HISTORY.

In the fall of 1917 the Washington Chamber of Commerce, perceiving the rapidity with which the war workers were coming to this city, endeavored to compile a list of vacant bedrooms for the purpose of furnishing them with the addresses of suitable living quarters. Publicity was given to this activity by letters to various chambers of commerce throughout the United States.

The applications for rooms grew in volume daily and the Federal Government then became interested in the matter. A room registration office, functioning under the District council of defense, was therefore established at 1321 New York Avenue in the latter part of January, 1918. This office became a part of the government of the District of Columbia on August 21, 1918. On September 17, 1918, the room registration office was taken over by the Bureau of Industrial Housing and its activities were coordinated with those of the Washington committee on equipment of houses and the committee on requisitioned houses.

Incoming war workers might be compared to an assortment of pegs of various shapes and sizes, and it has been the desire and aim of the room registration office to fit those pegs in properly as regards living accommodations. This has not always been an easy problem. The young girl from a small town, who has never before been away from home restraint, nor living in a large city, has been the cause of our greatest difficulty and anxiety.

It has been the constant aim of this office to hold down room and board prices to reasonable levels. Some persons have offered rooms at exorbitant prices, and it was politely suggested to them that their prices were too high. Many of the persons receiving such suggestions modified their prices, but in a number of instances they replied that "if we did not want the room we need not take it," and generally it was not taken.

THE HOUSING SHORTAGE.

Fortunately the supply of rooms at the registration office has never been totally exhausted. Sometimes the supply would get quite low, but prompt steps would then be taken to increase it through a canvass or appeals through the churches, and much has been done in the way of publicity by distributing thousands of posters and handbills and by news items in the local press, the columns of the latter having been cheerfully tendered.

Numerous restrictions were made by householders as to the types of roomers they would receive into their homes. This tended to limit the number of vacant accommodations suitable for any given applicant. Some did not want young women who would raid the family refrigerator, use the family bathtub for laundry purposes, put worn-out garments in toilets, set hot irons on varnished surfaces, monopolize the parlor to the exclusion of the family, return late at night with soldiers and sailors and turkey trot around the parlor to graphophone music, etc., and others would not receive young men who smoked cigarettes, or pipes, or cigars, or who chewed tobacco. Some restricted use of their rooms to Hebrew girls, or men from New York or Catholic girls from Louisiana. The supply of rooms for men was always larger than that for women. Few light housekeeping rooms or apartments were available at any time despite active solicitation for them.

INTRODUCTION.

To the Fiscal Division, the "official financial recorders" of the corporation, fell the lot of keeping a complete and accurate record covering all transactions which involved the disbursement of a $100,000,000 appropriation to provide "housing for war needs." In accordance with section 6 of the act of Congress approved May 16, 1918, the corporation was to furnish a complete detailed report at the beginning of each session of Congress of all moneys disbursed, showing for what purpose they were expended.

SCOPE AND POLICY.

The magnitude of the duties of this division being fully realized, the first step was to prepare a set of instructions and forms detailing the policy under which the corporation was to operate.

Among the problems considered were:

1. The protection and safeguarding of public funds. 2. The collecting of information for the preparation of analytical reports.

3. Provision for simplicity.

4. Provision for elimination of duplication.

5. Departmental cooperation.

In handling problem 1, consultations were held with the Comptroller of the United States Treasury as to the governmental prerequisites for disbursements, and application was made of his knowledge and advice. Forms of contracts, orders, and other sources of authority to purchase were adopted (hereinafter described) to indicate clearly "value received," so for each disbursement made there was thus provided full security for the safeguarding of public moneys.

To cope with problem 2 it was necessary to consider the segregation of costs properly classified, first, with a view to keeping within the allotment assigned for each development; second, to keep abreast with the current costs for the purpose of ready comparisons of estimated costs with actual costs of the construction work. Such segregation was also a means of providing safety against possible extravagance.

Our third problem was to record in a comprehensive analytical manner the necessary data which would fully reflect the operations of the numerous departments of the corporation, and having in mind the scarcity of experienced auditors and accountants it was accordingly determined that the accounting system to be installed should be systematized, thus providing for a simple and uniform method.

The fourth condition, "Elimination of duplication," was given consideration in its broadest sense, first, for utmost efficiency, and secondly, for the conservation of man power, and thirdly, for its saving in a monetary

sense.

The fifth problem, "Departmental cooperation," was one for serious consideration. The Fiscal Division being the pulse of the corporation had direct contact and relationship with each division, each of which desired certain information kept in order to reflect their accomplishments from a financial standpoint, thereby doing away with the necessity of additional clerical hire.

