the kilowatt output of plants. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Prorate the expenses in proportion to the gross income from the railway and the light. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
It is customary for us to proportion manufacturing expenses be- tween the railway and light and power department in proportion to the kw-hours generated for each department. In the case of general expense, items which are not chargeable directly to either department are divided in proportion to the gross earnings. — G. W. Brine, Aud., Georgia Ry. & Elec. Co., Atlanta.
We use the gross earnings as the basis. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Divide such expenses according to the proportion of gross earn- ings of the several divisions. If your lighting plant earns 40 per cent, and your railway 60 per cent of the total gross earnings, use these percentages in distributing the expenses. It might be argued that this rule would only apply in general cases, and that several of your officers devoted three-quarters of their time to the weaker division, the percentage used would have to be decided arbitrarily by the person best acquainted with the situation. In the main, how- ever, the rule averages all right, because a loss in one place is usually overcome by a corresponding gain in another. — A. C. Em- merick, Aud., International Ry. Co., Buffalo, N. Y.
Use the proportion that the relative earnings of each department bears to total earnings of both departments. In our case we charge 66 2-3 per cent of such costs to railway department, and 33 1-3 per cent to lighting department, as this is about the proportion of each department's earnings. — H. T. Bunn, Aud., Knoxville Trac- tion Co., Tenn.
As to the division of expense between the lighting and railway departments, they should be divided, using the output for the re- spective departments on a kw-hour basis as a unit. — C. O. Simp- son, Treas., Birmingham Ry., Lt. & Power Co., Ala.
In proportion to gross earnings. — W. F. Ham.
An equal division would be considered fair. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
We have not found in our experience any charge which could not be readily made to either lighting or railway plants. Where one power plant is used, an equitable division of operating and maintenance charges would be made on the basis of station output for railway and lighting purposes. Office expenses and other sim- ilar charges should be divided in the same ratio. — E. T. Moore, Secy., Dallas Consolidated Elec. St. Ry. Co., Texas.
Charge to each plant the proportion the gross earnings of that plant bears to the gross earnings of the whole property. — W. H. Burroughs, Secy and Treas., Memphis Street Ry. Co.
This company operates both a railway, lighting, and gas plant. We make a division of expenses not directly chargeable to either plant in different ways. The expenses of the power plant are di- vided between the railway department and the light and power department in proportion to the percentage of current used by each. In the general expenses, such as office expense, office salaries and taxes, a division is made between the three departments in propor- tion to the amount of income from each department. This, of course, applies to such expenses as are not directly chargeable to either department. — H. Woollcott, Secy., Consolidated Rys., Lt. & Power Co., Wilmington, N. C.
A division proportionate to the gross receipts of each plant is probably as equitable a one as could be devised, care being taken to charge direct to either plant wherever possible. — P. S. Young, Comptroller, Public Service Corp. of N. J.
On the basis of the kw-hour output, apportioned as between the railway and lighting plants. — C. N. Duffy, Secy, and Auditor, Chicago City Ry. Co., 111.
QUESTION 4 Best method of computing car mileage and car hours, in detail.
ANSWERS
Our mileage clerk has the actual mileage or round trips on all lines ; also maps giving the distance in feet from the car houses to every point where cars can be turned or diverted. Our car house despatchers send us each morning the total number of regular round trips, and the route of all cars making special runs. Thus far it is very easy. We, however, sometimes have occasion to place cars on down-town sidings, where they are subject to the order of despatchers, who may send a car on whole or partial trips over several different lines. We have experienced so much difficulty in securing a correct statement of the routes of these cars that we at length compromised by establishing a mileage per hour and using that as a basis for figuring such trips. While this is reasonably ac- curate as far as earnings and operating expense is concerned, it does not give us accurate mileage for each line. — H. S. Swift, Secy., The Toledo Railway & Light Co.
The accounting department should have a table of mileage show- ing each run, from which it can figure mileage from conductor's day card, on which should be noted any short trips. Car hours should be had from the same sorce. A large sheet can be prepared on which each run can be entered from the day card, showing total fares, miles, hours and such other information as may be desired, the total of this sheet being the total for the day. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Car mileage and car hours are figured directly from the trip sheets of the conductors, on which they report the actual operation of each car run during the day, distances, time, etc. — S. C. Rogers, Aud., Youngstown-Sharon Ry. & Lt. Co., Ohio.
Use the time schedule as the basis for car mileage, adding or de- ducting therefrom any variation. Time allowed conductors and motormen will give the best and most accurate basis for car hours. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Provide a book or ruled sheets for each separate line of your system and record daily the car miles and car hours. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
In computing car mileage we use a card which is placed in each "car called a car record. Each conductor in charge of car marks down how many half trips he makes, so that at the end of a day the card shows total number of trips made. On the back of the card is a list of stations numbering from 1 to 36; if a conductor makes, say, five round trips from Utica to Little Falls he marks down ten half trips from No. 1 to No. 36. This card is also used by conductor for marking down his register on taking and leaving car, so that he is not liable to miss setting down number of trips made. The used cards are taken from cars by starter every night and new ones put in their place. By using these cards a daily record of mileage made by each car is obtained, in addition to daily mileage for each route. Each division has a daily time sheet for computing car hours which the conductors and motormen sign for number of hours worked; this is vouched for by the starter and time sheets forwarded to office daily; from these sheets we com- pute our car hours, also pay rolls. — W. H. Dankerley, Aud., Utica & Mohawk Valley Ry. Co., N. Y.
Make daily report showing number of cars operated, trips made, length of route, and time per trip, of each line operated. From this data your total mileage and car hours for each route may be arrived at.— Montreal Street Railway Co.
