are in excess of the receipts for the corresponding period of last year, by more than $25,000. The accounts receivable and dues receivable are in very good shape.

The outstanding dues and accounts receivable at April 30 amounted to $38,310.50, of which about $9,000 was for the year 1918, $7,000 of which is represented by dues of class B members. Probably all of that amount will have to be charged off, due to the suspension of members' dues, etc., during the period of the

war.

An audit from Mr. Frederick Smith as to the cash accounts and securities owned and in the deposit vault of the Bankers Trust Company is given herewith.

August 11, 1919.

NATIONAL ELECTRIC LIGHT ASSOCIATION

CERTIFICATE OF EXAMINATION

I have examined the books and accounts of The National Electric Light Association for the Administrative Year ended June 30, 1919. During the course of my examination, I have verified the following:

The Balance Sheet is in accordance with the General Ledger and, in my opinion, truly sets forth the financial condition of the Association as at June 30, 1919.

Cash in Bank as shown by Balance Sheet, with Bank Statement of the Bankers Trust Company,

Receipts as shown in Cash Book were all deposited in

Bank.

Disbursements, and the various records covering the same, are supported by vouchers duly approved.

Petty Cash Disbursements, and Petty Cash in the hands of the Chief of the Bureau of Accounts.

Securities owned, and United States Government Liberty Bonds purchased for the account of Staff at Headquarters, in the vault of the Astor Safe Deposit Company. (Signed) FREDERICK SMITH,

Auditor.

I might add that the expenditures during the ten months have been well within the appropriations so far authorized.

Corrected balance to the credit of account June 30, 1918

Surplus for the year transferred from "Income Account"

The President: You have heard the report of the Treasurer. What is your pleasure?

(Moved, seconded and carried that the Treasurer's report be accepted and placed on file.)

The President: The next order of business is the election of the Nominating Committee.

(The following names were placed in nomination and duly seconded: Louis A. Ferguson, Chairman, H. L. Doherty, C. L. Edgar, W. W. Freeman and J. B. McCall.)

(On motion, duly seconded and carried, the nominations were closed and the Secretary was directed to cast one ballot for the gentlemen named.)

nees.)

(Secretary reported that he had cast one ballot for the nomi

The President: The Nominating Committee will report at the Thursday morning session.

We will now have the report of the Membership Committee, which will be submitted by Mr. Walter Neumuller, of New York City.

REPORT OF THE MEMBERSHIP COMMITTEE

The decrease in membership which began soon after the country entered the war, has continued during the last year. It is gratifying to note, however, that whereas the net loss in all classes a year ago amounted to 23 per cent, the decrease last year was less than 15 per cent. A summary of the membership as of April 30, 1919, showing also the gains and losses in the several classes during the period May 31, 1918, to April 30, 1919 (eleven months), follows:

Decrease in membership since May 31, 1918-14.8 per cent.

It will be seen that nearly 94 per cent of this shrinkage occurred in Class B. This loss, though substantial, was considerably less than in the preceding year, as the following figures will show:

COMPARATIVE STATEMENT OF CHANGES IN CLASS "B" MEMBERSHIP

That a considerable reduction in this class should have occurred is not surprising to those who have been in close touch. with the situation. It was but natural that the general curtailment of Association activities during the war period, the abnor

mally great turnover in company personnel and the general diverting of attention of everyone from normal activities to war duties, should have been followed by many defections from our membership. The largest single factor, however, is to be found undoubtedly in the static condition of most of our Company Sections, through which in the past the Class B membership has been largely built up. A census taken by the Committee on Company Sections last January showed that but nineteen out of a total of seventy-three Sections were pursuing activities of any kind whatsoever, while many of the others had entirely disbanded. The causes underlying this condition have been carefully analyzed by the Committee on Company Sections and will be brought to your attention at this Convention.

At its meeting in January, your Committee gave careful consideration and study to a plan presented by Mr. Frank A. Birch, chairman of the Committee on Company Sections, involving the establishing of a new form of limited membership within Company Sections.

It was pointed out that in the past, competitive campaigns for new members had resulted in bringing into the Association many who were not, for the time being at least, in a position to profit from such membership and their interest therefore was of a temporary nature. Mr. Birch's plan contemplated arousing the interest of such central station employees through membership in the local Company Sections in whose activities they will be encouraged to undertake local participation as a first step toward a greater interest in matters of national practice and importance, leading to their taking out N. E. L. A. membership.

The Membership Committee is in accord with this plan and has given its endorsement to the proposed amendment to the Constitution providing for a form of limited membership, which will be submitted to you for action at this Convention.

The losses in Class A are confined almost entirely to companies operating in the smaller cities. Some were lost through consolidations, and, while the Association will be deprived of the revenue represented by the fixed dues of these companies, there should be no corresponding loss in percentage dues.

Co-incident with the announcement of this Convention your Committee began a systematic mail canvass of all non-member