With these conditions given full consideration there was prepared and edited a "Manual of Instructions" with accompanying forms, covering all requirements and detailing in a minute fashion the necessary procedure for all conditions that could be anticipated.

ORGANIZATION.

The second step, and of no less importance, was the obtaining of a competent personnel for the Washington office and the several field offices. The outlook for auditors and accountants was most discouraging. Minds trained for this class of work were in urgent demand. Other departments were offering higher rates of pay than we could conscientiously grant. With the draft as one outlet channel and big business as another, the supply for this class of man power was seriously depleted.

This condition intensified the work of the division by placing an added burden to the acquired staff. With persistency foremost in mind there became even

tually available a limited number of men for executive positions patriotically loaned by prominent contractors and engineers of the country. It then became the task of the division to comb the market for assistants with the hope of securing a number with sufficient basic knowledge of commercialism and to school them as to our methods, system, and requirements. Thus, by this process it was possible to man the several posts and keep the machinery in operation.

The personnel of the division at the peak of its activities consisted of a comptroller, a deputy comptroller, a general auditor, an assistant general auditor, a chief accountant, a head bookkeeper, a chief project auditor, 3 traveling auditors, 2 district auditors, 37 field auditors, 110 assistant field auditors, 11 project auditors, 6 auditors on a contractual relationship, 1 auditor on transportation tariff, 1 auditor on loans to public utility companies, 1 auditor on furnishings and equipment, and the necessary stenographers, typists, and clerks.

The comptroller was charged with the management of the division to see that payments were made promptly and accounts correctly recorded. The deputy comptroller was the chief aid to the comptroller and assumed his responsibilities during his absence.

The general auditor was charged with the responsibility of preparing the "Manual of Instructions" and accounting forms that were used by this division. He organized the various field offices and was responsible for their efficiency and management. He was in charge of auditing all disbursements of both the Washington and field offices. The assistant general auditor was responsible for the complete audit of all real estate purchases, observing that the proper form of contract had been entered into, that the property described in the closing papers was in accordance with the plot diagram submitted, that the price negotiated was paid in like amount, and that the abstracts and deeds conveying title were proper and in order. He also generally assisted the general auditor in legal matters.

The chief accountant was responsible for the system of control accounts and its application; he was in charge of all books and prepared all balance sheets, analytical and financial ststements. He was assisted by a head bookkeeper, assistant bookkeeper, and clerks.

The chief project auditor was charged with complete administrative audit of all payments made in the field. He scrutinized all payments after having ascertained that all were properly supported by the detail of purchase, orders or authority, evidence of receipt, and that the authorized signatures were affixed.

The auditor on hotel and operating accounts (which included commissaries and canteens) visited

the various developments, audited their accounts, and prepared comparative statements of their standing.

The traveling auditor visited the various construction projects, observed their method of management, assisted in increasing efficiency, and in general aided in solving the various problems presented to them by the field auditors in addition to correctly interpreting the instructions.

FIELD ORGANIZATION AND OPERATIONS.

The Fiscal Division was represented in the field offices by a field auditor, who reported to the works superintendent but was in constant communication with the general auditor in the Washington office for advice and guidance. He was furnished a "Manual of Instruction" and forms which clearly defined the procedure for keeping accounts and the authorizing of payments. The entire clerical force of the contractor reported to him. He was aided by assistant auditors who were assigned to the various branches of the field office; i. e., timekeeping, pay roll, purchasing, materials, and bookkeeping to keep an audit abreast with the activities.

The corporation, with a view of economy, did not parallel the contractor's office force for purpose of check. Since the contractor's office force reported to the field auditor through the contractor's office manager, he was able to keep in constant touch with all material matters.

Although the workings of the field office are clearly brought out in the manual, we will take a specific case. to set forth the sequence of an operation:

1. The contractor is about to construct a building. The materials are not on the ground.

2. A bill of material is prepared from blueprints by taking off quantities required.

3. It is presented to works superintendent for his approval as to quantity and grade.

4. Contractor secures competitive bids.

5. Order prepared and issued to lowest responsible bidder.

6. Copies of orders distributed to vendor, field auditor, Fiscal Division, contractor, and Construction Division.

7. Material is received by contractor and checked by assistant auditor.

8. Receiving ticket is filed with corresponding purchase order.

9. Invoice is received, recorded, calculations and extensions checked, and delivered to Materials Department for proof of receipt of material.

10. Material clerk refers to order file, compares bill rendered with receiving ticket to see that it checks for quantity and quality, and further compares invoice rendered with purchase order for check of quantities ordered against those billed and quality