A simple method is <to add, once or twice a month, the number of trips of each route run. and multiply this by the length of each route for car mileage. For car hours another simple method is to have a record made by car houses of all cars out each hour. This might not be absolutely correct, but it would be approximately so, as a car is liable to be pulled out a few minutes before the hour, and another car is equally liable to come in a few minutes after- ward, but the average would probably be very nearly correct. — H. L. Wilson, Aud., Boston Elevated Ry. Co.
Our mileage and car hours are both primarily computed from the time-tables, which show the number of trips and hours required for each regular run. Daily reports are sent from each station to the office of the superintendent of transportation, giving the extra cars run on each line and the time consumed. From this a report is prepared and forwarded to the accounting department, showing the car hours made by each line. Daily reports are sent to the ac-
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STREET RAILWAY JOURNAL.
659
counting department, from the various stations, showing the par- ticular cars operated upon each run. If there was any break in the operation of the regular schedule, the number of trips, from and to, are*shown, together with all extra trips made. Mileage cards showing the distance between any given points are kept, which fa- cilitate the work. We also keep "individual car mileage cards," and prove the daily mileage by listing individual cars and checking the result with the mileage made by lines. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Car mileage and car hours are computed at the several stations and forwarded to the auditor's office daily,. both items of informa- tion appearing on the auditor's daily and monthly reports. The station clerk is familiar with the length of track and number of trips of each line entering his station. He multiplies miles by trips and makes due allowance for short trips. Car hours are fig- ured from the white time slips turned in by trainmen. Colored time slips represent work on snow plows, work cars, etc. In the audi- tor's department we keep an individual car-mile record, giving mileage on each car per day. — A. C. Smmerick, Aud., International Ry. Co., Buffalo, N. Y.
We have car numbers placed on each conductor's trip report, and when the reports are all in we arrange them so as to get all reports of a certain car together and then we calculate the mileage run by that car for the day. This total we place in our mileage book in a column headed with the name of the division on which the car has operated. Having treated all cars operated in this manner, the mileage bsok will show total miles run by each car, and also total miles run on each division. We carry forward each day the mileage made by individual cars and also mileage of each di- vision. Car hours are computed in the same manner. — H. T. Bunn, Aud., Knoxville Traction Co., Tenn.
'Car mileage can best be arrived at by taking the number of trips on each line, multiplying same by mileage of line, adding the dead mileage, or the mileage from the car house to the point of entry on the line. Car hours can be. arrived at the same by figuring the time of the conductor from trip sheets. — C. O. Simpson, Treas., Bir- mingham Ry., Lt. & Power Co., Ala.
Figure the car mileage and car hours on each standard time- table. Add or cteduct mileage and hours according to the variations from the standard. — W. F. Ham.
The mileage for one round trip on each division must be figured and that mileage multiplied by the number of round trips made each day. In case extra trips are run, the mileage must be figured in the same manner. In case an individual record is kept daily for each car, the clerk in charge of this work can obtain all the infor- mation from the day card. This is also true in the case of car hours, as the schedule and day card shows the number of hours consumed in making the regular number of trips on each run per day plus the number of hours consumed by extra cars on extra trips. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
This company has a transfer station where cars pass and a train sheet is kept. From this the mileage is computed. Car hours are computed from trainmen's register sheets. — E. T. Moore, Secy., Dallas Consolidated Elec. St. Ry. Co., Texas.
Mileage. — We have plan of system showing the mileage of each line for the full round trip, also for round trip to each turnback. The trips made by each car being shown on trip sheet, we can figure the mileage very closely.
Car hours.- — Two ways of ascertaining the hours : First, by mul- tiplying trips made by a car by the schedule time for trip ; second, taking the total time for each car as shown by conductors' and motormen's time report. The latter is the more accurate plan, as it takes in the time a car may be laid over on any point of the lines, which would not be clearly shown on the trip sheets. — W. H. Bur- roughs, Secy, and Treas., Memphis Street Ry. Co.
The method employed by us in getting this information is the use of a 3 x 5 index card giving the car number line, time out and time in, trainman's name, etc., on one side, which is provided on the other side with blanks showing the number of trips between cer- tain points during the day. We, of course, know the mileage be- tween all the points, and when the trainmen fills out this card, computing the mileage is very simple. We then transfer the in- formation from this card to a larger card on which there are thirty-one lines for the days of the month on one side, and col- umns for the different lines across the other side. In this way we get the total mileage for the month on the different lines for each car. It is then very simple to make another recapitulation of the several cars to get the total mileage by lines and the grand total for the month. Samples of these cards are on file with the associa- tion's display of forms. We make the pay rolls from these cards also, and no register is necessary. — E. D. Spruill, Pueblo & Sub- urban Traction & Lt. Co.
A daily statement from each car house of mileage of cars in service and car-hours run on each line, made on proper form, is
a very good method to follow. (See exhibit.) — P. S. Young, Comptroller, Public Service Corp. of N. J.
QUESTION 5 What is the best method of handling employees' transportation — by operating as well as accounting department?
ANSWERS Badges for conductors, motormen, foremen of car houses, inspec- tors, and foremen of track and overhead lines, and regular linemen of lighting department. For all other employees necessary to send out occasionally for above work, issue tickets as required. For all office heads of departments and attachees, issue a stated number of tickets monthly. This may be done by special tickets or regular tickets properly accounted for. — P. V. Burington, Secy.-Aud., Columbus Ry. & Lt. Co., Ohio.
By a special employee's ticket issued by the foreman. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Employees' transportation is in two classes. Regular employees carry card passes and are required to sign signature slips for the conductor, which signature slip is turned into the office and com- pared with the original signature which was taken at the time the pass was issued. This plan enables the company to know what employees are traveling on its cars, between what points, and at what time, and if there is any abuse of the privilege it can be promptly checked. Extra employees are provided (through their superintendents or foremen) with an employee ticket each day, which is good only on the date stamped on the back thereof, and must be signed by the parties using the ticket before being accepted by the conductor. — S. C. Rogers, Aud., Youngstown-Sharon Ry. & Lt. Co., Ohio.
This question belongs in the same class with the much-discussed question of the best method of handling transfers. To employees engaged in the general office, and those having general supervision, we issue coupon pass books good until used. To all other em- ployees are given tickets punched for the day, on which he is re- quired to write his name, time used, and number of car riding on. The color of the tickets is changed each half month. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Badges worn in plain view by employees riding on the cars are preferable to passes, as they cannot be manipulated by conduc- tors. Employees or others riding on badges should be recorded by the conductor on his trip sheet, in a column provided for that purpose. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
Provide employees (other than trainmen) with non-transferable pass coupon books. Separate coupons limited to a particular date, by a marginal punch mark, may be issued to mechanics, laborers, etc., from day to day. — L. A. Bowen, Aud., Savannah Electric Co., Ga.
Issue employees' tickets good only for month in which they are issued. Have each head of department send in weekly list of em- ployees entitled to tickets for the ensuing week. These lists can be verified by time books. Keep a record of the number of tickets issued to each employee with the strip numbers. This will enable you to trace back any one ticket to the employee to whom issued. After tickets have been used they should be counted and de- stroyed.— Montreal Street Railway Co.
By giving employees two tickets for the outward and the inward trip when sent on company's business, and to allow others to pay their fare in the regular way and make a detail statement on blanks furnished for that purpose of the rides taken. This to be approved by their superior officers. — H. L. Wilson, Aud., Boston Elevated Ry. Co.
We have special tickets good on date stamped thereon which are issued to the heads of the various departments, which issue same to employees when sent on the company's matters, stamping date and department on same. In addition to the above, heads of de- partments and others traveling regularly on company's business are furnished either with pass books containing tickets or with badge which must be worn on a uniform cap. Conductors pass the latter and collect tickets from the former. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
To issue tickets to all employees who do not wear uniforms and have the tickets collected and rung up. — F. E. Smith, Aud., Chi- cago Union Traction Co.
We use tickets for all employees and prefer this to any other method, as these tickets are registered and are turned into the ac- counting department each day along with other tickets and trans- fers.— H. T. Bunn, Aud., Knoxville Co., Tenn.
The .handling of employees' transportation by this company is
through the use of employees' tickets, control of which is in the
hands of the superintendent of the railway department. — C. O.
Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
All uniformed employees to ride on badges. Employees not
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STREET RAILWAY JOURNAL.
[Vol. XXVI. No. i;
traveling on business of the company to be provided with sufficient transportation in book form to bring them to and from their work each day. Employees who are obliged to travel on company busi- ness to have unlimited employees' passes in book form. Special passes to be used for isolated trips by employees not having un- limited pass books. — W. F. Ham.
We handle employees' transportation by three methods. Those who have uniforms are passed without further evidence of employ- ment except their complete uniform Other regular employees have a small pass on which there are numbers from one to one hundred, which are punched in order by the conductor, one for each ride. A record of the number of this pass is kept on a small printed blank, one for each trip, and the record of number passed carried in a column on the day card or trip sheet. Records of such passes, to whom and when issued, are kept in the office, and the total rides are kept on the earnings book. Other occasional or temporary em- ployees are given tickets sufficient for their needs. The matter of free transportation, it seems to us, should be handled simply, with- out a great deal of operating or accounting machinery, a suffi- cient amount only of red tape being used to indicate to other pas- sengers on the car or to the office or both that persons who' do so are entitled to ride free. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
In regard to handling employees' transportation, I think that the' original authorization should be made by the operating department and the issue of said transportation to be made by the accounting department, and a strict record kept of same to see that the priv- ilege is not abused. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
We use the Ohmer register, which indicates six classes of fares, among them is a dial for employees. We have an ordinary coupon book for our unlimited passes. We also have what we call a lim- ited employees ticket that is issued numerically to the foremen, in pads of one hundred. This ticket is similar to the ordinary trans- fer ticket, except that the foreman writes the name of the em- ployee on the ticket and punches the day and hour when it expires. We identify the ticket by the foreman's punch mark, also by the number. From an accounting standpoint these tickets are, of course, treated in the same manner as the others. — E. D. Spruill, Pueblo & Suburban Traction & Lt. Co.
By having employees travel on uniform and badges, conduc- tors making record of same. Ununiformed employees should be furnished with tickets having distinguishing feature, same to be given out daily by foreman or other officer. — P. S. Young, Comp- troller, Public Service Corp. of N. J.
QUESTION 6 Is it better practice to keep car, armature and wheel records at the shop or at the office?
ANSWERS
At the shops. — P. V. Burington, Secy.-Aud., Columbus Ry. & Lt. Co., Ohio.
At the shops. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
They would be of more service and easier kept if kept at the office of the general repair shop. — Frank R. Henry, Aud., United Railways Co., of St. Louis, Mo.
Get the data from the shop, but keep the records in the office. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
The shop is the best place. — L. A. Bowen, Aud., Savannah Elec- tric Co., Ga.
At the shop. — Montreal Street Railway Co.
It all depends upon the organization of the company. — H. L. Wilsin, Aud., Boston Elevated Ry. Co.
Prefer to have these records kept at the shop where the superin- tendent of rolling stock can be kept in closer touch with them. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co. . Whenever local conditions warrant, it is better to keep all mat- ters of record in the general office, having the necessary informa- tion sent in at certain stated periods by the men in shops or outside stations. This, perhaps, involves more labor, but it produces better results than the plan of depending on shop men to keep records. — A. C. Emmerick, Aud.. International Ry. Co., Buffalo, N. Y.
I think it better to keep such records at the shop for the reason that the master mechanic will have his information on such records always accessible. — H. T. Bunn, Aud., Knoxville Traction Co., Term.
I think it better to keep car, armature and wheel records at the shops instead of at the office. The office should furnish the shops with the number of miles of each car per day, from which such records as they desire to keep can be made. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
At the office. — W. F. Ham.
We keep such records at the shop, copies being sent to the head of the operating department as requested. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
I think it is preferable to keep car, armature and wheef records at the office, as you are thus enabled to keep in touch with what is going on more accurately than you would be if kept at the shop and a report received only once a month. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
In our opinion, car armature and wheel records belong to the transportation department and should not be kept by the account- ing department in the general office. — E. T. Moore, Secy., Dallas Consolidated Electric St. Ry. Co., Texas.
With large companies a' shop record is preferable. — P. S. Young, Comptroller, Public Service Corp. of N. J.
QUESTION 7
What system do you think best in keeping track of scrap ma- terial?
ANSWERS
Our system does not go into many details. At the end of each month we estimate the amount of scrap on hand which is to be credited to each account, and we charge scrap account with this estimate and credit the proper operating expense. In making sales, the scrap for each account is weighed separately and cred- ited to scrap account. Every few months we take an inventory of our scrap, and an adjustment is made. The errors have never been of such an amount as to affect the 'expense account at the time of this adjustment. I may add that the scrap to be credited to the different accounts is kept separate at our storeroom. — H. S. Swift, Secy., The Toledo Railway & Light Co.
Charge all scrap into the storeroom at the end of each day at arbitrary prices, crediting the proper maintenance account. When scrap is sold, credit storeroom'. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Credit scrap material to the account entitled to credit and charge to material and supplies account. Have found it of great advantage to carry separate accounts for track scrap and shop scrap, dividing shop scrap into cast, steel, malleable and copper. The advantage of doing this is that it makes it easier to adjust the differences between the estimate and the actual amount realized therefrom. — Frank R. Henry, Aud., United Railways Co. of St. Louis, Mo.
Provide bins for the different kinds of scrap, and keep a record showing where the scrap material came from, and when it is sold credit the proceeds to the account from which the scrap was re- ceived; as, for example, scrap brake-shoes should be credited to account 6, while old armature coils should be credited to account 7. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
All scrap material is turned over to the stockkeeper, who makes out credit stock slips covering same, and this is charged to the stock account at the prevailing price of scrap, and credited to the proper maintenance or construction account at the time, fn case of differences between the price received and price at which it was taken into stock, the difference is charged or credited to the proper maintenance or construction account. We thought it much easier to take the scrap material in stock in this way at the time, as otherwise if allowed to accumulate and then sold, it is simply a matter of guesswork as to the proper accounts to be credited. — G. W. Brine, Aud.. Georgia Ry. & Elec. Co., Atlanta.
Issue triplicate scrap receipt forms, one to remain with depart- ment sending scrap to storekeeper, one to go with scrap to store- keeper, and one to go to accounting department, where an ac- count should be kept with different classes of scrap material, each class to receive credit as scrap is sold. Balances should be checked up from time to time by scrap inventory from stores. — Montreal Street Railway Co.
So far as possible have material at regular intervals sent to some central point. With every shipment have a duplicate mani- fest showing the amount sent, one copy of which is to be re- tained by the person receiving the scrap and the other receipted and returned to the place from which sent. This will prevent loss of material while in transit. — H. L. Wilson, Aud., Boston Elevated Ry. Co.
All scrap material is returned daily to the storekeeper, who re- ceipts for same in duplicate, one copy being sent to the head of department from whom the scrap is received, thus enabling him to check quantity and distribution of accounts credited, the other going to the accounting department. By this method the ac- counts receive credit for the scrap at market value when same is removed. When material is sold it is simply a credit to stock and does not disturb the operating comparisons. — H. C. Mackay. Comp., The Milwaukee Elec. Ry. & Lt. Co.
When scrap is sold or used in the shops we credit it to "scrap
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account," and at the end of the year throw this into a "reserve betterment account," which is used for the purpose of making small additions or betterments not properly chargeable to main- tenance, yet hardly worth while charging to the capital accounts. Of course, the net result is that construction gets the benefit of scrap and is not charged therefor. — A. C. Emmerick, Aud., Inter- national Ry. Co., Buffalo, N. Y.
Have your storekeeper collect all scrap at least once a month and make sales so that the credit can be applied to proper ac- counts before you have lost track of where the scrap came from. — H. T. Bunn, Aud., Knoxville Traction Co., Tenn.
Scrap material should be under the supervision of the master mechanic, and bins should be provided to keep the classes of materials separated. It is advisable that scrap material be sold as often as possible, which will keep the yards and shop grounds cleaned up, as well as permit credits to be more nearly in the proper month. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
By putting all scrap material under lock and key in the care of an honest man. — W. F. Ham.
Scrap material should be kept in bins built for that purpose and disposed of each month, so that the operating account will receive the benefit of the credit. In case the material is not sold, the amount should be estimated and adjusted when the credit is received. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
Where the amount of scrap is of importance, for example, scrap rail taken up on a particular job, it should be charged to sup- plies and the proper account on that job credited. Small amounts of scrap which come from armatures or trucks can be sold for cash and proper account credited each month. — E. T. Moore, Secy., Dallas Consolidated Elec. St. Ry. Co., Texas.
A monthly report of scrap on hand for sale should be furnished the general office. Bids should be obtained and office representa- tive should be present at delivery. Reports of material sold, prices, etc., should be furnished on printed forms. (See ex- hibits.)— P. S. Young, Comptroller, Public Service Corp. of N. J.
When practicable, the best system is to carry scrap material in stock account with each lot designated by a lot number, debiting stock account on the books and crediting the accounts entitled to the credit of the value of the scrap. — C. N. Duffy, Secy, and Auditor, Chicago City Ry. Co., 111.
QUESTION 8
What is the best method of destroying used tickets after an ac- counting has been made?
ANSWERS
We are particular in the destruction of tickets. Each day, as soon as the tickets audited have been rechecked, they are all put through a ticket destroyer and tied up in paper bags. Once a week they are hauled to our power house and burned in the fur- naces. A careful investigation of the burning of tickets would indicate that there is no possibility of tickets coming through the furnaces without being scorched, when burned in reasonable quantities. And we should consider the cutting as an unneces- sary precaution, were it not for the fact that while the tickets accumulate they are Accessible to quite a number of employees. In addition, there is always danger of their being tampered with while en route to the power house and during the time that they are being burned. — H. S. Swift, Secy., The Toledo Railway & Light Co.
Every railway office building should be provided with a fur- nace crematory and a canceled ticket storage room. Ten days after tickets are counted and audited is a sufficient time to hold same on account of any question of average or shortage before sending them to the crematory. — P. V. Burington, Secy. -Aud.. Columbus Ry. & Lt. Co., Ohio.
A pulp machine. If the company is not large enough to war- rant the investment, the ticket company will doubtless grind them for you. — C. L. S. Tingley, 2d Vice-Pres., The American Rail- ways Co.
As soon as used tickets have been handled by the accounting department, they are destroyed by machine, and later the chopped tickets are burned. — S. C. Rogers, Aud., Youngstown-Sharon Ry. & Lt. Co., Ohio.
A cutting machine can be used to good advantage. — Clarence Jones Thomas, Secy., San Antonio Traction Co., Texas.
Burn them. — Frank R. Henry, Aud., United Railways Co. of St. Louis, Mo.
Tear the tickets in two or more pieces as soon as they are counted and then burn them, unless you have great quantities, when it will pay to purchase a machine made for that purpose, which grinds the tickets into small pieces and they can be dis-
posed of as waste paper. — Frank J. Duffy, Secy., Beaumont Trac- tion Co., Texas.
Burn them from day to day. — L. A. Bowen, Aud., Savannah Electric Co., Ga.
We use a Globe ticket destroying machine. — G. W. Brine, Aud., Georgia Ry. & Elec. Co., Atlanta.
Burn them. — Montreal Street Railway Co.
Use a ticket chopping machine and sell the refuse. — H. L. Wil- son, Aud., Boston levated Ry. Co.
We are burning tickets under the boilers of one of our power plants. This method, however, has many disadvantages, and we are trying to devise or purchase a machine which will enable us to dump the tickets in a hopper, which should lock, and with- out further -attention other than the turning on or off of the power, grind up the tickets and transfers, after which they could be sold and thus reduce the cost of operation and maintenance of the ticket destroyer. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Run them through a machine that will effectually mutilate them and then burn. — F. E. Smith, Aud., Chicago Union Traction Co.
We have abandoned the use of a ticket chopper and now seal the used tickets in paper flour bags and place them in a small rcom to which only two persons have access. When the accu- mulation amounts to a carload, the bags are taken to the shops and burned in the presence of two employees. — A. C. Emmerick, Aud., International Ry. Co., Buffalo, N. Y.
Burn them in your boiler room in presence of a responsible party. — H. Woollcott, Secy., Knoxville Traction Co., Tenn.
Tickets and transfers of this company, after leaving the ac- counting department, are burned; special care is given to the total destruction of same by a reliable employee. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
By burning. — W. F. Ham.
Our few tickets we put through a rotary ticket cancelling ma- chine, then burn the refuse. We also insist that conductors shall cancel tickets. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
The best method of destroying tickets is to run them through the cutting machine, which chops them into small pieces and leaves little chance for used tickets getting into employees' hands. Burning is not at all satisfactory, as the writer has found from time to time tickets which were supposed to have been destroyed and which were found only partly burned. The method adopted by the writer is to run all tickets through the chopping machine and then through a blower into the boiler. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
It is the practice to burn used tickets and transfers. We think, however, a chopping machine would be better and safer. — E. T. Moore, Secy., Dallas Consolidated Elec. St. Ry. Co., Texas.
We find it easier and safer to burn them. — W. H. Burroughs, Secy, and Treas., Memphis Street Ry. Co.
This company has tried several methods of destroying tickets, and has found that the best method is the use of a patent ticket chopper operated by an electric motor. As soon as the clerk is through counting the tickets they are immediately taken to the ticket chopper and destroyed. We never allow the old tickets to accumulate. — H. Woollcott, Secy., Consolidated Rys., Lt. & Power Co., Wilmington, N. C. U
This company has, in the past, disposed of used tickets and transfers to a box factory. This plan has been satisfactory up to the present time, when, the offices having been moved at a distance from factory, the cost of hauling proves a considerable expense. — P. S. Young, Comptroller, Public Service Corp. of N. J.
For many years the problem of destroying tickets occupied our thoughts and we tried several methods and machines with more or less success. About six or seven years ago, however, I de- vised an apparatus which has been in constant use and has given the utmost satisfaction. I had our engineer construct in the base- ment of our building adjacent to the furnace used for heating the building and using the same flue, a small brick enclosure about 5 ft. square with a large iron door in front. In this enclosure was placed a cylinder made of extra heavy steel wire with ^-in. mesh, but so constructed as to allow a portion to open and receive the bags of tickets. The cylinder revolves on a short axle at each end. one axle, however, being extended to project through the brick wall and to which is attached a crank for revolving the cyl- inder. Under the cylinder, and running its whole length, is a JA-in. gas pipe with numerous openings. When the ticket count- ing clerks are through counting, their individual counts are placed in small bags and taken to the cashier's office, where they are weighed and the count thus checked. Then they are enclosed in large flour sacks and sealed, after which he takes them down to the destroyer, where they are placed in the cylinder, which is immediately locked. The gas is ignited and the outer door of the
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brick enclosure closed and locked with spring locks, the keys of both locks never leaving the hands of the cashier. The gas is left burning long enough (about fifteen minutes) to merely ignite the tickets, when the office boy is sent down to turn out the gas and revolve the cylinder. It has been found advantageous to place a small piece of bar iron in the cylinder. When the latter is re- volved, this falls, breaking the mass of tickets and exposing fresh surfaces to the flames and knocking the burnt paper in pieces and driving it through the meshes into the ash trays below. The capacity of the furnace just described is about 175,000 tickets com- pletely destroyed in two hours. You will thus see, I think, that we have in our own building a secure, clean and expeditious method requiring no supervision whatever, and but a moment or two of the cashier's time. — J. M. Smith, Comptroller, The To- ronto Ry. Co.. Canada.
QUESTION 9 What are the methods used by interurban roads in the account- ing of cash fares paid on the car? If registers are used, how many classes of fares have you, and do you register tickets accord- ing to their value?
ANSWERS
Duplex tickets for all fares over five cents. The conductor must turn in 5 cents or a duplex stub for each ring on the cash side of his register unless Ohmer register is used, when the amount of each fare is shown on register. As high as eight classes of fares ; and tickets are not registered according to their value except where Ohmer register is used. As stated above, the conductor must turn in 5 cents or a duplex stub for each ring on the cash side, and a ticket for each ring on the ticket side; that is to say, the register represents passengers and not amount of fares. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Ohmer register indicating six classes of fare, supplemented by cash-fare receipts for all fares over 5 cents. All tickets registered according to their value. — S. C. Rogers, Aud., Youngstown-Sharon Ry. & Lt. Co., Ohio.
Some roads use cash-fare slips, while others use Ohmer regis- ters, which seem to be satisfactory for interurban lines, as they register several different classes of tickets (according to their value) and also different classes of cash fares. — Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
Our interurban road, running between Everett and Snohomish, a distance of about 10 miles, registers fares varying from 5 cents single fare to 40 cents round trip, on a single straight register, the value of tickets not being considered. Regular single-trip tickets and round-trip tickets are sold by city conductors and at inter- urban station. For tickets bought on interurban car, the conduc- tor issues cash-fare receipt, on which he punches the stations be- tween which the passenger rides, and amount of fare paid, also the date, one copy being turned into the office with his statement for the trip and the other given to the passenger. — Everett Ry., Lt. & Water Co., Washington.
Issue fare receipts to passengers. We do not use registers, but collect tickets in boxes. — Montreal Street Railway Co.
We use no registers on our interurban lines. Cash fare receipts are issued for both one way and round trip and settlements made with conductors according to the stubs on the books, which con- tain one hundred consecutively numbered tickets. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
We use two registers in interurban cars : one (white) is for full cash fares and tickets, and the other (red or brown) for transfers and half fares. At the city line both registers are turned back to zero so that we may keep a record of city passengers. When a passenger boards at an interurban point and offers a cash fare, the conductor accepts same and issues a duplex, both halves of which are punched at the same time, showing date, destination, and cash paid. The conductor gives one-half to passenger as a receipt and returns the other half to the auditor. These returns are tallied against the consecutive numbers in a book printed for that purpose, so that each duplex issued must be accounted for. — A. C. Em- merick, And., International Ry. Co., Buffalo, N. Y.
Use register and register all fares, both cash and tickets, accord- ing to their values. — H. S. Bunn, Aud., Knoxville Traction Co., Tenn.
The method of collection of fares on interurban lines of this company is to collect the full amount of fare from one point to destination. For instance, if a 15-cent fare is collected, two tickets are given by the conductor, the value of which is five cents each, and 5 cents rung up on the register. When he gets to a certain point, that is, to the 5-cent limit, he goes through his car and makes another collection, counting the tickets the same as a cash fare. These tickets are originally charged to the conductor at the rate of 5 cents each. He can return them and get new ones when they wear out. If they are not returned, or if he should get some other
conductor's tickets, he pays the difference, or is paid for the col- lected tickets other than those given out by himself. — C. O. Simp- son, Treas., Birmingham Ry., Lt. & Power Co., Ala.
We use the Ohmer fare register for accounting for the cash fares paid on the cars. We also register tickets, but not according to their value. The value of the tickets is accounted for after they are turned in the office. The different classes of fares shown on the registers on our suburban line are as follows : "Tickets, passes, transfers," and cash fares, divided into 5, 10 and 15-cent amounts. — H. Woollcott, Secy., Consolidated Rys., Lt. & Power Co., Wilmington, N. C.
We collect the full fare for the entire distance the passenger de- sires -to ride and give him in return a simple fare receipt from which the coupon has been detached to be returned to the office for audit, the consecutive number being the same on both fare receipt and coupon. This fare receipt is then rung on one side of a double register, and the 5-cent cash and ticket fares are rung up on the other side. We do not register tickets according to their value, but as the coupon turned in to the office is so arranged that it must show the value of the fare receipt sold, there must be collusion between the conductor and the passenger in order that the com- pany shall be cheated, excepting, of course, the always present pro- vision that if a passenger does not pay, or a conductor fails to register or issue a fare receipt for payment, the company is bound to be cheated. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
In all cases where cash fares are paid on interurban lines of this company the same are registered on the cash register on each col- lection. We have only one class of fare ; tickets and transfers of all values are registered on the ticket and transfer register. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
QUESTION 10
On roads where single and round trip tickets are sold, is it the practice to carry indefinitely the value of the return coupon (not good after thirty days) in the ticket sale account, or are the values transferred to profit and loss at set periods?
ANSWERS
The value of tickets which remain outstanding over thirty days is usually so small that the bookkeeping involved in keeping track of them individually to show that they are overdue will cost more than the amount involved; besides, the tickets yiay be pre- sented for redemption, when they should be redeemed by refund- ing the difference between full one-way fare and the price of the ticket. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Transfer unused tickets, where the limit has expired, to an ac- count "Expired Tickets," and at the end of your fiscal year trans- fer this account to profit and loss. — Frank J. Duffy, Secy., Beau- mont Traction Co., Texas.
Our return portion of ticket is good until used, hence it is car- ried in ticket account until collected. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Excepting in cases of limited excursions, all of our tickets are good until used, but it would seem perfectly legitimate to give your income the benefit of all coupons upon which time limit had expired. Since there is no liability, none should be shown on the books.- — A. C. Emmerick, Aud., International Ry. Co., Buffalo, N. Y.
We have never used round-trip tickets, but I would consider it advisable to credit same to a ticket account, and, when lifted by the respective lines, charge the ticket account and credit earnings on that line with the amount of business they carried. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
The ticket account is carried on the ledger as a liability until the amount is large enough to reduce by a profit and loss entry, which should be done at least once in three or four years. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
As there is a certain percentage of purchased tickets which are never presented, representing tickets lost or destroyed by pur- chaser, it seems proper to close yearly to profit and loss a per- centage of the values outstanding based on an estimate of tickets so lost and destroyed. — P. S. Young, Comptroller, Public Service Corp. of N. J.
QUESTION I!
Where a company is obliged to sell round trip and other tickets, through conductors on the cars, what system is employed to keep account of tickets supplied to conductors? How often is their stock of tickets checked up? And, is a deposit required from con- ductors to protect company against loss?
ANSWERS Require each conductor to make a cash deposit with the com- pany, and require him to keep a certain amount of tickets at all
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times, which can only be done by checking the conductors fre- quently.— Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
A memorandum account is kept with each conductor to whom tickets are supplied, giving serial numbers and style of ticket. Their stock is checked up whenever they call for tickets, not issuing more than fifty tickets to a city conductor, which will last from one week to one month, and to an interurban conductor in bunches of from 300 to 500. We do not require a deposit from the conductors for these tickets. — Everett Ry., Lt. & Water Co., Washington.
We issue books of tickets to the conductors, through the sta- tion clerks, who charge the conductors with them, noting the be- ginning and ending numbers. All unsold tickets are turned in by the conductors at the completion of their day's work, together with the money collected. Both the ticket books and cash are forwarded to the accounting departments the following morning, where they are audited, and unsold tickets are returned to the station to be reissued, another outfit being issued to the conductor for the following day's work. By this method the stock of tickets is checked every day. We require a deposit of $25 from all train- men.— H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
We invoice the tickets to the station-masters, who in turn sell them in consecutive order to the conductors. The conductors are supplied with a certain number of tickets and are expected to re- plenish their stock daily when they turn in their day's receipts, at which time they are checked in by the station-master. About once a month a representative of the auditor's department checks the conductors and the station-masters. A deposit of $25 is re- quired from all conductors, and those on interurban lines are also bonded by a surety company, as they carry a stock of tickets amounting to nearly $100. — A. C. Emmerick, Aud., International Ry. Co., Buffalo, N. Y.
This company does not sell round-trip tickets, or, in fact, any tickets on the cars, but in the opinion of the writer, the only way to handle this business is to make the conductors pay for the tickets taken. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
We sell round-trip tickets through conductors, and also through ticket agents who sell the tickets on the cars. The conductors and agents are made to balance up their accounts each day. This is done in the following manner: The conductors and agents are required when their tickets are given them, to sign a receipt for them on a sheet provided for that purpose. -At the end of the day's business they turn in the cash collected and all unsold tickets, dropping them in a safe in the office. The next day they receipt again for a new lot of tickets, and in the meantime their previous day's business is gone over and balanced up by a clerk in the office. In this way any shortage is immediately detected. — H. Woollcott, Secy., Consolidated Rys., Lt. & Power Co., Wil- mington, N. C.
(a) The tickets should be charged by the receiver or other representative handing them to the conductor, against each con- ductor, and a settlement made each day. (b) Daily settlement, (c) No. — P. S. Young, Comptroller, Public Service Corp. of N. J.
QUESTION 12
On an interurban line with collections made on zone plan. How to obtain traffic statistics? — for instance, a road of 21 miles has six separate 5c. fare collections, how to ascertain the actual number of passengers carried through from one terminal to the other, or between stations.
ANSWERS
Do not consider it practical to ascertain correct traffic statis- tics when separate collections are made. Consider it better to accept and receipt to passenger for the total fare to destination. By this method accurate statistics of traffic can be readily ascer- tained.— H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Where it is desired that a record of the number of passengers carried should be kept, where there are six kinds of tickets used, it seems to me that the best plan possible would be to put in an additional register, requiring the conductors to register the num- ber of passengers only, in order to get this information, but there is a question in my mind as to whether it is worth the expense. — C. O. Simpson, Treas., Birmingham Ry., Lt. & Power Co., Ala.
Do not believe that the desired information can be obtained in collections by the zone plan, and if it is of sufficient importance, would advise a single system fare receipt plan. A neighboring road has an excellent system by which it divides the back of its day card into divisions according to fare collections, and the conductor puts in each division the number of fares of each kind collected in that division on each trip. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
In the case where collections are made on the zone plan, it is
customary for this company to consider everyone who pays a 5-cent fare on each collection a passenger. It is impossible to ascertain the actual number of passengers carried through from one terminal to the other, but you can tell the number carried between the stations. The only method which can be adopted to obtain this result is to sell through tickets, and by this method you will get the approximate number of through passengers. In a great many cases passengers do not buy tickets, but prefer to pay their fare on each collection. — J. W. Lester, Treas., Worces- ter Consolidated St. Ry. Co.
QUESTION 13 When a weekly pay roll does not end with the calendar month, what is the best way to separate it for a change?
ANSWERS
We handle our weekly pay rolls in the following manner: Pay- ing from 1st to 7th, 8th to 14th, 15th to 21st, and the 22d to the last day of the month. This is not properly a weekly pay roll, but it is satisfactory to our employees. — H. S. Swift, Secy., The Toledo Railway & Light Co.
Division on the basis of days for each total item of classifica- tion is approximately as near an equitable division as can be had. — P. V. Burington, Secy.-Aud., Columbus Ry. & Lt. Co., Ohio.
We pay twice a month, roll closing on the 15th and last days. — C. L. S. Tingley, 2d Vice-Pres., The American Railways Co.
Should a weekly pay roll not end with the calendar month there should be no difficulty in separating it for charges. Time should be kept so that a classification of each day can be readily had; then enter charges upon books by charging expense accounts and crediting wages due. — Clarence Jones Thomas, Secy., San Antonio Traction Co., Texas.
Our pay rolls have always ended with the calendar month, but it would occur to me that the motormen and conductors' wages for the lap-over days could be arrived at very accurately by tak- ing the total time allowed for the lap-over days and multiplying same by the rate of pay, or the average rate of pay. For the other portion of the pay roll a percentage basis could be used from month to month. If at the end of the fiscal year's period it was desired to get the year's business as accurately as possible, the time for the accrued days could be figured accurately. — Frank R. Henry, Aud., United Railways Co. of St. Louis, Mo.
Figure the exact amount that belongs to the calendar month and separate the remainder from your monthly operating ex- penses by a journal entry. Weekly pay rolls cause much in- creased work and are not as satisfactory as semi-monthly. — -Frank J. Duffy, Secy., Beaumont Traction Co., Texas.
We do not endeavor to separate the weekly pay roll when it laps over into the succeeding month, except at the end of the fiscal year. If the weekly pay roll is paid on the 2d or 3d of the month, it is entered in that month. This, of course, makes the monthly statements slightly incorrect for this reason, but the percentage would be so small compared to the total expenses that we do not consider it worth while making separation except at the end of the fiscal year. — G: W. Brine, Aud., Georgia Ry. & Elec. Co., Atlanta.
To avoid having pay rolls that do not end with the calendar month, they are made up in the following manner (take month of January for example): Pay roll ending Jan. 7 is paid Jan. 11, pay roll ending Jan. 14 is paid Jan. 18, pay roll ending Jan. 21 is paid Jan. 25, pay roll ending Jan. 31 is paid Feb. 4, so that our pay rolls are always paid on the 4th, nth, 18th and 25th of each month, unless these days come on Sunday or holiday, when we pay either day previous or day following, as is most convenient. The employees are thus paid weekly, with the exception of the last portion of the month, which may be 7, 8, 9 or 10 days, re- spectively, according to number of days in month. — W. H. Dan- kerley, Aud., Utica & Mohawk Valley Ry. Co., N. Y.
Divide it actually. — H. L. Wilson, Aud., Boston Elevated Ry. Co.
Would say that the only accurate method would be to make two distributions covering separately the .time spent in each month. — H. C. Mackay, Comp., The Milwaukee Elec. Ry. & Lt. Co.
Divide the weekly pay roll into sevenths and charge the frac- tions to the different months. — A. C. Emmerick, Aud., Inter- national Ry. Co., Buffalo, N. Y.
Calculate the portion of such pay roll to and including the last day of the month and make charge to proper accounts for that portion, then charge remainder to a suspense account and take it out by journal entry during following month. — H. T. Bunn, Aud., Knoxville Traction Co., Tenn.
When the weekly pay roll does not end with the calendar month, a method to separate same for a charge in its respective
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[Vol. XXVI. No. 15.
months, with the least possible work or accounting, would be, for instance, if the roll should end on the 3d of August, making three days in August and four in July, a journal entry should be made when the roll is taken into account in July, charging sus- pense with three-sevenths of the total amount of the roll, or, if it is preferred, with the actual amount for the three days, and crediting July operating expense accounts as designated by roll. In August, journal entry should be made charging operating ex- pense and crediting suspense, referring to the previous entry. — C. O. Simpson. Treas., Birmingham Ry., Lt. & Power Co., Ala.
Charge to each calendar month actual wages of trainmen, so that the charge for motormen and conductors will be absolutely correct. Balance of the roll to be divided in proportion to the number of days that fall within each calendar month. — W. F. Ham.
We adopted the primitive method of extending the pay roll to the various accounts on the cash book. The proportion (so many sevenths) belonging in the next month or the month previous is carried as audited wages and journalized through the various extensions. — Robert N. Wallis, Treas., Fitchburg & Leominster St. Ry. Co., Mass.
When a weekly pay roll does not end with the calendar month, it is customary to deduct one-seventh, two-sevenths or three - sevenths from that pay roll and charge it up to the next month. — J. W. Lester, Treas., Worcester Consolidated St. Ry. Co.
When a weekly pay roll does not end with the calendar month, the proper way to handle it is by days, assuming that pay rolls are journalized; otherwise it will be necessary to have two pay rolls for the same week. — E. T. Moore, Secy., Dallas Consoli- dated Elec. St. Ry. Co., Texas.
Charges can be divided by separating amounts applicable to each month on pay rolls. The practice of dividing the total charges on the weekly pay roll between the two months on the basis of the number of days on the pay roll in each month is fol- lowed by some companies. — P. S. Young, Comptroller, Public Service Corp. of N. J.
If a weekly pay roll ended with, say, Oct. 1, the charge should be separated on the basis of six-sevenths of the pay roll to the month of September and one-seventh to the month of October. This separation should be provided for and properly